Carbonated soft drinks are enjoyed by 84% of adults, thanks in part to the sector’s versatility in offering a broad range of drinks from adult soft drinks through to zero-calorie options.

The market has continued to face challenges from health lobbyists over the high sugar content of some products and brands have responded by offering lower-sugar alternatives. Tellingly the share of new launches carrying a no/low/reduced sugar claim reached almost a quarter in 2013.

Coca-Cola moved towards smaller sizes in 2013, and in June 2014 announced it would launch Coca-Cola Life (a reduced sugar and reduced calorie cola containing stevia leaf extract) in the UK later in 2014. Both initiatives send a major signal to the rest of the market around portion control and sugar reduction.

However, the 2014 FIFA World Cup and the Glasgow 2014 Commonwealth Games should afford opportunities for brands to increase sales in both the on-trade and the off-trade, particularly given Coca-Cola’s World Cup sponsorship and AG Barr’s Commonwealth sponsorship.

While traditional players continue to power the bulk of sales, smaller dynamic players like Zeo are carving a niche in the market.

For the purposes of this report, Mintel defines the carbonated soft drinks market as covering all carbonated soft drinks sold through the retail and non-retail channels. Data include sales through the following outlets:

Take-home (including impulse): This includes grocery retail outlets where CSDs are purchased for the purpose of consumption off-premise, comprising supermarkets, convenience stores and petrol forecourts among others.

On-premise: This includes anywhere where CSDs are bought to consume on site, eg leisure centres, hotels, restaurants, fast food venues, cafés, education establishments, the workplace and in the on-trade (ie pubs, bars and clubs).

Please note that the non-retail scope of this report was expanded in 2013, and now includes sales made through fast food restaurants and other venues without an on-trade licence in addition to pubs and clubs. As a result, the data in this report referring to on-premise sales are substantially different to those included in pre-2013 editions of this report. Further revision of the channels’ respective shares in the market was undertaken in 2014.

The basic ingredients of soft drinks (excluding fruit juices and bottled water) are water, a sweetener, an acid and flavouring. Under European regulations, carbonated soft drinks are ‘a manufactured drink, optionally sweetened, acidulated, carbonated and which contain fruit, fruit juice and other salts; the flavour may derive from vegetable extracts or flavourings’. Optional ingredients include fruit, carbon dioxide, preservative and colouring.

All mainstream carbonated soft drinks are included in the market size. Diet carbonates are included. Mixers (including tonic water, ginger ale, soda water and bitter lemon) are included. Soda water differs from fizzy water because of the addition of sodium and its status as a mixer rather than a drink to be consumed on its own.

Traditional and adult soft drinks in the off-trade is provided as a separate segment and these are not included in the market size under carbonated soft drinks. Both carbonated and still premium or adult soft drinks are included in the segment size.

Specifically excluded are sports and energy drinks, which are covered in Mintel’s Sports and Energy Drinks – UK, July 2014 report.

Value figures throughout this report are at retail selling prices unless otherwise stated. Market sizes at constant 2014 prices have been devised using Mintel’s food deflator. Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland.