Growth Opportunities in Soft Drinks: Southeast Asia

Overview of Soft Drinks Performance in South east Asia

In 2017, soft drinks manufacturers in South east Asia observed an overall slowdown in volume sales due to weak consumer sentiment,coupled with a shift towards healthy living as governments introduced measures to reduce sugar consumption in soft drinks.

Regional slowdown observed in soft drinks, except Vietnam

In 2017 volume sales of soft drinks in the region recorded a slowdown due to weaker consumer sentiment and growing health consciousness, particularly in Thailand,Malaysia, and Singapore.

Slow growth for carbonates across the region

The category faced stagnant growth across the region in 2017. Despite manufacturers’ attempts to launch reduced- or zero-sugar beverages such as Coca-Cola Zero Sugar, sales failed to grow as consumers shifted towards other categories.

the impact of Philippines’ sugar tax on carbonates

The forecast model accounts for the historic price elasticity of soft drinks category volumes, allowing us to estimate a possible impact (while holding all other factors constant).

Carbonates rejuvenate image towards healthy living

As consumers shun carbonates due to the products’ high association with sugar, manufacturers are making an attempt to retain consumer loyalty by launching low-sugar or sugar-free alternatives containing sweeteners such as stevia, appealing to consumers’ health consciousness.

Bottled water continues to record resilient growth in region

Bottled water within South east Asia continued to record strong resilient growth in 2017, with Vietnam recording the highest growth of 12%.