The global carbonated soft drink market is expected to exhibit steady growth in the coming years due to changing consumption patterns of consumers and growing young population. Additionally, rapid urbanization, increasing disposable income, and demand for takeaway products are expected to accelerate market growth. Growing accessibility of new products due to expansion of distribution channels is likely to bode well for the market.
Growing health concerns among consumers are encouraging manufacturers to focus on the development of low-sugar, low-calorie, or diet varieties of beverages. In addition, they are increasingly focusing on the development of products based on natural ingredients and introduction of new and innovative flavors in the market. At present, flavors such as orange, cola, and lemon are gaining traction among consumers. However, players are producing carbonated soft drinks with super or tropical fruits, and combination of flavors to gain traction in the market. Furthermore, increasing demand for craft soda is expected to support market growth in the coming years. Shift in consumer preferences from high sugar content to low sugar or low-calorie products and rising preference for craft soda as an alternative to alcoholic drinks is expected to boost the demand for these types of beverages.
Moreover, development of novel packaging solutions is expected to supplement market growth. Companies are changing packaging and labeling of products as per consumers demand. In addition, they are extensively using creative packaging and labeling procedures to improve brand visibility.
For instance, PepsiCo India introduced a new range of takeaway glass bottles across its entire carbonated beverage portfolio for consumers in Maharashtra. These new glass bottles are designed with the company’s Twist Cap. Customers can now enjoy their favorite carbonated beverages, including Pepsi, Mountain Dew, Pepsi black, 7UP and Mirinda.
However, growing concerns towards obesity due to consumption of sugary drinks can hinder market growth.
Carbonated soft drinks are distributed through various distribution channels, such as food service and drinking places, supermarkets and general merchandisers, vending machine operations, gas stations, and convenience stores. Supermarkets and general merchandisers occupy a prominent share in the market as supermarkets generally offer low process than other stores. In addition, consumers prefer buying products from stores that offer a variety of products. Fast-paced lifestyle and busy schedule are expected to boost the segment’s growth in the years to come. Food service and drinking places are expected to witness notable growth due to increase in the number of fast food outlets and full-service restaurants. Easy use and greater convenience are expected to increase the demand for vending machines in the coming years.
North America holds a prominent share in the market on account of presence of well-established manufactures in the U.S. However, growing concerns towards obesity in the U.S and Mexico, and increase in taxes by the government on sugar-based products is anticipated to limit the growth of carbonated drinks in the region.
Europe is considered to be a mature regional market due to early adoption of soda-based products and emergence of developed nations. Countries, such as Spain, Italy, France, and Germany, are major contributors to regional market growth. Central & South America is anticipated to expand in coming years on account of limited health awareness than other regions and lack of regulatory policies pertaining to sugar-based carbonated soft drinks.
Asia-Pacific is likely to exhibit rapid growth over the forecast period on account of rise in disposable income. Rising young population and changing food habits in countries, such as India, China, Japan, and South Korea can boost regional growth.
Some of the key companies operating in the carbonated soft drink market are Reed’s Inc.; The Coca-Cola Company; Campari-Milano S.p.A.; Nestlé S.A.; and JONES SODA CO.
For instance, Nestlé Waters North America launched a new Regional Spring Water Brand Sparkling product line with ten flavors in new packaging. In addition, they have no added colors, sugar, or sweeteners in them. There are six brands in this product line, such as Poland Spring, Ozarka, Ice Mountain, Deer Park, Zephyrhills, and Arrowhead. These products will be available in cans and sleek vintage glass-like bottles, both printed with fruit graphics.
Research Support Specialist, USA