The Rise of Countertop Beverage Systems in Soft Drinks

August 2022

Soft drinks and, moreover, the plastic bottles that are used as packaging, have drawn attention for not being sustainable enough. Home soda makers are competing strongly in some markets, as consumers increasingly favour package-less solutions for preparing their beverages at home. This report looks at some key markets for home soda makers, and evaluates their impact on the soft drinks industry.

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This report comes in PPT.

Key Findings

While there is already quite a sizeable DIY carbonated water market, especially in Western markets, there is still potential for far more growth. The increasingly popularity of healthier sparkling drinks could further increase the importance of soda machines, as more consumers decide (or are compelled by regulation) to move away from single-use packaging.

Expansion opportunities, however, very much depend on the local water infrastructure. Soda machines that are limited solely to carbonating the water without filtering or purifying could potentially face problems in markets where tap water quality is low (or it is simply perceived as sub-standard by consumers).

Especially in 2022, producers must focus on the cost factor, which will still play a major role, despite the growing importance of sustainability attributes and convenience. However, the taste of countertop beverage products will be the determining factor, as consumers decide between the bottled “original” drinks versus making their own DIY version at home.

As consumers demand more personalised drinks, there are opportunities in offering more customised solutions to consumers – including adding botanicals or other functional ingredients to tap water via countertop systems. Smart machines that connect the dots between offering healthy beverages and tasty drinks could move into people’s homes.

Over the coming years, it can be expected that besides Pepsi’s brands, other big brands will move into the syrup market. As in Germany, where has Coca-Cola launched its syrups, the growing DIY beverages market will lead to the increasing presence of various brands. While some companies fear cannibalisation of their own packaged drinks, the opportunities are bigger, as brands can not only reach more consumers but also use a multilateral sustainability strategy.

 

Introduction

Scope

Towards a package-free future in beverages?

Overview: what’s the matter with plastic?
Regulatory change in plastic packaging necessitates new models, beginning in the EU
A desire for more sustainable consumption also resonates with consumers
The consumer’s perspective on sustainable packaging
Sustainability concerns making a mark on consumption and consumer decision-making

Countertop beverage systems today

Countertop pioneer SodaStream capitalizes as Europeans move away from bottled water
Germany is SodaStream’s largest market, followed by the US
Nordic markets: sustainable consumer behaviour drives the highest rates of adoption
The growing universe of carbonation, flavour and home beverage preparation

What’s next?

Popularity of carbonated water across the globe opens doors for soda makers
Competition intensifies, with purification and filtration abilities becoming key to growth
The next generation of countertop beverage systems for mineralisation and functionality

What’s next

Pressure from retailers, delisting packaged water brands and launching countertop systems
Brands offer smart refill schemes and switch to recycled plastic
Fountain on-trade sales and the importance of foodservice
Foodservice operators bet on returnables
Looking to the future: smart filtering technologies combined with personalised beverages
Takeaways

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

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