This reflects a mature status, the fairly concentrated nature of the industry and the relatively limited innovation opportunities in comparison with some other parts of the market, such as juice drinks.
Lu Ann Williams, research manager at Innova Market Insights reports that the US has the largest carbonated soft drinks market in the world, as well as the highest per capita consumption levels.
She says: “As a result, product development tends to be led from there, although the very concentrated nature of the market, with the top three players accounting for 90% of sales, has served to limit innovation in some instances. This has also tended to stifle the development of new players and brands.”
Interest in low calorie and reduced sugar lines is now well established and products using this type of claim accounted for 17.5% of global carbonate launches in 2012. This percentage rises to nearer a quarter in the US and Western Europe and falls to about 11% in Asia.
A more recent trend aimed at regenerating interest in a mature and generally static market is that of mid-calorie products, positioned as a halfway house between the taste of full-sugar products and the health benefits of sugar-free options.
The concept is being trialled in the US, with activity led by PepsiCo’s Pepsi Next cola, with 60% fewer calories than regular Pepsi and sweetened with a blend of high fructose corn syrup (HFCS), aspartame, acesulfame-K and sucralose.
It was launched nationally in the US in April 2012, following testing. The brand was also launched in Australia in 2012, but interestingly using a formulation with stevia for 30% sugar reduction, rather than the 60% reduction in the US version achieved with a variety of sweeteners.
Back in the US, carbonates market leader Coca-Cola also developed and tested its own mid-calorie carbonates range through 2012 using the Select sub-brand for Fanta and Sprite products. These featured natural sweeteners, including sugar, stevia and erythritol, to give a drink with 50% of the calories of standard lines.
Source: Innova Market Insights
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