Innovations in Soft Drinks - Ireland
Report description
NI soft drinks sales have, however, seen continued volume and value growth due to a stronger economy and a stronger proportion of the market accounted for by more premium carbonate and energy drink segments.
Dominated by international drinks groups, the Irish soft drinks market has benefited from strong innovation and marketing support with a focus on healthier - including diet and functional - lines.
Table of contents
Issues in the MarketKey themes in the report
Definition
Market size rationale
Abbreviations
Insights and Opportunities
Adding value to the on-trade
Bringing soft drinks to the older generation
Market in Brief
Value stripped from Irish soft drinks market
Energy/sports drink segment still in growth
Market increasingly dominated by off-trade sales, major suppliers
Addressing economic, health and environmental concerns
Health and regulations drive NPD
Consumer targeting opportunities
Fast Forward Trends
Trend 1: Hyper-Parenting
What’s it about?
What we’ve seen
What next?
Trend 2: An Inconvenient Fruit
What’s it about?
What we’ve seen
What next?
Internal Market Environment
Key points
Health, diet and nutrition
Rising interest in health among Irish consumers
Figure 1: Agreement with the statement ‘I should do more about my health’, NI and RoI, 2010
Government and health lobby targets soft drinks
Focus falls on sugar content
Figure 2: Agreement with the statement ‘I always look for the light/diet versions of food and drink’, NI and RoI, 2010
Manufacturers respond with ‘healthier’ variants
Scare stories highlight chemical content
Clean labelling sweeps the soft drinks industry
Figure 3: Agreement with the statement ‘I am prepared to pay more for foods that don't contain artificial additives’, NI and RoI, 2005-10
Functional soft drinks market continues to grow
Recession causes a setback for the organic soft drinks market
Figure 4: Agreement with the statement ‘It's worth paying more for organic food’, NI and RoI, 2005-10
Alcohol is increasingly demonised
Manufacturers go green
Broader Market Environment
Key points
Recession stifles premiumisation of soft drinks
RoI faces continued economic hardship
Figure 5: Economic outlook, NI and RoI, 2008-10
Some manufacturers struggle to stay afloat
Global volatility hits soft drinks pricing
Key youth market is leaving Ireland
Figure 6: Population, by age, RoI, 2006-41
Figure 7: Population, by age, NI, 2008-58
Regulation of soft drinks
Nutrition labelling
Health and functional claims
Marketing of soft drinks to children
High-caffeine energy drinks and children
Soft drinks in schools
Harnessing seasonality and sport
Competitive Context
Key points
Consumers urged to replace alcohol with soft drinks
Figure 8: Agreement with selected lifestyle statements, NI and RoI, 2005-10
Competition from hot drinks heats up
Figure 9: Consumers who have used selected types of hot drinks in the last 12 months, NI and RoI, 2010
Milk marketing campaign targets Irish youth
Strengths and Weaknesses
Strengths
Weaknesses
Who’s Innovating?
Key points
NPD activity is strong
Figure 10: Number of new soft drink launches, UK and Ireland, 2005-10
Figure 11: Number of new soft drink launches - private label v branded, UK and Ireland, 2005-10
Manufacturers stick to safe ground
Figure 12: Number of new soft drink launches, by launch type, UK and Ireland, 2005-10
Bottles dominate soft drink packaging
Figure 13: New soft drink launches - top three packaging types, UK and Ireland, 2005-10
Juices take over from carbonates as leading NPD sub-category
Figure 14: New soft drink launches - top ten sub-categories, UK and Ireland, 2005-10
Health claims lead NPD
Figure 15: New soft drink launches - top ten claims, UK and Ireland, 2005-10
Manufacturers clean up their labelling
Children a focus of clean labelling
Diet variants popular among launches
Manufacturers go ‘natural’
Offering functional extras to healthy consumers
Premium activity holds up...
...locally made a popular claim...
... organic activity holds up too
Limited editions add interest
Manufacturers target consumers with competitions, sporting links
Targeting ethical consumers
Going retro
New format stimulates energy market
Market Size and Forecast
Key points
RoI’s economic woes deflate soft drinks’ value performance
Figure 16: Estimated total value sales of soft drinks - IoI, RoI and NI, 2006-16
Volume sales of soft drinks continue to climb
Figure 17: Estimated total volume sales of soft drinks - IoI, RoI and NI, 2006-16
Lucrative on-trade suffers
Figure 18: Soft drinks market value and volume - estimated share, by channel to market, IoI, 2010
Competition increases in Irish retail markets
On-trade sales diminish as consumers stay in
Market Segmentation
Key points
Sales ‘sparkle’ for carbonate-heavy NI market
Figure 19: Segmentation of soft drinks market, by volume (%), RoI and NI, 2010
Sports/energy drinks lead growth in RoI market
NI market boosted by sports/energy drinks and cordial growth
Figure 20: Market segmentation of soft drinks, by value, RoI and NI, 2006-10
Carbonates
Fizz goes out of carbonated value sales
Figure 21: Estimated value sales of carbonated soft drinks* - IoI, RoI and NI, 2006-16
Figure 22: Estimated volume sales of carbonated drinks - IoI, RoI and NI, 2006-16
Energy and sports drinks
Energy drinks boost the soft drinks market
Figure 23: Estimated value sales of energy and sports drinks - IoI, RoI and NI, 2006-16
Figure 24: Estimated volume sales of energy and sports drinks - IoI, RoI and NI, 2006-16
Bottled water
A watered-down market as consumers turn to the tap
Figure 25: Estimated value sales of bottled water - IoI, RoI and NI, 2006-16
Figure 26: Estimated volume sales of bottled water - IoI, RoI and NI, 2006-16
Fruit juices and smoothies
Recession hits premium juice categories
Figure 27: Estimated value sales of fruit juice and smoothies - IoI, RoI and NI, 2006-16
Figure 28: Estimated volume sales of fruit juice and smoothies - IoI, RoI and NI, 2006-16
Cordials
Cost-conscious consumers rediscover concentrates
Figure 29: Estimated value sales of cordials and squashes - IoI, RoI and NI, 2006-16
Figure 30: Estimated volume sales of cordials and squashes - IoI, RoI and NI, 2006-16
Companies and Products
Key points
Figure 31: Key companies and brands supplying the RoI and NI soft drinks markets, 2011
AG Barr
Bottlegreen
Britvic plc
Coca-Cola
GlaxoSmithKline
Pepsi
Red Bull
The Consumer - Consumption of Soft Drinks
Key points
Higher uptake of ‘healthier’ soft drinks in RoI
Figure 32: Sub-categories of drinks drunk in the last 12 months, by demographics, RoI and NI, 2010
Yogurt and milk drinks
Dairy drinkers focus on the under-45s
Figure 33: Yogurt or milk drinks drunk in the last 12 months, RoI and NI, 2010
Older consumers use yogurt drinks heavily
Figure 34: Frequency of use of yogurt drinks, RoI and NI, 2010
Young consumers favour milk drinks
Figure 35: Frequency of use of milk drinks, RoI and NI, 2010
Ready-to-drink fruit and vegetable juices and smoothies
Women lead juice and smoothie consumption
Figure 36: Usage of fruit and vegetable juices and smoothies in the last 12 months, by gender, RoI and NI, 2010
Figure 37: Frequency of use of ready-to-drink fruit and vegetable juices and smoothies, RoI and NI, 2010
Higher penetration for fruit juices and smoothies in RoI
Figure 38: Types of ready-to-drink juices consumers drink, RoI and NI, 2010
Fruit squashes and cordials
Women with small children use concentrates most often
Figure 39: Frequency of use of fruit squashes and cordials, RoI and NI, 2010
Sugar-free leads in NI, regular cordials in RoI
Figure 40: Types of fruit squashes and cordials used, RoI and NI, 2010
Colas
Colas prove popular with young men
Figure 41: Consumption of cola, by gender and age, RoI and NI, 2010
Figure 42: Frequency of use of colas, RoI and NI, 2010
Men opt for regular variants, women for diet/low calorie
Figure 43: Types of cola used, RoI and NI, 2010
Fizzy and energy soft drinks
Young men favour other carbonates and notably energy drinks
Figure 44: Fizzy and energy drinks (excluding cola) drunk in the last 12 months, RoI and NI, 2010
Figure 45: Consumers who have drunk energy drinks in the last 12 months, by gender and age, RoI and NI, 2010
Heavy usage of fizzy drinks favours C2DEs, light usage ABC1s
Figure 46: Frequency of use of fizzy soft drinks (excluding cola), RoI and NI, 2010
Young men in big households drive energy drink sales
Figure 47: Frequency of use of energy soft drinks (excluding cola), RoI and NI, 2010
Orangeade a favourite with male workers
Figure 48: Flavours of fizzy and energy soft drinks used, RoI and NI, 2010
Middle-aged women favour diet/low-calorie fizzy drinks
Figure 49: Types of fizzy and energy soft drinks used, RoI and NI, 2010
Bottled mineral water
Middle-aged women lead bottled water consumption
Figure 50: Frequency of use of bottled mineral water, RoI and NI, 2010
Figure 51: Consumption of bottled mineral water, RoI and NI, 2005-10
Sparkling water taps into older, premium market
Figure 52: Types of bottled mineral water used, RoI and NI, 2010
Flavoured water, herbal and premium soft drinks
Heavy usage most common in NI for premium drinks
Figure 53: Frequency of use of flavoured water, herbal and premium soft drinks, RoI and NI, 2010
The Consumer - Attitudes Towards Soft Drinks
Key points
Figure 54: Agreement with statements relating to food and drink, RoI and NI, 2010
Women show a healthier interest in ingredients
Figure 55: Agreement with the statement ‘I am eating more healthily than I have in the past’, by gender and socio-economic group, RoI and NI, 2010
Figure 56: Agreement with selected statements relating to health and appearance, by gender, RoI and NI, 2010
Concerns about additives
Figure 57: Agreement with the statement ‘I read the labels on food to see what additives are in it’, by gender and age, RoI and NI, 2010
Reluctance to buy GM foods
Figure 58: Agreement with the statement ‘I would never buy food that has been genetically modified’, RoI and NI, 2005-10
Kids and their diets
Figure 59: Agreement with the statement ‘I wouldn’t let my children eat junk food’, by age range of children in household, RoI and NI, 2010
Children more aware of health issues
Figure 60: Agreement with statements relating to health - 7-14s - UK, 2001-10
Young women enjoy ‘naughty’ treats
Figure 61: Agreement with the statement ‘I like to treat myself to foods that are not good for me’, by gender, RoI and NI, 2010
Experimentation rises among the over-25s
Figure 62: Agreement with the statement ‘I like to try out new food products’, by age, RoI and NI, 2010
Figure 63: Agreement with the statement ‘I like to try new recipes’, by age, RoI and NI, 2010
The Consumer - Target Groups
Key points
RoI target groups
Figure 64: Consumer target groups, RoI, 2010
Traditionalists
Health-conscious
Torn
Energisers
NI target groups
Figure 65: Consumer target groups, NI, 2010
Indulgers
Novelty Seekers
Fizzy Pops
Naturals
Appendix - The Consumer - Consumption
NI
Figure 66: Yogurt or milk drinks that have been drunk in the last 12 months, by demographics, NI, 2010
Figure 67: Frequency of use of yogurt drinks, by demographics, NI, 2010
Figure 68: Frequency of use of milk drinks, by demographics, NI, 2010
Figure 69: Frequency of use of ready-to-drink fruit and vegetable juices and smoothies, by demographics, NI, 2010
Figure 70: Types of ready-to-drink juices consumers drink, by demographics, NI, 2010
Figure 71: Frequency of use of fruit squashes and cordials, by demographics, NI, 2010
Figure 72: Type of fruit squashes and cordials used, by demographics, NI, 2010
Figure 73: Frequency of use of colas, by demographics, NI, 2010
Figure 74: Type of cola used, by demographics, NI, 2010
Figure 75: Use of fizzy and energy soft drinks in the last 12 months (excluding cola), by demographics, NI, 2010
Figure 76: Frequency of use of fizzy and energy soft drinks in the last 12 months (excluding cola), by demographics, NI, 2010
Figure 77: Frequency of use of fizzy soft drinks in the last 12 months (excluding cola), by demographics, NI, 2010
Figure 78: Frequency of use of energy soft drinks in the last 12 months (excluding cola), by demographics, NI, 2010
Figure 79: Types of fizzy and energy soft drinks used, by demographics, NI, 2010
Figure 80: Flavours of fizzy and energy soft drinks used, by demographics, NI, 2010
Figure 81: Frequency of use of bottled mineral water, by demographics, NI, 2010
Figure 82: Type of bottled mineral water used, by demographics, NI, 2010
Figure 83: Frequency of use of flavoured water, herbal and premium soft drinks, by demographics, NI, 2010
RoI
Figure 84: Yogurt or milk drinks that have been drunk in the last 12 months, by demographics, RoI, 2010
Figure 85: Frequency of use of yogurt drinks, by demographics, RoI, 2010
Figure 86: Frequency of use of milk drinks, by demographics, RoI, 2010
Figure 87: Frequency of use of ready-to-drink fruit and vegetable juices and smoothies, by demographics, RoI, 2010
Figure 88: Types of ready-to-drink fruit and vegetable juices and smoothies consumers use, by demographics, RoI, 2010
Figure 89: Frequency of use of fruit squashes and cordials, by demographics, RoI, 2010
Figure 90: Types of fruit squashes and cordials used, by demographics, RoI, 2010
Figure 91: Frequency of use of colas, by demographics, RoI, 2010
Figure 92: Types of cola used, by demographics, RoI, 2010
Figure 93: Use of fizzy and energy soft drinks in the last 12 months (excluding cola), by demographics, RoI, 2010
Figure 94: Frequency of use of fizzy and energy soft drinks in the last 12 months (excluding cola), by demographics, RoI, 2010
Figure 95: Frequency of use of fizzy soft drinks in the last 12 months (excluding cola), by demographics, RoI, 2010
Figure 96: Frequency of use of energy soft drinks in the last 12 months (excluding cola), by demographics, RoI, 2010
Figure 97: Types of fizzy and energy soft drinks used, by demographics, RoI, 2010
Figure 98: Flavours of fizzy and energy soft drinks used, by demographics, RoI, 2010
Figure 99: Frequency of use of bottled mineral water, by demographics, RoI, 2010
Figure 100: Types of bottled mineral water used, by demographics, RoI, 2010
Figure 101: Frequency of use of flavoured water, herbal and premium soft drinks, by demographics, RoI, 2010
Appendix - The Consumer - Attitudes towards Soft Drinks
Figure 102: Agreement with lifestyle statements, by demographics, NI, 2010
Figure 103: Agreement with lifestyle statements, by demographics, RoI, 2010
Appendix - The Consumer - Target Groups
NI consumer typology tables
Figure 104: NI consumer typologies, by agreement with attitudinal statements, 2010
Figure 105: NI consumer typologies, by drinks drunk in the last 12 months, 2010
Figure 106: NI consumer typologies, by demographics, 2010
RoI consumer typology tables
Figure 107: RoI consumer typologies, by agreement with attitudinal statements, 2010
Figure 108: RoI consumer typologies, by drinks drunk in the last 12 months, 2010
Figure 109: RoI consumer typologies, by demographics, 2010
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