Fruit drinks squeeze UK soft drink growth potential
in Britain's soft drinks market failed to prevent overall sales
volumes declines within the industry during 2007, according to the
British Soft Drink Association (BSDA).
In its latest annual report, the trade group said that annual consumption had fallen by 0.8 per cent to 14.2bn litres over the year, though retail values rose by 0.7 per cent to £12.9bn (€16.3bn), reflecting higher input costs. Despite a number of challenges during the year, including the wettest UK summer on records, a growing focus within the industry on health and wellness is expected to ensure further growth in the near future, the BSDA said. According to the report, annual volume growth of about two per cent is expected as a result over the next five years, with consumption set to reach 15.4bn litres by 2012. BDSA director general Jill Ardagh said that in 2007, drinks that were either naturally produced or could offer functional benefits had created new opportunities for manufacturers. "Health and wellbeing should continue to be key drivers of growth in the UK soft drinks industry," she stated. "[About] 61 per cent of soft drinks are now low calorie or no added sugar and this trend is set to continue." Juices A key trend recorded by the association in 2007 was the growing importance of still, juice-based and 100 per cent juice drinks to the industry as a whole. Despite this growth, orange juice, the UK's favourite flavour of the product posted a further decline in market share to just 54 per cent, as consumers looked to try new flavours and varieties, the report stated. Smoothie potential The Smoothie segment posted the strongest growth during the year, with consumption up by 44 per cent on the back of demand for natural and functional products. The carbonated beverage sector was also focused on innovative new ranges, particularly in regards to vitamin and energy use, the report said. Sports drinks and water dips The report added that sales volumes for beverages designed to offer a caffeine or natural energy boost were up by 12 per cent in 2007, reaching 455m litres. Poor weather conditions such as heavy rain led to saw a fall in bottled water sales volumes of four per cent to 2.1bn litres, though the growing health and wellbeing demand from consumers are expected to push further growth in the market, the BDSA said.
