Soft Drinks - United Kingdom

The Soft Drinks market in United Kingdom has witnessed significant growth in recent years, driven by changing consumer preferences, emerging trends, and local special circumstances.

Customer preferences: In United Kingdom, consumers are increasingly seeking healthier beverage options, leading to a rise in demand for low-sugar and natural drinks. This shift in consumer preferences can be attributed to growing health consciousness and increasing awareness about the negative effects of sugary drinks. As a result, there has been a surge in the demand for bottled water, fruit juices, and functional beverages that offer nutritional benefits.

Trends in the market: One of the key trends in the Soft Drinks market in United Kingdom is the increasing popularity of plant-based beverages. Consumers are opting for alternatives to traditional dairy-based drinks, such as almond milk, soy milk, and oat milk. This trend is driven by factors like dietary restrictions, environmental concerns, and the perception that plant-based beverages are healthier options. As a result, companies are introducing a wide range of plant-based drinks to cater to this growing demand. Another trend in the market is the rise of functional beverages. Consumers are looking for drinks that offer additional benefits, such as energy boosters, vitamins, and antioxidants. This trend is driven by the desire for convenience and the growing interest in holistic health and wellness. As a response, companies are launching innovative products that combine traditional soft drinks with functional ingredients like probiotics, collagen, and adaptogens.

Local special circumstances: The Soft Drinks market in United Kingdom is influenced by several local special circumstances. One of these is the sugar tax implemented by the government in 2018. This tax has led to a reduction in the sugar content of many soft drinks and has incentivized companies to introduce healthier alternatives. As a result, there has been a shift towards low-sugar and sugar-free beverages in the market. Additionally, the increasing focus on sustainability and environmental responsibility is impacting the Soft Drinks market in United Kingdom. Consumers are becoming more conscious of the packaging materials used for beverages and are actively seeking products with eco-friendly packaging. This has prompted companies to explore sustainable packaging options, such as recyclable bottles and plant-based materials.

Underlying macroeconomic factors: The Soft Drinks market in United Kingdom is also influenced by underlying macroeconomic factors. Economic growth, rising disposable incomes, and changing lifestyles are driving the demand for soft drinks. As consumers have more discretionary income, they are willing to spend on premium and healthier beverages. Furthermore, the busy and on-the-go lifestyles of consumers have created a demand for convenient and portable drink options, such as ready-to-drink beverages and single-serve packaging formats. In conclusion, the Soft Drinks market in United Kingdom is experiencing growth due to shifting consumer preferences towards healthier options, emerging trends like plant-based beverages and functional drinks, local special circumstances such as the sugar tax and sustainability focus, and underlying macroeconomic factors like economic growth and changing lifestyles. As the market continues to evolve, companies will need to adapt to these trends and cater to the evolving needs and preferences of consumers.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.