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UK soft drinks maintain healthy growth

The UK soft drinks market sustained healthy growth in 2006, up 3.6% in volume terms to 14,345 million litres and a retail sales value of £12,860 million, according to the 2007 UK Soft Drinks report from leading drinks consultancy Zenith International. Soaring temperatures last July boosted the market, which saw consumption per person reach 237 litres overall during the year.

Despite a relative decline, carbonates continue to hold the leading share, accounting for 41.8% of total 2006 consumption. Dilutables in ready to drink form were the second largest sector with a 23.4% share, followed by bottled water at 15.9%, fruit juice and nectars at 11.1% and still drinks taking the remaining 7.9%.

"Nature, health and wellbeing are now the key dynamics for consumption growth," commented Zenith Research Director Gary Roethenbaugh. "Smoothies, chilled juice, still juice drinks and bottled water had the greatest momentum in 2006. The industry has placed particular emphasis on water and juice drinks on the go, chilled drink availability and lower to zero calorie carbonates."

Based on research conducted in conjunction with the British Soft Drinks Association (BSDA), findings of Zenith's 2007 UK Soft Drinks report include:

  • Importance of natural refreshment, as smoothies and not from concentrate (NFC) juice rise rapidly – respectively up 58% and 26% in 2006.
  • Fundamental shift away from added sugar, from a dominant 72% share 20 years ago to 39% in 2006, giving low sugar and no added sugar drinks a clear majority now with 61%.
  • Key role of promotions, as chilled juice advanced to a 51% share of juice and as dilutables surpassed all expectations with an 8.1% volume gain.
  • Further consolidation – following Cott's acquisition of Macaw, the top ten UK soft drinks companies accounted for 76% of volume, compared to 72% in 2005.
  • Increase in popularity of functional drinks, especially through the appearance of more superfruits and products with added health ingredients.

The trend towards health and wellbeing should drive continued growth for the UK soft drinks industry. By 2011, Zenith anticipates that total soft drinks consumption will exceed 16,000 million litres and 260 litres per person. Pure juice, still juice drinks and bottled water are expected to lead the way.

The 2007 Zenith Report on UK Soft Drinks contains 160 pages including 65 detailed tables and charts, company rankings by sector and a full market commentary. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com

For further information, please contact:

Gary Roethenbaugh or Natalie Cording, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900, f +44 (0)1225 327901
zenithinternational.com