A soft drink can be defined as a beverage that is composed of carbonated or still water, a sweetening agent(s), and natural or synthetic flavoring. The sweeteners used in a soft drink may either be in the form of high-fructose corn syrup, sugar, sugar substitutes, fruit juice or other natural sweeteners. Based on the formulation and use of the soft drink, it may also contain other ingredients such as coloring agents, caffeine, preservatives, stabilizers, and other ingredients.
About 80% of a soft drink is composed of water. It is owing to this that the transportation of soft drinks incurs extra charges; soft drinks also occupy extra space in storage facilities and warehouses. In order to allay these problems, soft drink ingredients are further processed so they can be concentrated. The soft drink concentrate thus derived typically consists of ingredients such as color, sugar, and flavors. In some formulations, the use of stabilizers and fruit concentrates (with low water content) may also be seen. The soft drink concentrate industry has been growing at a rapid pace and now forms an important part of the food and beverages sector.
This is attributable to their lower weight, availability in different varieties, and ease of use. With consumers purchasing more processed foods, the demand for soft drink concentrate is also expected to expand at a remarkable rate.
Soft Drinks Concentrate Market: Segmentation
The segmentation of the market for soft drinks concentrate can be done on the basis of applications into: Concentrate for carbonated and non-carbonated soft drinks. Furthermore, the segment of carbonated soft drink concentrate can be divided on the basis of flavor into cola and non-cola. Of these, the share of the cola concentrate segment is the largest currently.
However, subsequent to increased consciousness regarding consumer health, it is expected that the non-cola soft drink concentrate segment will grow faster. Moreover, cola is high in caffeine levels, which may also deter its demand. The segment of non-carbonated concentrates is comprised of fruit flavors or with added fruit concentrates. The common variants available on the market include: mixed fruit/mixed berries, apple, pineapple, grapes, mango, citrus fruit, and others. Consumers are increasingly becoming health conscious and are hence demanding natural products that are perceived as being healthy. This is substantially helping the expansion of the non-carbonated soft drink concentrates market.
The market for soft drinks concentrates, on the basis of form, can be segmented into: Liquid and powder concentrate. Because powder concentrates boast a longer shelf life as compared to liquid concentrates, the demand for the former is projected to be healthy. Furthermore, the soft drinks concentrate market is divided basis end-use applications into the following: Food service, fountain machine, mass merchandise, and others (quick serving restaurants and private clubs). Of these segments, fountain machines represent the fastest-growing segment. This is attributable to fountain machines’ ability to reduce the time taken for preparing a drink and overall convenience in operation.
Soft Drinks Concentrate Market: Region-wise Outlook
The market for soft drinks concentrate can be segmented basis of region into: Eastern Europe, Latin America, Asia Pacific, North America, Middle East and Africa, and Japan. The global soft drinks concentrate market is projected to show a healthy rate of growth through 2025. This will be the result of the rising demand for soft drinks available in the ready-to-drink form and the steadily growing demand for convenience foods worldwide.
Soft Drinks Concentrate Market: Drivers
The growing global population is expected to create a strong impact on food supply globally. However, the trend is now moving toward better nutrition, detailed labeling, and quality of food. Heavy spending on appealing advertisements by leading MNCs in the food and beverages industry, combined with the availability of newer soft drink varieties, will help boost sales of soft drinks concentrates the world over. Several manufacturers are also adhering to good manufacturing practices (GMP) to formulate safe products.
Soft Drinks Concentrate Market: Key Players
The leading global players in the soft drinks concentrate market are: PepsiCo Inc., Monster Beverage Corp., Cott Corporation, the Coca-Cola Company, Kraft Foods, and Dohler Group.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.