Global Soft Drink Concentrates Market - 2024-2031

Overview

Global Soft Drink Concentrates Market reached US$ 32.81 billion in 2023 and is expected to reach US$ 53.70 billion by 2031, growing with a CAGR of 6.30% during the forecast period 2024-2031.

The market is experiencing a significant shift towards health and wellness. Consumers are increasingly looking for beverages with reduced sugar content, natural ingredients, and added health benefits. This trend is pushing manufacturers to innovate and create soft drink concentrates that cater to health-conscious consumers. Products with functional ingredients like vitamins, minerals, and antioxidants are becoming more popular in the market.

Technological advancements are playing a crucial role in the market. Innovations in flavor technology, preservation methods, and production processes are enhancing the quality and shelf life of soft drink concentrates. Additionally, the use of artificial intelligence and big data analytics helps companies understand consumer preferences and optimize their product offerings in the market.

For instance, on February 26, 2024, GNT Group launched its latest innovation: a range of plant-based Exberry concentrates designed to cater to manufacturers' needs for clean-label brown shades in low-pH soft drinks. Introducing Shade Autumn Brown and Shade Golden Brown, these new offerings provide distinct reddish-brown and caramel-brown hues, perfectly suited for both still and carbonated soft drinks.

Consumers in North America are increasingly prioritizing health and wellness, leading to a growing demand for healthier beverage options. This trend has prompted a shift away from traditional sugary soft drinks towards low-calorie, sugar-free, and natural concentrate options. Market players are responding by introducing healthier formulations and emphasizing the nutritional benefits of their products.

Dynamics

Rising Demand for Convenience Products

The increasing preference for convenience products enhances the market penetration of soft drink concentrates. As consumers look for quick and easy beverage options, soft drink concentrates offer a practical solution, enabling them to prepare their drinks instantly by simply adding water. This convenience factor boosts the market's appeal and encourages higher adoption rates across various demographics.

The rising demand for convenience products influences market segmentation, with a noticeable shift towards products that offer ease of use. This includes targeting segments such as working professionals, students, and busy families who prioritize convenience in their purchasing decisions. Understanding these segments allows companies to tailor their marketing strategies and product offerings to meet the specific needs of these groups, further driving market growth.

Continuous Innovation in Sugar-free and Low-calorie Concentrates

The increasing health consciousness among consumers drives the demand for healthier beverage options. Innovations in sugar-free and low-calorie concentrates cater to this demand, attracting health-conscious individuals who seek to reduce their sugar intake without compromising on taste. This shift in consumer preferences stimulates the market for these healthier concentrates, leading to increased sales and market growth.

Innovative sugar-free and low-calorie concentrates enable brands to craft compelling marketing strategies focused on health benefits. Highlighting the absence of sugar and the low-calorie content in marketing campaigns appeals to health-conscious consumers. Effective marketing strategies that emphasize these innovations attract new customers and retain existing ones, driving market demand and growth.

Growing Awareness about Health Concerns

The market is witnessing a noticeable shift as consumers increasingly prefer beverages with natural ingredients, lower sugar content, and functional benefits. This change in consumer preference is driven by the growing awareness of health issues such as obesity, diabetes, and other lifestyle-related diseases that are often associated with the high consumption of sugary drinks. As a result, the demand for traditional soft drink concentrates is expected to decline.

The soft drink concentrates market is also being affected by innovations in healthier beverage alternatives. Companies are investing in the development of products that cater to the health-conscious consumer, such as concentrates with natural sweeteners, added vitamins, and functional ingredients. While this diversification could present opportunities, it also signifies a shift in market dynamics away from traditional soft drink concentrates.

Segment Analysis

The global soft drink concentrates market is segmented based on type, flavor, packaging, distribution channel, and region.

Increasing Consumption and Innovations in Carbonated Concentrates

Carbonated concentrates are poised to hold the largest share of the global soft drink concentrates market. Carbonated soft drinks have traditionally been among the most popular beverages worldwide, enjoying widespread consumption across various demographics. As a result, carbonated concentrates, which are used to produce these beverages, command a significant portion of the overall soft drink concentrates market.

Despite concerns about health and sugar content, manufacturers of carbonated concentrates continually innovate to meet changing consumer preferences. This includes the introduction of sugar-free, low-calorie, and natural formulations to appeal to health-conscious consumers while retaining the essence of carbonated beverages. Such innovation ensures the relevance and continued dominance of carbonated concentrates in the market.

Geographical Penetration

Rising Demand for carbonated and non-carbonated beverages in North America

North America is positioned to dominate the global soft drink concentrates market. The established consumer base and robust demand for carbonated and non-carbonated beverages contribute to the region's dominance. North America has a long-standing tradition of soft drink consumption, with a high per capita consumption rate compared to other regions globally. This strong consumer demand creates a sizable market opportunity for soft drink concentrate manufacturers and suppliers operating in North America.

North America has several leading soft drink companies and beverage manufacturers with extensive distribution networks and brand recognition. These companies leverage their market presence, brand equity, and production capabilities to drive sales and market share in the region. As a result, North American soft drink concentrate manufacturers benefit from strategic partnerships and collaborations with established beverage companies, enabling them to access a wide customer base and expand their market reach in the region.

COVID-19 Impact Analysis

The global soft drink concentrates market faced significant supply chain disruptions during the COVID-19 pandemic. Lockdowns and restrictions on the movement led to interruptions in the production and distributing of raw materials and finished products. These disruptions caused delays and shortages, impacting the availability of soft drink concentrates in the soft drink concentrates market.

The pandemic has accelerated a shift in consumer preferences towards healthier and more immune-boosting beverages. This shift has somewhat restrained the market for traditional soft drink concentrates, which are often high in sugar and artificial ingredients. Consumers have shown a greater preference for beverages that promote health and wellness, such as natural juices, functional drinks, and those with added vitamins.

Russia-Ukraine War Impact Analysis

The war has led to severe disruptions in supply chains, particularly affecting the transportation and availability of raw materials essential for producing soft drink concentrates. Both Russia and Ukraine are significant suppliers of various agricultural products and raw materials. The conflict has hindered the export and import processes, creating bottlenecks and delays in the market.

The geopolitical instability caused by the Russia-Ukraine war has led to significant market uncertainty and volatility. Investors and businesses are cautious, impacting market investments and expansion plans. This uncertainty affects the soft drink concentrates market as companies hesitate to make significant financial commitments amidst an unpredictable economic environment.

By Type

• Carbonated Concentrates
• Non-Carbonated Concentrates

By Flavor

• Fruit
• Citrus
• Cola
• Others

By Packaging

• Bottle
• Cans
• Stand Up Pouches

By Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Retail
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On Feb 26, 2024, GNT Group launched a new line of plant-based Exberry concentrates designed to clean label soft drinks. The newly introduced Shade Autumn Brown and Shade Golden Brown provide distinct reddish-brown and caramel-brown hues, ideal for both still and carbonated soft drinks. This innovation meets the growing consumer demand for natural brown colors that are free from health concerns and the 14 allergens specified under the EU Labeling Regulation.
• In March 2022, PepsiCo's SodaStream unit introduced Pepsi syrup mixes in California, designed to complement the carbonated water produced by the DIY soda appliance. These syrup options cater to various preferences, including Pepsi Zero Sugar, Diet Pepsi, Sierra Mist Zero Sugar, and Sierra Mist, offering consumers a convenient way to create their favorite sodas at home using concentrates.
• In September 2021, Rasna, renowned for its soft drink concentrates, made its foray into the soft drink market with the introduction of 'Indie Cola.' This unique fruit cola offering was initially targeted towards middle-class families residing in smaller towns, before capturing the attention of the upscale metro audience.

Competitive Landscape

The major global players in the soft drink concentrates market include SUGAM PRODUCTS, MARUTI AROMATICS & FLAVOURS, Flavoron Impex (I) Private Limited, Tastarom Products LLP, L.liladhar And Co., Shah Food Processing Private Limited, Ecofresco, Magic Flairs, One on One Flavors, and Dohler GmbH.

Why Purchase the Report?

• To visualize the global soft drink concentrates market segmentation based on type, flavor, packaging, distribution channel, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous global soft drink concentrates market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global soft drink concentrates market report would provide approximately 70 tables, 63 figures, and 213 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies