Global Soft Drinks Growth Faces Challenges Stemming from Consumer Health Concerns

CHICAGO–(BUSINESS WIRE)–Euromonitor International released today new data and analysis to their
hot and soft drinks industry research.

According to the latest research, the global hot drinks industry
performed well, achieving slight improvement over growth in 2014. Hot
drinks growth reached seven percent in off-trade current value terms
with tea being the fastest growing industry category, followed by other
hot drinks and coffee. Total volumes in hot drinks grew by two percent.

2015 was characterized by weakness in key emerging markets for consumer
goods, particularly BRIC markets. However, in the hot drinks category
among the BRICs, India achieved six percent total volume growth for hot
drinks in 2015, up from four percent in 2014. India’s economy and demand
for hot drinks have been less impacted by the slowdown in the global
economy because its GDP is less reliant on exporting of manufactured
goods and raw materials than Brazil, China or Russia.

In regards to soft drinks, the global industry saw marginal growth from
2014 to 2015. Growth reached five and a half percent in value terms with
energy drinks as the fastest growing category, followed by bottled water
and sports drinks. Total volumes in the overall soft drinks category
grew by three percent.

“The soft drinks industry faces multiple headwinds in 2016. Key emerging
markets will continue to struggle, while health concerns are growing—and
shifting. Traditional low-calorie options may not be enough to
carbonates; consumers are increasingly skeptical of added ingredients,
particularly artificial sweeteners,” says Head of Soft Drinks and Hot
Drinks Research, Michael Schaefer. “Reduced-sugar carbonates
underperformed regular, full-calorie carbonates in both North America
and Asia Pacific. A large-scale shift to lighter, often naturally
less-sweet beverages—bottled water above all—will continue to drive
innovation globally.”

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Euromonitor International
Ashley Sellers
Senior Communications
Executive – Euromonitor International
Tel: (312) 922-1115 ext. 8349