Table of Contents
Executive Summary
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- The market
- Volume and value sales rise in 2018 despite SDIL
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- Figure 1: UK Value sales of carbonated soft drinks, 2014-24
- Volume growth to slow amidst sugar and plastic concerns
- Cola retains lead position as volumes fall and prices rise
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- Figure 2: Retail value and volume sales of carbonated soft drinks, by segment, 2018
- Sugar spotlight sets the tone for product development
- Summer heatwave cushions impact of SDIL
- Plastic waste is thrust into limelight
- Companies and brands
- Zero-sugar variants continue to drive growth
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- Figure 3: Leading brand’s shares in the UK retail CSDs market, by value, 2018/19*
- Mixer brands see strong growth helped by the buoyant spirits market
- SDIL threshold sees rise in lower sugar reformulations
- Leading brands explore fruit variants, adult soft drinks look to alcohol cues
- Advertising spend continues to rise for a fifth year
- Mixer brands seen as highest quality
- The consumer
- Diet/light drinks have a clear lead on usage
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- Figure 4: Usage of carbonated soft drinks, by type, April 2019
- Opportunities to explore fortification
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- Figure 5: Interest in product concepts in carbonated soft drinks, April 2019
- New flavours can sustain engagement
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- Figure 6: Attitudes relating to carbonated soft drinks, April 2019
- Cooling associations warrant further attention
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- Figure 7: Qualities associated with a refreshing drink, April 2019
- ‘Refreshing’ and ‘enjoyable’ are the most common qualities associated with CSDs
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- Figure 8: Correspondence Analysis of qualities associated with selected soft drinks, April 2019
- What we think
Issues and Insights
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- Flavour NPD is needed to sustain engagement
- The facts
- The implications
- Cooling and relaxing associations warrant attention as CSDs struggle on refreshing image
- The facts
- The implications
The Market – What You Need to Know
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- Volume and value sales rise in 2018 despite SDIL
- Volume growth to slow amidst sugar and plastic concerns
- Cola retains lead position as volumes fall and prices rise
- Mixers remain in growth
- Sugar spotlight sets the tone for product development
- Plastic waste is thrust into limelight
- Summer heatwave cushions volume sales
Market Size and Forecast
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- Value and volume sales rise
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- Figure 9: UK Value sales of carbonated soft drinks, 2014-24
- Volume sales growth to slow after unpredictable 2018
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- Figure 10: UK Volume sales of carbonated soft drinks, 2014-24
- Value sales set to continue upwards
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- Figure 11: UK volume and value sales of carbonated soft drinks, 2014-24
- Forecast methodology
Market Segmentation
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- Cola continues dominance as prices rise and volume falls further
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- Figure 12: Retail value and volume sales of carbonated soft drinks and adult drinks, by segment, 2016-18
- Mixer drinks go from strength to strength
- Lemonade volume grows as brands push on zero sugar
Market Drivers
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- Focus on sugar bolsters consumer demand for healthier carbonated soft drinks
- Soft Drinks Industry Levy came into force in April 2018
- PHE publishes sugar reduction goals for juice-based drinks
- Soft drink users opt primarily for healthy drinks
- Spotlight on plastic waste affects CSDs
- Plastic waste attracts mainstream visibility
- Deposit return schemes on the cards in England and Scotland
- Plastic packaging tax announced for 2022
- Plastics Pact
- Heatwave boosts CSDs usage in summer 2018
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- Figure 13: UK total sunshine hours, 2013-18
- Efforts to reduce alcohol intake create opportunities for CSDs
Companies and Brands – What You Need to Know
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- Zero sugar variants continue to drive growth
- Coca-Cola remains category leader
- Mixer brands see strong growth helped by the buoyant spirits market
- SDIL threshold sees rise in lower sugar reformulations
- Leading brands continue to explore fruit variants
- Adult soft drinks look to alcohol cues
- Advertising spend continues to rise for a fifth year
- Mixer brands seen as highest quality
Market Share
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- No-sugar varieties drive growth for Coke and Pepsi
- Coca-Cola retains top position in CSDs
- Coca-Cola Zero Sugar sees strongest growth among leading brands
- Pepsi Max continues to outgrow other Pepsi variants
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- Figure 14: Leading brands’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2017/18 and 2018/19
- Mixer brands grow amid continued growth in spirits market
- Schweppes’ revamp and premium launch propel strong growth
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- Figure 15: Leading manufacturers’ sales and shares in the UK retail carbonated soft drinks market, by value and volume, 2017/18 and 2018/19
- Appletiser enjoys another year of strong growth
- Summer heatwave and marketing support sees J2O back in growth
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- Figure 16: Leading brands’ sales and shares in the UK retail adult soft drinks market, by value and volume, 2017/18 and 2018/19
Launch Activity and Innovation
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- Launches undercutting SDIL threshold rise in 2017 and 2018
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- Figure 17: Share of carbonated soft drinks launches, by sugar content, 2015-19*
- SDIL brings a lesser boost to launches with sugar claims
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- Figure 18: Carbonated soft drinks launches by low and zero-sugar and L/N/R calorie claims, 2015-19*
- Design revamp moves Coke Zero Sugar closer to original variant
- 7UP Free updates design
- Leading brands continue to explore fruit variants
- Fanta draws on public opinion for new flavours
- Strong demand for newness
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- Figure 19: Leading brands exploring more fruit flavours, 2018-19
- Tango introduces sugar-free range to recruit younger consumers
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- Figure 20: Tango sugar-free launches, March 2019
- Brands further explore adult soft drinks
- ‘Spritz’ launches drive alcohol adjacency
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- Figure 21: Shloer Spritzed and Pressed, Appletiser Spritzer, 2019
- Perrier + Juice launch targets health-conscious shoppers
- Green Monkey claims first UK CBD CSD
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- Figure 22: Green Monkey CBD drink, March 2019
- CCGB launches Signature Mixers range
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- Figure 23: Coca-Cola Great Britain line of signature mixers, May, 2019
- The vast majority of launches call out recyclability
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- Figure 24: New product launches in the UK carbonated soft drinks market, by the ethical – environmentally friendly package claim, 2015-19
- Plastic packaging retains share of launches in 2018
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- Figure 25: New product launches in the UK carbonated soft drinks market, by package material, 2015-19
Advertising and Marketing Activity
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- Advertising spend continues to rise
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- Figure 26: Total above-the line, online display and direct mail advertising expenditure on carbonated soft drinks, by advertiser, 2015-19
- Coca-Cola remains highest spender in the category
- ‘One Way or Another’ ad sees Coke Zero Sugar in red packaging
- Diet Coke refreshes brand ethos with ‘Put Perfect on Ice’ ad
- Integrated campaign #cokedunks promotes recycling
- ‘Where Everyone Plays’ ad promotes Premier League affiliation
- Coke invests in Christmas with social media and festive flavours
- Fanta launches biggest ever campaign for Halloween
- Pepsi brings back the taste challenge with Max
- Pepsi Max encourages new traditions for Christmas
- 7UP Free celebrates redesign with ‘Feels Good to be Free’ campaign
- Fever-Tree engages on-trade through G&T Pub Garden Campaign
- Irn-Bru launches ad to inspire a new generation
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 27: Attitudes towards and usage of selected brands, May 2019
- Key brand metrics
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- Figure 28: Key metrics for selected brands, May 2019
- Schweppes and Fever-Tree are deemed to deliver most on quality
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- Figure 29: Attitudes, by brand, May 2019
- Pepsi Max, Diet Coke, Sprite, 7up and Irn-Bru all on a par in perceptions of being fun
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- Figure 30: Brand personality – Macro image, May 2019
- Sprite and 7up are lead associations with refreshment
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- Figure 31: Brand personality – Micro image, May 2019
- Brand analysis
- Fever-Tree stands out on sophistication and innovativeness
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- Figure 32: User profile of Fever-Tree, May 2019
- Schweppes wins on trust and has the most traditional image
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- Figure 33: User profile of Schweppes, May 2019
- Pepsi Max just beats Diet Coke on brand satisfaction
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- Figure 34: User profile of Pepsi Max, May 2019
- Diet Coke displays highest brand commitment
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- Figure 35: User profile of Diet Coke, May 2019
- Sprite and 7-up benefit from their connotations with refreshment
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- Figure 36: User profile of Sprite, May 2019
- 7up struggles to differentiate from Sprite
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- Figure 37: User profile of 7up, May 2019
- Irn-Bru lacks trust, with question marks over its quality
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- Figure 38: User profile of Irn-Bru, May 2019
The Consumer – What You Need to Know
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- Diet/light drinks have a clear lead in usage
- Opportunities to explore fortification
- New flavours can sustain engagement
- Cooling associations warrant further attention
- ‘Refreshing’ and ‘enjoyable’ are the most common qualities associated with CSDs
Usage of Carbonated Soft Drinks
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- Two in three adults drink CSDs, diet/light variants enjoy a clear lead
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- Figure 39: Usage of carbonated soft drinks, by type, April 2019
- Majority of users drink both non-diet and diet drinks
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- Figure 40: Crossover in usage of non-diet and diet/light carbonated soft drinks, April 2019
- Diet/light variants also lead on usage frequency
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- Figure 41: Frequency of usage of carbonated soft drinks, by non-diet and diet/light, April 2019
- Diet/light stands ahead of sugary on usage across all ages
- The most common place to drink CSDs is at home
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- Figure 42: Usage of carbonated soft drinks, by type, by location, April 2019
- 20% of people drink diet CSDs at restaurant pubs/bars
Interest in Product Features
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- One in three CSDs users is interested in vitamin/mineral fortification
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- Figure 43: Interest in product concepts in carbonated soft drinks, April 2019
- Lower carbonation appeals to 24%
- Hints of spice can help drive interest
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- Figure 44: Product launches featuring spice as flavour components, UK 2017-18
Attitudes toward Carbonated Soft Drinks
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- Majority don’t feel they can justify home carbonation equipment
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- Figure 45: Attitudes relating to carbonated soft drinks, April 2019
- New flavours can drive continued engagement
- Gut health concerns pose a threat to CSDs
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- Figure 46: CSDs aligning with a gut health proposition, 2018-19
Qualities Associated with Refreshing Drinks
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- Cooling associations warrant further attention
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- Figure 47: Qualities associated with a refreshing drink, April 2019
- Encouraging a perfectly chilled serve
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- Figure 48: Coors Light Thermochromic Indicator, UK 2019
- Further scope to explore cooling flavours
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- Figure 49: San Pellegrino lemon and mint and Sprite Ice Mint, 2018-19
- Figure 50: Fruit and berry flavoured CSDs with mint, 2017-18
- One in four views a refreshing drink as relaxing
- Putting relaxation centre stage in marketing
- Forging connotations with calm through traditional herbal ingredients
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- Figure 51: Selected CSD brands referencing relaxation on-pack, 2018-19
- Exploring energising qualities beyond caffeine
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- Figure 52: Selected CSD brands featuring ingredients associated with energy, 2017-18
Qualities Associated with Selected Soft Drinks
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- ‘Refreshing’ and ‘enjoyable’ stand out as most common qualities
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- Figure 53: Correspondence Analysis of qualities associated with selected soft drinks, April 2019
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- Figure 54: Qualities associated with selected soft drinks, April 2019
- Room to grow in providing alcohol alternatives
- Methodology
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 55: UK Volume sales of carbonated soft drinks, best-and-worst-case forecast, 2019-24
- Figure 56: UK value sales of carbonated soft drinks, best-and-worst-case forecast, 2019-24
- Forecast methodology
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