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The soft drink concentrates market size is forecast to increase by USD 17.3 billion at a CAGR of 7.45% between 2023 and 2028. The market is experiencing significant growth, driven by a strong distribution network that ensures the availability of these products in various regions. Additionally, the increasing trend towards craft soft drinks, offering unique flavors and healthier options, is fueling market expansion. However, challenges persist, including rising obesity rates and related health concerns, leading to growing consumer awareness and demand for low-sugar and zero-calorie options. These factors, along with increasing competition and raw material price fluctuations, present both opportunities and challenges for market participants.
The market is a significant segment of the global beverages industry, driven by the increasing demand for soft drinks and the convenience they offer. Soft drink concentrates are essential ingredients used in the production of soft drinks, including carbonated and non-carbonated beverages. These concentrates contain essential ingredients such as water, sweeteners, and flavorings, which are later diluted with water and other ingredients to produce the final product. Key ingredients in soft drink concentrates include distilled water, sweeteners such as sugar and high-fructose corn syrup, and sweetening agents like artificial sweeteners. Urbanization and changing consumer preferences have led to a rise in demand for new flavors, organic beverages, and functional ingredient claims.
Furthermore, clean labels and personalized flavor experiences are also driving the market. However, the cost of shipping and the use of preservatives, coloring agents, caffeine, and other additives can pose challenges to the market. The market for soft drink concentrates is expected to grow significantly due to the increasing popularity of soft drinks and the demand for convenient and affordable beverage options. Organic soft drinks and functional beverages are also gaining popularity due to their health and wellness benefits.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. Soft drink concentrates are high-quality goods that enable the production of various beverages, including natural energy drinks, diet beverages, and non-alcoholic beverages such as tea, fruit drinks, and fountain machines. Manufacturers prioritize short transport routes to ensure freshness and reduce plastic use. Seasonal fruit and natural ingredients, including herbs, amino acids, raw fruit, and vegetables, are increasingly used to cater to health-conscious consumers seeking health benefits. Transparency and clean labeling are essential in today's market, with consumers demanding CO2 neutrality and a reduction in health issues related to obesity and sugar consumption. Soft drink concentrate manufacturers respond by offering low-sugar, actual sugar-free, and healthier options.
Furthermore, urbanization and the growing middle-class population fuel the demand for convenience, leading to an increase in sales through convenience stores and restaurant owners. New flavors, organic beverages, and functional ingredient claims are key trends in the soft drink concentrate market. Retailers, including supermarkets, hypermarkets, and department stores, play a significant role in sales through attractive displays and competitive pricing strategies. However, the shift towards online shopping and health awareness may impact offline sales, with retailers needing to adapt to survive in a competitive market. Keywords: high-quality goods, short transport routes, seasonal fruit, plastic use, transparency, clean labeling, CO2 neutrality, health issues, obesity, soft drink concentrates, natural energy drinks, diet beverages, alcohol, natural ingredients, herbs, amino acids, raw fruit, vegetables, health benefits, fountain machines, non-carbonated beverages, tea, fruit drinks, low-sugar, actual sugar-free, healthier options, convenience stores, restaurant owners, new flavors, organic beverages, organic soft drinks, functional ingredient claims, clean label, health awareness, middle-class families, sugar substitutes, caffeine.
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The offline segment was valued at USD 21.10 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Soft drink concentrates refer to high-quality goods used by food and beverage industries to produce various beverages, including natural energy drinks, diet beverages, and non-alcoholic beverages like tea, fruit drinks, and fountain machines. These concentrates often utilize short transport routes to ensure freshness and minimize plastic use. Seasonal fruit and raw fruit or vegetables are common ingredients, providing health benefits and natural flavors. Transparency and clean labeling are essential for consumers, who are increasingly concerned about CO2 neutrality, health issues, and obesity. Natural ingredients, herbs, amino acids, and functional ingredient claims are popular trends. Urbanization and middle-class families' growing demand for convenience have led to an expansion of offerings, including new flavors and organic beverages.
Furthermore, health awareness has resulted in the popularity of low-sugar, actual sugar-free, and healthier options. Caffeine and sugar substitutes are common additives, while artificial sweeteners remain a contentious issue. Restaurant owners and convenience stores continue to seek out natural drinks and beverages to cater to health-conscious consumers.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Strong distribution network is the key driver of the market. The market is witnessing significant growth due to increasing demand for personalized flavor experiences and health-conscious consumers' preference for low-calorie and natural options. companies in this market are focusing on using alternative sweeteners and reducing sugar content to cater to this trend. Additionally, the use of preservatives and coloring agents in soft drink concentrates ensures a longer shelf life and maintains the desired appearance. Infrastructure development, particularly the rise of organized retailers, has facilitated easy accessibility and availability of these products. companies are collaborating to market their offerings more efficiently and expanding their distribution networks to cater to the growing demand.
Increasing demand for craft soft drinks is the upcoming trend in the market. The market for soft drink concentrates, specifically for craft carbonated beverages, is experiencing significant growth in the US. These beverages, which are often diluted at home, offer personalized flavor experiences and cater to health-conscious consumers seeking natural and low-calorie options.
Furthermore, the use of preservatives and coloring agents is minimized in craft soft drinks, aligning with the current health and wellness trend. These companies offer unique, premium ingredients and unconventional packaging, appealing to millennials and those seeking alternatives to mass-produced, high-sugar beverages. Retailers, such as Waitrose, have recognized the demand for craft soft drinks and have increased their shelf space allocation accordingly. Consumers can now find these beverages in various retail and online channels.
Increasing obesity rates and other related issues is a key challenge affecting the market growth. The market is experiencing significant growth, driven by the increasing demand for personalized flavor experiences in carbonated beverages. However, the market faces challenges due to health and wellness concerns among consumers. Obesity and related health issues, such as diabetes and heart disease, are major concerns.
Furthermore, to cater to health-conscious consumers, soft drink manufacturers are focusing on low-calorie and natural options. Preservatives and coloring agents are being replaced with natural alternatives, and sugar content is being reduced or eliminated in favor of alternative sweeteners. These trends are expected to shape the future of the market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Archer Daniels Midland Co. - The company offers applications of ice cream and desserts.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The soft drink concentrate market is a significant segment of the global beverages industry, driven by the demand for high-quality, affordable, and convenient beverage solutions. Soft drink concentrates are essential ingredients used in the production of various types of beverages, including carbonated soft drinks, functional beverages, and juice products. These concentrates contain essential ingredients such as water, sweeteners, and flavorings, making them a cost-effective solution for manufacturers. Sweeteners, including high-fructose corn syrup and sugar, are crucial components of soft drink concentrates. However, the shift towards healthier options has led to an increase in demand for natural sweetening agents, such as stevia and honey.
Additionally, the use of natural coloring and fruit concentrates in soft drink concentrates caters to consumer demands for healthier and more natural beverage options. Functional beverages, including energy drinks, functional drinks, and plant-based protein drinks, are gaining popularity due to their nutritional values and functional claims. Consumers are increasingly focused on their health goals, immunological health, and wellness, leading to a rise in demand for beverages that offer performance benefits. The soft drink concentrate market is also influenced by taste developments and consumer preferences. For instance, athletes, vegetarians, and vegans are driving the demand for specialty beverages, including digestive enzymes and cognitive function drinks.
Furthermore, the Internet has played a significant role in increasing awareness and accessibility to these beverage options. Despite the challenges posed by the health crisis, the soft drink concentrate market is expected to grow steadily due to its versatility and cost-effectiveness. Manufacturers are continually innovating to meet consumer demands, with new product launches and product improvements expected to drive growth in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2017-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.45% |
Market growth 2024-2028 |
USD 17.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.5 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 42% |
Key countries |
US, Germany, UK, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Batory Foods, Dohler GmbH, Fab Flavour and Frangrances Pvt. Ltd., Infinity Additives And Foods, Kerry Group Plc, Keurig Dr Pepper Inc., LEMONCONCENTRATE SLU, Maharaja SDC, MARUTI AROMATICS and FLAVOURS, Monster Energy Co., National Beverage Corp., PepsiCo Inc., RASNA PVT. LTD., Refresco Group BV, Shree Khodiyar Enterprise, Soda Press Co., Sugam Products, The Coca Cola Co., and The Kraft Heinz Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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