Soft Drink Concentrates Market Analysis Europe,North America,APAC,South America,Middle East and Africa - US,China,Japan,Germany,UK - Size and Forecast 2023-2027

Soft Drink Concentrates Market Forecast 2023-2027

The Global Soft Drink Concentrates Market size is projected to increase by USD 12.26 billion and the market size is estimated to grow at a CAGR of 5.77% between 2022 and 2027. 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. 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.

Market Overview

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In the market, a dynamic interplay of ingredients shapes the landscape of beverages. From caffeine to sweeteners like high-fructose corn syrup, every component plays a pivotal role. Distilled water serves as the canvas upon which flavors bloom, while artificial sweeteners and organic alternatives cater to diverse preferences. The market thrives on innovation, introducing new flavors and functional ingredient claims to meet evolving consumer demands for health and wellness. As urbanization drives convenience, ready-to-eat food and drinks gain traction, prompting the development of clean label products with minimal preservatives. Personalized flavor experiences emerge, offering tailored beverages for discerning palates.

Market Segmentation

This market trends and analysis report extensively covers market segmentation by distribution channel (offline and online), type (carbonated and non-carbonated), and geography (Europe, North America, APAC, South America, and the Middle East and Africa). This market growth analysis report also includes an in-depth analysis of drivers, trends, and challenges. In the offline segment of the Global Soft Drink Concentrates Market, traditional flavors like oranges remain popular, but innovation drives growth with the introduction of new flavors and trends. Consumers are increasingly seeking organic beverages with functional ingredient claims, driving demand for clean label products free from caffeine, preservatives, and artificial coloring agents.

Carbonated beverages, diluted with water and mixed with soft drink concentrates, offer consumers personalized flavor experiences while aligning with their health and wellness goals. Manufacturers are responding to this demand by developing innovative and tailored beverages that cater to diverse preferences and lifestyles. In this offline segment, consumers can explore a wide range of soft drink concentrates, enjoying the convenience of creating their favorite beverages at home. With a focus on natural ingredients and clean labels, the market continues to evolve, offering refreshing and flavorful options that prioritize health and wellness.

By Distributional Channel

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 20.15 billion in 2017 and continued to grow until 2021. 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.

Key Regions 

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Europe is estimated to contribute 36% 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. 

Market Dynamics and Customer Landscape

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 2022 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.

Significant Market Trends 

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.

Major Market Challenge 

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. 

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.

Customer Landscape

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

Company Overview

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.

• Key Offering- Archer Daniels Midland Co. - The company offers applications of ice cream and desserts.
• Key Offering- Batory Foods - The company offers the division Sweetener Solutions.
• Key Offering- Dohler GmbH - The company offers citrus fruits, tropical fruits, and vegetables.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Fab Flavour and Fragrances 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

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.

Market Analyst Overview

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.

Segment Overview

The market analysis and report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Distribution Channel Outlook 
  • Offline
  • Online

• Type Outlook 
  • Carbonated
  • Non-carbonated

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Scope
Report Coverage	Details
Page number	155
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.77%
Market growth 2023-2027	USD 12.26 billion
Market structure	USD Fragmented
YoY growth 2022-2023(%)	5.63
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 36%
Key countries	US, China, Japan, Germany, and the UK
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 Fragrances 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, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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