2021
9
US Carbonated Soft Drinks Market Report 2021
2021-04-30T04:11:51+01:00
OX1047207
3695
137132
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Report
en_GB
“The CSD market found strong growth during the pandemic, as changed consumer routines shifted the majority of meal and drink occasions to the home and consumers sought comfort and familiarity.

US Carbonated Soft Drinks Market Report 2021

£ 3,695 (Excl.Tax)

Description

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

Even before the pandemic, the largest non-alcoholic beverage category, CSDs, was showing signs of renewal finding modest growth that has top $39B. This growth was largely fueled by innovation that worked to lessen a not so healthy reputation. Changes to daily routines including working and learning from home disrupted meal and drink time have created new opportunities for packaged CSDs and brands have leaned into innovation to help sustain this momentum. Still, the hallmarks of the category reflect its dominance and its growth in 2020: products that deliver on enjoyment, refreshment and nostalgia. While the non-alcoholic beverage industry grows increasingly crowded, brands can remind consumers of why they love CSDs while using innovation to keep consumers treating themselves with CSDs.

2020 will have a lingering impact on consumer routines and behavior despite growing comfort levels and increased outof-home activities. 2021 will be a transitional year, and sales will dip, giving back some of the gains found in 2020. Consumers will slowly return to more normalized behaviors, like more on-premise dining, increased commutes and activities, in addition to a further reinforced consumer focus on building healthier habits. The category will return to a slower growth trajectory that set the stage before 2020 going forward through 2025.

Still, CSDs represent the largest non-alcoholic beverage category, topping $39 billion in sales and with more than 8 in ten consumers participating in the category. Despite a competitive non-alcoholic beverage landscape, the power of brands and the dedication of consumers is clear: more than half of US adults consume CSDs multiple times weekly or more. The key to growing the market will be increased consumption frequency among lighter users. Continued innovation that bridges the gap between consumer interest in wellbeing and indulgence can help aid that initiative.

Read on to discover more details or take a look at all of our US 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.
  • Carbonated soft drink industry analysis.
  • Carbonated soft drink market share.

Covered in this report

Brands: Keurig Dr. Pepper (Dr Pepper, Canada Dry, A&W, 7Up, Diet 7Up, Sunkist, Crush, Squirt, Schweppes, Diet Sunkist), Coca-Cola (Coke, Diet Coke, Coke Zero, Sprite, Sprite Zero, Fresca, Fanta), PepsiCo (Pepsi, Diet Pepsi, Mountain Dew, Diet Mountain Dew), Q Hibiscus, Blue Monkey, La Soleá, Olipop, Remedy, Culture Pop Soda, Gac, Sunqink, Kimino, Petal.

Expert analysis from a specialist in the field

Written by Mimi Bonnett, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Even before the pandemic, the largest non-alcoholic beverage category, CSDs, was showing signs of renewal finding modest growth that has top $39B. This growth was largely fueled by innovation that worked to lessen a not so healthy reputation. Changes to daily routines including working and learning from home disrupted meal and drink time have created new opportunities for packaged CSDs and brands have leaned into innovation to help sustain this momentum. Still, the hallmarks of the category reflect its dominance and its growth in 2020: products that deliver on enjoyment, refreshment and nostalgia. While the non-alcoholic beverage industry grows increasingly crowded, brands can remind consumers of why they love CSDs while using innovation to keep consumers treating themselves with CSDs.

Mimi Bonnett - Director of Food and DrinkMimi Bonnett
Director of Food and Drink

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
    • COVID-19: Market context
    • Economic and other assumptions
    • COVID-19: US context
  2. Executive Summary

    • Top takeaways
    • While a dip in sales predicted for 2021, slow and steady growth beyond
      • Figure 1: Total US sales and fan chart forecast of market, at current prices, 2015-25
      • Figure 2: Total US sales and forecast of carbonated soft drinks, at current prices, 2015-25
    • Impact of COVID-19 on CSDs
      • Figure 3: Short-, medium- and long-term impact of COVID-19 on carbonated soft drinks, March 2021
    • Issue and Opportunities
    • Other beverages are aiming for CSD on all occasions
      • Figure 4: Consumption occasions for carbonated soft drinks and other drinks, January 2021
    • Sugar, health concerns still haunt the category
      • Figure 5: Reasons for decreased CSD consumption, January 2021
    • Medium frequency drinkers are the path to growth
      • Figure 6: Carbonated soft drink consumption frequency, medium users, January 2021
    • Lean into indulgence
      • Figure 7: Carbonated soft drink attitudes, January 2021
    • Target 18-34s with contemporary innovation
      • Figure 8: Interest in carbonated soft drink innovations, by age, January 2021
  3. The Market – Key Takeaways

    • After 2020 growth of almost 8%, growth will drop in in 2021
    • Diet, zero positioning drives the total market
    • Shifting US demographics point to innovation opportunities
    • More functional CSDs and sustainable practices for the long term
  4. Market Size and Forecast

    • 2021 a year of transition; slow and steady growth beyond
      • Figure 9: Total US sales and fan chart forecast of market, at current prices, 2015-25
      • Figure 10: Total US sales and forecast of carbonated soft drinks, at current prices, 2015-2025
    • Impact of COVID-19 on CSDs
  5. Segment Performance

    • Diet CSD segment innovation brings market shift
      • Figure 11: Total US retail sales of carbonated soft drinks, by segment, at current prices, 2018 and 2020
    • Diet to outpace full-calorie growth going forward
      • Figure 12: Total US retail sales and forecast of carbonated soft drinks, by segment, at current prices, 2015-25
      • Figure 13: Total US retail sales and forecast of carbonated soft drinks, by segment, at current prices, 2015-25
    • C-stores flounder, while supermarkets and other thrive
      • Figure 14: Total US sales of carbonated soft drinks, by channel, at current prices, 2018 and 2020
  6. Market Factors

    • Elevated unemployment, low confidence keep consumers conservative
      • Figure 15: US unemployment, January 2007-February 2021
      • Figure 16: US Consumer Confidence, January 2007-January 2021
    • Crowded beverage space remains crowded, blurry
    • COVID-19 obesity diabetes connections will linger
      • Figure 17: Age-adjusted prevalence of diagnosed, undiagnosed and total diabetes among adults aged 18 years or older, US, 2013-16
    • Shifts in population demographics point to challenges and opportunities
      • Figure 18: US Population by generation, 2015–25
  7. Companies and Brands – Key Takeaways

    • Big three CSDs grow sales, Keurig Dr Pepper builds share
    • Diet CSDs soar, led by zero sugar brands
    • Traditional trusted brands and nostalgic, patriotic themes
    • Sophisticated flavors and fruit flavors
    • Appealing to parents with kid-friendly packaging and mini cans
  8. Market Share

    • CSD giants grow sales, but only Keurig Dr Pepper builds share
      • Figure 19: Multi-outlet sales of carbonated soft drinks, by leading companies, rolling 52 weeks, 2020 and 2021
    • Keurig crushes it in the regular CSD segment
      • Figure 20: Multi-outlet sales of full-calorie carbonated soft drinks, by leading companies and brands, rolling 52 weeks 2019 and 2020
    • Diet CSD growth soars, led by zero sugar brands
      • Figure 21: Multi-outlet sales of diet carbonated soft drinks, by leading companies and brands, rolling 52 weeks 2020 and 2021
  9. Competitive Strategies

    • Doubling down on innovation
    • Coca-Cola uses powerful voice to remind consumers to live with hope, unity, activism and kindness
      • Figure 22: Coca-Cola ad, June 2020
      • Figure 23: Coca-Cola ad, June 3, 2020
    • Pepsi aims to lift spirits with fun and laughter
      • Figure 24: Pepsi Zero, February 2021
    • Bringing happy hour home with sophisticated mixers, NABs
      • Figure 25: mixer examples, February 2021
    • Intersection of fun and (gut) function
      • Figure 26: Gut Health CSD examples, February 2021
  10. Market Opportunities

    • Push the boundaries of functional innovation
      • Figure 27: Functional ingredient experience and interest, by generation, December 2020
    • CSDs with sustainable practices, supporting holistic wellness
    • Subscription services and loyalty programs
  11. The Consumer – Key Takeaways

    • More than eight in 10 enjoy CSDs
    • Consumption has grown during the pandemic
    • Concerns about sugar and health linger
    • Flavor trumps price, brand
    • Keep the innovation coming
  12. Carbonated Soft Drinks Purchased

    • Two sugar tales: consumers split on regular and diet/zero
      • Figure 28: Types of carbonated soft drinks purchased, January 2021
      • Figure 29: Repertoire of CSDs purchased, January 2021
    • Men demonstrate broader engagement
      • Figure 30: Types of carbonated soft drinks purchased, by gender, January 2021
      • Figure 31: Repertoire of CSDs purchased, by gender, January 2021
    • Diverse CSD purchase among those aged 18-34
      • Figure 32: Types of carbonated soft drinks purchased, by age, January 2021
      • Figure 33: Repertoire of CSDs purchased, by age, January 2021
    • Overlap between parents and Millennials play out in consumption
      • Figure 34: Types of carbonated soft drinks purchased , January 2021
      • Figure 35: Repertoire of CSDs purchased, by parental status, January 2021
  13. Consumption Frequency

    • More than half of CSD consumers are high frequency drinkers
      • Figure 36: Carbonated soft drink consumption frequency, January 2021
    • 18-34 years olds susceptible to wandering palates
      • Figure 37: Carbonated soft drink consumption frequency, heavy users, January 2021
    • Medium users = opportunity for growth
      • Figure 38: Carbonated soft drink consumption frequency, medium users, January 2021
  14. Change in Carbonated Soft Drink Purchase

    • Pandemic reversed category attrition and created opportunities
      • Figure 39: Change in carbonated soft drink purchase, January 2021
    • Tap into 18-34 year olds to keep the momentum
      • Figure 40: Increased carbonated soft drink purchase, by key demographics, January 2021
  15. Reasons for Purchase Changes

    • The pandemic has encouraged many to indulge at home
      • Figure 41: Reasons for increased CSD purchase, January 2021
    • Women have indulged, while men have explored and expanded usage
      • Figure 42: Reasons for increased CSD purchase, January 2021
    • Unhealthy rep, sugar fuel cut backs
      • Figure 43: Reasons for reduced CSD purchase, January 2021
    • Women reach for water, cut back sugar
      • Figure 44: Reasons for reduced CSD purchase, January 2021
  16. CSDs and Competition

    • Men drink more of a range of beverages beyond CSDs
      • Figure 45: Consumption of other drinks, by gender, January 2021
    • Younger adults are thirsty for innovation beyond CSDs
      • Figure 46: Consumption of other drinks, by age, January 2021
    • Treat parents like individuals too
      • Figure 47: Consumption occasions for carbonated soft drinks, by parental status, January 2021
  17. CSD Occasions

    • CSDs enjoy occasion versatility; so do competitors
      • Figure 48: Consumption occasions for carbonated soft drink and other drinks, January 2021
    • Woman are prime for new occasions
      • Figure 49: Consumption occasions for carbonated soft drinks, by gender, January 2021
    • Those 34-54 consume CSDs at widest range of occasions
      • Figure 50: Consumption occasions for carbonated soft drinks, by age, January 2021
  18. Important features

    • Flavor is prime, followed by price and brand
      • Figure 51: Important CSD features , January 2021
    • Classic tastes
      • Figure 52: TURF Analysis – CSD purchase attributes, January 2021
    • Women reject corn syrup, are more attentive to ingredients
      • Figure 53: Important features when purchasing CSDs, by gender January 2021
    • Sugar concerns creep in with age
      • Figure 54: Important CSD features, by age January 2021
    • Parents prize multi-packs and mini-cans
      • Figure 55: Important CSD features, by parental status, January 2021
  19. Appealing CSD Sweeteners

    • Consumers are not quite sure about sweeteners
      • Figure 56: CSD Sweeteners, January 2021
    • Women stick to sugar, stevia
      • Figure 57: CSD sweeteners, by gender, January 2021
    • Younger consumers want real sugar; 55+ stick with stevia or Splenda
      • Figure 58: CSD sweeteners, by age, January 2021
  20. Carbonated Soft Drink Attitudes

    • Familiar indulgences outrank health, by a sliver
      • Figure 59: Carbonated soft drink attitudes, January 2021
    • Women more likely to see CSDs as unhealthy, limit impulse buys
      • Figure 60: Carbonated soft drink attitudes, by gender, January 2021
    • Those aged 55+ stick to the familiar, limit impulse buys
      • Figure 61: Carbonated soft drink attitudes, by age, January 2021
  21. Interest in CSD Innovations

    • Interest in innovation suggests CSD fans are thirsty for more
      • Figure 62: Interest in carbonated soft drink innovations, January 2021
    • Men drink more CSDs and want more
      • Figure 63: Interest in carbonated soft drink innovations, by gender, January 2021
    • Take innovation aim at 18-34s
      • Figure 64: Interest in carbonated soft drink innovations, by age, January 2021
    • Innovation comes at a price that affluent consumers may be ready to pay
      • Figure 65: Interest in carbonated soft drink innovations, by household income, January 2021
    • Parents embrace innovation in flavor and functionality
      • Figure 66: Interest in carbonated soft drink innovations, by parental status, January 2021
  22. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Direct marketing creative
    • Abbreviations and terms
    • Abbreviations
    • Terms
    • Methodology
  23. Appendix – Market Size

      • Figure 67: Total US retail sales and forecast of carbonated soft drinks, at inflation-adjusted prices, 2015-25
      • Figure 68: Total US retail sales and forecast of carbonated soft drinks, by segment, at current prices, 2015-25
      • Figure 69: Total US retail sales and forecast of regular carbonated soft drinks, at current prices, 2015-25
      • Figure 70: Total US retail sales and forecast of regular carbonated soft drinks, at inflation-adjusted prices, 2015-25
      • Figure 71: Total US retail sales and forecast of diet carbonated soft drinks, at current prices, 2015-25
      • Figure 72: Total US retail sales and forecast of diet carbonated soft drinks, at inflation-adjusted prices, 2015-25
  24. Appendix – Retail Channels

      • Figure 73: Total US retail sales of carbonated soft drinks, by channel, at current prices, 2015-25
      • Figure 74: US supermarket sales of carbonated soft drinks, at current prices, 2015-20
      • Figure 75: US convenience store sales of carbonated soft drinks, at current prices, 2015-20
      • Figure 76: US sales of carbonated soft drinks through other retail channels, at current prices, 2015-20

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.

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