What you need to know
The impact of the long-awaited Soft Drinks Industry Levy (SDIL) on the CSDs market was offset by the boost to demand from the summer heatwave, with the category enjoying growing volumes even as average prices rose. While reformulation was widespread in the run-up to the levy, the leading cola brands eschewed this. However, the active push behind their zero sugar variants saw these recoup much of the sales lost by the full-sugar versions.
The rising concern over plastic waste, and the particular scrutiny of single-use plastic, poses a threat to the market. It remains to be seen whether the initiatives being put in place by the leading manufacturers and retailers can win consumers’ goodwill to retain usage.
Products covered in this Report
For the purpose of this Report, the market size for carbonated soft drinks (CSD) includes sales through the following outlets:
Retail: This includes 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, cafes, education establishments, the workplace and in the on-trade (ie pubs, bars, 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 sparkling water because of the addition of sodium and its status as a mixer rather than a drink to be consumed on its own.
Adult soft drinks in the off-trade are provided as a separate segment and 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.
