Competitor Strategies in Soft Drinks

July 2024

In the dynamic global soft drinks market, strategic adaptation and innovation are crucial for industry leaders. Coca-Cola exemplifies this with focused portfolio optimisation and innovation, including digital technologies like AI. This approach highlights resilience amid shifting consumer demands and economic challenges. The report examines how these strategies are developed and employed, and explores broader trends shaping the industry.

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Key findings

Sustainable packaging and product development is a key factor in future strategies

The top companies within soft drinks are coming closer to their sustainability targets. Innovation and investment in sustainable packaging and bottling remain a key priority as consumers continue to highlight unsustainable practices as a key concern. Multinationals have set clear goals to achieve sustainable practices and to eventually become net-zero in their greenhouse gas emissions, while introducing 100% recyclable and recycled packaging and bottled beverages.

Exposure in new markets benefiting from investment and growth in evolving categories

As companies identified new markets with potential demand for new products in terms of flavouring and energy boosting capabilities, increased investment specifically in energy drinks has benefited a few companies in particular, such as Monster Beverage Corp, Red Bull GmbH and PepsiCo with its Rockstar Energy brand. More affordable energy drinks brands in emerging markets particularly are gaining shares on brands that have traditionally dominated the market.

Less sugar and healthier functional beverages remain top of order

As consumer demand shifts more and more towards healthier and functional beverages, traditional carbonates brands have had to innovate by introducing less and no sugar alternatives and updating or revamping their flavouring. Apart from carbonates, sports drinks and energy drinks have been introducing exciting new flavouring combinations highlighted by less or no sugar variants as well as claimed functional benefits for sports drinks and functional beverages alike.

Scope
Key findings
Multinational suppliers maintain overall leadership of a consolidated soft drinks industry
The Coca-Cola Co maintains industry lead, despite a smaller brand portfolio
Coca-Cola Co diversifies its category portfolio, with a new “Creations” marketing approach
Less acquisition activity, but innovation within the core for PepsiCo and Keurig Dr Pepper
Growing share in emerging consumer markets is key to maintaining growth
Growth in energy drinks will propel Monster Beverage into the global top five
Consumers continue to contend with price increases in drinks, even as inflation slows
Higher pricing environment drives growth of warehouse clubs, discounters and private label
Industry overview: SWOT analysis for soft drinks suppliers
The Coca-Cola Company: Trademark brand carbonates still account for majority of volume
PepsiCo: growth for Gatorade and wider hydration portfolio
Advanced hydration emerges as a key growth platform within non-alcoholic drinks
The disruptive potential of celebrity-backed brands within the hydration category
Future competitive landscape: bottled water and energy drinks remain core areas of NPD
Key Takeaways: rest of the year

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

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