Litre volume within the global soft drinks industry slowed significantly in 2023, although retail value grew by 5%, in fixed constant dollar terms
Source: Euromonitor International
Weaker volume growth was largely a consequence of record increases in selling price, with higher price elasticity expected this year. Within North America and across Western Europe, the retail packaged soft drinks industry faced flat or slightly negative volume performance across key categories of sparkling, juice and bottled water.
The story in 2024 – and perhaps the longer term narrative in global soft drinks – is the extent to which Asia, Latin America and particularly the Middle East and Africa – are now the engine of volume consumption within global drinks. Although last year, Asian markets did not face the same degree of RSP increases that consumers faced across Europe and North America, and subsequently the region maintained relatively strong volume growth over the past twelve months.
Social innovation, co-branded RTDs and functional drinks are areas to watch
Another focus point in the year ahead will be the centrality of social media and digital marketing campaigns to the success of beverage innovation. Many of the major success storis over the last year – from Prime sports drink to Stanley water bottles – have emerged from the disruptive power of social channels and influencers to amplify product appeal.
Alcohol – particularly flavoured ready-to-drink canned cocktails – will also remain a focal point for soft drinks producer strategy. Co-branding efforts between major soft drink brands and spirits are increasing, along with innovation in alternative categories, such as adult soft drinks, premium mixers and other options that blur the line between no/low alcohol and traditional soft drink.
Energy drinks, sports drinks and other functional options (such as soluble powder concentrates) were consistent standouts across regions. Non-alcohol beverage producers are now competing across a much wider set of functional occasions and need-states, incorporating ingredients for digestive health (like prebiotic seltzers), focus, productive and non-alcohol relaxation/wellbeing.
For more on these trends and detailed data on global soft drinks outlook, please see our report, World Market for Soft Drinks.