Still drinks and carbonates sparkle amidst economic gloom
Despite a second year of poor weather and the onset of a global recession, the UK soft drinks market showed resilience in 2008, with a marginal decline of 1.1% to 13,905 million litres, according to the latest report from leading drinks consultancy Zenith International. Consumption per person slipped to 228 litres during the year.
Carbonates continued to claim the largest share, increasing to 42.7% of volume. Still drinks also advanced their share to 8.5%, while dilutables in ready to drink form dipped slightly to 23.4%. Steeper declines were recorded by bottled water and juice/nectars, their shares dropping to 14.8% and 10.6% respectively.
Ã¢â‚¬Å“In addition to health, wellbeing and convenience, concern for the environment and ethical trading have become more important in shaping the UK soft drinks market,Ã¢â‚¬Â commented Zenith Market Intelligence Director Gary Roethenbaugh. Ã¢â‚¬Å“The economic downturn, however, made consumers much more price conscious, with affordable carbonates achieving positive growth, whilst some more premium items such as smoothies fell back.Ã¢â‚¬Â
Based on research conducted in conjunction with the British Soft Drinks Association (BSDA), other findings of the 2009 Zenith Report on UK Soft Drinks include:
- Value for money was the main driving force influencing consumer buying decisions in 2008, followed closely by health, wellbeing, convenience and indulgence.
- Innovation initiatives rose by 8%, with 135 new products, brand extensions and redesigns recorded during the year.
- Whilst natural refreshment continued to be at the core of the industryÃ¢â‚¬â„¢s momentum, consumer demand for tasty treats led to a resurgence in carbonates, with volumes rising 1.7%.
- Promotional activity by brand owners and retailer own labels helped chilled not from concentrate juice maintain growth.
- The top five companies raised their combined share of consumption to 65%.
By 2013, Zenith anticipates that UK soft drinks consumption will reach almost 15,000 million litres and 239 litres per person. Still drinks, dilutables and bottled water are forecast to contribute above average growth.
The 2009 Zenith Report on UK Soft Drinks contains over 180 pages including 69 detailed tables and charts, 59 company profiles, company rankings by sector and a full market commentary. Contact Zenith International on tel +44 (0)1225 327900 or e-mail firstname.lastname@example.org
For further information, please contact:
Gary Roethenbaugh or Natalie Cording, Zenith International Ltd
7 Kingsmead Square w Bath BA1 2AB w United Kingdom
t +44 (0)1225 327900 w f +44 (0)1225 327901