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The Global Soft Drink Concentrates Market size is projected to increase by USD 17.3 billion, at a CAGR of 7.45% between 2023 and 2028. The Soft Drink Concentrates Market is characterized by a robust distribution network that ensures the timely delivery of products to meet the hectic lifestyle demands of consumers seeking instant energy. The market's growth is driven by the increasing preference for convenient and quick-to-consume beverages. Packaging innovations, such as the use of lightweight and recyclable materials, have further boosted the market's appeal. Soft drink concentrates offer cost-effective solutions for businesses and consumers alike, as they require less storage space and have a longer shelf life compared to ready-to-drink beverages. The market's competitive landscape is marked by key players investing in research and development to introduce innovative flavors and product offerings, thereby expanding their consumer base.
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The market share growth by the offline segment will be significant during the forecast period. The offline distribution channel segment generates revenue from the sales of products through hypermarkets, supermarkets, clubhouse stores, department stores, and independent retailers. The operators are in charge of their sales through store enlargements within the local market and beyond.
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The offline segment was valued at USD 21.10 billion in 2018. As a part of the marketing and offline sales strategy, retailers place attractive displays that generate substantial sales. companies push their offline sales by widening their store operations across locations. Moreover, through expansion in major geographical areas, companies are able to increase sales and focus on individual categories of consumers.
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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. The market in Europe is expected to witness positive growth during the forecast period. Rapidly increasing urbanization in developed countries such as Germany, and Italy has led to an increase in demand for ready-to-eat food and beverages. Therefore, to meet the growing demand and avoid supply disruptions, drink concentrate is readily available in an increasing market. However, consumers are shifting to natural beverages with no traces of artificial sweeteners. As a result, the market is nearing maturity in established markets. The market is also being driven by growing consumer interest in these beverages. The growth potential of the market also depends on the research and development carried out and the possibility of introducing new concentrated flavors.
The market is experiencing substantial growth, driven by the ever-increasing global demand for soft drinks. High-fructose corn syrup, a common sweetening agent, is widely utilized in the manufacturing sector to enhance flavor. Distilled water, stabilizers, and fruit concentrates are essential components, ensuring high-quality foods with nutritional values. However, shipping and cost issues present challenges in the distribution of these concentrates. To meet the demands of a diverse consumer population size, the industry is investing in taste developments and producing reduced or sugar-free branded versions. With a heightened emphasis on health goals, particularly amidst the global health crisis, soft drinks concentrates address component requirements for immunological health and contribute to a balanced eating pattern, aligning with the wellness and performance expectations in the food and beverage industry. Our researchers analyzed the data with 2023 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The strong distribution network is driving growth in soft drink concentrates. Several large and regional manufacturers have either established their distribution centers or reached out to regional distributors, to obtain access to a significant market potential for concentrated beverages. Furthermore, companies have been focusing on collaborating to market their products with greater efficiency. Moreover, the growth of organized retail groups like cash & Carry and discount retailers, supermarket chains, hypermarkets, and convenience stores has been stimulated by rapid infrastructure development.
Moreover, the US-based Monster Energy has grown significantly in the soft drink concentrates market in Latin America. The strengthening distribution networks and collaborations help companies market their products efficiently in newer regions and intensify the competition, which is an encouraging sign for the growth of the global drink market during the forecast period.
The increasing demand for craft soft drinks is a primary trend in the soft drink concentration market. Small batches of craft soft drinks are made with premium, natural ingredients, distinctive tastes, and unusual packaging. The demand for craft carbonated beverages is increasing in the US market, and the segment is registering a high growth rate. Millennial consumers are becoming more and more enthusiastic about craft soft drinks, which offer them the opportunity to try new products and flavors.
Moreover, with the increasing popularity of soft drinks, supermarkets like Waitrose are beginning to provide more shelf space for their production. Major soft drinks companies are also looking to tap into the growing craft soft drinks segment. The new product, Red Bull, is claimed to be made from ingredients grown on organically certified farms. Thus, the growing popularity of craft soft drinks will help in the market growth and trends.
The increasing obesity rates and other related issues are a major challenge in a soft drink concentration market. The rising incidence of obesity and related problems with consumers is one of the challenges faced by the growth of the market. An adult with a body mass index between 25 and 29.9 is considered overweight, and one with a body mass index of more than 30 is obese.
However, the WHO estimates that by 2025, around 167 million adults and children will be in poor health due to being overweight or obese. In addition to that, regular intake of sugary drinks has been associated with weight gain, obesity, type 2 diabetes, heart disease, kidney disease, non-alcoholic liver disease, tooth decay and cavities, and gout, an arthritis-like condition. This factor will negatively affect the sales of carbonated soft drink concentrates, juices, and other soft drinks during the forecast period.
The market growth and 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 market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth 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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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2. Juice Concentrate Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast
3. Cordial Drink Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, UK, Germany, India - Size and Forecast
The market reflects diverse consumer demands, with trends shifting towards functional beverages enriched with vitamins, minerals, and plant-based protein drinks. Athletes, vegetarians, and vegans seek specialty beverages offering digestive enzymes and cognitive function support. With rising self- and environmental concern, consumers prioritize products with high-quality ingredients, short transport routes, and clean labeling. To address health issues, the market offers natural energy drinks, diet beverages, and low-sugar options, utilizing herbs, amino acids, and raw fruit. Companies focus on transparency, CO2 neutrality, and reducing plastic use. Internet accessibility fuels consumer demand, influencing soft drink trends and boosting energy drink sales, while fountain machines cater to varied preferences, offering non-carbonated beverages and fruit drinks with actual sugar-free options.
The market is evolving to meet diverse consumer preferences, offering innovative and tailored beverages with personalized flavor experiences. Health and wellness trends drive demand for organic beverages and soft drinks, emphasizing functional ingredient claims. However, challenges persist, including the cost of shipping and concerns about preservatives and coloring agents. Manufacturers respond by offering diluted concentrates to reduce shipping costs while maintaining product quality. Consumers seek ready-to-eat food and drinks, prompting the introduction of new flavors to the market. With a growing emphasis on natural ingredients, organic options gain popularity, catering to health-conscious consumers seeking healthier beverage choices.
Industry Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2028-2022 |
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 forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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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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