Top 3 soda industry trends: What will determine the market in the next years 

Today’s topic is about “Top 3 soda industry trends: What will determine the market in the next years.”

This article is helpful for market research, analysis, and business strategies to create successful soda drinks for everyone. 

Let’s invest your precious time in this writing to gain basic knowledge of the soda industry trends right away!

What is a soda drink?

It is nonalcoholic instead of a hard drink

Some people call it soda. Others call it a soft drink, fizzy, soda pop, or simply pop. There is no correct term for sweet carbonated beverage, but it would be incorrect not to understand the linguistic background behind the bubbles. That isn’t to say we do not have a thirst for knowledge.

What is the origin of the term “soft drink”?

The adjective “soft” in soft drinks refers to a soft drink instead of a stiff drink. The beverage isn’t as soft as a pillow. It is nonalcoholic instead of a hard drink, which is a distilled alcoholic beverage.

Bathing in and drinking natural mineral water are both ancient practices. Later on, Arabic chemists experimented with soft-drink concoctions containing crushed fruit, herbs, or flowers.

Soda industry insight

Market Overview

The high popularity of soda drinks among the generation X and y Y age groups

The global carbonated beverages market was worth 406.89 billion USD in 2019 and is expected to rise at a CAGR of 5.1 percent from 2020 to 2027. The high popularity of soda drinks among the generation X and y Y age groups is predicted to play a significant role in increasing market size. 

Consumers prefer such beverages because they have an acidic bite, produce a pleasant tingling sensation, and provide a cooling sensation with each sip. Along with these, the product contains fruit flavors, which increase consumer acceptance of such products. 

A soda beverage is made with clean water, flavoring elements to create a flavor profile, sugar or other sweeteners, artificial flavors, and preservatives designed to be added.

With the introduction of glass bottles, cans, plastic bottles, high-speed packaging lines, and expanding packaging systems, technology has dramatically played a part in the increased consumption of carbonated beverages.

Product Insights

To create freshness, many sports and energy drink manufacturers have added fizz to the beverage

In 2019, soda drinks accounted for more than 50.0 percent of global revenue. Companies have used various strategies to increase the penetration of carbonated beverages and maintain the customer base. New product development is a critical step most businesses have taken to increase their revenue.

Carbonated sports and energy drinks are projected to grow the fastest during the forecast period, with a CAGR of 7.2 percent from 2020 to 2027. To create freshness, many sports and energy drink manufacturers have added fizz to the beverage. 

Noo Fuzion, a new range of carbonated ready-to-drink pre-workout beverages capable of inducing lean muscle growth and having energy-boosting features, was launched by VPX Sports in June 2020.

Flavor Insights

In 2019, cola flavor accounted for 55.8 percent of global revenue. These products have enjoyed a competitive advantage due to being the first to market. 

Furthermore, key manufacturers such as The Coca-Cola Company and PepsiCo are supposed to hold the popularity of the cola flavor segment in the near future by deploying a high level of innovation in the launch of products with zero-calorie and diet-free content.

Fruit-based flavors are expected to grow fastest during the forecast timeframe, with a CAGR of 6.3 percent from 2020 to 2027. 

 Regional Insights

Brazil is one of the region’s significant consumers of carbonated beverages in 2019

In 2019, Central and South America had more than 25.0 percent share. Brazil is one of the region’s significant consumers of carbonated beverages. The region’s young population, combined with the product availability worldwide, is driving up the consumption of carbonated drinks.

From 2020 to 2027, the Middle East and Africa are predicted to have the fastest CAGR of 6.8 percent. The product has been rapidly adopted in the region, with Nigeria and Kenya dominating the industry. 

The market’s rapid growth is being driven by a young population, urban development, expanding financial sectors, and significant manufacturers eyeing the region for product penetration.

Recommended reading: How to start a soda company in 5 steps easy 

3 Remarkable soda drink trends

Active nutrition – You choose what you drink

Botanicals in beverages and dietary supplements attract more consumers 

Gone are the days when people drank liters of high-calorie lemonades and other soft drinks without thinking about it. Today’s soda drinks should not only taste good but also score some points as “functional beverages” with a boost of certain ingredients, including such vitamins or minerals, that support an active and intentional lifestyle as part of a balanced diet.

As said by Euromonitor, “mental health” ranks first in consumer perception of health, with 64%, followed by “feeling good” (61%), “adequate sleep” (59%), “emotional health” (56%), and “keeping a healthy weight” (55%). “Fitness and endurance” are mentioned by 48 percent, “less-stress” by 47 percent, “a healthy appearance” by 45 percent, and “live a long life” by 32 percent.

Soft drinks high content with functional ingredients, including plant-based protein drinks, are particularly popular with athletes and vegetarians. 

Also, special glasses respond to the normal function of digestive enzymes or the maintenance of normal cognitive function, now fit essential requirements of conscious consumers and, to a large extent, determine soft drink trends 2021.

Botanicals in beverages and dietary supplements attract more consumers because natural ingredients with varying functional properties based on the ingredients they contain match the product attributes sought by consumers. They are a constant among the 2021 soft drink trends.

Plant-based additives like oats, various herbs, coconut water, birch water, and milk substitute products in general, as well as new and “old” superfoods like turmeric, beetroot, rose hips, haskap berries, and moringa, will arise more frequently on carbonated drinks ingredient lists in the future!

Taste Experiences: Let yourself be surprised!

Individualization is a megatrend in which people want to experience themselves in all of their facets – and share their thoughts with their community on social media. This “thirst for adventure” does not stop at the food and beverage industry and significantly impacts soft drink trends in 2021.

According to Innova Market Insights, three out of five global consumers want to try new sensory experiences. According to FMCG Gurus, 54 percent of people consider themselves adventurous when it comes to food and drink.

Covid-19 appears to have strengthened the trend because, on the one hand, consumers want to escape daily life in the home office and treat themselves to more culinary breaks at home. On the other hand, the longing for travel destinations that are currently impossible or unreachable is greater than ever.

It is also pretty evident that soda drink trends that target the specific and support for relaxation or the experience of activity such as gaming or sports are becoming more trendy. Furthermore, well-known product types with novel ingredients or nostalgic flavors ensured that the desire was met.

The willingness experiment can also be seen in color and texture, which take the customers on a sensory journey, such as nitrogen-infused coffee in a can. To truly enjoy a sense of adventure, consumers want to try and learn about new textures in new products. However, they also want to preserve the textures that are well known in popular products.

It is consistent with beverages’ impression, texture, and ingredients are increasingly being tailored to different age groups. Soft drinks, for example, are now more and more tailored to the needs of the relevant age group, particularly for children and the elderly.

Mindful Consumption

Modern consumers are willing to pay a higher price for high-quality products

More information is becoming available via the internet, and the growing preoccupation with oneself and environmentally relevant issues means that it is no longer unnecessary where the ingredients originate from.

Modern consumers are willing to pay a higher price for high-quality products that they can purchase with a clear conscience. Short transportation routes and other local, seasonal fruits, plastic reduction, and an understandable, ethically correct, sustainable, and as simple as possible production focus on the increasingly critical consumers’ evaluation. 

Transparency is important in processes and clean labels, and it is becoming even more essential with the introduction of nutri score labeling. According to FMCG Gurus above, 50 percent of global consumers want more information about the source of products than ever before (2020). 

For instance, 47 percent of UK consumers are eager to learn more about the origins of the ingredients in fruit juices, to name just one example.

Recommended reading: Beverage trends 2022: When consumers demand changes

Wrap up

This article is just a simple summary of the top 3 soda industry trends, which will be very helpful for innovators to create completely incredible soda drinks for the beverage industry. 

You can find out more about soda drinks and other beverage trends at the Tan Do blog any time!