Premium soft drinks hitting fever pitch
February 22, 2017
After five years of flat volumes, the soft drinks sector is fizzing again.
Consumers are becoming more health conscious and governments are pressurising the industry to cut sugar levels, and this is leading to growth within existing segments such as plain still water as well as a wider range of healthier products, and more specifically ‘functional’ drinks like sports ranges and benefit waters. The other big factor is premiumisation – a trend we’ve been tracking in other areas of consumer goods for some time, and is particularly significant in food and drinks, whether that’s organic snacks or craft beer. Shoppers are looking for higher quality, better ingredients, and a more authentic provenance, and a number of small, agile new entrants to the market are providing it.
These innovative new operators are disrupting the traditional dynamics of the soft drinks market, and posing a significant challenge to the mainstream brands. The retailers are certainly welcoming the new ranges, since they offer much healthier margins, which means the major brands risk being squeezed for shelf and chiller space by these new premium-priced competitors.
We look at how they're responding and what it means for the sector.
Read our full article here.