Soft drinks in 2024: The big picture
Overall demand for soft drinks in the UK continues to decline in 2024. Despite some stabilisation following two years of high inflation, the cost-of-living crisis in the UK remains reflected in low disposable incomes.
2024 key trends
In 2024, health and wellness remains amongst the most prominent and impactful trends affecting consumer behaviour, in addition to product innovation. This is established and is now consistent across most categories in the UK market, although it is now becoming more specific and tailored to different consumer needs.
Competitive landscape
The competitive landscape of soft drinks in the UK remains dominated by some of the traditional major players in terms of off-trade volume share. This is due to several key factors, including consumer loyalty and the wide availability and strong distribution networks of leading brands.
Retailing developments
In 2024, inflation and rising prices continue to impact retailers as consumers’ disposable incomes remain constrained. Their shopping habits have shifted in response, resulting in increasing demand for discounts, including from chained retailers such as Aldi and Lidl.
Foodservice vs retail split
2024 is witnessing the return of at-home consumption in the UK, with the off-trade channel recording lower volume declines compared to on-trade. This is being driven by consumers’ weak disposable incomes and the adoption of stocking up and buying in bulk behaviour to reduce expenditure.
What next for soft drinks?
The health and wellness trend is expected to continue shaping the soft drinks industry in the UK as consumers become increasingly health-conscious and regulatory pressures from HFSS legislation continue to have an impact. Most new product development and new brands entering the local market are likely to focus on the reduced sugar segment as a result.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft Drinks industry in United Kingdom with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft Drinks industry in United Kingdom, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Soft Drinks in United Kingdom report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Soft Drinks in United Kingdom?
- To what extent are health considerations impacting consumption of Soft Drinks in United Kingdom?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in United Kingdom?
- Which are the leading brands in Soft Drinks in United Kingdom?
- What potential exists for multinational or domestic soft drinks companies to expand in United Kingdom?
- How are products distributed in Soft Drinks in United Kingdom?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in the United Kingdom
Soft drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in the United Kingdom
DISCLAIMER
Bottled Water in the United Kingdom
KEY DATA FINDINGS
Bottled water experiences current value growth but demand further declines
Flavoured bottled water records most dynamic value growth
Following success of Prime Energy, Generation Z chooses Liquid Death
Bottled water could suffer from trading down but format remains key for brands
Brands to increasingly hit sustainability targets to meet consumer demand
Functional bottled water set to grow as consumers focus on specific benefits
Carbonates in the United Kingdom
KEY DATA FINDINGS
Carbonates records current value growth due to price hikes, while volumes decline
Reduced sugar carbonates amongst the more resilient performers
Gut health within carbonates aligns with functional trend
Innovation in flavour and functionality expected to continue driving carbonates
Promotions, limited editions and collaborations will continue to influence demand
Brands respond to consumer push for greater sustainability by implementing more eco-friendly practices
Concentrates in the United Kingdom
KEY DATA FINDINGS
Concentrates experiences further volume declines in 2024
Innovation in concentrates driven by tropical flavours and packaging
Some brands benefit from promotions and pricing strategies, but their target audience remains limited to a specific demographic
Demand for concentrates set to continue declining over the forecast period
At-home consumption occasions can expand through mixology or as water flavour enhancement
Leveraging limited editions to create excitement within the category
Concentrates Conversions
Juice in the United Kingdom
KEY DATA FINDINGS
Strong volume declines for juice while value sales grow, driven by two consecutive years of price increases
The health and wellness trend is slowly reshaping juice
Consumers switch to private label and brands offering promotions, reducing share for some of the main juice players
Fruit shortages, especially oranges, could lead to further price increases
Consumers expect less sugar and stronger health credentials
Formats and packaging could become key for a brand’s success
RTD Coffee in the United Kingdom
KEY DATA FINDINGS
Rising demand for RTD coffee as consumers seek convenience
RTD coffee benefits from promotions and stronger store placement
Brands align with health and wellness trend by providing functional options as demand for protein drinks rises
Plant-based alternatives remain key for category’s positive performance
Innovation expected to focus on flavour and format
Future growth of RTD coffee set to driven by healthier options, affordability and customisation
RTD Tea in the United Kingdom
KEY DATA FINDINGS
RTD tea continues to enjoy growing popularity in the UK
At-home consumption benefits RTD tea, along with promoting the can format
Kombucha continues to expand its appeal to health-conscious consumers
RTD tea is set to continue its strong growth trajectory over the forecast period
Functionality and multipurpose drinks are expected to drive sales
Increasing move away from alcohol towards soft drinks such as kombucha
Energy Drinks in the United Kingdom
KEY DATA FINDINGS
Energy drinks remains resilient with further growth despite weak purchasing power
With a wide availability of flavours, innovation remains a key growth driver
Energy drinks moves from on-the go consumption to at-home with multipacks
Blurring of categories and functionality set to increase over the forecast period
Health and wellness trend to promote clean energy drinks with no added sugar and other claims
Understanding consumers’ needs and preferences can become key for brands but retention strategy matters for building long-term success
Sports Drinks in the United Kingdom
KEY DATA FINDINGS
A positive year for sports drinks as category continues to record strong growth
Flavour innovation as a major growth driver of sports drinks
Powerade targets younger consumers’ mental health concerns
Reduced sugar amidst HFSS regulations expected to shape sports drinks
Catering for different consumption occasions and a wider audience
Innovation in packaging and marketing through sustainability
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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