The market share of private label soft drinks in Western Europe has grown from 17% to 23%

The market share of private label soft drinks in Western Europe has grown from 17% to 23%

Private-label soft drinks volumes are expected to double across Western Europe over the next 15 years, according to figures from Rabobank.

The research firm's latest report, 'Private label developments in the European Soft Drinks Industry', says that the market share of private-label soft drinks in Western Europe has grown from 17% to 23% over the past decade. By 2025, Rabobank predicts that this share will increase to around 35%, with the more underdeveloped markets experiencing the highest growth rates.

However, the report notes that the gain of private-label comes at the expense of so-called B-brands - smaller, often local firms - which will see their competitive position deteriorate.

As B-brand manufacturers lose market share, Rabobank forecasts that some will enter private-label manufacturing in order to maintain volumes. "As a result, not all of today's private-label manufacturers will benefit from the demand growth in the coming years," the report says.

Rabobank identified three types of private-label producers:

  • Fast-growing, acquisitive producers with sales greater than EUR1bn (US$1.38bn) 
  • Firms with large but declining sales of between EUR250m to EUR750m
  • Niche firms with sub-EUR100m sales and with more specific products, clients and regions.