Ken research has recently announced its latest publication on “Global Soft Drinks Industry in-Depth Investigation and Analysis Report 2017”. It aims at providing the information about the condition of soft drinks market in the major geographic segments of developed and developing economies, from 2011-16 and forecasting to 2020. It is equipped with all vital statistic about the actual position of the industry and will highlight the foretell opportunities and challenges.
Market size, growth rate, and the overall profitability is three economic indicators to evaluate the Soft Drinks Industry. The soft drinks industry works on the basis of the segmentation of regions on the basis of the price, place, people and their tastes.
The soft drinks market is segmented on the basis of distribution channel:
- Convenience stores
- Hyper markets and supermarkets
- On trade.
Strong retailing network globally has contributed to the growth of this distribution channel.
The major growth in share of soft drinks industry is shown in the regions of North America, China, Europe, Japan, and Southeast Asia, India. TheCAGR of soft drinks industry is 3.3% for the five years whereas the major global consumer market share of soft drinks industry i.e. 34% is covered by the regions ofthe U.S.,Europe, Japan, and China.
The soft drinks market is currently saturated in economic developed regions but it has shown a huge growth in the emerging economies like China and India. The demand of the soft drinks is increasing uninterrupted which can be clear by the fact that the average output growth rate of soft drinks industry is 3.6% in China.
According to the forecast study for the 5 years, which the markets for soft drinks is expected to be increased by 3.7%.
The soft drinks market is competitive due to the presence of multiple competitors in the market. These competitors compete with each other on the basis of their price, product,and distribution on the basis of the region of consumption. The competition in this market is forecast to be increase in the future by adapting to the requirements.
Chancellor George Osborne in his budget 2016, has told the house of common, that the sugar tax will be raised on soft drinks which will be used to help support school sports and fitness programmes
Although the UK soft drinks industry has made some desired changes to tackle this situation and has reduced the sugar content of their drinks.
In India soft drinks are slowly taking place of homemade drinks but still the soft drinks industries have miles to go before they can fully capitalise their opportunity.Supreme Court has directed FSSAI to monitor and conduct periodic checks of all carbonated soft drinks citing that the issue relates to fundamental right to life.
The three growth drivers which can be identified for soft drinks industries in India:
- Focusing on continuous innovation.
- Focus on execution
- Making the category season neutral.
- Health oriented customers: Now days, consumers are usually concerned about their health and consider a healthy beverage which is a drawback in the soft drinks industry. Soft drinks is not considered to be processed properly which many companies are finding their way out of this by innovating healthy drinks.
- The anti – sugar movement: WHO and FDO’s are coming out to protest against high sugar intake and the use of artificial ingredients which is making consumers turn away from drinks that are high on sugar particularly soda.
- Water intake: The companies need to be very particular about the water intake in their products and the risk associated with it.
- The company need to anticipate the government regulation, particularly in relation to their marketing approach towards children.
The soft drink market is growing at a very faster pace with so many existing companies evolving itself to the dynamic environment and new individuals and companies are existing in this industry due to the rising market share.
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