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Carbonated Soft Drinks - UK - June 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Volume and value sales rise in 2018 despite SDIL
Figure 1: UK Value sales of carbonated soft drinks, 2014-24
Volume growth to slow amidst sugar and plastic concerns
Cola retains lead position as volumes fall and prices rise
Figure 2: Retail value and volume sales of carbonated soft drinks, by segment, 2018
Sugar spotlight sets the tone for product development
Summer heatwave cushions impact of SDIL
Plastic waste is thrust into limelight
Companies and brands
Zero-sugar variants continue to drive growth
Figure 3: Leading brand’s shares in the UK retail CSDs market, by value, 2018/19*
Mixer brands see strong growth helped by the buoyant spirits market
SDIL threshold sees rise in lower sugar reformulations
Leading brands explore fruit variants, adult soft drinks look to alcohol cues
Advertising spend continues to rise for a fifth year
Mixer brands seen as highest quality
The consumer
Diet/light drinks have a clear lead on usage
Figure 4: Usage of carbonated soft drinks, by type, April 2019
Opportunities to explore fortification
Figure 5: Interest in product concepts in carbonated soft drinks, April 2019
New flavours can sustain engagement
Figure 6: Attitudes relating to carbonated soft drinks, April 2019
Cooling associations warrant further attention
Figure 7: Qualities associated with a refreshing drink, April 2019
‘Refreshing’ and ‘enjoyable’ are the most common qualities associated with CSDs
Figure 8: Correspondence Analysis of qualities associated with selected soft drinks, April 2019
What we think
ISSUES AND INSIGHTS
Flavour NPD is needed to sustain engagement
The facts
The implications
Cooling and relaxing associations warrant attention as CSDs struggle on refreshing image
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Volume and value sales rise in 2018 despite SDIL
Volume growth to slow amidst sugar and plastic concerns
Cola retains lead position as volumes fall and prices rise
Mixers remain in growth
Sugar spotlight sets the tone for product development
Plastic waste is thrust into limelight
Summer heatwave cushions volume sales
MARKET SIZE AND FORECAST
Value and volume sales rise
Figure 9: UK Value sales of carbonated soft drinks, 2014-24
Volume sales growth to slow after unpredictable 2018
Figure 10: UK Volume sales of carbonated soft drinks, 2014-24
Value sales set to continue upwards
Figure 11: UK volume and value sales of carbonated soft drinks, 2014-24
Forecast methodology
MARKET SEGMENTATION
Cola continues dominance as prices rise and volume falls further
Figure 12: Retail value and volume sales of carbonated soft drinks and adult drinks, by segment, 2016-18
Mixer drinks go from strength to strength
Lemonade volume grows as brands push on zero sugar
MARKET DRIVERS
Focus on sugar bolsters consumer demand for healthier carbonated soft drinks
Soft Drinks Industry Levy came into force in April 2018
PHE publishes sugar reduction goals for juice-based drinks
Soft drink users opt primarily for healthy drinks
Spotlight on plastic waste affects CSDs
Plastic waste attracts mainstream visibility
Deposit return schemes on the cards in England and Scotland
Plastic packaging tax announced for 2022
Plastics Pact
Heatwave boosts CSDs usage in summer 2018
Figure 13: UK total sunshine hours, 2013-18
Efforts to reduce alcohol intake create opportunities for CSDs
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Zero sugar variants continue to drive growth
Coca-Cola remains category leader
Mixer brands see strong growth helped by the buoyant spirits market
SDIL threshold sees rise in lower sugar reformulations
Leading brands continue to explore fruit variants
Adult soft drinks look to alcohol cues
Advertising spend continues to rise for a fifth year
Mixer brands seen as highest quality
MARKET SHARE
No-sugar varieties drive growth for Coke and Pepsi
Coca-Cola retains top position in CSDs
Coca-Cola Zero Sugar sees strongest growth among leading brands
Pepsi Max continues to outgrow other Pepsi variants
Figure 14: Leading brands’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2017/18 and 2018/19
Mixer brands grow amid continued growth in spirits market
Schweppes’ revamp and premium launch propel strong growth
Figure 15: Leading manufacturers’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2017/18 and 2018/19
Appletiser enjoys another year of strong growth
Summer heatwave and marketing support sees J2O back in growth
Figure 16: Leading brands’ sales and shares in the UK retail adult soft drinks market, by value and volume, 2017/18 and 2018/19
LAUNCH ACTIVITY AND INNOVATION
Launches undercutting SDIL threshold rise in 2017 and 2018
Figure 17: Share of carbonated soft drinks launches, by sugar content, 2015-19*
SDIL brings a lesser boost to launches with sugar claims
Figure 18: Carbonated soft drinks launches by low and zero-sugar and L/N/R calorie claims, 2015-19*
Design revamp moves Coke Zero Sugar closer to original variant
7UP Free updates design
Leading brands continue to explore fruit variants
Fanta draws on public opinion for new flavours
Strong demand for newness
Figure 19: Leading brands exploring more fruit flavours, 2018-19
Tango introduces sugar-free range to recruit younger consumers
Figure 20: Tango sugar-free launches, March 2019
Brands further explore adult soft drinks
‘Spritz’ launches drive alcohol adjacency
Figure 21: Shloer Spritzed and Pressed, Appletiser Spritzer, 2019
Perrier + Juice launch targets health-conscious shoppers
Green Monkey claims first UK CBD CSD
Figure 22: Green Monkey CBD drink, March 2019
CCGB launches Signature Mixers range
Figure 23: Coca-Cola Great Britain line of signature mixers, May, 2019
The vast majority of launches call out recyclability
Figure 24: New product launches in the UK carbonated soft drinks market, by the ethical – environmentally friendly package claim, 2015-19
Plastic packaging retains share of launches in 2018
Figure 25: New product launches in the UK carbonated soft drinks market, by package material, 2015-19
ADVERTISING AND MARKETING ACTIVITY
Advertising spend continues to rise
Figure 26: Total above-the line, online display and direct mail advertising expenditure on carbonated soft drinks, by advertiser, 2015-19
Coca-Cola remains highest spender in the category
‘One Way or Another’ ad sees Coke Zero Sugar in red packaging
Diet Coke refreshes brand ethos with ‘Put Perfect on Ice’ ad
Integrated campaign #cokedunks promotes recycling
‘Where Everyone Plays’ ad promotes Premier League affiliation
Coke invests in Christmas with social media and festive flavours
Fanta launches biggest ever campaign for Halloween
Pepsi brings back the taste challenge with Max
Pepsi Max encourages new traditions for Christmas
7UP Free celebrates redesign with ‘Feels Good to be Free’ campaign
Fever-Tree engages on-trade through G&T Pub Garden Campaign
Irn-Bru launches ad to inspire a new generation
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 27: Attitudes towards and usage of selected brands, May 2019
Key brand metrics
Figure 28: Key metrics for selected brands, May 2019
Schweppes and Fever-Tree are deemed to deliver most on quality
Figure 29: Attitudes, by brand, May 2019
Pepsi Max, Diet Coke, Sprite, 7up and Irn-Bru all on a par in perceptions of being fun
Figure 30: Brand personality – Macro image, May 2019
Sprite and 7up are lead associations with refreshment
Figure 31: Brand personality – Micro image, May 2019
Brand analysis
Fever-Tree stands out on sophistication and innovativeness
Figure 32: User profile of Fever-Tree, May 2019
Schweppes wins on trust and has the most traditional image
Figure 33: User profile of Schweppes, May 2019
Pepsi Max just beats Diet Coke on brand satisfaction
Figure 34: User profile of Pepsi Max, May 2019
Diet Coke displays highest brand commitment
Figure 35: User profile of Diet Coke, May 2019
Sprite and 7-up benefit from their connotations with refreshment
Figure 36: User profile of Sprite, May 2019
7up struggles to differentiate from Sprite
Figure 37: User profile of 7up, May 2019
Irn-Bru lacks trust, with question marks over its quality
Figure 38: User profile of Irn-Bru, May 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
Diet/light drinks have a clear lead in usage
Opportunities to explore fortification
New flavours can sustain engagement
Cooling associations warrant further attention
‘Refreshing’ and ‘enjoyable’ are the most common qualities associated with CSDs
USAGE OF CARBONATED SOFT DRINKS
Two in three adults drink CSDs, diet/light variants enjoy a clear lead
Figure 39: Usage of carbonated soft drinks, by type, April 2019
Majority of users drink both non-diet and diet drinks
Figure 40: Crossover in usage of non-diet and diet/light carbonated soft drinks, April 2019
Diet/light variants also lead on usage frequency
Figure 41: Frequency of usage of carbonated soft drinks, by non-diet and diet/light, April 2019
Diet/light stands ahead of sugary on usage across all ages
The most common place to drink CSDs is at home
Figure 42: Usage of carbonated soft drinks, by type, by location, April 2019
20% of people drink diet CSDs at restaurant pubs/bars
INTEREST IN PRODUCT FEATURES 
One in three CSDs users is interested in vitamin/mineral fortification
Figure 43: Interest in product concepts in carbonated soft drinks, April 2019
Lower carbonation appeals to 24%
Hints of spice can help drive interest
Figure 44: Product launches featuring spice as flavour components, UK 2017-18
ATTITUDES TOWARD CARBONATED SOFT DRINKS
Majority don’t feel they can justify home carbonation equipment
Figure 45: Attitudes relating to carbonated soft drinks, April 2019
New flavours can drive continued engagement
Gut health concerns pose a threat to CSDs
Figure 46: CSDs aligning with a gut health proposition, 2018-19
QUALITIES ASSOCIATED WITH REFRESHING DRINKS 
Cooling associations warrant further attention
Figure 47: Qualities associated with a refreshing drink, April 2019
Encouraging a perfectly chilled serve
Figure 48: Coors Light Thermochromic Indicator, UK 2019
Further scope to explore cooling flavours
Figure 49: San Pellegrino lemon and mint and Sprite Ice Mint, 2018-19
Figure 50: Fruit and berry flavoured CSDs with mint, 2017-18
One in four views a refreshing drink as relaxing
Putting relaxation centre stage in marketing
Forging connotations with calm through traditional herbal ingredients
Figure 51: Selected CSD brands referencing relaxation on-pack, 2018-19
Exploring energising qualities beyond caffeine
Figure 52: Selected CSD brands featuring ingredients associated with energy, 2017-18
QUALITIES ASSOCIATED WITH SELECTED SOFT DRINKS 
‘Refreshing’ and ‘enjoyable’ stand out as most common qualities
Figure 53: Correspondence Analysis of qualities associated with selected soft drinks, April 2019
Figure 54: Qualities associated with selected soft drinks, April 2019
Room to grow in providing alcohol alternatives
Methodology
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Figure 55: UK Volume sales of carbonated soft drinks, best-and-worst-case forecast, 2019-24
Figure 56: UK value sales of carbonated soft drinks, best-and-worst-case forecast, 2019-24
Forecast methodology

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