What you need to know

Estimated at £7.9 billion in 2015, the CSDs market grew by 3% in value over 2011-15 but saw volumes fall by 3% over the same period. Further volume decline is predicted in 2016, as news of the sugar tax put the issue back in the headlines, however, the summer weather remains a wild card here.

The sugar tax, due to be introduced in 2018, is likely to have a severe effect on sales, as 53% of non-diet (sugary) CSD drinkers say that they would cut back or stop drinking them if the price rose. However, the low-sugar variants should benefit from consumers switching to them.

74% of CSD drinkers say that manufacturers should do more to reduce the sugar in their products, placing the onus upon companies to be seen as proactive in this area. The potential risk of reformulation is indicated in that 35% of CSD drinkers say that a change of recipe would make them less loyal to their favourite brand. However, the high demand for action on the sugar issue suggests such a strategy should appeal to more people than it alienates.

Meanwhile consumer interest in flavour innovation, fortified CSDs and seasonal flavours suggest other means to maintain interest and engagement within the category.

Products covered in this Report

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

Retail: 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).

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 are 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.

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