BOTH globally and locally, the Carbonated Soft Drinks (CSD) market is witnessing a shift in consumer preferences from traditional high sugar, caffeinated soft drinks to healthier variations that exclude these ingredients, driven by ongoing health concerns surrounding these ingredients. This is resulting in market players increasing its existing brand ranges or launching new CSD products that are sugar- or caffeine-free, or lower in sugar content, thus meeting the ever-changing needs of consumers and catering to ongoing global health trends and priorities.
Insight Survey’s latest South African Carbonated Soft Drinks (CSD) Industry Landscape Report 2023, describes the latest global and local market trends, innovation and technology, drivers, and challenges, to present an objective insight into the South African Carbonated Soft Drinks industry environment and its future.
In 2022, the global Carbonated Soft Drinks market was estimated to have generated approximately $328.9bn in revenue and is forecast to reach approximately $372.1bn in 2023, growing by 11.6% year-on-year. Furthermore, the global CSD market is forecast to increase by a compound annual growth rate (CAGR) of 3.3% between 2023 and 2027, to reach approximately $423.7bn by 2027.
In South Africa, the local Carbonated Soft Drinks market achieved very strong growth of 15.1% year-on-year, at current prices, between 2021 and 2022. Tellingly, the Reduced Sugar Carbonates market has witnessed significant growth in the country since 2017, with a CAGR of 9.4% between 2017 and 2022, compared to 7.3% for Regular Carbonates.
The current and expected growth of both the global and local Carbonated Soft Drinks market can be attributed, in part, to the introduction of healthier CSD products, specifically those lower in, or without, sugar and caffeine. These new products and formulations are being released by market players to meet prominent consumer health trends and concerns.
For example, The Coca-Cola Company introduced four limited-edition zero-sugar CSD products. Competitor PepsiCo has launched its new caffeine-free, lemon-lime flavoured CSD product, Starry Lemon Lime. In addition to being caffeine-free, this product was also made available in a zero-sugar variant.
This trend has also gained traction in the local market, with more South African brands introducing low sugar, sugar-free, and caffeine-free CSD products. As an example of this, Coca-Cola South Africa, which already has a number of sugar-free and low sugar CSD products available throughout the country, announced the launch of its new Coca-Cola No Sugar No Caffeine soft drink, marketed as an ‘epic caffeine-free replacement’ for its discontinued TaB product.
The South African Rooibos beverage brand, BOS, announced its plans to enter the local CSD market, with its new sparkling iced tea range. This range was made available in three flavours that are all caffeine-free and low in sugar, responding to consumer demands for healthier alternatives.
Additionally, PepsiCo tested its Pepsi MAX zero-sugar product, through an international ‘Taste Challenge’ in South Africa.
The South African Carbonated Soft Drinks (CSD) Industry Landscape Report 2023 (111 pages) examines the local and global Carbonated Soft Drinks industry from a holistic perspective, with detailed insights into the entire value chain – market sizes and forecasts, industry trends, latest innovation and technology, key drivers and challenges, manufacturer overview, distributor overview, retail and pricing analysis.
The 111-page report is available for purchase for R35 000.00 (excluding VAT). Alternatively, individual sections can be purchased for R15 000.00 (excluding VAT).
For more information, email info@insightsurvey.co.za
