Targeted new product innovation is key in the slowing growth environment of global soft drinks. Producers must focus on fast-growing emerging categories and create value-added products that meet consumer desires for flavourful, functional and healthy products. The report identifies some of the most interesting examples of global product development in soft drinks from Euromonitor International’s latest research edition.
As soft drinks producers aim to benefit from the continued growth of bottled water and energy drinks, they are introducing more soft drinks that blur category lines and offer the benefits of multiple product categories. In particular, consumer movement away from carbonates to bottled waters is leading more companies to launch water-like products.
Consumers are increasingly seeking out healthier beverages such as bottled water, RTD teas, and vegetable juices to reduce caloric and sugar intake. Public health campaigns such as the UK’s “war on sugar” have alerted consumers to high levels of sugar in many beverages.
In addition to a desire to reduce calories and sugar, consumers are looking for short lists of natural, pronounceable ingredients. Many health conscious shoppers want to avoid artificial colourings, flavourings, preservatives, as well as ingredients such as synthetic caffeine and taurine.
At the same time that many consumers seek to avoid artificial ingredients such as synthetic caffeine, taurine and flavours in energy drinks, many still want the energy boost provided but in a more natural format such as caffeinated waters and cold-brew RTD coffee that also contain fewer calories and sugar than traditional energy drinks.
Using local flavours and ingredients will remain important to consumers who are looking for corporate social responsibility, nostalgia, and transparency in soft drinks. Pushing the envelope in terms of more complex flavours such as bitter, sour, and spicy will also be vital in appealing to millennials.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page