Future strategies for the major industry players are likely to focus upon further removal of sugar and artificial ingredients to address consumer health concerns
(PRWEB) September 10, 2010
In its report, entitled Future success strategies for carbonated soft drinks, just-drinks predicts that during this time, market volume will rise by nearly 8% to 230bn litres. Higher growth is forecast for the sports and energy drinks sector, which is expected to account for 24% of overall market value by 2014.
"Future strategies for the major industry players are likely to focus upon further removal of sugar and artificial ingredients to address consumer health concerns, as well as further experimentation with more novel flavours," the report's author Jonathan Thomas said.
Although it still accounts for a leading 40% volume share of the global soft drinks industry, consumption levels are either static or declining in many parts of the developed world. It is for this reason that many leading suppliers have been targeting emerging economies such as China and India in search of growth.
Consumer health concerns continue to shape corporate strategy, with diet and low-calorie varieties having capturing a 15% share of the global market.
"The industry has moved far beyond simply offering low or reduced-sugar versions of their brands, reformulating their products to include natural rather than artificial additives. Suppliers have also been addressing portion sizes, as well as restricting the availability of their drinks in places such as schools," said Thomas.
The report also looks at the level of innovation in the industry. Although flavours such as cola, orange and lemon continue to dominate the market, consumers are increasingly seeking out more novel and innovative flavours. Examples include flavours based on superfruits and tropical fruits (the former of which carry a certain degree of health appeal), as well as old favourites remembered from yesteryear. Greater fusion of flavours is also occurring, which increases the drink's novelty value while providing a new taste experience.
Multinational suppliers such as Coca-Cola and PepsiCo have also been experimenting with different forms of packaging as part of their strategies. With carbonated drinks suppliers under increasing pressure to face up to environmental obligations, many have been reducing the amount of packaging used, as well as to sourcing materials more responsibly. Other packaging innovations have included experimenting with both larger and smaller containers, as well as developing resealable cans and more convenient closures.
The sports and energy drinks sector continues to grow, and now accounts for just over 20% of the global carbonated soft drinks market. Due to its recent success, many leading suppliers have been keen to increase their presence in the market, as well as developing new varieties offering different benefits to consumers. Suppliers are now experimenting with products marketed as offering mental as well as physical energy, while demand for drinks with calming and relaxation properties is also rising.
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