2025
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UK Soft Drinks Industry Review 2025
2025-06-20T06:02:47+00:00
REP8C8A018E_40E6_4618_A4C1_49FFA76AEB6B
2195
183908
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Report
en_GB
Consumers' preference for soft drinks with health benefits over vitamins/supplements is testament to their faith in the 'food as medicine' ethos. This points to strong potential for functional soft drinks…
UK
Drinks
simple

UK Soft Drinks Industry Review 2025

Discover the future of refreshment with Mintel’s UK Soft Drinks Review. A detailed exploration of the UK soft drinks market, this report details the latest trends and consumer preferences driving market dynamics and growth opportunities.

Consumers Want Drinks with Benefits

Consumers’ preference for soft drinks with health benefits over vitamins/supplements is testament to their faith in the ‘food as medicine’ ethos. This points to strong potential for functional soft drinks to find a place within consumers’ everyday health routines. Targeting specific life stages resonates widely and can create standout in the crowded functional space. This also offers a route to boosting engagement with older consumers.

UPFs Lead Industry Challenges

UPF concerns and heightened qualms about artificial sweeteners, combined with many consumers’ desire to avoid drinks that cause blood sugar spikes, present a major challenge for soft drinks other than bottled water. Celebrating the absence of artificial sweeteners would be timely. Less sweet flavours, which address concerns over both sugar and sweeteners while boosting refreshing associations, offer rich potential.

Alcohol Moderation Provides an Opportunity

With soft drinks more appealing as alcohol alternatives than no-/low-alcohol versions, the alcohol moderation movement is a boon for the category. Alcohol-inspired flavours continue to warrant attention, given consumer interest. Beyond this, exploring relaxing ingredients, less sweet flavours and different textures can lean into this trend. Encouraging consumers to elevate their soft drink serves at home can also enhance their role as alcohol replacements.

Key Topics Covered in the Report

  • The impact of the cost of living crisis on value sales of soft drinks
  • Trends in launch activity in soft drinks, and opportunities for further innovation
  • Usage of soft drinks by type, including key demographics
  • Qualities associated with different soft drinks, including opportunities to tap further into the importance of hydration
  • Behaviours relating to soft drinks, including around functionality and their role as alcohol replacements
  • Attitudes towards soft drinks, including concerns around UPFs and artificial sweeteners

About the Report

Report AttributesDetails
Published DateJune 2025
Data Range2019-2029
Consumer Data2,000 internet users aged 16+, March 2025
Market SegmentationCarbonated Soft Drinks, Sports and Energy Drinks, Bottled Water, Cordials and Squashes, Fruit Juice, Juice Drinks and Smoothies, and other RTD Non-carbonates
Leading Brands in UK Soft DrinksCoca-Cola, Red Bull, Pepsi, Monster, Lucozade, Fanta, Innocent, Robinsons, Evian

Meet the Expert Behind the Analysis

This report was written by Emma Clifford. Emma joined the Food and Drink team in June 2012 and is responsible for researching and writing food reports. Before joining Mintel, Emma worked as a marketing information analyst at Marketforce and gained retail experience from her time working as a fashion distributor at Debenhams head office.

Lifestage-specific products and those leveraging ancient wisdom can stand out on functionality. Drinks free from artificial sweeteners can shine amid UPF concerns.

Emma Clifford
Associate Director – Food and Drink

Collapse All
  1. EXECUTIVE SUMMARY

    • Opportunities for the soft drinks market
    • Soft drinks can encroach on the VMS space…
    • …with health benefits targeting specific lifestages and those based on ‘ancient wisdom’ offering potential
    • UPF concerns need to be assuaged
    • Celebrate the absence of artificial sweeteners
    • Lean further into the alcohol moderation trend…
    • …with alcohol-inspired flavours, and beyond
    • Market dynamics and outlook
    • Market size & forecast
    • Market predictions for soft drinks
    • Rising prices will keep values in healthy growth
    • CSDs lose share, bottled water and sports/energy drinks gain
    • Graph 1: total soft drinks values sales, by segment, 2022-24
    • Retail continues to steal share from on-premise
    • Graph 2: total value sales of soft drinks, by channel, 2019-24
    • Own-label is a big winner; bottled water brands enjoy strong growth
    • Graph 3: retail value sales of soft drinks, by leading brands, 2022/23-2024/25
    • Inflation in soft drinks slows
    • Graph 4: CPI annual rate, soft drinks and food, 2019-25
    • DRS rollout and EPR scheme present challenges
    • What consumers want and why
    • CSDs lead in soft drinks usage
    • Graph 5: usage of tap water and soft drinks, by type, 2025
    • Daily drinking is the norm, especially among parents
    • Graph 6: frequency of drinking soft drinks (excluding tap water), 2025
    • Bottled water stands out for its hydration benefits
    • Graph 7: qualities associated with different soft drinks, 2025
    • Soft drinks appeal more as alcohol replacements than low-/no-alcohol versions
    • Graph 8: behaviours relating to soft drinks, 2025
    • UPF concerns influence choice of soft drinks; many see artificial sweeteners as more of a health foe than sugar
    • Graph 9: attitudes towards soft drinks, 2025
    • Innovation and marketing
    • Launch activity with an added health angle is on the rise
    • Graph 10: soft drinks launches featuring functional, plus and vitamin/mineral fortified claims, 2020-25
    • Flavour NPD continues to abound
  2. MARKET DYNAMICS

    • Market size
    • 2019-24 has been a volatile period
    • Graph 11: total value sales of soft drinks, 2019-24
    • Market forecast
    • Rising prices will keep values in healthy growth
    • Value growth driven by inflation, premiumisation and trading up
    • Various factors affect volume growth
    • Market segmentation
    • CSDs lose share over 2022-24
    • Graph 12: share of total soft drink value sales, by segment, 2022-24
    • Graph 13: total soft drinks values sales, by segment, 2022-24
    • Sports/energy drinks and bottled water make gains
    • Channels to market
    • Retail continues to steal share from on-premise venues
    • Graph 14: total value sales of soft drinks, by channel, 2019-24
    • Market share
    • Coca-Cola maintains its lead; bottled water brands enjoy strong uplifts
    • Graph 15: value retail sales of soft drinks, by leading brands, 2022/23-2024/25
    • Own-label is a big winner, although still playing a modest role in the category
    • Pepsi Max was the star performer among the cola brands
    • Market drivers
    • Real wage growth continues, but many consumers are still catching up
    • Graph 16: CPI inflation rate and total pay growth rate, 2021-25
    • Subdued financial wellbeing drives trading down
    • Graph 17: the financial wellbeing index, 2016-25
    • Consumer confidence for the year ahead weakened in 2024
    • Graph 18: the financial confidence index, 2016-25
    • Inflation in soft drinks slows
    • Graph 19: CPI annual rate, soft drinks and food, 2019-25
    • Health-consciousness is expected to rise again when confidence rebounds
    • Graph 20: how often people try to eat healthily, 2018-24
    • Scrutiny on UPFs affects consumers’ soft drinks choices
    • Government measures on HFSS food and drink slow to roll out
    • A largely compliant market can benefit from HFSS restrictions
    • Spotlight on blood sugar is another blow for sugary soft drinks
    • Graph 21: Google searches for blood sugar, 2022-24
    • An extension to the SDIL’s scope is under consultation
    • WHO advises against sweeteners and labels aspartame ‘possibly carcinogenic’
    • Increased alcohol moderation presents opportunities for soft drinks
    • Graph 22: alcohol reduction and non-usage*, 2022-24
    • Interest in sustainability to gain ground as income pressures ease
    • DRS postponed until 2027
    • Barriers to overcome ahead of the DRS rollout
    • The EPR scheme comes into force…
    • …but is met with resistance from businesses
    • The UK’s ageing population warrants attention
    • Graph 23: population, by age, 2020, 2025 and 2030
    • Consumers expect to maintain drinking habits as they age
  3. WHAT CONSUMERS WANT AND WHY

    • Usage of soft drinks
    • CSDs lead in soft drinks usage
    • Graph 24: usage of tap water and soft drinks, by type, 2025
    • Usage of most soft drinks peaks among younger age groups
    • Graph 25: usage of soft drinks, by type, by age group, 2025
    • Daily drinking of soft drinks is the norm, especially among parents
    • Graph 26: frequency of drinking soft drinks (excluding tap water), 2025
    • ‘Struggling/in trouble’ consumers are most frequent soft drinks drinkers
    • Graph 27: frequency of drinking soft drinks, by financial situation, 2025
    • Where soft drinks are purchased
    • In-store channels have a strong lead in soft drinks purchases
    • Graph 28: where soft drinks have been purchased in the last 12 months, 2025
    • Soft drinks underperform online
    • Online and on-premise purchasing is highest among under-35s
    • Graph 29: where soft drinks have been purchased in the last 12 months, by age group, 2025
    • Qualities associated with soft drinks
    • Bottled water stands out for its hydration benefits
    • Graph 30: qualities associated with different soft drinks, 2025
    • Despite emphasis on hydration, many struggle to keep hydrated
    • Other soft drinks can challenge bottled water in hydration
    • Enhanced hydration holds strong appeal among under-35s
    • Premium brands explore enhanced hydration
    • Category blurring creates more accessible enhanced hydration products
    • Hydrating water enhancers offer strong potential
    • Combine enhanced hydration with benefits around related areas of health
    • Big potential in hydration for kids
    • NPD in soft drinks for kids is lacking; a need to make hydration fun for them
    • A need to get parents on board with healthiness
    • Fruit-based drinks and squashes/cordials can build on their hydration associations for kids
    • Graph 31: most popular types of drinks bought for youngest child/stepchild/grandchild in the last month, 2025
    • Give more guidance to boost associations with food pairing
    • CSDs lead the way in food-focused advertising
    • In-store activations put inspiration directly into shoppers’ paths
    • Examples of in-store activations bringing together drinks and food
    • Other ways to target meal times
    • Opportunities for international soft drinks brands
    • Jarritos leverages its authentic Mexican roots to grow a global presence
    • Behaviours relating to soft drinks
    • Soft drinks appeal more as alcohol replacements than low/no alcohol versions
    • Graph 32: behaviours relating to soft drinks, 2025
    • Water is the go-to alcohol alternative; CSDs and juices are also popular options
    • Graph 33: drinks chosen in place of alcohol, by generation, April 2023
    • Alcohol-inspired flavours continue to offer potential
    • Less sweet flavours can boost drinks’ appeal as alcohol alternatives
    • Many ways to boost soft drinks appeal as alcohol replacements beyond flavour
    • Inspire consumers to elevate their serves
    • Functional soft drinks can encroach on the VMS space
    • Call out contribution to daily targets
    • Scope for VMS tie-ups
    • Target specific lifestages to stand out
    • Women’s health has attracted more NPD attention
    • Use ‘ancient wisdom’ to support wellness positioning
    • Harness the excitement and curiosity around on-trend ingredients
    • Attitudes towards soft drinks
    • Artificial sweeteners seen as more of a health foe than sugar by four in 10 adults
    • Graph 34: attitudes towards soft drinks, 2025
    • UPF concerns influence choice of soft drinks…
    • Graph 35: usage of different types of soft drinks, by whether concerns about ultra-processed food and drink have affected drinkers’ choice of soft drinks in the last 12 months, 2025
    • …CSDs in the firing line, juice drinks and tea fare well
    • Heightened concerns about artificial sweeteners, sugar no longer the top health foe for many
    • Alternative sources of sweetness can address UPF concerns
    • UK drinks offer cues on using fruit juice as a USP
    • Brands look beyond fruit juice to create standout
    • Are less sweet flavours the answer to sugar and sweeteners concerns?
  4. INNOVATION TRENDS

    • Launch activity and innovation
    • NPD continues to add elements of mystery to spark interest
    • Coca-Cola continues to spark intrigue through Creations limited-edition offerings
    • Indulgent flavours increase treat associations
    • The indulgent flavour trend includes cross-category collaborations
    • Alcohol-inspired flavours look to capitalise on alcohol moderation
    • Spice is an emerging flavour trend
    • Seasonal launches are up
    • Launch activity with an added health angle is on the rise
    • Graph 36: soft drinks launches featuring functional, plus and vitamin/mineral fortified claims, 2020-25
    • the New brands on the functional scene
    • Immune and digestive health are areas of growth
    • Graph 37: soft drink launches, by functional claim, 2020-25
    • The gut health trend goes from strength to strength
    • More activty in the relaxation space
    • M&S brings the ‘shroom boom’ firmly into the mainstream
    • Collagen also hits the mainstream
    • The shift towards lower sugar content continued in 2024
    • Graph 38: soft drink launches by sugar content per 100ml, 2020-25
    • Influencer-created PRIME explodes onto the market; Evian looks to celebrity collaboration
    • Rebrands continue to drive activity
    • Sustainability and ethical claims ebb
    • Graph 39: soft drink launches, by ethical claims, 2020-25
    • Ethical challenger brands garner standout
  5. APPENDIX

    • Market segmentation
    • Value sales of soft drinks, by type
    • Channels to market
    • Sales of soft drinks, by channel
    • Market share
    • UK: leading brands’ value sales and shares in the retail CSDs market
    • Market forecast data and methodology
    • Value market forecast for soft drinks
    • Market forecast and prediction intervals (value)
    • Forecast methodology
    • Report scope and definitions
    • Abbreviations and terms
    • Market definition
    • Consumer research methodology
    • Infegy Atlas – coverage

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