Non Alcoholic Drinks

Non-Alcoholic Drinks

Consumption of soft drinks has maintained a steady pace and is expected to retain the same trend is expected to witness a downturn in the coming years. Volume consumption of soft drinks and carbonated beverages is expected to slow down in the coming years on account of economic and political insurgencies, especially in the emerging countries. Demand for functional beverage products is expected to push the growth of the market in the future as sugar free beverage items have become a primary concern among the population. Consumer preferences, price point and occasions are few strategies that are adopted by the key players operating in this industry in order to ensure a long term sustenance, and to create a higher value for money as well.

Volume consumption of soft drinks amounted to close to 6.2 billion liters in 2016. Although a huge consumption rate, India still falls largely behind the U.S., Malaysia, Thailand and Philippines. The growth of the soft drinks market is held back by rising health concerns among consumers and changing government policies among others. Aggressive research and development activities is a key growth opportunity of the soft drink industry in India.

High population of China is one of the key factors responsible for the massive consumption of soft drinks in the country. According to Insights and Reports, the country produced more than 15 million tons of soft drinks in 2017. The shift in demand of soft drinks in China is directly related to the household disposable incomes. Further, according to Insights and Reports, Chinese consumers prefer foreign brands instead of local products. Coca Cola is the preferred brand of soft drinks among consumers. However, Wahaha was the preferred local brand of soft drink among consumers, with a penetration rate of more than 15%.

Soft drinks are considered as non-alcoholic drinks and the name varies based on different regions such as soda, carbonated beverages and pop and they usually contain water, sugar or artificial sweeteners and flavoring agents among others. Key players are facing stiff competition against each other. The Coca Cola Company and PepsiCo Inc. have been in a competition against each other for decades. Product masking was a strategy adopted by PepsiCo where the respondents had to blind taste one cup filled with Coca Cola and the other cup filled with Pepsi. This test resulted to be positive as U.S. consumers preferred the taste of Pepsi over Coca Cola.