Soft drinks producers face affordability pressures at the same time as new health-driven demand spaces thrive. New models of digital innovation cause category disruption with packaging safety concerns also on the horizon. Retail volume growth slows in important high-income markets, pushing brands to optimise pricing and pack sizes, while the growth of discount retailers and new channels promise to reshape long-term distribution.
This report comes in PPT.
Inflation frustration on the part of consumers and rising costs for suppliers have contributed to declining beverage basket sizes and demand for smaller, lower-price packaging units. Private label and discount brands are gaining share, forcing major brands to optimise pricing, reformulate and craft new affordability strategies to boost both volume and margin.
Tangible health benefits win trial and adoption, despite cost-of-living strain. Functional options, such as hydration powders, gut health sodas and nootropic energy/productivity drinks, are thriving in a tough pricing environment. To sustain a price premium, brands must better communicate value through wellness, using credible claims and influencer networks.
Limited-edition flavours and collaborations, as well as influencer (or simply celebrity) backed launches are a driving force of the non-alcohol industry in 2025. Energy drinks, non-alcoholic beer and hydration “lifestyle” drinks are some of the offerings succeeding this year, with digital-first marketing strategies engaging younger consumers.
Warehouse clubs, discount grocers and informal (or small, independent) outlets continue to gain share at the expense of major supermarket chains in world soft drinks, as geographic mix moves towards lower-income, faster-growth regions. Suppliers adopt channel-specific brand and pricing strategies, meeting new shopping behaviours and sustained affordability concerns.
Consumer awareness of microplastics, BPA, PFAS and other packaging-related health risks is intensifying. The large share of disposable PET packaging from soft drinks will increase scrutiny of packaging toxicity in food and drinks. Safer, transparent and regulatory-compliant packaging material and production is essential, with glass, aluminium and BPA-free plastics gaining traction.
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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