Innovations In Soft Drinks: Opportunities In Detox, Anti-energy And Appetite Suppressing Drinks

Soft drinks are non-alcoholic, carbonated as well as non-carbonated beverages and can be classified into seven categories

. The global soft drinks market was valued at $479bn in 2009 and is projected to grow at a CAGR of 3.1% to reach $556bn in 2014. In Western Europe and the US, the soft drinks market is fairly matured, registering a moderate growth rate. Emerging markets such as Russia, China, Brazil and Mexico will play critical role in the development of global soft drinks industry due to rise in purchasing power of middle class population and investment in food and drink supply chain infrastructure. Naturally functional and indulgence are the emerging trends in innovation and NPD in soft drinks market. Ethical concerns are driving innovation and NPD in packaging material and technologies.

The report contains a summary of the important and novel soft drinks launched between 2006 and 2009 as reported by Product Launch Analytics, an in-house database of new product launches in fast moving consumer goods. This report analyzes market data on the value growth of the soft drinks market. Innovation and NPD are analyzed by region and category and emerging market trends are illustrated in the report. Moreover, this report enables manufacturers to identify the emerging trends and growth opportunities in soft drinks.

Key features of this report

Dynamics of the major soft drinks markets during the period 200914.

Key trends, market drivers and resistors to the growth of global soft drinks markets.

NPD and innovation trends in the major soft drinks markets based on the analysis of growth in major categories and sub-categories.

Analysis of innovative new soft drinks launched between 2006 and 2009 from the data sourced from Product Launch Analytics.

Scope of this report

Predict future growth areas in soft drinks based on this reports forecasts to 2014 of market value by category and sub-category in Europe, North America and Asia-Pacific.

Identify key trends that are shaping the soft drinks market and examine the key market drivers to 2014 detailing trends in innovation, packaging and product tags.

Improve the targeting and effectiveness of your NPD strategy using this reports analysis of products launch data of over 6,000 product launched between 200609.

Learn from the NPD and innovations in the global soft drinks markets to replicate their successes effectively in the future growth markets.

Key Market Issues

Health claim regulations The implementation of Article 13 health claim regulations in EU may adversely impact innovations and NPD in soft drinks, as manufacturers will need to bear additional expense for scientifically proving the health claims before launching a new product in the market.

Health concerns in carbonates Consumption of carbonated soft drinks containing HFCS is directly related to health problems such as obesity and diabetes, which is a primary reason for their declining sales in the developed markets such as the US. Soft drinks manufacturers are therefore required to add low calorie sweeteners such as stevia and fortify their products with vitamins and minerals to position them as good-for-health.

Consumers saying no to artificial additives Artificial ingredients such as such as aspartame (artificial sweetener) may cause certain cancers while some permitted artificial colors are associated with hyperactivity and diseases such as ADHD among children. Not only food and drugs authorities, but also consumer groups in the developed markets such as the US and the UK are largely discarding food and drinks containing artificial additives and instead demanding All Natural products.

Biodegradable packaging The soft drinks manufacturers rely heavily on recyclable but non-biodegradable PET bottles. But they are facing regulatory pressure for using biodegradable material in their product package. This shift will increase operating cost of manufacturers and create pressure on their margins.

Key findings from this report

Asia-Pacific recorded the highest number of product launches (growing at a CAGR of 9.0% during 200609) with a share of 33.8% in NPD globally in 2009. Asia-Pacific ranks second only to North America with 31.0% of soft drinks launches made in Asia-Pacific classified as innovative in 2009.

The 100.0% fruit juice (not from concentrate) will register the highest growth among all soft drinks sub-categories during 200914 driven by an increase in consumer preference for natural drinks for their high level of antioxidants and freshness.

Of all the innovative products launched through 200609, 75.3% were innovative in terms of formulation and only 12.3% were innovative in terms of positioning. Health/wellbeing continues to be a key driver of formulation launches.

Bottles have been commonly used for packaging purpose in soft drinks industry through 200609, accounting for a share of 41.0% in all the new launches made globally in 2009. The use of cans as a packaging format in soft drinks has declined ever since the advent of PET bottles.

Among the top 20 tags, private label registered the highest increase in share in 2009, about 2.5 times (2.6 percentage points) over 2006 partly led by recession with consumers trading down and spending more on off-premise consumption. Moreover, own label manufacturers are strategically enhancing the ubiquity of their beverages by penetrating fast food and garage forecourt chains.

Key questions answered

What are the key drivers and resistors to the growth of global soft drinks markets?

What key consumer trends are driving NPD and innovations in soft drinks?

What are the key growth opportunities within the soft drinks market?

What was the market size of the global soft drinks market by value in 2009 and what will be the market size of the global soft drinks market during 200914?

Which soft drinks categories and sub-categories will achieve the highest value growth during 2009-14?

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