What you need to know

The carbonated soft drinks market is expected to oscillate in terms of value and keep falling in volume over the next years, but at a slower pace than registered during the recent economic recession. Consumers have been replacing CSDs (carbonated soft drinks) for juice and water – which are cheaper and more healthful options. This behavior has been a great challenge for the category, so brands need to meet consumers’ demands toward sugar reduction and the inclusion of extra benefits, for example. However, even though health concerns are an important market driver, companies cannot forget consumers see CSDs as indulgent products, which means brands should keep offering new flavors and enjoyable experiences.

Definition

The carbonated soft drinks market includes drinks in a range of flavors, such as cola, lime, citrus, orange, and guaraná. It includes carbonated soft drinks, tonic drinks, and other flavored carbonated soft drinks. It excludes carbonated juices, sparkling water, iced tea, and energy and isotonic drinks. Value and volume sales are based on retail sales.

In Brazil, light foods and drinks are classified as such because, compared to the standard version, they have a reduction of at least 25% of a component that could be calories, sugars, fat, or salt, among others. “Zero” is restricted to products that do not have a significant amount of these components compared to the standard version of the product. It is common that the Brazilian consumer thinks of a zero product as having zero calories, while the light version is seen as a reduced-calorie product and, therefore, these deliver different benefits.

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