2021
9
UK Soft Drinks Review Market Report 2021
2021-07-23T04:07:23+01:00
OX1046005
2195
140822
[{"name":"Carbonated Soft Drinks","url":"https:\/\/store.mintel.com\/industries\/drinks\/carbonated-soft-drinks"}]
Report
en_GB
“The COVID-19/coronavirus hit the UK soft drinks market; the lockdowns and restrictions leading to loss of high-value on-premise and out-of-home retail occasions with the uptick in at-home occasions failing to…

UK Soft Drinks Review Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Soft Drinks Review market, including the behaviours, preferences and habits of the consumer.

The COVID-19 outbreak forced a sharp lift towards working from home, with many people expected to do more frequently in the future. This increased demand for soft drinks at home will continue to benefit selected soft drink types and formats. The shift towards working from home seen during the coronavirus pandemic saw an increased demand for soft drinks at home.

35% of people think there are not enough soft drinks to cater to adults. Various soft drink brands have established themselves with an adult-focused potitioning. However, the strong sense of a dearth of options suggests that smaller brands, or established ones with a broader target audience, have the opportunity to shake up the category by bringing a sense of newness to it.

The spotlight on sustainability is expected to endure, with 62% of adults citing plastic pollution at among their top five environmental concerns. Soft drinks are often highlighted as key culprits for single-use plastic packaging, as well as bottled water, so continuing to improve their green credentials and drive awareness could prove pivotal for the market to keep consumers on side.

High interest in functional benefits from soft drinks highlights the scope for these to cement their place in people’s diets by offering benefits beyond hydration and flavour. This can go some way towards combatting widespread concerns around sugar. Immune health in particular sparks widespread interest, the topic thrust into the public spotlight by the COVID-19 outbreak.

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 the soft drinks market.
  • Regulation, innovation and attitudes around packaging.
  • Interest in functional benefits by soft drink type.
  • Attitudes related to health and soft drinks.
  • UK soft drink industry overview.
  • Soft drinks manufacturing report.
  • Soft drinks market research reports.

Covered in this report

Brands: Coca-Cola, PepsiCo (Pepsi Max), Red Bull, Lucozade, Monster Energy, Robinsons, Innocent, Fanta, Schweppes, Fever-Tree, Evian, Morrisons, Marks and Spencer (M&S), CPress, Glacéau, Irn Bru, Capri-Sun, Rapscallion Soda, Arla Foods, Britvic, Suntory, Sanpellegrino, Premium Rosa, Erbology, Driftwell, Soulboost, Shloer, Volvic, Young’s, Nutiva, Del Monte, Waitrose, Good Earth, Purearth, Erbavoglio, God Morgen, Belvior, Punchy Peach, Nix & Kix.

Expert analysis from a specialist in the field

This report, written by Angharad Good, a leading analyst in the Drinks sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The COVID-19/coronavirus hit the UK soft drinks market; the lockdowns and restrictions leading to loss of high-value on-premise and out-of-home retail occasions with the uptick in at-home occasions failing to offset this. The outbreak has put a heightened spotlight on sustainability and the nation’s health, accelerating the need for product development to address these to keep consumers on side. Linked to the latter, interest in functional benefits and alcohol moderation hold opportunities for soft drinks.
Angharad Good
Research Analyst

Table of Contents

  1. Overview

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

                • Impact of COVID-19 on soft drinks
                  • Figure 1: Short-, medium- and long-term impact of COVID-19 on soft drinks, 2021
                • The market
                  • Some recovery in 2021 from turbulent 2020
                    • Figure 2: Value of the UK soft drinks market, 2016-21
                  • Easing of restrictions key for recovery
                    • Figure 3: COVID-19 scenario forecasts for the soft drinks market, 2016-26
                  • Mintel’s approach to predicting the impact of COVID-19
                    • All categories take an on-premise hit, some enjoy a retail boost
                      • Figure 4: Soft drinks value sales by category, 2019-20
                    • Progress being made in sugar reduction, new HFSS regulations announced
                      • Deposit return scheme pushed to 2024
                        • Companies and brands
                          • Leading brands see mixed retail performances amidst the COVID-19 storm
                            • Figure 5: Leading brands’ sales in the UK soft drinks retail market, by value, 2019/20-2020/21
                          • Launches are shifting away from plastic packaging
                            • Immunity support and sugar-free claims grow
                              • Ad spend fell by a third in 2020
                                • The consumer
                                  • Pandemic takes a heavy toll on out-of-home sales but boosts at-home demand
                                    • Soft drinks enjoy near-universal usage
                                      • Figure 6: Soft drinks usage, by type, 2018 and 2021
                                    • Soft drinks for the evening interest two in five
                                      • Figure 7: Behaviours related to soft drinks, 2021
                                    • Sugar takes priority over calories for consumers
                                      • Figure 8: Factors that would encourage choosing one soft drink over another, 2021
                                    • Health benefits in soft drinks spark wide interest
                                      • Figure 9: Interest in functional benefits, by soft drink type, 2021
                                    • Unique flavours in on-premise wanted by half
                                      • Figure 10: Attitudes towards soft drinks, 2021
                                  • Issues and Insights

                                    • Unique flavours hold potential as on-premise opens up from COVID-19 measures
                                      • Reassurance on sugar keenly needed; health benefits hold potential
                                        • Accelerating need to drive sustainable packaging NPD and awareness of it
                                        • The Market – Key Takeaways

                                          • Some recovery in 2021 from turbulent 2020
                                            • Easing of restrictions key for recovery
                                              • All categories take an on-premise hit; some enjoy a retail boost
                                                • Progress being made in sugar reduction; new HFSS regulations announced
                                                  • Deposit return scheme pushed to 2024
                                                  • Market Size and Performance

                                                    • COVID-19 highlights market dependency on on-premise
                                                      • Figure 11: Short-, medium- and long-term impact of COVID-19 on soft drinks, 2021
                                                    • Some recovery in 2021 from turbulent 2020
                                                      • Figure 12: Value of the UK soft drinks market, 2016-21
                                                  • Market Forecast

                                                    • Easing of restrictions key for recovery
                                                      • Figure 13: Market forecast for the UK soft drinks report, 2021-26
                                                    • Market drivers and assumptions
                                                      • Figure 14: Key drivers affecting Mintel’s market forecast, 2015-25
                                                    • Forecast methodology
                                                    • COVID-19 Scenario Performance

                                                      • Mintel’s approach to predicting the impact of COVID-19
                                                        • Fundamental differences in how COVID-19 is affecting consumer markets
                                                          • The risk of vaccine-resistant strains of COVID-19 adds uncertainty
                                                            • Figure 15: COVID-19 scenario forecasts for the soft drinks market, 2016-26
                                                          • Extended disruption would slow return to on-premise
                                                            • Vaccine roll-out could drive rapid recovery
                                                              • COVID-19 market disruption: risks and outcomes
                                                                • Figure 16: Summary of Mintel scenario expectations and the impact on the soft drinks market, 2021
                                                            • Market Segmentation and Channels to Market

                                                              • All categories take on-premise hit
                                                                • Some categories enjoy retail boost…
                                                                  • …other struggle, hit by loss of occasions
                                                                    • Figure 17: UK value sales of soft drinks, by category, 2017-20
                                                                • Market Drivers

                                                                  • Government steps up focus on health
                                                                    • Progress being made in soft drink sugar reduction
                                                                      • Deposit return scheme pushed to 2024
                                                                        • Plastic pollution remains a high concern
                                                                          • The ageing population remains a major challenge to the market
                                                                            • Figure 18: Trends in the age structure of the UK population, 2015-25
                                                                        • Companies and Brands – Key Takeaways

                                                                          • Leading brands see mixed retail performances amidst the COVID-19 storm
                                                                            • Launches are shifting away from plastic packaging; rPET is gaining
                                                                              • Immunity support claims grow during COVID-19/coronavirus outbreak
                                                                                • Sugar-free claims grow
                                                                                  • Ad spend fell by a third in 2020
                                                                                  • Market Share

                                                                                    • Leading brands see mixed retail performances amidst the COVID-19 storm
                                                                                      • Figure 19: Leading brands’ sales and shares in the UK soft drinks retail market, by value, 2018/19-2020/21
                                                                                    • Pepsi brands outperform Coca-Cola trio
                                                                                      • Leading energy drink brands achieve impressive growth
                                                                                      • Launch Activity and Innovation

                                                                                        • Launches are shifting away from plastic packaging
                                                                                          • Figure 20: Product launches in the soft drinks market by top 5 packaging materials, 2016-21*
                                                                                        • Recycled PET gains more visibility in bottled water…
                                                                                          • …and beyond
                                                                                            • ‘Endlessly recyclable’ plastic announced by soft drinks groups
                                                                                              • Figure 21: Soft drinks product launches calling out rPET and plant material, 2020-21
                                                                                            • Shift away from plastic shrink wrap on multipacks continues
                                                                                              • Coke personalises and revamps packaging
                                                                                                • Figure 22: Coca-Cola packaging updates, 2020-21
                                                                                              • Immunity support claims grow during COVID-19/coronavirus outbreak
                                                                                                • Figure 23: Product launches in the soft drink market with selected functional claims, 2016-21*
                                                                                              • A handful of launches put ‘defence’ proposition front and centre
                                                                                                • Figure 24: Soft drinks product launches with an immune health claim, 2020-21
                                                                                              • Sugar-free claims grow
                                                                                                • Little progress in sugar content of launches since 2019
                                                                                                  • Figure 25: Share of new sports & energy, water, carbonated soft drinks, fruit drinks and cordials/squashes launches, by sugar content, 2016-21*
                                                                                                • One in five launches make sugar-free claims
                                                                                                  • Figure 26: Share of new sports & energy, water, carbonated soft drinks, fruit drinks and cordials/squashes launches with low and zero-sugar and L/N/R calorie claims, 2016-21*
                                                                                                • Coke and Pepsi launch major caffeine-free variants
                                                                                                  • Figure 27: Soft drinks product launches with no caffeine claims, 2019-21
                                                                                                • New formats and disruptive innovation attract launches
                                                                                                  • Capri-Sun, Innocent and Ribena explore new segments
                                                                                                    • Figure 28: Innocent, Capri-Sun and Ribena launch into new segments, 2020-21
                                                                                                  • Citrus and berry components gain ground in launches
                                                                                                    • Disruptive flavours hope to draw consumer attention
                                                                                                      • Figure 29: Soft drinks product launches with disruptive flavours or colours, 2019-21
                                                                                                    • Coca-Cola launches DTC platform
                                                                                                    • Advertising and Marketing Activity

                                                                                                      • Ad spend fell by a third in 2020
                                                                                                        • Figure 30: Total above-the line, online display and direct mail advertising expenditure on soft drinks, 2019-21*
                                                                                                      • Coca-Cola spotlights taste, supports Zero Sugar reformulation in 2021
                                                                                                        • Figure 31: Total above-the line, online display and direct mail advertising expenditure on soft drinks, by advertiser, 2019-21* (ordered by 2020)
                                                                                                      • Euro 2020 activation finally launched
                                                                                                        • Capri-Sun and Innocent debut new campaigns
                                                                                                          • Consumer attitudes highlighted by Diet Coke, Schweppes and Vimto
                                                                                                            • Diet Coke focuses on ‘Just Because’
                                                                                                              • Schweppes celebrates spirit of resilience
                                                                                                                • Vimto calls on people to ‘Find Your Different’
                                                                                                                  • Pepsi Max invites people to ‘Challenge Your Taste’
                                                                                                                    • Robinsons promises more fruit
                                                                                                                      • Sprite debuts first global campaign
                                                                                                                        • Ribena supports sparkling launch
                                                                                                                          • Nielsen Ad Intel coverage
                                                                                                                          • The Consumer – Key Takeaways

                                                                                                                            • Pandemic takes a heavy toll on out-of-home but boosts at-home demand
                                                                                                                              • Soft drinks enjoy near-universal usage
                                                                                                                                • Soft drinks for the evening interest two in five
                                                                                                                                  • Sugar takes priority over calories for consumers
                                                                                                                                    • Health benefits in soft drinks spark wide interest
                                                                                                                                      • Unique flavours in on-premise wanted by half
                                                                                                                                      • Impact of COVID-19 on Consumer Behaviour

                                                                                                                                        • Pandemic takes a heavy toll on out-of-home
                                                                                                                                          • Closures and restrictions hit on-premise sales of soft drinks
                                                                                                                                            • COVID-19 boosts at-home demand but hits out-of-home occasions through retail
                                                                                                                                              • A heightened focus on the nation’s health
                                                                                                                                                • Health and weight management become higher priorities
                                                                                                                                                  • Intensified focus on health sees consumers make healthier soft drinks choices
                                                                                                                                                    • Sustainable packaging a greater focus for one in five people looking ahead
                                                                                                                                                    • Soft Drinks Usage

                                                                                                                                                      • Soft drinks enjoy near-universal usage
                                                                                                                                                        • Figure 32: Soft drinks usage, by type, 2018 and 2021
                                                                                                                                                      • Usage becomes more frequent
                                                                                                                                                        • Figure 33: Soft drinks usage, by frequency, 2018* and 2021**
                                                                                                                                                      • 25-44s are core users of soft drinks
                                                                                                                                                        • Figure 34: Soft drinks usage, by frequency, by age, 2021
                                                                                                                                                    • Behaviours Related to Soft Drinks

                                                                                                                                                      • Soft drinks for the evening interest two in five
                                                                                                                                                        • Figure 35: Behaviours related to soft drinks, 2021
                                                                                                                                                      • Herbal tea can offer inspiration for ingredients linked to calm
                                                                                                                                                        • Figure 36: Soft drinks products launches with calming claims, 2021
                                                                                                                                                      • Meal pairing holds potential for soft drinks
                                                                                                                                                      • Factors That Would Encourage Choosing One Soft Drink Over Another

                                                                                                                                                        • Sugar takes priority over calories for consumers
                                                                                                                                                          • Figure 37: Factors that would encourage choosing one soft drink over another, 2021
                                                                                                                                                        • Low sugar appeals over calories also in mixers
                                                                                                                                                          • Figure 38: Concepts for soft drinks as mixers/cocktail ingredients, 2021
                                                                                                                                                        • A role for reassurance on naturalness
                                                                                                                                                          • Figure 39: Examples of carbonated soft drink product launches containing sucralose and stevia as sweeteners, 2020-21
                                                                                                                                                        • Environmentally-friendly factors win over a minority
                                                                                                                                                          • Onus to differentiate sits with frontrunners as greener packaging only sways one in four
                                                                                                                                                            • Figure 40: Food products highlighting tangible sustainability impact of packaging, 2020-1
                                                                                                                                                          • Untapped potential for environmentally-friendly product claims
                                                                                                                                                            • Figure 41: Squash and juice drinks products spelling out their sustainability, 2021
                                                                                                                                                        • Interest in Functional Benefits by Soft Drink Type

                                                                                                                                                          • Health benefits in soft drinks spark wide interest
                                                                                                                                                            • Figure 42: Interest in functional benefits, by soft drink type, 2021
                                                                                                                                                          • Gut health can be mined further in soft drinks
                                                                                                                                                            • Few nutrients can make gut health claims
                                                                                                                                                              • Drinks mine live bacteria’s gut health connotations
                                                                                                                                                                • Figure 43: Examples of soft drink product launches spotlighting bacteria, 2021
                                                                                                                                                              • International markets point to botanicals and inulin
                                                                                                                                                                • Figure 44: Examples of international soft drink product launches with gut health claims, 2021
                                                                                                                                                              • Skin health could boost fruit juice and squash
                                                                                                                                                                  • Figure 45: Fruit juice, juice drink and smoothie launches with skin-related benefit claims, 2016-20
                                                                                                                                                              • Attitudes towards Soft Drinks

                                                                                                                                                                • Unique flavours in on-premise wanted by half
                                                                                                                                                                  • Figure 46: Attitudes towards soft drinks, 2021
                                                                                                                                                                • Untapped demand for soft drinks catering to adults
                                                                                                                                                                  • Figure 47: Soft drinks products launches catering to adults, 2021
                                                                                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                  • Abbreviations
                                                                                                                                                                    • Consumer research methodology
                                                                                                                                                                    • Appendix – Central Forecast Methodology

                                                                                                                                                                      • Market forecast and prediction intervals
                                                                                                                                                                        • Figure 48: Market forecast and prediction intervals for sales of soft drinks, 2020-26
                                                                                                                                                                      • Market drivers and assumptions
                                                                                                                                                                        • Figure 49: Key drivers affecting Mintel’s market forecast, 2021-26
                                                                                                                                                                      • Forecast methodology
                                                                                                                                                                      • Appendix – COVID Scenario Performance Methodology and Assumptions

                                                                                                                                                                        • Scenario performance
                                                                                                                                                                          • Figure 50: Scenario performance for sales of soft drinks, 2016-26
                                                                                                                                                                        • Rapid COVID recovery, central and extended COVID disruption scenarios outline
                                                                                                                                                                          • Scenario methodology
                                                                                                                                                                          • Appendix – Launch Activity and Innovation

                                                                                                                                                                              • Figure 51: Product launches in the soft by packaging materials, 2016-21*
                                                                                                                                                                              • Figure 52: Soft drinks product launches by flavour component subgroup, 2016-21*

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