Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- 2018 sees levy fuel value growth
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- Figure 1: UK value sales of carbonated soft drinks, 2013-23
- Cola retains the lead, with prices rising, but volumes falling
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- Figure 2: Retail value and volume sales of carbonated soft drinks, by segment, 2017
- Mixers see the strongest growth
- Scrutiny of sugar continues to affect the market
- Environmental impact of plastic hits the news
- Pay squeeze eases
- Offering an alternative to alcohol
- Companies and brands
- Coca-Cola Zero Sugar and Pepsi Max see strong growth
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- Figure 3: Leading brands’ shares in the UK retail carbonated soft drinks market, by value, 2017/18*
- Britvic sees value and volumes fall for J2O, while premium brands perform well
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- Figure 4: Leading brands’ shares in the UK retail adult soft drinks market, by value, 2017/18*
- Sugar is an ongoing focus of NPD
- New flavours hope to appeal to adventurous consumers
- Advertising spend reaches a four-year high in 2017
- Coca-Cola stands out as the most trusted CSD cola brand
- The consumer
- Usage of diet CSDs matches that of non-diet
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- Figure 5: Usage of carbonated soft drinks, by diet/light and non-diet, March 2018
- Opportunities to push British angle
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- Figure 6: Interest in selected carbonated soft drink products, March 2018
- Soft drinks levy influences sugary CSDs’ image of healthiness
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- Figure 7: Attitudes towards healthiness of carbonated soft drinks, March 2018
- CSDs fail to deliver on refreshment and flavour
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- Figure 8: Correspondence analysis of qualities associated with selected types of soft drinks, March 2018
- Only a minority look at ingredients or recycling information
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- Figure 9: On-pack details checked when selecting carbonated soft drinks, March 2018
- What we think
Issues and Insights
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- Attention on sugar prompts switching
- The facts
- The implications
- A focus on environmental efforts would give brands a competitive edge
- The facts
- The implications
- NPD on flavour offers a way to appeal to a wider audience
- The facts
- The implications
The Market – What You Need to Know
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- 2018 sees levy fuel value growth
- Modest volume growth predicted, inflation to prop up value sales
- Cola retains the lead, with prices rising, but volumes falling
- Mixers see the strongest growth
- Scrutiny of sugar continues to affect the market
- Environmental impact of plastic hits the news
- Pay squeeze eases
- Offering an alternative to alcohol
Market Size and Forecast
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- Value sales rise, while volumes dip
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- Figure 10: UK value sales of carbonated soft drinks, 2013-23
- Value sales to continue to rise
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- Figure 11: UK value sales of carbonated soft drinks, by retail and on-premise, 2013-23
- Figure 12: UK volume sales of carbonated soft drinks, by retail and on-premise, 2013-23
- Sugar levy dampens retail volume sales
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- Figure 13: UK retail value sales of carbonated soft drinks, 2012-23
- On-premise to see volumes dip
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- Figure 14: UK on-premise value sales of carbonated soft drinks, 2013-23
- Forecast methodology
Market Segmentation
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- Cola retains the lead, with prices rising but volumes falling
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- Figure 15: Retail value and volume sales of carbonated soft drinks and adult soft drinks, by segment, 2015-17
- Mixers see the strongest growth
Market Drivers
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- Scrutiny of sugar continues to affect the market
- The number one health foe
- Government introduces the Soft Drinks Industry Levy
- Many brands take action to reformulate, while some not doing so pass on the rise
- The levy could encourage switching to healthier varieties
- Environmental impact of plastic hits the news
- Companies take steps to address plastic waste
- Clarity in demand among consumers
- Government proposes 25-year plan to reduce plastic packaging waste
- Water refill points
- Support for deposit return schemes
- Scotland to introduce Deposit Return Scheme to tackle plastic waste
- Pay squeeze eases
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- Figure 16: Annual percentage change in CPI and AWE (regular pay), by month, January 2012-March 2018
- Offering an alternative to alcohol
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- Figure 17: Attitudes towards health and alcoholic drinks, November 2017
Companies and Brands – What You Need to Know
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- Coca-Cola Zero Sugar and Pepsi Max see strong growth
- Coca-Cola retains top position
- Britvic sees value and volumes fall for J2O, while premium brands perform well
- Sugar is an ongoing focus of NPD
- New flavours hope to appeal to adventurous consumers
- Advertising spend reaches a four-year high in 2017
- Coca-Cola stands out as the most trusted CSD cola brand
Market Share
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- Selected no-sugar varieties see strong growth
- Coca-Cola Zero Sugar sees sales jump as Coca-Cola and Diet Coke suffer volume falls
- Coca-Cola retains top position
- Schweppes helped by adspend
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- Figure 18: Leading brands’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2016/17 and 2017/18
- Pepsi Max sales continue to eclipse standard Pepsi
- Irn-Bru sees sales rise
- Fever-Tree more than doubles sales
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- Figure 19: Leading manufacturers’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2016/17 and 2017/18
- Britvic sees value and volumes fall for J2O
- Premium brands perform strongly
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- Figure 20: Leading brands’ sales and shares in the UK retail adult soft drinks market, by value and volume, 2016/17 and 2017/18
Launch Activity and Innovation
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- Sugar is an ongoing focus
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- Figure 21: New product launches in the UK carbonated soft drinks market, by the low/no/reduced sugar claim, 2014-18
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- Figure 22: Brands combine L/N/R sugar claims with functional health benefits, 2017
- New flavours hope to appeal to adventurous consumers
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- Figure 23: Coca-Cola launches new flavours, 2018
- Less sweet flavours
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- Figure 24: The London Essence mixers hit the market, 2017
- Premium launches rise
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- Figure 25: New product launches in the UK carbonated soft drinks market, by the premium claim, 2014-18 (sorted by 2017)
- Brands look to appeal to consumers eschewing alcohol
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- Figure 26: CSDs look to alcoholic drinks-inspired packaging, 2018
- Slimline cans offer a point of difference
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- Figure 27: Slimline cans support a premium positioning, 2017
- Craft term adopted to denote quality
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- Figure 28: Craft term is used in packaging, 2018
- Environmentally friendly packaging is the top claim
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- Figure 29: New product launches in the UK carbonated soft drinks market, by the Ethical – Environmentally Friendly Package claim, 2014-18 (sorted by 2017)
Advertising and Marketing Activity
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- Advertising spend reaches a four-year high in 2017
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- Figure 30: Total above-the line, online display and direct mail advertising expenditure on carbonated soft drinks, by advertiser, 2014-18 (sorted by 2017)
- Coca-Cola continues to lead advertising
- Coke celebrates original recipe, despite the Soft Drinks Industry Levy
- Coca-Cola encourages recycling with a Love Story
- Diet Coke rebrands…
- …and looks to influencer marketing
- Coke Zero Sugar focuses on experiences…
- …and links up with movie franchise
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- Figure 31: Coca-Cola links up with Star Wars for on-pack promotion, 2017
- Coca-Cola partners with FIFA for the 2018 World Cup
- Coca-Cola continues ParkLives sponsorship
- Schweppes supports Tonics range
- Fanta looks to Halloween
- Pepsi Max also focuses on taste and breaking with tradition
- Fentimans rebrands to push superior taste
- Irn-Bru looks to escapism with controversial ad in Scotland
- Sanpellegrino showcases Italian lifestyle with weather-triggered OOH campaign
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 32: Attitudes towards and usage of selected brands, May 2018
- Key brand metrics
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- Figure 33: Key metrics for selected brands, May 2018
- Brand attitudes: Coca-Cola stands out as offering consistently high quality
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- Figure 34: Attitudes, by brand, May 2018
- Brand personality: Fentimans seen as most exclusive while the others offer accessibility
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- Figure 35: Brand personality – Macro image, May 2018
- Coca-Cola and Pepsi are seen to be traditional and authentic
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- Figure 36: Brand personality – Micro image, May 2018
The Consumer – What You Need to Know
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- Usage of diet matches that of non-diet
- Opportunities to push British angle
- Soft drinks levy influences sugary CSDs’ image of healthiness
- CSDs fail to deliver on refreshment and flavour
- Only a minority look at ingredients or recycling information
Usage of Carbonated Soft Drinks
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- Usage of diet matches that of non-diet
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- Figure 37: Usage of carbonated soft drinks, by diet/light and non-diet, March 2018
- Extensive crossover in non-diet and diet
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- Figure 38: Crossover in usage of non-diet and diet/light carbonated soft drinks, March 2018
- Young opt more for non-diet, over-55s more for diet versions
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- Figure 39: Usage of non-diet and diet/light carbonated soft drinks, by age, March 2018
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- Figure 40: Preference for sweeteners as an ingredient in carbonated soft drinks, by age, March 2018
- Diet/light versions are drunk more frequently
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- Figure 41: Frequency of drinking carbonated soft drinks, by type, March 2018
- Home is the most popular venue to drink CSDs
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- Figure 42: Usage of carbonated soft drinks, by location, March 2018
- 36% drink CSDs in restaurants/pubs/bars
- 29% drink CSDs on the go
Interest in Product Features
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- Opportunities to push British angle
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- Figure 43: Interest in selected carbonated soft drink products, March 2018
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- Figure 44: Coca-Cola emphasises location of production, 2018
- Non-sweet flavours appeal to 23%
- Blends add excitement to existing products
- Spice and botanical flavours garner interest among a fifth
Attitudes towards Carbonated Soft Drinks
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- Soft drinks levy influences sugary CSDs’ image of healthiness
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- Figure 45: Attitudes towards healthiness of carbonated soft drinks, March 2018
- Few CSDs users have noticed reformulation
- …but this could come with pitfalls
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- Figure 46: Attitudes towards carbonated soft drinks, March 2018
- Focus on environmental issues could pose a threat
- 51% of CSD users prefer glass/cans to plastic packaging
- Widespread uncertainty over what packaging is best for the environment
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- Figure 47: Agreement with the statement ‘It’s hard to tell what packaging is most environmentally friendly, March 2018
- Opportunity for CSDs to tap into popularity of flavoured waters
Qualities Associated With Selected Soft Drinks
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- CSDs fail to deliver on refreshment and flavour
- Opportunity for non-sweet flavours
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- Figure 48: Correspondence analysis of qualities associated with selected types of soft drinks, March 2018
- Figure 49: Qualities associated with selected types of soft drinks, March 2018
- Perceived artificiality is a barrier
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- Figure 50: Preferences for sugar and sweeteners in carbonated soft drinks, March 2018
- Methodology
What People Check On CSD Packs
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- Only a minority look at ingredients or recycling information
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- Figure 51: On-pack details checked when selecting carbonated soft drinks, March 2018
- Flavour, type and brand are most important
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- Figure 52: Those checking brand on-pack when selecting carbonated soft drinks, by age, March 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Total
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- Figure 53: UK volume sales of carbonated soft drinks, 2013-23
- Figure 54: UK value sales of carbonated soft drinks, best- and worst-case forecast, 2018-23
- Figure 55: UK volume sales of carbonated soft drinks, best- and worst-case forecast, 2018-23
- Retail
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- Figure 56: UK retail volume sales of carbonated soft drinks, 2013-23
- Figure 57: UK retail value sales of carbonated soft drinks, best- and worst-case forecast, 2018-23
- Figure 58: UK retail volume sales of carbonated soft drinks, best- and worst-case forecast, 2018-23
- On-premise
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- Figure 59: UK on-premise volume sales of carbonated soft drinks, 2013-23
- Figure 60: UK on-premise value sales of carbonated soft drinks, best- and worst-case forecast, 2018-23
- Figure 61: UK on-premise volume sales of carbonated soft drinks, best- and worst-case forecast, 2018-23
- Forecast methodology
Appendix – Launch Activity and Innovation
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- Figure 62: New product launches in the UK carbonated soft drinks market, by top ten companies, 2014-18 (sorted by 2017)
- Figure 63: New product launches in the UK carbonated soft drinks market, by the environmentally friendly packaging claim, 2014-18
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Appendix – Advertising and Marketing Activity
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- Figure 64: Total above-the line, online display and direct mail advertising expenditure on carbonated soft drinks, by brand, 2014-18 (sorted by 2017)
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Appendix – Usage of Carbonated Soft Drinks
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- Figure 65: Ingredient preferences in relation to carbonated soft drinks, March 2018
- Figure 66: Usage of carbonated soft drinks, by location, by type, April 2018
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