Coca Cola and PepsiCo will continue to dominate theglobal market

With growth of 4.3%, 1998 was the fourth year in a row thatthe global soft drink market surpassed the 4% mark. But the market is likely to grow at aslower rate in the next four years, according to a series of new global soft drink reportspublished by Beverage Marketing Corporation. The industry had a five-year compound annualgrowth rate (CAGR) of 5.0% between 1993 and 1998. But for the five-year periodfrom1998-2003, the CAGR is likely to be only 4%.

The greatest slowdown is expected in South America, wherethe market in carbonated soft drinks enjoyed a very healthy CAGR of 9.0% between 1993 and1998. While that continent should still outperform the global market as a whole, BeverageMarketing foresees only a CAGR of 5.4% for the period between 1998 and 2003. Other strongmarkets should be Asia, with a predicted CAGR of 6.0%, and the Middle East, which isexpected to clock in with a CAGR of 5.6%.

Coke and Pepsi continue to divide the soft drink world,though their reign is far from peaceful. Both of the cola giants outpaced industry growthin 1998. Pepsi-Cola's global output rose 5.2% in 1998, its biggest increase in atleast three years. Pepsi also increased its share to 20.4% of the global market. Coca-Colanotched a 6.0% increase of volume over the previous year. The company sold 15.3 billion192-ounce cases, or 50.6% of the global market. But 1999 was also perhaps the mostdifficult year in the recent memory of the Coca-Cola Company, with major products recallsand charges of anti-competitive practices in Europe, and slumping stock value and adiscrimination suit at home. In its series of just-published reports, Beverage Marketingdiscusses at length Coke and Pepsi's internal strategies, including localization andtactical emphasis on certain countries that promise potential growth in regional share.

While colas are the most important soda flavor on themarket, the strongest growth in the industry is in the non-cola segment. While brand Cokeoutperformed the industry as a whole in 1998, with growth of 4.5%, number two brand Pepsiactually lost market share, growing only 4.1%. The real stars were in the citrus segments,with Coke's lemon-lime flavored Sprite advancing by 9.4% and Pepsi's heavycitrus Mountain Dew growing by a very impressive 10.9%.

For four years now, Beverage Marketing Corporation, theleading supplier of research, consulting and financial services to the global beverageindustries, has issued a series of five reports on the world soft drink market. Examiningthe shifting tastes of the world's soft drink consumers, the reports (North America,South America, Asia/Oceania, Africa/Middle East and Europe) include detailed analysis ofsoft drink trends in flavor, company, brand and diet-vs.-regular by country.

For more information, please call Beverage Marketing at212/688-7640, or visit our website at www.beveragemarketing.com.

Projected Global Soft Drink Market
Volume By Continent
1993 -  2003
Millions of 192-oz Cases
  2003 1993 Volume   Per Capita Gallons Compound Annual Growth
Continent Rank   1998 2003(P) 1998 2003 1993-1998 1998-2003(P)
                 
North America 1 11,388.7 13,355.6 15,638.6 47.54 52.81 3.2% 3.2%
South America 2 2,618.3 4,021.8 5,242.5 16.04 19.52 9.0% 5.4%
Europe 3 5,053.7 6,538.9 7,689.3 12.33 14.44 5.3% 3.3%
Asia 4 2,765.8 3,879.6 5,186.4 1.71 2.14 7.0% 6.0%
Africa 5 731.6 951.3 1,150.4 2.60 2.80 5.4% 3.9%
Middle East 6 683.9 981.3 1,286.1 6.78 7.94 7.5% 5.6%
Oceania 7 367.3 449.2 528.7 19.50 21.53 4.1% 3.3%
                 
Grand Totals 23,609.4 30,177.6 36,721.9 7.81 8.92 5.0% 4.0%
Source: Beverage Marketing Corporation