Trends in the US Soft Drink Industry

2014-02-10
Published : Feb-2014

Manufacturers in the soft drink industry will look to provide mixes of energy, flavors, and hydration in order to attract consumers. In 2013, the global soft drinks volumes expanded over 4% and value sales grew by more than 5% with a retail market size of over $531.3 billion dollars. US remained in the top in 2013 as the world’s largest market both in terms of volume and value. Markets such as Mexico, Brazil and China are also growing rapidly. These emerging markets are producing strong demand for local drinks with increase in disposable income and increased consumer confidence. In 2013, the Chinese retail soft drink market totaled $66.5 billion with 15.2% fixed growth. Brazil’s retail soft drink market was valued at $22.5 billion and Mexico’s market was around $28.3 billion. Brazil and Mexico’s market grew by 8.0% and 8.2% respectively.

However, due to health reasons, Americans are scrutinizing their beverages purchases very carefully. Consumers are looking for value added benefits like energy, vitamins, probiotic cultures and customizable flavors. These are the reasons why companies like Mio performed well in 2012. They appealed to consumers’ desire for energy and customization.

According to analysts, sparkled drinks are expected to generate revenue of more than $209 billion in 2014. Globally, the carbonated soft drinks industry is expected to produce over 197 billion liters in 2014. Currently, Coca Cola is the market’s top company and leads the market with 42% market share. Americas represent over 54% of the world market. Other large companies include Pepsi Co, Red Bull and Dr Pepper Snapple.

US generated around $125 billion in sales in 2010. The US soft drinks market is predicted to exceed $127 billion in 2015. The Group of eight which includes Italy, Japan, Canada, France, UK and US generated a combined $291 billion in soft drink sales in 2010. The US leads the group with around 43% of the market share. The group’s soft drink industry is predicted to reach a value of around $310 billion in 2015.

The beverage giants were able to raise prices from time to time to increase the soda revenue as US consumption was steadily growing over the past eight years. But soda sales in US declined by 0.6% in 2012 to $28.7 billion in terms of value and 1.8% in terms of volume.

The US carbonates market remains strong as water and juices markets decline. In the coming years, companies are more likely to concentrate on product innovation to charm consumers back.

Explore latest market research report on US soft drink industry @
http://www.sandlerresearch.org/new-report-on-us-soft-drinks-industry.html

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