Canadian Vending

Products Beverages
Soft drinks markets demand variety above all: report


July 22, 2015
By Canadian Vending

Topics

London, UK – Buoyed by surging volumes in emerging markets, particularly of bottled water, soft drinks have gained global “share of throat” steadily from 2009-14, according to a Euromonitor International report.

Real possibilities for growth exist in low-income markets, but fierce competition and the massive investment required in production and distribution infrastructure are likely to hamper margins in emerging markets for years to come.

The sales and, more importantly, the profits, that will fund emerging market expansion will continue to come from a core group of wealthy countries, which will continue to drive value sales.

While winning over affluent urbanites in emerging markets will remain an important component of strategy, several categories, most notably bottled water and juice, will continue to face strong competition from unpackaged products.

While consumers in the Middle East, Latin America, Africa, and India all retain a strong preference for sweet beverages, carbonated soft drinks are just one part of the puzzle, with juices in particular set to make strong inroads.

The quest for functionality and flavour has brought categories into closer competition, as energy drinks add flavour, juices add functionality, and so on.