Carbonated Soft Drinks

Soft Drinks Target of

Changing Market
n th e fou rth q u arter o f 2017, Coca C ola eke d o u t

I
S T I L L T O P S

a 1% gain in sales o f its ca rb o n a te d soft drinks (CSDs) CSDs in 2016 still

such as Coke, Sprite and Fanta in N orth Am erica, w hile to p p e d th e pack­ Fast Facts:
global volum e sales d ip p e d 1%. aged b e v e ra g e » N ew York City-based market
Still, those kinds o f num bers w o n 't grow the CSD segm ent c a te g o r y w ith an research firm IBISWorld reports
and beverage com panies such as C oke are c o m m ittin g to a v e r a g e - m o n t h ly - th a t the carbonated beverage
noncarbonated beverage products to bolster profits. sales-per-store to ta l segm ent generates ab o u t 19%
"W e 'v e n o tic e d fla vo re d s p a rklin g w a te r is ta k in g o ve r o f $7,639, according o f industry revenue, which
in c o o le r d o o rs and alka lin e P h-balan ced w a te r is b e in g to prelim inary figures to ta le d $44.6 billion in 2017.
noticed at th e c-store le ve l," said N ic o le tte Jaeger, loyalty released in the NACS
and fo o d se rvice m anag e r o f W arrenville, III.-based PRIDE State o f th e Industry » Instead o f regular and d ie t
Stores, w hich has 12 locations in th e C hicago area. "W e do S um m it R eport from sodas, today's more health-con­
see a m ove away from ca rb o n a te d soft drinks, b u t p e o p le A pril 2017. scious consumers are turning
still crave th e classics like Coke and Pepsi." W it h to p c a r­ to b o ttle d w ater and fo rtifie d
Last year, th e convenience channel accounted fo r ab o u t b o n a te d s o ft d rin k beverages w ith natural ingredi
19% o f in d u s try revenu e , w h ich to ta le d $4 4 .6 b illio n in m a n u fa c tu re rs fu r ­ ents to satisfy th e ir thirst
2017. Still, annual g ro w th o f CSDs d e c lin e d 0.4% in 2012 th e r diversifying th e ir
and 2017 and is p ro je cte d to decrease 0.9% betw een 2017 lines and m oving into
and 2022. o th e r beverage arenas, th e segm ent will continue evolving
to suit consum er tastes.
" W h e th e r th e c a te g o r y s to p s h e m o r r h a g ­
ing and w h e th e r C oke and Pepsi take from o th e r
b e ve ra g e s rem ains to be s e e n ," said Tom Pirko,
m a n a g in g d ire c to r, B e vM a rk C o n s u ltin g , Santa
Barbara, Calif. "W e h aven't had these c o m p e titive
dynam ics b e fore, w ith th e tw o b ig g e s t players in
th e w o rld lo o k in g to fin d a way to b rin g consum ­
CSD SHARE SHRINKING ers back in."
B oth C oca-C ola and PepsiC o have launched
In 2017, c a rb o n a te d
n e w m id - c a lo r ie s o d a p r o d u c ts , r e p o r te d
so ft drinks (CSDs) w ere
e stim a te d to a c c o u n t fo r
4 .8% M ix e r s IB IS W orld. In a d d itio n , c ra ft sodas like Pepsi's
S tu b b o rn line are m ore p o p u la r. In 2017, C oca-
51.4% o f in d u stry revenue,
C ola d e b u te d Blue Sky Zero Sugar, a cra ft soda,
a cco rd in g to IBISW orld
and C o ca -C o la Z ero Sugar, fo r co n su m e rs w ho
data. D e m a n d fo r re g u la r
prefer th e taste o f tra d itio n a l sodas, b u t are weary
and d ie t CSDs is a n tic ip a t­ 19.8% o f th e a d d e d sugars and calories.
ed to d e c lin e fu rth e r o v e r D ie t C a r b o n a te d
W ith th e focus on o b e sity and rise in diabetes,
th e n e x t fiv e years, d u e to
51.4%
D r in k s /S p a r k lin g

W a te r th e focus has tu rn e d to h e a lth ie r versions o f car­

g ro w in g health concerns.
Regular b o n a te d b e ve ra g e s th a t have less calo rie s and
Per capita so ft d rin k co n ­
Carbonated h e a lth ie r in g re d ie n t profiles.
s u m p tio n is e x p e c te d to
Soft Drink "T h e re w ill always be cola, le m o n -lim e b e ve r­
d e c lin e at an annua lize d
ages and orange soda in this category," said Pirko.
rate o f 2.5% o v e r th e five
"T h e real issues are w ith th in g s like th e safety o f
years to 2022.
artificial sw eeteners and th e b ig pro d u ce rs ques­
Source: www.IBISWorld.com tio n in g th e ir id e n titie s . These m anufacture rs w ill
turn to o th e r categories to rig h t th e ir ships."

4 2 C o n v e n ie n c e S to re D e c is io n s March 2018 cstoredecisions.com

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