Innovations Happening in the Carbonated Soft Drink Industry
The global carbonated soft drink market is projected to grow at a CAGR of 2.17 % during the forecast period to reach US$56,949.96 million by 2027, from US$48,988.516 million in 2020.
Soft drinks, often known as soda, pop, coke, or fizzy beverages, are widely consumed around the world and are defined by Merriam-Webster as carbonated, nonalcoholic beverages. Soft drinks were first marketed in the 17th century as a blend of lemon juice, water, and honey. Later, in the 18th century, the first carbonated drinks debuted as health treatments. Soft drinks are now mass-produced in large quantities utilizing a combination of water, carbonation, flavoring syrup, and bottling to sell to consumers.
As customers strive to live better and more environmentally conscious lifestyles, the push for healthier and more sustainable drinks has recently begun to appear at the forefront of innovation and demand within the soft drink sector. This appears to be a vital component of organizations' future success, along with bringing new flavors and concepts that appeal to customers.
The Making of Carbonated Soft Drinks:
The first step in making bottled CSDs is for the syrup producer to follow the formula and blend the raw components, which include flavourings, chemicals, and (depending on the beverage type) the sweetener. While each CSD's recipe differs, the main ingredients are carbonated water, sweeteners, or non-caloric sweeteners. Other minor additives include acids, flavor enhancers, mouthfeel enhancers, scent enhancers, emulsions, preservatives, and antioxidants.
Factors Accelerating the Market:
Carbonated beverages have gained popularity among consumers due to their busy lifestyles. The food industry's low-calorie carbonated beverage market has grown in response to rising demand for clean-label, gluten-free, low-calorie, and low-carb goods. Low-calorie beverages have grown in popularity as the broader functional beverage market has grown and consumers have become more health concerned. The market's expansion has been aided by the widespread availability of low or zero-calorie drinks in stores such as Walmart and convenience stores. To attract more customers, major players are continually inventing and creating new flavors for zero-calorie drinks.
North America is known for its highest consumption of soft drinks. Factors driving the North American market include a shift in eating patterns, as well as the region's growing youth population and increased demand for carbonated beverages. In addition, to meet new difficulties, businesses are innovating and developing products while bearing in mind the region's health and wellness concerns. These factors are propelling the carbonated beverage market in North America to new heights.
PepsiCo, Inc. and The Coca-Cola Corporation are the two titans of the carbonated soft drink (CSD) and beverage industries, respectively. Coca-Cola and PepsiCo have been long-time rivals. Since 1975, Pepsi has used the renowned "Pepsi challenge" as a marketing slogan. Originally, the challenge was a taste test in which people were asked to drink beverages from two blank cups, one filled with Pepsi Cola and the other with Coca-Cola. Consumers were invited to compare the two drinks and select their favorite. Pepsi Cola came out on top. Although currently, Coca-Cola has a larger market share than PepsiCo. Coca-Cola also made more money in 2021, with $38.7 billion compared to $25.3 billion for PepsiCo.
- In May 2020, The Coca-Cola Company became the first company in the Netherlands and Norway to bottle its entire line of locally produced beverage brands in 100 percent recycled polyethylene terephthalate packaging, as part of the company's "Global World Without Waste" mission.
- PepsiCo Inc. launched Soulboost, a sparkling water beverage with a dash of natural juice and beneficial additives, in May 2021.
- Parle Agro said in June 2020 that it had signed on with prominent e-commerce operators and was onboarding a slew of national and specialty players to boost the company's online sales contribution to overall revenue.
- As consumers are getting more health-conscious, Pepsi recently released Pepsi Zero Sugar Cola Soft Drink with Mango Flavor. In the last five years, Pepsi has launched its first permanent flavored cola.
- Coca-Cola with Coffee Caramel Flavored Cola was initially introduced in Japan in 2018 and is currently available in three flavors: Dark Blend, Vanilla, and Caramel in the United States.
Carbonated drinks witnessed a rise in grocery stores around the world during the COVID-19 pandemic, starting in mid-March 2020, as people stockpiled supplies for an extended period of self-isolation (or quarantine) at home. In many regions, the tendency of working from home or staying at home has established a habit of regular consumption of carbonated beverages, which has boosted the market growth. For example, Keurig Dr. Pepper's carbonated soft drink category increased by 4.27 percent in 2020. Sales, on the other hand, were severely harmed in some regions of the world due to misinformation and a lack of communication. Due to Covid-19, Coco-Cola's volume fell by 25% in April. Consumers expressed a lot of health concerns about Covid-19. As a result, demand for products with unfavorable health reviews has decreased.
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