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Soft drink market trends

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2024 June 11

Globally, a significant number of beverage options are driven by habits, as consumers select certain drinks based on their needs, according to the latest specific analysis published by FMCG Gurus.

No Surprises

It's not surprising that certain product categories have maintained a consistent proportion of regular consumers over time. However, in recent years, there has been a noticeable increase in consumers turning to cordials, squash, and syrups weekly.

FMCG Gurus' consumer insights show that 53% of global consumers reported drinking cordials, squash, and syrups either daily or weekly in 2024. This has increased by 12% since 2021.

This rise in cordial consumption may be linked to people seeking more cost-effective options. This is due to rising prices, particularly in product categories they regularly purchase.

On the other hand, there has been a decline in the number of people consuming chilled juice weekly, likely due to its premium prices.

Reduced Spending

During a period of financial uncertainty, consumers spend less in the health and wellness market. When evaluating health-benefit beverages, there has been a decrease in people regularly consuming these products compared to 2021.

For example, FMCG Gurus' market research highlights that in the protein drink category, 26% of consumers drink this beverage daily or weekly. This shows an 11% decrease in consumers who buy protein drinks daily or weekly since 2021.

This decline is particularly pronounced in the isotonic drinks category. While consumers remain proactive about their health, a reduced concern about illness, coupled with rising prices, has led to a shift from a steadfast focus on health to a more cautious approach.

This means that consumers are still interested in health and wellness products but use them less frequently. Additionally, they are likely more discerning about their efficacy, necessity, and value, especially for higher-priced products.

Attention to Negative Factors

When checking nutritional labels, consumers are more likely to look at negative dietary ingredients. And when choosing beverages, many consumers review the nutritional details on the packaging, a percentage that has remained constant over the past two years.

The tendency to inspect labels varies by beverage category. Generally, consumers are more inclined to review information for negative dietary aspects rather than ingredients associated with health benefits.

Sugar is the most frequently checked ingredient. Although sugar content does not necessarily deter people from purchasing, especially for indulgence occasions, it underscores that people are mindful of sugar content in soft drinks.

Additionally, the association with health issues such as obesity is clear. This has been influenced by increased attention to the subject over recent decades.

Recognizable Ingredients Attract Consumers

Current challenges posed by the cost-of-living crisis have affected consumers' financial stability. However, it's crucial to recognize that individuals prioritize perceptions of value over affordability when selecting soft drinks.

Moreover, consumers are still willing to upgrade to products they perceive as high-quality. This is particularly evident when seeking affordable indulgence moments to escape and compensate for reduced spending in other areas.

This highlights the importance of emphasizing innovation rather than just focusing on offering the lowest price in new product development. Encouragingly, pushing premium boundaries within economic segments can prompt consumers to reconsider their perspectives.

Globally, consumers emphasize that 100% natural production methods heavily influence their view of premium quality. This indicates a desire to ensure products are meticulously made, with a focus on natural ingredients, associated with health, sustainability, and superior quality. (Photo: Freepik)

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