A soft drink is a nonalcoholic beverage that is usually but not always carbonated and contains a natural or artificial sweetener, edible acids, artificial or natural flavors, and often juice.
New York, June 28, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Soft Drinks Market Size, Share & Industry Trends Analysis Report By Distribution Channel, By Product, By Regional Outlook and Forecast, 2022 – 2028" - https://www.reportlinker.com/p06289291/?utm_source=GNW
Fruits, berries, nuts, herbs, roots, and other plant sources are used to create natural flavors. Soft drinks exclude coffee, tea, milk, chocolate, and undiluted vegetable & fruit juices. To differentiate flavored drinks from hard alcohol, or distilled spirits, the term soft drink was coined. Soft drinks were advised as an alternative in an effort to improve early Americans’ hard-drinking behavior. Indeed, modern consumers’ health concerns prompted the creation of new soft drink categories stressing low calorie, low salt, caffeine-free, and "all-natural" components.
Carbon dioxide gas adds sparkle and tanginess to the beverage while also preventing spoiling. It is delivered to the soft drink producer in either solid (dry ice) or liquid form in massive steel containers under the pressure of around 1,200 pounds per square inch (84 kilograms per square cm). When liquid carbon dioxide is kept refrigerated, lightweight steel containers are employed. The internal pressure in that situation is around 325 pounds per square inch. Cooling the liquid and cascading it in small layers above a set of plates in an enclosure carrying carbon dioxide gas under pressure causes carbonation of either the water or the completed beverage mixture. As the pressure and temperature are increased, the amount of gas that the water would absorb increases. Flavoring syrup is a condensed mixture of a sweetener (sugar or artificial), an acidulant for tartness, flavoring, and, if necessary, a preservative. If the sugar quality is low, such a simple sugar solution could be treated with charcoal and filtered. The remaining ingredients are then combined in an accurate order to create a finished syrup.
Syrups are blended and mixed with plain or carbonated water, containers are washed, and containers are filled almost completely by automatic machinery. Reusable bottles are washed for at least five minutes in hot alkali solutions before being rinsed completely. Before filling, single-service or "one-trip" containers are usually air-rinsed or washed with potable water. Several containers can be filled every minute with automatic fillers.
The outbreak of COVID-19 pandemic have significantly impede the soft drinks market. This is due to complete halt on manufacturing outlets where the soft drinks are produced. As well as the distribution and logistics channel are being hampered by this pandemic. All across the world, a number of festivals, sporting events, exhibitions, and other public gatherings have been canceled. As a result, the entire production and supply chain was disrupted. The market had a sales shortfall as a result of disrupted supply chains and lower demand. In several region, non-alcoholic beverages business, the two cola behemoths today hold a joint market share of significance. The companies either own the production activities or outsource it to third-party bottlers in various parts of the country.
Market Growth Factors
Growing popularity for zero-calorie carbonated drinks
The Ready-to-drink (RTD) soft drinks have grown in popularity as a result of customers’ changing lifestyles. The food and beverage industry’s low-calorie RTD carbonated soft drink market is being upgraded as the need for gluten-free, low-calorie, clean-label, and low-carb products grow. The low-calorie RTD carbonated soft drink industry has grown in response to the growing market for functional beverages and rising consumer health problems. Minimal-calorie RTD beverages with low carbs, reduced artificial sweeteners, and sugar are also available from the company.
Cheaper meals with greater value of fast food joints
The fast-food business is one of the major contributors to the growth of the carbonated soft drink market in several regions. McDonald’s, Domino’s, Pizza Hut, Subway, Burger King, and a slew of other fast food businesses are offering minimum price great value meals. The majority of such meals are served with a beverage, which is usually a soft drink. The reason behind fast food joints serving soft drinks is the prolonged habit of consumers to digest as well as enjoy the food more. It is observed that consuming fast food alone leads to a temporary choke in the food pipe, and when the same fast food is served with a suitable beverage i.e., a soft drink then its taste gets enhanced.
Market Restraining Factors
Government restrictions and growing health issues
The excessive use of soda and sugar in numerous regions within the population are enacting more restrictive rules and regulations, which are limiting the intake of soft drinks. To reduce the usage of carbonated soft drinks, many regional governments have introduced soda and sugar tariffs in order to keep on components included in soft drinks. The soft drinks companies are being hampered by such stringent rules and regulations. Rising public health concerns about the effects of soda use and sugar content, such as diabetes and obesity, are making existing and potential consumers hesitant of consuming the soft drinks.
Distribution Channel Outlook
Based on Distribution Channel, the market is segmented into Hypermarkets & Supermarkets, Convenience Store, Online, and Others. The online segment garnered a significant revenue share in the soft drinks market in 2021. This is because of its simplicity and convenience offered by online channels, people are increasingly turning to online shopping portals and mobile apps for purchasing. Online platforms offer products at lower prices than offline channels. People feel more comfortable while shopping any kind of product on online portal, in current scenario healthy soft drinks as people do not develop the fear of being judged while searching and asking about the product. Also, it is observed that people tend to look and shop more products especially new health centric eatables when shopping medium is online shopping.
Based on Product, the market is segmented into Carbonated and Non-Carbonated. The carbonated segment acquired the highest revenue share in the soft drinks market in 2021. Carbonated beverages are more popular, resulting in increased market growth. To ensure that it has something for everyone, the items are constantly enhanced and reinvented. Flavors, sugar, coloring agents, and sweeteners are among the substances that give the drink its flavor and keep it chilled. Additionally, advances in manufacturing technology, such as mass production lines and enhanced packaging methods, are boosting market revenue.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America emerged as the leading region in the soft drinks market with the largest revenue share in 2021. Early acceptance and well-developed economies, such as the United States and Canada, are boosting market growth. The increased production of soft drinks, as well as expenditures in developing packaging technology and manufacturing assembly lines, are supporting the growing demand for soft drinks. The existence of widely recognized brands in this region, such as Coca-Cola and PepsiCo, will increase industry demand.
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Nestle S.A. is the forerunner in the Soft Drinks Market. Companies such as The Coca-Cola Company, PepsiCo, Inc. and Unilever PLC are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include PepsiCo, Inc., Nestle S.A., The Coca Cola Company, Keurig Dr Pepper, Inc., Monster Beverage Corporation, Ito En, Ltd., Unilever PLC, Red Bull GmbH, AriZona Beverage Company LLC, and Appalachian Brewing Company.
Recent strategies deployed in Soft Drinks Market
Partnerships, Collaborations and Agreement:
Oct-2021: Pepsico came into a partnership with Bally, a gaming, betting, and interactive entertainment company. This partnership aimed to expand PepsiCo’s entertainment and hospitality portfolio with existence in marquee properties in top tourist destinations in the United States, bringing the PepsiCo beverages portfolio- comprising carbonated soft drinks, energy drinks, teas, bottled and sparkling waters, and coffee-based beverages – to more than 14 Bally’s properties over 10 states.
Aug-2021: Ito En formed a partnership with Taiyo International, a pioneer in the research and manufacture of functional ingredients for the food, beverage, and pharmaceutical industries. This partnership aimed to supply high-quality matcha to the food, beverage, and supplement industries in North America. This partnership would offer North American formulators more options for flavor, color, umami and the nutritional profile of the matcha manufacturer are using.
Jul-2021: Nestle joined hands with Starbuck, an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. This collaboration would gain from new growth prospects in a segment that is developing rapidly and bringing new and younger consumers. Through this collaboration, Starbucks would bring its Starbucks RTD coffee drinks to regions like Southeast Asia, Oceania, and Latin America.
May-2021: PepsiCo formed a partnership with FAT Brands, a parent company of nine restaurant concepts. This partnership aimed to provide the best and most modern consumer experiences by improving its restaurants’ variety of delicious dishes with the breadth of beloved brands.
Feb-2021: Monster Beverage came into a partnership with Coca-Cola, a carbonated soft drink manufacturer. This partnership aimed to enable Monster to assume control of Coke’s energy brands and Coke to assume control of Monster’s non-energy brands. The Coca-Cola Company would become Monster’s preferred distribution partner globally and Monster would become The Coca-Cola Company’s exclusive energy play.
Product launches and Product Expansions:
Apr-2022: Coca-Cola unveiled Coca-Cola Zero Sugar Byte, a soft drink giant born in the virtual world. This product launch aimed to bring the flavor of pixels to life in a limited-edition beverage that cut across the digital and physical worlds. Before its limited retail launch, the drink would be available in the metaverse in the video game Fortnite.
Mar-2022: Coca-Cola introduced Fanta’s new flavor, Apple Delite. This product launch aimed to bring a refreshing twist to sparkling apples with the new Fanta Apple Delite. With this new product, consumers in India would be able to relish the refreshing sparkling drink with real apple juice to refresh their body, mind, and spirit.
Mar-2022: Red Bull unveiled Red Bull Summer Edition Strawberry Apricot, the latest addition in the Red Bull Edition series. This product launch would enable consumers to enjoy seasonal mocktails with friends. This new product offers the wings of Red Bull Energy Drink with a special summer taste of strawberry, apricot, and a touch of peach.
Feb-2022: PepsiCo introduced Nitro Pepsi, first-ever nitrogen-infused cola. This product launch aimed to reimage the cola experience with tremendous innovation.
Feb-2022: Nestle expanded its product line with the new Milo Soy. This product expansion aimed to develop a broad array of dairy substitutes made from pea, oat, rice, soy, almonds, and coconut. The new Milo Soy contains approximately 5 grams of protein, calcium, vitamins, and minerals.
Feb-2022: Coca-Cola released two new beverages, Coca-Cola Starlight and Coca-Cola with Coffee Mocha. This product launch aimed to bring space to life with a simple sip, gathering some of the mystery and essence of what consumers love about what lies beyond the atmosphere.
Apr-2021: Nestle introduced a new San Pellegrino Essenza. This product launch aimed to launch caffeinated sparkling water. The new San Pellegrino Essenza comprises 30mg of caffeine per can and contains three flavors – Vanilla & Coffee, Cocoa & Coffee, and Smooth Caramel & Coffee- which are all based on Italian coffee serves.
Sep-2020: PepsiCo introduced a new drink called Driftwell. This product launch aimed to aid consumers to relax and unwind prior to bed along with improving sleep quality and reducing physical symptoms of stress. In addition, Driftwell is an improved water drink containing 200 milligrams of L-theanine, an amino acid that’s found in green and black teas and some mushrooms.
Aug-2020: Nestle expanded its product line with a broad array of plant-based dairy substitutes that are nutritious, great-tasting, and have a favorable environmental essence. This product expansion aimed to provide lactose-free products for lactose-intolerant consumers, or those who adopted a vegan diet, pea-based beverages in a ready-to-drink carton with a paper straw.
Apr-2020: Nestle introduced nesQino, a smart and simple solution. This product aimed to develop wellness that matches the lives of the consumers and allows people to personalize healthy superfood drinks made from 100% natural ingredients, at home or in the office.
Acquisitions and Mergers:
Jun-2020: PepsiCo took over Rockstar Energy Beverages, an energy drink company. This acquisition aimed to enhance PepsiCo’s capabilities to both fasten Rockstar’s performance and unlock the ability to expand in the category with present brands like Mountain Dew.
Apr-2020: Hindustan Unilever Limited (HUL) formed a merger with GlaxoSmithKline Consumer Healthcare Limited (GSKCH). This merger aimed to develop the Foods and Refreshment portfolio into higher-growth segments.
Feb-2022: Coca-Cola expanded its geographical footprint by introducing Coca-Cola Zero Sugar in India. This geographical expansion aimed to strengthen its portfolio in the country by providing reduced sugar drinks.
Scope of the Study
Market Segments covered in the Report:
By Distribution Channel
• Hypermarkets & Supermarkets
• Convenience Store
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• PepsiCo, Inc.
• Nestle S.A.
• The Coca Cola Company
• Keurig Dr Pepper, Inc.
• Monster Beverage Corporation
• Ito En, Ltd.
• Unilever PLC
• Red Bull GmbH
• AriZona Beverage Company LLC
• Appalachian Brewing Company
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