Where Consumers Shop for Soft Drinks

Key findings

Faster volume than value growth in soft drinks channels

Channel distribution within soft drinks witnessed faster volume than value growth due to the lower average unit price of bottled water, the main category growth driver within soft drinks. Furthermore, largely developing regions with lower average unit prices such as Asia Pacific, Latin America and the Middle East and Africa were also the main regions driving growth.

Traditional retailing benefits from the growth of emerging markets

Despite the switching from traditional to modern retailing across most markets globally including South Korea and Poland, traditional retailing still outpaced modern retailing in growth, due to its high presence in fast-growing developing markets of Asia Pacific, Latin America and the Middle East and Africa.

Convenience and technology adoption drive e-commerce boom

E-commerce is the fastest growing soft drinks channel, buoyed by the convenience trend and an increasingly tech-savvy population globally. Asia Pacific is at the centre of growth, driven by rising acceptance of a digital economy in China. Both foodservice operators and modern retail giants such as Walmart have tapped into e-commerce to complement their physical stores as part of an omnichannel strategy.

Single serve boosts smaller format stores up to 2019, while COVID-19 induces shift to take-home purchases

Shrinking family sizes and greater consumer emphasis placed on convenience amidst increasing hectic lifestyles up to 2019 have driven convenience store growth, notably in Asia Pacific and Eastern Europe. However, COVID-19 measures resulting in greater at-home consumption have resulted in stores shifting their product mix to take-home and multipack purchases, with stores reliant on heavy foot traffic set to be hit hardest.

Foodservice to venture in the direction of health and sustainability

Foodservice has been a testbed for innovation and the propagation of soft drinks trends, as foodservice providers strive to cater to the needs of both an ageing population and millennials. Health-related trends such as sugar reduction and sustainability-related trends such as plastic reduction and recycling are expected to play out in the coming years.