According to data from the Ministry of Agriculture, Albanian producers manufactured 30.8 million litres of soft drinks in 2025, representing a 55% decline from 2024, when production reached 68.6 million litres.
The sharp drop marks a significant setback for the domestic manufacturing sector. Apart from the exceptional decline recorded in 2020, when the COVID-19 pandemic and restrictions disrupted economic activity, the sector had already been experiencing a gradual deterioration. Production fell by around 3% in 2022 compared with the previous year, while a modest recovery followed in 2024, when output increased by 4% from 2023.
That recovery proved short-lived, however, as production more than halved in 2025, highlighting the increasingly difficult conditions facing local manufacturers.
Albania’s largest soft drink producers say they are operating with significantly higher production costs than competitors in neighbouring countries and the EU.
This makes it increasingly difficult for domestic companies to compete on price, particularly as imported beverages continue to expand their presence on the Albanian market.
The challenges extend beyond the soft drink industry, with several manufacturing sectors facing pressure from expensive inputs, limited economies of scale and competition from cheaper imported goods.
For local producers, maintaining competitiveness will increasingly depend on reducing production costs, improving efficiency and investing in modern technology, while broader industrial policy could play a role in creating conditions that allow domestic manufacturing to compete more effectively.
The sharp contraction in soft drink production also raises wider concerns about Albania’s industrial capacity, particularly if local companies continue losing market share to imports.
