2021
9
UK Carbonated Soft Drinks Market Report 2021
2022-01-28T03:10:15+00:00
OX1048609
2195
147418
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Report
en_GB
“The alcohol moderation trend accelerated by the COVID-19 outbreak can be further mined in CSDs, for example through alcohol-inspired flavours and providing more food pairing inspiration. Meanwhile, harnessing the power…

UK Carbonated Soft Drinks Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Carbonated Soft Drinks market report identifies consumer attitudes towards the soft drinks industry, and new product development in the UK. This market report covers the Carbonated Soft Drinks market size, market forecast, market segmentation and industry trends for the Soft Drinks market in the UK.

Current Market Landscape

While carbonated soft drink sales through retail channels enjoyed strong value growth in 2020, this did little to offset the impact of the on-trade’s cataclysmic decline. The COVID-19 pandemic has wiped out more than a quarter of the carbonated soft drinks market’s value in 2020.

  • 61% of drinkers believe the aroma of a carbonated soft drink can make you enjoy it more.
  • Less sweet flavours appeal to 62% of category users, rising to 72% of those aged over 65.

Despite the new wave of lockdowns in early 2021, this year has seen on-trade sales bounce back fairly strongly. This translated to a solid start to the total market’s recovery, with value sales growing by a fifth year on year.

Future Market Trends in Carbonated Soft Drinks

With the upsurge in the ownership of at-home soda makers during the pandemic, competition posed by these now threatens to be a huge disruptive force in the soft drinks landscape. Despite aroma being almost completely overlooked in brand communication, harnessing the power of aroma has marked potential as an area for brands to explore.

The alcohol moderation trend accelerated by the outbreak can be further mined by carbonated soft drink brands, for example through alcohol-inspired flavours and providing more food pairing inspiration. Less sweet flavours could be key to boosting engagement with the older generation while providing a route to sugar reduction that avoids sweeteners.

Read on to discover more details or take a look at all of our UK Drinks market research.

Quickly understand

  • The impact of COVID-19 on consumers and their engagement with smart home technology.
  • Who are the key demographics for smart home products and where marketers should focus efforts for sales growth.
  • What factors shoppers look for in smart home purchases and what themes resonate best with smart home participants.
  • Attitudes toward smart home technology and how consumers perceive the category.

Covered in this report

Brands: The Coca-Cola Company (Schweppes, Fanta, Coca-Cola, Coca-Cola Zero, Diet Coke, Dr Pepper, Appletiser), PepsiCo (Pepsi, Pepsi MAX),  AG Barr (Irn-Bru), SHS Group (Shloer, Bottlegreen), Fever-Tree, Britvic (J2O), Nestlé, Nichols, Cott Beverages, Belvior Fruit Farms, Fentimans, Nexba, Dash Water, Belu, Tango, Soda Folk, Suntory, San Pellegrino.

Expert analysis from a specialist in the field

This report, written by Emma Clifford, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The alcohol moderation trend accelerated by the COVID-19 outbreak can be further mined in CSDs, for example through alcohol-inspired flavours and providing more food pairing inspiration. Meanwhile, harnessing the power of aroma to amplify the all-important enjoyment factor is a missed opportunity. Less sweet flavours could be key to boosting engagement with the older generation while providing a route to sugar reduction that avoids sweeteners.

Emma Clifford
Food and Drink Researcher

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on carbonated soft drinks
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on carbonated soft drinks, 2022
    • The market
    • Sales rebound strongly in 2021 as the on-trade starts to recover
    • Rapid value growth predicted, volumes take longer to return to pre-COVID levels
      • Figure 2: Market forecast for value sales of carbonated soft drinks, 2021-26
    • Companies and brands
    • Coca-Cola Zero is the star performer; Pepsi MAX also outperforms the market
      • Figure 3: Leading brands’ value sales in the UK retail carbonated soft drinks market, 2018/19-2010/21
    • Premium mixers continue to be a hotbed of activity; high levels of flavour NPD
    • Adspend leaps back in 2021
    • The consumer
    • Penetration of CSDs at 79%; extensive crossover in usage of diet and non-diet CSDs
      • Figure 4: Usage of carbonated soft drinks, by type, 2020 and 2021
    • Usage frequency creeps up
      • Figure 5: Frequency of usage of carbonated soft drinks, by type, 2020 and 2021
    • An appetite for added health benefits and less sweet flavours
      • Figure 6: Behaviours relating to carbonated soft drinks, 2021
    • Explore non-concentrate fruit juice in CSDs and cocktail-inspired flavours
      • Figure 7: Interest in product concepts in carbonated soft drinks, 2021
    • Harness the power of aroma and provide more food pairing advice
      • Figure 8: Attitudes towards carbonated soft drinks, 2021
  3. Issues and Insights

    • Harness the power of aroma to enhance the drinking experience
    • The rise of at-home soda-makers should be embraced, not ignored
    • Innovate around less sweet flavours to win over older consumers
    • An added health angle could be a missed opportunity
  4. Market Size and Performance

    • Impact of COVID-19 on carbonated soft drinks
      • Figure 9: Short-, medium- and long-term impact of COVID-19 on carbonated soft drinks, 2022
    • Sales rebound strongly in 2021 as the on-trade starts to recover
      • Figure 10: Market size for carbonated soft drinks, 2016-21
  5. Market Forecast

    • A sharp rebound for the market’s value
      • Figure 11: Market forecast for value sales of carbonated soft drinks, 2021-26
    • Volume sales will take longer to recover
      • Figure 12: Market forecast for volume sales of carbonated soft drinks, 2021-26
    • Market drivers and assumptions
      • Figure 13: Key drivers affecting Mintel’s market forecast, 2015-26
    • Forecast methodology
  6. Market Segmentation and Channels to Market

    • Mixers: the bubble of 2020 bursts
    • Sales of adult soft drinks post double-digit growth
      • Figure 14: Retail value and volume sales of carbonated soft drinks and adult soft drinks, by segment, 2019-21
    • A solid start to the on-trade’s recovery in 2021
      • Figure 15: Total value and volume sales of carbonated soft drinks, by channel, 2019-21
    • The retail channel only saw a small dip in volume sales
  7. Market Drivers

    • A sharp shift to at-home occasions as COVID-19 restrictions hit the on-trade
    • New wave of COVID-19 hinders the on-trade’s recovery
    • COVID-19 renews urgency to tackle obesity crisis
    • Restrictions on volume promotions and ad ban confirmed
    • New legislation on calories labelling in the on-trade
    • Great emphasis on health set to endure …
    • … adding more fuel to the alcohol moderation trend
    • Sustainability continues to rise up the consumer agenda
    • DRS beset by further delays
    • A need to promote the benefits of the DRS
    • Rising inflation putting pressure on household finances
    • Ageing population remains a challenge to the market
      • Figure 16: Trends in UK population, by age, 2015-20 and 2020-25
  8. Market Share

    • Coca-Cola Zero is the star performer
    • Pepsi MAX also outperforms the market
    • Fanta returns to growth
      • Figure 17: Leading brands’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2018/19-2020/21
    • Nestlé’s San Pellegrino brand posts strong growth
      • Figure 18: Leading manufacturers’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2018/19-2020/21
    • Strong performances from J2O and Appletiser
      • Figure 19: Leading bands’ sales and shares in the UK retail adult soft drinks market, by value and volume, 2018/19-2020/21
  9. Launch Activity and Innovation

    • Launches in the lowest sugar content bracket pick up in 2021
      • Figure 20: Share of carbonated soft drinks launches, by sugar content per 100ml, 2016-21
      • Figure 21: Share of Carbonated soft drinks launches by claims related to sugar and calorie content, 2016-21
    • More activity in mixers; premiumisation a key trend
    • Fentimans moves into larger bottles
    • Fever-Tree launches autumnal flavour and collaborates with Monkey Shoulder
      • Figure 22: Launch of Fever-Tree Damson & Sloe Berry Tonic Water, UK, 2021
    • Dash Water, Belu and Nexba foray into mixers
      • Figure 23: Nexba Tonic Waters, UK, 2021
    • Companies respond to heightened demand for new flavours
    • Fanta turns its flavour NPD into a detective game
      • Figure 24: Fanta Zero Sugar Sparkling Low Calorie Fruit Drink with mystery flavour, UK 2021
    • Top brands continue to explore tropical and berry flavours
      • Figure 25: New flavour launches among leading CSD brands, UK, 2021
    • Brands launch limited edition seasonal variants
    • Belvoir adds new cocktail-inspired alcohol alternative
    • Brands harness the power of nostalgia
      • Figure 26: New flavours from Soda Folk, UK, 2021
      • Figure 27: Irn Bru 1901 Sparkling Flavoured Soft Drink, UK, 2021
    • Coca-Cola evolves its core range …
      • Figure 28: Caffeine-free launches, UK, 2021
    • … runs personalisation campaigns …
      • Figure 29: Coca-Cola packaging updates, 2020-21
    • … and launches DTC platform
    • PepsiCo launches SodaStream concentrates for its major brands
    • Sustainability continues to be a key focus
    • The use of recycled PET rises
      • Figure 30: Share of carbonated soft drinks launches, by claims relating to sustainability, 2016-21*
    • ‘Endlessly recyclable’ plastic announced by soft drinks groups
    • 7UP switches to clear plastic to boost recycling rates
    • Fever-Tree mixers become carbon neutral
      • Figure 31: Fever-Tree packaging featuring the Proud To Be Carbon Neutral logo, UK, 2021
    • Launches in glass bottles increases
      • Figure 32: Share of carbonated soft drinks launches, by packaging material, 2016-21
  10. Advertising and Marketing Activity

    • Adspend leaps back in 2021
      • Figure 33: Total above-the line, online display and direct mail advertising expenditure on carbonated soft drinks, 2019-21
      • Figure 34: Total above-the line, online display and direct mail advertising expenditure on carbonated soft drinks, by advertiser, 2019-21
    • Coca-Cola’s adspend rockets in 2021
    • ‘Open That Coca-Cola’ campaign promotes Zero reformulation
    • Euro 2020 activation finally launched
    • Coca-Cola unveils Real Magic global brand platform
    • Sprite targets Gen Z with first ever global campaign
    • Pepsi MAX
    • Pepsi MAX invites people to ‘Challenge Your Taste’
    • Pepsi MAX launches recycled bottle campaign
    • And continues to encourage people to refresh their Christmas
    • Schweppes celebrates the nation’s resilient spirit
    • Fever-Tree teams up with Smirnoff for summer campaign
    • Irn-Bru’s summer campaign celebrates its unique flavour
    • Nielsen Ad Intel coverage
  11. Brand Research

    • Brand map
      • Figure 35: Attitudes towards and usage of selected brands, 2021
    • Key brand metrics
      • Figure 36: Key metrics for selected brands, 2021
    • The leading brands continue to boast impressive awareness and usage
    • Fever-Tree lags behind, but has made progress
    • Brand attitudes: Fever-Tree has the strongest high quality and innovative image
      • Figure 37: Attitudes, by brand, 2021
    • Brand personality: Fanta stands out on fun associations
    • Progress on sustainability looks to be reflected in ethical associations
      • Figure 38: Brand personality – macro image, 2021
    • Schweppes wins on traditional associations; Fever-Tree on sophistication
      • Figure 39: Brand personality – micro image, 2021
  12. Usage of Carbonated Soft Drinks

    • Penetration of CSDs at 79%
    • Overall usage of non-diet and diet/light variants on a par
      • Figure 40: Usage of carbonated soft drinks, by type, 2020 and 2021
    • Extensive crossover in usage of non-diet and diet CSDs
      • Figure 41: Crossover in usage of non-diet and diet carbonated soft drinks, 2021
    • Usage frequency creeps up
      • Figure 42: Frequency of usage of carbonated soft drinks, by type, 2020 and 2021
  13. Behaviours Relating to Carbonated Soft Drinks

    • An added health angle could be a missed opportunity …
      • Figure 43: Behaviours relating to carbonated soft drinks, 2021
    • … although this should be a part of a holistically healthy positioning
      • Figure 44: New CSD launches containing prebiotics, US, 2021
    • A lot of appetite for less sweet flavours
    • Scope to celebrate unrefined sugars as part of a natural proposition
      • Figure 45: Bon Accord Bona-Cola, 2021
    • An upsurge in ownership of at-home soda-makers
    • Brands should follow PepsiCo in embracing this trend
  14. Interest in Product Concepts

    • CSDs containing fruit juice not from concentrate attract strong interest
      • Figure 46: Interest in product concepts in carbonated soft drinks, 2021
    • Cocktail-inspired flavours can capitalise on alcohol moderation
    • CSDs containing hops also offer potential in this space
      • Figure 47: Interest in product concepts in carbonated soft drinks, by usage of carbonated soft drinks, 2021
    • CSDs with lower carbonation appeal to 25% of users
  15. Attitudes towards Carbonated Soft Drinks

    • High awareness of the importance of aroma
      • Figure 48: Attitudes towards carbonated soft drinks, 2021
    • Aroma is a missed opportunity in marketing
    • Scope for aroma to be utilised within sugar reduction
      • Figure 49: Attitudes towards carbonated soft drinks, by usage of carbonated soft drinks, 2021
    • Provide more advice on food pairing
    • Foodservice holds opportunities to push food pairing
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  17. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 50: Market size and forecast for total volume and value sales of carbonated soft drinks, 2016-26
      • Figure 51: Market forecast and prediction intervals for total value sales of carbonated soft drinks, 2021-26
      • Figure 52: Market forecast and prediction intervals for total volume sales of carbonated soft drinks, 2021-26
    • Market drivers and assumptions
      • Figure 53: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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