Growth Opportunities in Soft Drinks

The soft drinks industry is a more challenging environment than ever before. While there exists a renewed focus on value for money, consumers continue to demand premium products that meet their health, indulgence and convenience needs. This report highlights best-practice across global markets in meeting this challenge and helps manufacturers to target their NPD budget to the most effective uses.Key trends, market drivers and resistors across the global soft drinks market.Analysis of new soft drinks launched between 2007 and 2011, based on Product Launch Analytics data.Details of NPD and innovation trends in soft drinks across all key geographies and categories.Analysis of how social and economic trends are interacting with innovative NPD in global soft drinks markets.Examples of products that exemplify successful on-trade NPD within the soft drinks market.In developed-world markets, traditional categories such as carbonates are stagnating, while the trend to upselling consumers to premium categories such as energy drinks and smoothies that thrived during the 2000s has been impacted by recession and discretionary consumer spending cuts in many developed economies.The fastest growing drinks category from 2010-2015 will be functional drinks, which will grow at 5.0% per year to reach $61 billion. Bottled water will grow at 4.8% driving the total market to $125 billion, while concentrates will be the third-fastest-growing category at 3.3%.Low or no growth in most western economies is a given for the next three years. In the short term, rising Chinese consumer spending creates opportunities in the beverage sector, but in the long run it is likely to lead to Chinese drinks companies that represent serious competition to existing market players, not just in China but worldwide.Which categories are showing the most product innovation within the soft drinks industry?What are the most important macro-level category trends in soft drinks markets?Which regions will show the strongest growth in soft drinks value and volume sales over the next five years?What are the most significant types of product innovation to take place in soft drinks worldwide?How will economic factors affect product innovation in the soft drinks industry?

Table of contents

EXECUTIVE SUMMARY
•Growth opportunities in soft drinks
•Innovation and new product development
•Consumer trends driving innovation
•The future of innovations in soft drinks
Introduction
•Introduction
•Market definitions
•What this report is about
•Scope of report
Growth opportunities in soft drinks
•Summary
•Introduction
•Market overview
Soft drinks overview by category
Soft drinks overview by region
•Category breakdown
Bottled water
Carbonates
Concentrates
Functional drinks
Juices
RTD tea & coffee
Smoothies
•Major country profiles
Brazil
China
France
Germany
India
Italy
Japan
Russia
?United Kingdom
United States
Innovation & new product development
•Summary
•Introduction
•Major soft drinks NPD trends
Product claim trends
Flavor trends
Packaging trends
Country and regional trends
Innovative products
•Category-level analysis
Bottled water
Carbonates
Concentrates
Functional drinks
Juices
RTD tea & coffee
Smoothies
Consumer trends driving innovation
•Summary
•Introduction
•Austerity will drive closer connections with consumers
Growth of private label and value brands
Mass-premium products are still relevant, although constrained
Mass customization will become an important marketing strategy
Some austerity trends fit better than others with emerging markets
•Health and wellness will continue to be a major trend
Major drinks players are growing the market but cutting prices
New types of functionality can attract non-traditional consumers
Regulation and consumer skepticism will remain obstacles
Health is becoming important in developing markets
•Consumer interest in sustainable products remains strong
Renewable packaging is becoming mainstream
Natural ingredients will become more important across all categories
New packaging types allow delivery of active ingredients
•Convenience remains important, despite economic changes
Functional convenience is a powerful trend overlap
Convenience needs to be balanced against brand image
Convenience is spreading to non-traditional categories and occasions
The future of innovations in soft drinks
•Summary
•Introduction
•Future regional trends
China’s shift towards consumption and global power
India’s slow, painful journey to consumer capitalism
Other developing countries continue to develop
•Future marketing trends
The breakdown of big brands
The blurring of retailer and manufacturer
Personalization will become increasingly important
•Future consumer trends
Demographic positioning is becoming more complex
Novel non-fruit flavors will continue to launch, but will remain unloved
•Future packaging trends
Health concerns will also spread into packaging
New technologies will deliver consumer benefits
Appendix
•Category-level definitions
Carbonates
Concentrates
Functional drinks
Juices
RTD tea & coffee
Smoothies
•Methodology
TABLES
•Table: Global bottled water market by category, 2005-2015
•Table: Global carbonates market by category, 2005-2015
•Table: Global concentrates market by category, 2005-2015
•Table: Global functional drinks market by category, 2005-2015
•Table: Global juices market by category, 2005-2015
•Table: Global RTD tea & coffee market by category, 2005-2015
•Table: Global smoothies market by category, 2005-2015
•Table: Brazil soft drinks market by category, 2005-2015
•Table: China soft drinks market by category, 2005-2015
•Table: France soft drinks market by category, 2005-2015
•Table: Germany soft drinks market by category, 2005-2015
•Table: India soft drinks market by category, 2005-2015
•Table: Italy soft drinks market by category, 2005-2015
•Table: Japan soft drinks market by category, 2005-2015
•Table: Russia v soft drinks market by category, 2005-2015
•Table: United Kingdom soft drinks market by category, 2005-2015
•Table: United States soft drinks market by category, 2005-2015
•Table: Soft drinks new product launches by product claim, 2006-2011
•Table: Soft drinks new product launches by flavor, 2006-2011
•Table: Soft drinks new product launches by packaging type, 2006-2011
•Table: Soft drinks new product launches by country, 2006-2011
•Table: Bottled water new product launches by product claim, 2006-2011
•Table: Bottled water new product launches by flavor, 2006-2011
•Table: Carbonates new product launches by product claim, 2006-2011
•Table: Carbonates new product launches by flavor, 2006-2011
•Table: Concentrates new product launches by product claim, 2006-2011
•Table: Concentrates new product launches by flavor, 2006-2011
•Table: Functional drinks new product launches by product claim, 2006-2011
•Table: Functional drinks new product launches by flavor, 2006-2011
•Table: Juices new product launches by product claim, 2006-2011
•Table: Juices new product launches by flavor, 2006-2011
•Table: RTD tea & coffee new product launches by product claim, 2006-2011
•Table: RTD tea & coffee new product launches by flavor, 2006-2011
•Table: Smoothies new product launches by product claim, 2006-2011
•Table: Smoothies new product launches by flavor, 2006-2011
•Table: Bottled water definitions
•Table: Carbonates definitions
•Table: Concentrates definitions
•Table: Functional drinks definitions
•Table: Juices definitions
•Table: RTD tea & coffee definitions
•Table: Smoothies definitions
FIGURES
•Figure: Global soft drinks value by category ($bn), 2005-2015
•Figure: Global soft drinks volume by category (liters bn), 2005-2015
•Figure: Global soft drinks value & volume growth by category, 2005-10
•Figure: Global soft drinks value & volume growth forecast by category, 2010-15
•Figure: Global soft drinks price growth by category, 2005-2015
•Figure: Global soft drinks value by region ($bn), 2005-2015
•Figure: Global soft drinks volume by region (liters bn), 2005-2015
•Figure: Global soft drinks value & volume growth by region, 2005-2010
•Figure: Global soft drinks forecast value & volume growth by region, 2010-2015
•Figure: Global soft drinks price growth by region, 2005-2015
•Figure: Soft drinks value growth by major country, 2005-2015
•Figure: Soft drinks volume growth by major country, 2005-2015
•Figure: Soft drinks price growth by major country, 2005-2015
•Figure: Coca-Cola’s Minute Maid Pulpy was developed in China and rolled out worldwide
•Figure: Soft drinks new product launches by category, 2006-2011
•Figure: Word cloud showing product claims for new soft drinks launches, 2006/2011
•Figure: Within the dominant category of bottles, there is still substantial room for innovation
•Figure: Soft drinks new product launches by region, 2006-2011
•Figure: Innovative new product launches by innovation type, 2006-2011
•Figure: Innovative new product launches by category, 2006-2011
•Figure: Innovative ‘energy shots’ from Red Bull and Monster Hitman were ultimately unsuccessful
•Figure: Word cloud showing product claims for new bottled water launches, 2006/2011
•Figure: Many North American retailers have launched ranges of premium private label flavored bottled waters
•Figure: Bottled water new product launches by region, 2006-2011
•Figure: Word cloud showing product claims for new carbonates launches, 2006/2011
•Figure: Even in mid-income markets dominated by cola, most new launches are fruit-flavored
•Figure: Carbonates new product launches by region, 2006-2011
•Figure: Word cloud showing product claims for new concentrates launches, 2006/2011
•Figure: Concentrates new product launches by region, 2006-2011
•Figure: Powder concentrates dominate in Latin America, including premium on-trend variants
•Figure: Word cloud showing product claims for new functional drinks launches, 2006/2011
•Figure: Lucozade Sports Lite has a superficial sports positioning, but is primarily aimed at lifestyle users
•Figure: Functional drinks new product launches by region, 2006-2011
•Figure: Word cloud showing product claims for new juices launches, 2006/2011
•Figure: Juices new product launches by region, 2006-2011
•Figure: Premium nectars and fruit drinks are popular launches in Latin America
•Figure: Word cloud showing product claims for new RTD tea & coffee launches, 2006/2011
•Figure: RTD tea & coffee new product launches by region, 2006-2011
•Figure: Europe’s adoption of natural RTD teas cuts across countries and positionings
•Figure: Word cloud showing product claims for new smoothies launches, 2006/2011
•Figure: Protein Plus Parfait Smoothie is a novel formulation, but a conventional strawberry flavor
•Figure: Tymark Fruit of the World and Gold Digger tap into the mass-premium trend in very different ways
•Figure: Starbucks’ Frappuccino website allows customers to create their own virtual drink
•Figure: VitaSoy launched 70 limited edition packs with greeting messages, and also allowed full customization via its website
•Figure: Coca-Cola has rolled out personalized Coke cans and bottles in Australia
•Figure: The Tropicana Essentials range is PepsiCo’s attempt to enter the functional drinks market
•Figure: Drinkoff Sobering Jam and Mind Essential Confidence Shot both offer unusual functional benefits
•Figure: New types of functional drinks target specific conditions and consumer types
•Figure: Brazilian brand Sunlover is hoping to succeed where Nestle’s Glowelle failed
•Figure: Soft drinks with health claims are becoming increasingly popular in China
•Figure: Key drivers behind consumer interest in sustainable drinks
•Figure: Coca-Cola and Pepsi have both launched sustainably-positioned recyclable bottle types
•Figure: Coca-Cola has used natural sweetener Stevia in mid-sugar products in France and Switzerland
•Figure: Beetroot and olives are examples of non-traditional naturally functional drinks ingredients
•Figure: Activate Workout and Boost Kid Essentials are both finally mixed as part of the consumer’s drinking process
•Figure: More functional products are adopting a convenience/on-the-go positioning
•Figure: Pepsi rolled out small-serve diet cans of very different dimensions in the US and UK in 2011
•Figure: Mio is an innovative ‘water enhancer’, redefining the concentrates category
•Figure: Key actionable recommendations for global soft drinks innovation
•Figure: Child-focused Bot Water was relaunched as a drink without a specific demographic positioning
•Figure: It seems unlikely that these salt-based soft drinks will reach the mainstream
•Figure: Energy Balls and King Energy both include novel packaging types

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By sector: Soft drinks, General drinks