Author: Mintel Group Ltd.
Last saved by: HTTP server

Carbonated Soft Drinks - UK - May 2013

INTRODUCTION
Definition
Excluded
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast of total UK value sales of carbonated soft drinks, 2007-17
Forecast
Market factors
Carbonates benefit from affordable price positioning
Consumers increasingly adopt a more balanced approach to their diets
Demographic changes represent both opportunities and threats
Proposed tax on sugary drinks draws negative attention to the market
Companies, brands and innovation
Coca-Cola and Pepsi brands continue to dominate the take-home market
Figure 2: Shares of leading brands in the UK take-home carbonated soft drinks market, by value, 2012*
NPD activity rises and remains dominated by brands
Adspend drops sharply in 2012
The consumer
Penetration stands at almost 90%
Figure 3: Usage of carbonated soft drinks in the last six months, March 2013
CSDs are more popular at home than on the go
Figure 4: Usage of carbonated soft drinks, by location, March 2013
Price and brand drive purchasing decision
Figure 5: Factors influencing choice of carbonated soft drinks, March 2013
Energy provision, portability and nutrition spark consumer interest
Figure 6: Users’ attitudes towards carbonated soft drinks, March 2013
What we think
ISSUES IN THE MARKET
Is there further scope for stevia-based drinks in the market?
How can the industry engage the ageing population?
What measures can be taken to boost CSD sales in the on-trade?
What NPD opportunities are there to maintain the category’s exciting image?
TREND APPLICATION
Trend: Extend My Brand
Trend: Make It Mine
2015 Trend: Brand Intervention
MARKET DRIVERS
Key points
Consumer sentiment remains gloomy
Figure 7: GfK NOP Consumer Confidence Index, January 2007 to March 2013
Weather and health concerns dampen demand for CSDs
Figure 8: Monthly sunshine and rainfall in the UK, difference from long-term average, 2012
Demographic changes pose opportunities and challenges to CSDs
Figure 9: Projected trends in the age structure of the UK population, 2012-17
Ageing population represents threat to the CSD market…
…however, growth in 25-34s, families and C2s bodes well for the market
Figure 10: Forecast of adult population trends, by lifestage, 2007-17
Carbonated soft drinks continue to compete well on price
Figure 11: Prices per litre of selected soft drinks, May 2013
Proposed tax on sugary drinks draws negative attention to CSD market
Health or indulgence? It’s all about the right balance
COMPETITIVE CONTEXT
Key points
CSDs continue to lead the soft drinks universe
Figure 12: Performance of selected soft drinks categories in the take-home channel, 2007-12
The on-trade’s continuous shift away from wet-led formats represents key opportunity for CSDs
Carbonates continue to fall behind juice in terms of NPD
Figure 13: Comparison of new product launches of selected types of soft drinks, 2010-13
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
CSDs’ share of total beverage NPD reaches four-year high
Figure 14: Share of carbonated soft drinks of total new product launches in the UK drinks* retail market,
Brands drive new product activity
Figure 15: New product launches within the UK carbonated soft drinks market, by manufacturer, 2012
Exotic flavours bring fresh breeze to the market
Figure 16: New product launches in the UK carbonated soft drinks market, by flavour component (top 10),
Packaging continues to attract investment
Stevia is slowly finding its way into the carbonated soft drinks market
All natural claims leap ahead in 2012
Figure 17: New product launches within the UK carbonated soft drinks market, by selected claims, 2009-12
Brands look to sparkling fruit juice to reassure parents
Low sugar retains a minority role in new launches
International innovation
Flavour innovation
Health-oriented fizzy drinks
Energy provision
MARKET SIZE AND FORECAST
Key points
Volumes of carbonated soft drinks decline for the first time in years
Figure 18: UK total value and volume sales of carbonated soft drinks, 2007-17
Figure 19: Forecast of total UK value sales of carbonated soft drinks, 2007-17
Figure 20: Forecast of total UK volume sales of carbonated soft drinks, 2007-17
Take-home expected to see growth but margins will be squeezed
Figure 21: UK take-home value and volume sales of carbonated soft drinks, 2007-17
On-premise sales
Figure 22: UK on-premise value and volume sales of carbonated soft drinks, 2007-17
Forecast methodology
SEGMENT PERFORMANCE
Key points
Cola accounts for bulk of CSD sales
Figure 23: off-trade value and volume sales of carbonated soft drinks and adult soft drinks, by type, 2010-12
Figure 24: On-trade value and volume sales of carbonated soft drinks, by type, 2010-12
Diet variants continue to gain share in the take-home market
Figure 25: take-home value sales of carbonated soft drinks, by standard and diet, 2010-12
MARKET SHARE
Key points
Pepsi outpaces market leader Coca-Cola’s growth in the take-home market
Figure 26: Leading manufacturers’ shares in the UK take-home carbonated soft drinks and adult soft drinks market, by value, 2012*
Coca-Cola retains top position
PepsiCo gains share on the back of promotions
Carbonated juices attract attention
Own-label suffers from brands’ heavy promotional activities
Figure 27: Leading brands in the UK take-home carbonated soft drinks and adult soft drinks market, by value, 2011-12
Figure 28: Leading brands in the UK take-home carbonated soft drinks and adult soft drinks market, by volume, 2011-12
Figure 29: Top five manufacturers’ value sales in the UK take-home carbonated soft drinks and adult soft drinks market, 2011-12
Figure 30: Top five manufacturers’ volume sales in the UK take-home carbonated soft drinks and adult soft drinks market, 2011-12
COMPANIES AND PRODUCTS
Figure 31: Selected leading companies in the UK carbonated soft drinks market and their brands, 2012
AG Barr Plc
Company background
Product range and innovation
Recent activity and promotion
Britvic Plc
Company background
Product range
Recent activity and promotion
Fentimans
Company background
Product range and innovation
Recent activity and promotion
Coca-Cola
Company background
Product range
Recent packaging innovation
Recent flavour innovation
Recent activity and promotion
PepsiCo
Company background
Product range and innovation
Recent activity and promotion
SHS Drinks
Company background
Product range and innovation
Recent activity and promotion
BRAND RESEARCH
Brand map
Figure 32: Attitudes towards and usage of brands in the carbonated soft drink sector, February 2013
Correspondence analysis
Brand attitudes
Figure 33: Attitudes by carbonated soft drink brand, February 2013
Brand personality
Figure 34: Carbonated soft drink brand personality – macro image, February 2013
Figure 35: Carbonated soft drink brand personality – micro image, February 2013
Brand experience
Figure 36: Carbonated soft drink brand usage, February 2013
Figure 37: Satisfaction with various carbonated soft drink brands, February 2013
Figure 38: Consideration of carbonated soft drink brands, February 2013
Figure 39: Consumer perceptions of current carbonated soft drink brand performance, February 2013
Figure 40: Carbonated soft drink brand recommendation – Net Promoter Score, February 2013
Brand index
Figure 41: Carbonated soft drink brand index, February 2013
Figure 42: Carbonated soft drink brand index vs recommendation, February 2013
Target group analysis
Figure 43: Target groups, February 2013
Figure 44: Carbonated soft drink brand usage, by target groups, February 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend drops sharply in 2012
Figure 45: Total advertising expenditure in the UK carbonated soft drinks market, 2009-12
Leading advertisers notably cut adspend in 2012
Figure 46: Advertising spend for carbonated soft drinks, by top 10 advertisers, 2009-12*
Advertisers continue to favour TV advertising for above-the-line activity
Figure 47: Advertising expenditure in the carbonated soft drinks market, by media type, 2009-12
Brands look for more engaging marketing approaches
CHANNELS TO MARKET
Key points
The on-trade bounces back…
Figure 48: Value and volume sales of carbonated soft drinks and adult soft drinks, by channel, 2010-12
…and represents notable opportunities for CSDs
Supermarkets leverage their scale
Figure 49: Value and volume sales in the take-home carbonated soft drinks and adult soft drinks market, by channel, 2010-12
CONSUMER – USAGE OF CARBONATED SOFT DRINKS
Key points
Carbonated soft drinks enjoy almost universal usage
Figure 50: Usage of carbonated soft drinks in the last six months, March 2013
Figure 51: Usage of carbonated soft drinks, by age, socio economic group and presence of own children, March 2013
Premium soft drinks well-placed to find favour with the over-55s
Right balance between health and fun needed to further exploit children’s market
At-home consumption dominates the carbonated soft drinks market
Figure 52: Usage of carbonated soft drinks, by location, March 2013
CONSUMER – CHOICE FACTORS
Key points
Price holds slim lead ahead of brand
Figure 53: Factors influencing choice of carbonated soft drinks, March 2013
Flavour innovation as a promising source for NPD
Educating consumers about stevia may help to increase usage of low-calorie carbonates among the over-55s
Mixability is an important consideration for older consumer groups
CONSUMER – ATTITUDES TOWARDS PRICE INCREASES OF CARBONATED SOFT DRINKS
Key points
Two in five users would cut back on carbonates if prices rose
Figure 54: Users’ attitudes towards price increases of carbonated soft drinks, March 2013
CONSUMER – ATTITUDES TOWARDS CARBONATED SOFT DRINKS
Key points
Portability is a key feature of carbonates
Figure 55: Users’ attitudes towards carbonated soft drinks, march 2013
Interest in natural sweeteners bodes well for stevia-sweetened CSDs
Energy provision as a promising area for NPD
Flavoured water continues to pose competition
CONSUMER – ATTITUDES TOWARDS SELECTED FLAVOURS
Key points
Users’ enthusiasm for variety of flavours bodes well for NPD
Figure 56: Users’ interest in flavours of carbonated soft drinks, March 2013
Testing new flavours through limited editions
Figure 57: Users’ interest in flavours they have not tried before, March 2013
CONSUMER – PERCEPTIONS OF SELECTED TYPES OF SOFT DRINKS
Key points
Attributes associated with selected types of soft drinks
Figure 58: Correspondence analysis, carbonated soft drinks, March 2013
Figure 59: Characteristics associated with selected types of soft drinks, March 2013
APPENDIX – MARKET SIZE AND FORECAST
Figure 60: Best- and worst-case forecasts for the total UK carbonated soft drinks market, by value,
Figure 61: Best- and worst-case forecasts for the total UK carbonated soft drinks market, by volume,
Figure 62: Best- and worst-case forecasts for the UK take-home carbonated soft drinks market, by value, 2012-17
Figure 63: Forecast of UK take-home sales of carbonated soft drinks, by value, 2007-17
Figure 64: Best- and worst-case forecasts for the UK take-home carbonated soft drinks market, by volume, 2012-17
Figure 65: Forecast of UK take-home sales of carbonated soft drinks, by volume, 2007-17
Figure 66: Best- and worst-case forecasts for the UK on-premise carbonated soft drinks market, by value, 2012-17
Figure 67: Forecast of UK on-premise sales of carbonated soft drinks, by value, 2007-17
Figure 68: Best- and worst-case forecasts for the UK on-premise carbonated soft drinks market, by volume, 2012-17
Figure 69: Forecast of UK on-premise sales of carbonated soft drinks, by volume, 2007-17
APPENDIX – BRAND RESEARCH
Figure 70: Brand usage, February 2013
Figure 71: Brand commitment, February 2013
Figure 72: Brand momentum, February 2013
Figure 73: Brand diversity, February 2013
Figure 74: Brand satisfaction, February 2013
Figure 75: Brand recommendation, February 2013
Figure 76: Brand attitude, February 2013
Figure 77: Brand image – macro image, February 2013
Figure 78: Brand image – micro image, February 2013
Figure 79: Profile of target groups, by demographics, February 2013
Figure 80: Psychographic segmentation, by target groups, February 2013
Figure 81: Brand usage, by target groups, February 2013
Brand index
Figure 82: Brand index, February 2013
APPENDIX – BRAND COMMUNICATION AND PROMOTION
Figure 83: Advertising expenditure in the carbonated soft drinks market, by top 10 brands, 2009-12*
APPENDIX – CONSUMER – USAGE OF CARBONATED SOFT DRINKS
Figure 84: Types of carbonated soft drinks consumed, March 2013
Figure 85: Consumption of standard cola, by demographics, March 2013
Figure 86: Consumption of low or no calorie/diet cola, by demographics, March 2013
Figure 87: Consumption of standard non-cola flavoured carbonated soft drinks, by demographics, March 2013
Figure 88: Consumption of low or no calorie/diet non-cola flavoured carbonated soft drinks, by demographics, March 2013
Figure 89: Consumption of carbonated fruit juice and juice drinks, by demographics, March 2013
Figure 90: Consumption of mixers, by demographics, March 2013
Figure 91: Consumption of other carbonated soft drinks, by demographics, March 2013
Figure 92: Consumption of mixers to be used with alcohol, by demographics, March 2013
Figure 93: Consumers who haven’t drunk carbonated soft drinks in the past six months, by demographics, March 2013
APPENDIX – CONSUMER – CHOICE FACTORS
Figure 94: Choice factors when buying carbonated soft drinks, March 2013
Figure 95: Most popular choice factors when buying carbonated soft drinks, by demographics, March 2013
Figure 96: Next most popular choice factors when buying carbonated soft drinks, by demographics, March 2013
Figure 97: Other choice factors when buying carbonated soft drinks, by demographics, March 2013
APPENDIX – CONSUMER – ATTITUDES TOWARDS PRICE INCREASES FOR CARBONATED SOFT DRINKS
Figure 98: Attitudes towards price increases for carbonated soft drinks, March 2013
Figure 99: Attitudes towards price increases for carbonated soft drinks, by demographics, March 2013
APPENDIX – CONSUMER – ATTITUDES TOWARDS CARBONATED SOFT DRINKS
Figure 100: Attitudes towards carbonated soft drinks, March 2013
Figure 101: Agreement with the statements ‘Drinks in glass bottles are of higher quality than those in plastic bottles’ and ‘Own-label drinks taste as good as branded varieties’, by demographics, March 2013
Figure 102: Agreement with the statements ‘I would like to see more new, unusual flavours’ and ‘I am interested in buying low-calorie drinks made with natural sweeteners’, by demographics, March 2013
Figure 103: Agreement with the statements ‘I prefer the taste of diet/light drinks to standard variants’ and ‘Flavoured waters are a healthier alternative to carbonated soft drinks’, by demographics, March 2013
Figure 104: Agreement with the statements ‘I would like to see more carbonated soft drinks with a less sweet taste’ and ‘Carbonated soft drinks are good to have on the move’, by demographics, March 2013
Figure 105: Agreement with the statements ‘I like the idea of customising the flavour of my drink’ and ‘I would be interested in a carbonated soft drink which gives me an energy boost’, by demographics, March 2013
Figure 106: Agreement with the statements ‘330ml can of carbonated soft drink is too much to drink in one go’ and ‘Carbonated soft drinks are suitable for children in moderation’, by demographics, March 2013
APPENDIX – CONSUMER – ATTITUDES TOWARDS SELECTED FLAVOURS
Figure 107: Attitudes towards selected flavours of carbonated soft drinks, March 2013
Figure 108: Attitudes towards ginger beer flavour, by demographics, March 2013
Figure 109: Attitudes towards vanilla flavour, by demographics, March 2013
Figure 110: Attitudes towards tropical fruits flavour, by demographics, March 2013
Figure 111: Attitudes towards elderflower flavour, by demographics, March 2013
Figure 112: Attitudes towards mixed berries flavour, by demographics, March 2013
Figure 113: Attitudes towards lime flavour, by demographics, March 2013
Figure 114: Attitudes towards apple flavour, by demographics, March 2013
Figure 115: Attitudes towards blackcurrant flavour, by demographics, March 2013
Figure 116: Attitudes towards dandelion and burdock flavour, by demographics, March 2013
Figure 117: Attitudes towards cherry flavour, by demographics, March 2013
Figure 118: Attitudes towards green tea flavour, by demographics, March 2013
Figure 119: Attitudes towards grapefruit flavour, by demographics, March 2013
APPENDIX – CONSUMER – PERCEPTIONS OF SELECTED TYPES OF SOFT DRINKS
Figure 120: Perceptions of selected types of soft drinks, March 2013
Figure 121: Perceptions of carbonated soft drinks, by demographics, March 2013
Figure 122: Perceptions of carbonated soft drinks, by demographics, March 2013, continued
Figure 123: Perceptions of juice drinks, by demographics, march 2013
Figure 124: Perceptions of juice drinks, by demographics, march 2013, continued
Figure 125: Perceptions of unflavoured bottled water, by demographics, March 2013
Figure 126: Perceptions of unflavoured bottled water, by demographics, March 2013, (continued)
Figure 127: Perceptions of flavoured bottled water, by demographics, March 2013
Figure 128: Perceptions of flavoured bottled water, by demographics, March 2013, (continued)
Figure 129: Perceptions of squash/cordials, by demographics, March 2013
Figure 130: Perceptions of squash/cordials, by demographics, March 2013, (continued)
Figure 131: Perceptions of energy and sports drinks, by demographics, March 2013
Figure 132: Perceptions of energy and sports drinks, by demographics, March 2013, continued

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.