Table of Contents
Executive Summary
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- The market
- Robust growth in 2018 was fuelled by the hot summer
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- Figure 1: UK soft drinks value sales, 2013-23
- Spotlight on sugar ensures healthiness is on consumers’ radar for soft drinks
- Plastic waste comes into the limelight
- Widespread efforts to curb alcohol intake create opportunities for soft drinks
- Companies and brands
- Coca-Cola retains its unassailable top position
- Industry responds to spotlight on packaging waste
- Sugar and calorie claims climb further
- Functional claims explore health and gut health
- Low-sugar/sugar-free drinks took the lead in adspend in 2018
- Britvic ups support for new adult squash and cordials
- The consumer
- Nearly everyone drinks soft drinks
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- Figure 2: Types of soft drink drunk and tap water drinking in the last month, December 2018
- Recyclable packaging leads in driving a greener image for soft drinks
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- Figure 3: Factors seen to make soft drinks environmentally friendly, December 2018
- Recyclability sparks the strongest associations
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- Figure 4: Perceptions of soft drinks packaging types, December 2018
- Few people see CSDs or squash as flavoursome
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- Figure 5: Perceptions of selected soft drinks, December 2018
- Plastic packaging waste concerns prompt half of users to limit these drinks
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- Figure 6: Attitudes towards soft drinks, December 2018
- Health considerations lead when soft drinks step in for alcohol
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- Figure 7: Factors that would encourage choosing a soft drink instead of an alcoholic drink, December 2018
- What we think
Issues and Insights
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- Concerns over plastic packaging waste are putting users off
- The facts
- The implications
- The onus is on operators to drive awareness of green aspects beyond packaging
- The facts
- The implications
- Health considerations lead when soft drinks vie to step in for alcohol
- The facts
- The implications
The Market – What You Need to Know
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- Robust growth in 2018 was fuelled by the hot summer
- Spotlight on sugar ensures healthiness is on consumers’ radar for soft drinks
- Plastic waste comes into the limelight
- Widespread efforts to curb alcohol intake create opportunities for soft drinks
Market Size and Segmentation
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- Robust growth in 2018 was fuelled by the hot summer
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- Figure 8: UK soft drinks value sales, 2013-23
- Fruit juice/juice drink volume sales hit by sugar concerns
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- Figure 9: UK soft drinks value sales, by category, 2013-23
- Mixed performances in energy drinks, sports drinks enjoy an uplift
- Squash and cordials
- Bottled water
- Carbonated soft drinks
- Forecast methodology
Market Drivers
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- Spotlight on sugar ensures healthiness is on consumers’ radar for soft drinks
- Soft Drinks Industry Levy came into force in April 2018
- Most soft drinks users opt mostly for healthy drinks
- PHE sets sugar reduction targets for juice- and milk-based drinks
- Plastic waste scrutiny extends to soft drinks
- Plastic waste comes into the limelight
- Public water refill points aim to reduce single-use plastic waste
- Deposit return schemes on the cards for England and Scotland…
- …trialled by retailers, drinks companies and Windsor & Maidenhead
- Tax aims to up the use of recycled plastic content
- Drinks makers join Plastics Pact
- 2018 weather provides a boost for many drinks
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- Figure 10: UK sunshine hours, by season, 2013-18
- Widespread efforts to curb alcohol intake create opportunities for soft drinks
Companies and Brands – What You Need to Know
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- Coca-Cola retains its unassailable top position
- Industry responds to spotlight on packaging waste
- Sugar and calorie claims climb further
- Functional claims explore health and gut health
- Low-sugar/sugar-free drinks took the lead in adspend in 2018
- Britvic ups support for new adult squash and cordials
Market Share
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- Coca-Cola retains its unassailable top position
- Original Coke raises prices in response to SDIL
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- Figure 11: Leading brands’ sales in the UK retail soft drinks market, 2016-18
- Diet Coke benefits from brand revamp
- Coke Zero Sugar continues its strong performance
- Leading energy drinks brands enjoy booming growth
- Innocent and Tropicana feel the struggles of the fruit juice market
Start-ups and Disruptors Case Study – Ugly Drinks
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- Company overview
- What is it?
- Founded:
- Company mission statement:
- Founders’ story:
- Mintel analyst view
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- Product information
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- Figure 12: Ugly Drinks product range, February 2019
- Media profile
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- Figure 13: It’s Time For The Ugly Truth, February 2019
- Social media metrics
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- Figure 14: Social media metrics for Ugly Drinks as of February 2019
- The brand’s view
- Revenue in the last year (as of 1st December 2018):
- Sources of funding and support
- Target audience:
- What consumer needs does the range meet?:
- Product stockists
- Looking to the future
Start-ups and Disruptors Case Study – Nix & Kix
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- Company overview
- What is it?
- Founded:
- Company mission statement:
- Founders’ story:
- Mintel analyst view
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- Product information
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- Figure 15: Nix & Kix product range, February 2019
- Media profile
- Social media metrics
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- Figure 16: Social media metrics for Nix& Kix as of February 2019
- The brand’s view
- Sources of funding and support
- Target audience
- What consumer needs does the range meet?
- Product stockists
- Looking to the future
Launch Activity and Innovation
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- Industry responds to spotlight on packaging waste
- Various operators up recycled content in packaging…
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- Figure 17: Evian references 50% recycled plastic on-pack, December 2018
- …and look to partnerships to drive R&D…
- …as well as recycling
- Water brands look to cartons and cans
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- Figure 18: Examples of water packaging highlighting sustainability, 2018
- PET holds its top position in new launches, glass and cans gain
- Lucozade trials Ooho!’s edible packaging
- Sugar and calorie claims climb further
- SDIL sees sustained shift towards lower-sugar launches
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- Figure 19: Share of new sports & energy drinks, water, carbonated soft drinks, fruit drinks and cordials/squashes launches, by sugar content, 2015-18
- Recipe changes fuelled by SDIL do not trigger low-sugar claims
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- Figure 20: Share of new soft sports & energy drinks, water, carbonated soft drinks, fruit drinks and cordials/squashes launches, low and zero-sugar and L/N/R calorie claims, 2014-18
- Less sweet flavours take many forms
- Unsweetened flavoured waters and vegetable ingredients cater to anti-sweet sentiment
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- Figure 21: Examples of drinks with less sweet and vegetable flavours, 2017-19
- Flavoured waters seen as more tasty and exciting than unflavoured
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- Figure 22: Consumer perceptions of soft drinks launches with and without vegetables as a named flavour ingredient, April 2018-February 2019
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- Figure 23: Examples of drinks with vegetable flavours with strong perceptions as tasty, 2018-19
- Hot flavours remain rare
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- Figure 24: Examples of drinks with spice flavours, 2017-18
- Tea offers another means to explore less sweet flavours
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- Figure 25: Examples of drinks with tea flavours, 2018-19
- Modest activity in drinks positioned as alcohol alternatives
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- Figure 26: Examples of drinks positioned as alcohol alternatives, 2018
- Functional claims explore health and gut health
- Pushing an active health positioning with vitamins…
- …and protein and energy
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- Figure 27: Examples of drinks linking with an active health or protein proposition, 2017-18
- Digestive claims draw on traditional ingredients and live bacteria
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- Figure 28: Examples of drinks pushing gut health associations, 2018
- Leading brands continue to explore safe flavour twists
- Colas with flavour twist explore berry flavours
- Fanta looks to grape and Lucozade to apple
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- Figure 29: Examples of drinks launching fruity flavour variants, 2018
Advertising and Marketing Activity
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- Low-sugar/sugar-free drinks took the lead in adspend in 2018
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- Figure 30: Above-the-line, online display and direct mail advertising expenditure on soft drinks, by category, 2015-18
- The leading drinks groups continue to dominate spend
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- Figure 31: Above-the-line, online display and direct mail advertising expenditure on soft drinks, by leading advertisers, 2015-18
- Coca-Cola focuses on taste of Original and Zero Sugar
- Coke highlights its unchanged recipe as Soft Drinks Industry Levy arrives
- Coke Zero Sugar focuses on taste with ‘First taste’ ad
- ‘One way or another’ puts the focus on Coke Zero offering a familiar brand experience
- Updated take on the ‘Diet Coke break’ follows 2018 revamp of the brand
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- Figure 32: Diet Coke ‘Put Perfect on Ice’ ad, January 2019
- Premier League partnership is in Coke ads’ spotlight in 2019
- Coke updates Christmas push with social media campaign
- Ad campaign looks to encourage recycling
- Capri-Sun highlights new 50% less sugar recipe
- Fanta drives online visibility by linking with social media influencers
- Britvic ups support for new adult squash and cordials
- Fruit Creations and Fruit Cordials ad campaigns focus on ‘grown-up’ positioning
- Robinsons Fruit Shoot continues to celebrate children’s passions
- ‘Feel Good to be Free’ campaign supports 7UP Free overhaul
- J2O focuses on social moments
- PepsiCo puts adspend behind Pepsi Max and Tropicana
- Pepsi Max relaunches taste challenge in 2018
- Tropicana Essentials is PepsiCo’s focus in juice drinks
- Lucozade Ribena Suntory steps up support for Lucozade and Ribena
- Lucozade looks to tie-ups and continues “Energy beats everything”
- Ribena offers music gig tickets
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Nearly everyone drinks soft drinks
- Recyclable packaging leads in driving a greener image for soft drinks
- Recyclability sparks the strongest associations
- Few people see CSDs or squash as flavoursome
- Plastic packaging waste concerns prompt half of users to limit these drinks
- Health considerations lead when soft drinks step in for alcohol
Soft Drinks Usage
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- CSDs lead, with fruit juice and squash the closest chasers
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- Figure 33: Types of soft drink drunk and tap water drinking in the last month, December 2018
- Soft drinks usage reflects lifestyle patterns
- Half of users report a daily soft drinks habit
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- Figure 34: Frequency of drinking soft drinks in the last month, December 2018
Factors Seen to Make Soft Drinks Environmentally Friendly
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- Packaging waste is front of mind for consumers
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- Figure 35: Factors seen to make soft drinks environmentally friendly, December 2018
- Recyclability leads in boosting soft drinks’ green image
- Use of recycled material offers a USP among two in five, tax will dilute USP
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- Figure 36: Pooch & Mutt Turkey & Duck Health Food for Adult Dogs packaging with environmental claims, September 2018
- Other green aspects must build awareness
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- Figure 37: The Meatless Farm Co Meat Free Mince with on-pack environmental claims, November 2018
Perceptions of Soft Drinks Packaging Types
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- Environmental issues are top of mind in packaging associations
- Recyclability sparks the strongest associations
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- Figure 38: Perceptions of soft drinks packaging types, December 2018
- Recyclability links closely with low perceptions of environmental baggage
- Recyclability warrants visibility, but so do other environmental aspects
- Glass bottles and aluminium cans have weak image as recyclable among younger groups
Perceptions of Selected Soft Drinks
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- Few people say CSDs are flavoursome, compromising their core appeal
- CSDs show a weak image as flavourful
- Recent flavour NPD looks to be hitting a note
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- Figure 39: Perceptions of selected soft drinks, December 2018
- CSDs’ strong treat image goes with weak everyday perceptions
- 16-24s are the most positive about CSDs
- Squash/cordials trump CSDs on flavour, but just a third hold this view
- Need to elevate flavour image
- Hydration remains a strength to build on for squash/cordials
- Fruit juice/juice drinks have a surprisingly low image as nutritious
- Three in 10 see fruit juice/juice drinks as nutritious
- Recent NPD dials up nutrition through fortification
Attitudes towards Soft Drinks
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- Plastic packaging waste concerns prompt half of users to limit these drinks
- Doubts linger over the green credentials of recycling
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- Figure 40: Attitudes towards soft drinks, December 2018
- Fizzy drinks refill stations appeal widely
- Packaging concerns give only a moderate boost to making fizzy drinks at home
Factors That Would Encourage Choosing a Soft Drink Instead of an Alcoholic Drink
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- Health considerations lead when soft drinks step in for alcohol
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- Figure 41: Factors that would encourage choosing a soft drink instead of an alcoholic drink, December 2018
- A less sweet taste is more important than copying alcoholic drinks
- Relaxing drinks would chime with one in four 18-34s
- Herbal ingredients can help forge links with relaxation
- Various brands push time out from hectic lifestyles in their marketing
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 42: Total UK value sales of soft drinks, best- and worst-case forecast, 2018-23
Appendix – Launch Activity and Innovation
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- Figure 43: Share of new soft sports & energy drinks, water, carbonated soft drinks, fruit drinks and cordials/squashes launches, by package material, 2014-18
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Appendix – Advertising and Marketing Activity
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- Figure 44: Above-the-line, online display and direct mail advertising expenditure on soft drinks, by highest-spending brands, 2015-18
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