Romania’s soft drinks and bottled water industry contributes RON 3.74 billion annually to the national economy and nearly RON 1 billion to the state budget through direct taxes, yet it is among the sectors most heavily affected by the fiscal shocks of recent years, according to a new study conducted by the Bucharest University of Economic Studies (ASE) for the National Soft Drinks Association (ANBR).
Successive VAT increases and the introduction of an excise duty on sugar-sweetened beverages have led to workforce reductions, lower business volumes, and significant price hikes for consumers in what had until recently been one of the best-performing segments of the food industry.
Higher consumption taxes are directly reflected in retail prices and disproportionately affect low-income households. Between 2023 and 2024, soft drink prices rose by 32.5%, well above the average increase for food products (17.6%) and overall inflation (16.2%).
Since 2023, the average price of a liter of soft drink has increased by RON 1.2 at the shelf, representing a 25–50% hike depending on packaging size. Although turnover has shown year-on-year growth, volume analysis reveals a significant decline of more than 9.5%, reflecting the impact of fiscal pressures and broader economic challenges.
“The soft drinks and bottled water industry means people, investments, and substantial contributions to the state budget. It is a sector that has grown steadily and invested in modern and sustainable technologies. However, the succession of fiscal shocks in recent years has reduced consumption, delayed investments, and put pressure on jobs. To continue investing in Romania, we need a predictable and non-discriminatory fiscal framework,” said Alice Nichita, President of ANBR.
The data were released alongside the launch of the study “The Socio-Economic Impact of Romania’s Soft Drinks Industry,” conducted by ANBR in partnership with ASE.
The report highlights both the strategic role of the soft drinks and bottled water industry in the national economy and the significant effects of repeated and, in some cases, discriminatory fiscal and regulatory changes.
“The study carried out by the ASE team shows how important the soft drinks industry is for the economy, employment, and the state budget. At the same time, the analysis underlines the cumulative impact of recent fiscal and regulatory changes. The conclusion is clear: fiscal stability and predictability are essential conditions for maintaining a high-performing and competitive industry,” said Prof. Nicolae Istudor, Rector of ASE.
Key industry contributions
According to the study, the soft drinks and bottled water sector is one of the most efficient segments of Romania’s food industry and:
- contributes over 0.6% to Romania’s GDP
- generates RON 3.7 billion in gross value added (2024)
- supports around 10,000 direct jobs and another 60,000 jobs along the value chain
- contributes approximately RON 1 billion annually in direct taxes
- reports full tax compliance, with no tax evasion
- offers salaries above the national average
- helps reduce the trade balance deficit
The study also notes that applying VAT on top of excise duties amplifies price increases for consumers. While excise taxes are easy to collect and provide short-term budget revenues, they also create inflationary pressures, reduce demand, and negatively affect investment and competitiveness.
In conclusion, the industry remains a key growth engine within the beverage sector but is highly sensitive to fiscal shocks, which quickly translate into workforce adjustments and higher consumer prices.
The ASE analysis is based on data from 12 representative companies that account for approximately 94% of the non-alcoholic beverages industry’s total turnover.
