The Global Craft Soda Market Size was valued at USD537.9 million in 2016. Rising population in developing countries along with the increasing consumer disposable income is expected to have a positive effect on the product industry in the coming years. Moreover, the growing health concerns and raising awareness regarding the use of organic products are likely to further boost this growth. The shifting consumer preference from sugar-laden drinks to low-sugar or mid-calorie beverages as well as choosing craft soda as an operative substitute for alcoholic drinks is expected to foster industry growth during the forecast period.
Rapid urbanisation coupled with increasing consumption of takeaway products due to busy lifestyle is leading to the expansion of the market. North America, followed by Europe, is expected to record the fastest growth over the forecast period owing to various untapped markets, and growing disposable income. South Africa and Saudi Arabia are the leading markets for The Middle East and Africa due to modern retail infrastructure, as well as bottling operations. Traditional channels remain the primary mode of distribution, while demand for healthier options is set to increase in the region.
- One of the key trends that are expected to influence the beverage industry, and specifically Carbonated Soft Drinks, in the future is the fact that consumers are demanding total transparency from brands and clean labels are becoming standard for many products.
- The term Clean Label refers to a consumer-driven movement, which is demanding a return to real food. In other words, food products that consist of only natural, familiar and simple ingredients, and do not contain any artificial ingredients or synthetic chemicals.
- The movement towards clean labels means that many beverage companies will have to reconsider their production chains, as well as the way they communicate with consumers and create awareness for the key issues within their industry.
- There are some CSD products available in the South African industry that are marketed as natural with fewer ingredients. PURA Soda, for example, has a CSD product range which they claim has only five ingredients and a small amount of pure cane sugar. They also suggest that the natural flavours of their products come from natural sources and that no colourants are added to their products.
- Consumers are becoming more aware of environmental issues and expecting companies to act responsibly. Many are insisting that manufacturers ought to source their ingredients locally and responsibly, and that products should contain fewer ingredients.
- The use of exotic flavours in CSD products is one of the current trends that will continue to be relevant in the future. Soft drinks will be enriched with exotic flavours like passion fruit and other unexpected ingredients, such as seaweed or chilies.
- Furthermore, the packaging designs of these products will more than likely feature lush tropic greens and the bright colours of tropical flora and fauna. There are some industry players in South Africa that have introduced CSD products with exotic flavours. PURA Soda, for example, offers both lemon and elderflower and cucumber and lime flavoured sodas. Another example is Woolworths that sells a sparkling ruby grapefruit flavoured drink and a pear and elderflower sparkling drink under its private label.
Major Trends in the Beverage Sector:
- Small batch brands: Mass-produced products are losing market share to small batch brands such as UK’s Fever Tree.
- The minimalist: Water drinks will continue their steady growth for minimalist consumers looking for simple options for hydration. As brands reformulate products with a ‘back to basics’ approach, new flavour solutions and natural ingredients will drive innovation. DIY trends will continue to inspire new technologies from carbonated water makers to infusion caps.
- Botanic garden: Conscious-living practices and healthy eating habits of consumers urge beverage companies to harness the functional and technical benefits of plants. While the complex, particular flavours of the herbs grant an instant sophistication to beverages from holistic tonics and tea ranges to alcohol drinks, a rustic, floral aesthetic will define packaging and labels.
- Crafty touch: From premium coffee and alcohol drinks to artisan brews, craft continues to be a big influencer in beverages. The personal touch of healthy, clean-label products from smaller producers will encourage big companies to offer sophisticated limited-edition products. The retro, industrial style of hipster cafés, bike shops, and microbreweries will adorn packaging designs.
- World traveler: The hectic modern lifestyle of ‘urban nomads’, backpackers and the hyper Generation-Y will lead the way for tasty, healthy drinks with functional benefits on the go. While packaging designs provide ultimate convenience, the ethnic flavours, ancient seeds, local spices and superfoods of world cuisine make their way into unique beverage recipes.
- Tropical breeze: Summery juice and soft drinks will be enriched with passion fruit flavours, as unexpected ingredients like seaweed or chilies create surprising new sensations. The packaging designs will be adorned with lush tropic greens and electric colours of tropical flora and fauna. Innovative colouring ingredients will create beach or festival-ready psychedelic beverages.
- Interactive: Sports nutrition is growing at a rapid pace as beverage brands answer the demand with performance drinks that deliver hydration, provide prolonged energy and support muscle repair and recovery. Tech-savvy consumers will inspire beverage companies to utilise internet technologies, with products that merge work-out apps with smart packaging designs.
- Sweet freedom: Following on from the rise of healthy and natural eating trends, product ranges fit for special dietary requirements will see further growth with unique free-from alternatives. Plant-protein based drinks and nut milk will continue to grow as dairy alternatives, while the aisle for alcohol-free mixes and gluten/sugar-free options is predicted get a substantial boost.
- The lab: The beverage companies push the R&D edge and create functional beverages that address further health and wellness benefits, from beauty to weight control, senior and child nutrition, prebiotics and digestive health. The drinks will turn into potions as packaging designs will assume a stripped-down clinical aesthetic.
- Next-gen: 3D printing, artificial intelligence, and virtual reality will inspire new technologies, ingredients and processing techniques in the beverage industry. Manufacturing innovations will save time and resources and create efficiency throughout the distribution chain, packaging lines and safety, and tracking.
- The philanthropist: Today’s consumers demand total transparency from brands as a clean label is becoming a standard. Beverage companies redefine their production chains as well as the way they communicate with consumers, generating awareness regarding key issues in their respective industries. 2017 will see further growth in ethical beverage brand/social enterprise hybrids.
With the shift from sugary massed produced beverages to healthier alternatives, there’s a gap in the local and international markets to new niche healthier non-alcoholic beverages, this is the market gap we plan to exploit. At present South Africa has 2 craft beverage brands but both are focused on mixer leaving the non-alcoholic beverage market underserved. We plan to focus on the whole beverage sector and not just one specific sector by growing our range from soft drinks to mixers and mineral waters.
Craft sodas were a trend in the northern hemisphere summer. Now they are expected to be just as big in South Africa this summer. Fortunately, for those of us who can no longer palate artificial flavouring or have jumped on board the natural-ingredient bandwagon, craft soft drinks, in a range of “grown-up” flavours, are pioneering the shift towards quality and authenticity in sodas. Craft sodas available in rhubarb and Madagascan vanilla or grapefruit and lavender may not be the flavour combinations of your childhood, but with their growing popularity, it might be time to quench your thirst with something more sophisticated this summer. The fancy favours don’t stop there: From peach and habanero boasting sweet, tropical notes up-front and a tantalising burn that follows, to the crisp floral flavours of red apple and ginger with a peppery kick – these unique carbonated concoctions are at the centre of “craft sodas” that are starting to make an impact in the billion-rand soft-drink market.
Also known as artisanal, specialty or small-batch sodas, these beverages promote the use of natural ingredients and inventive flavour combos that showcase local roots and creative packaging. Nowadays, regular sodas are seen as more indulgent beverages to be consumed only as a treat, rather than simply on the side of one’s dinner. And with celebrity chefs like Jamie Oliver and nutritionists from all over the world fiercely promoting against high-sugar drinks, there’s certainly a gap in the market for healthier alternatives – which craft soda has very comfortably filled. As society gravitates away from plastic towards more sustainable alternatives, another attractive point of craft sodas is their sustainable packaging. Craft soda brands use cardboard cartons, glass bottles, and aluminum cans in place of plastic. There’s nothing millennials love more than Instagrammable beverages that are eco-friendly and funky.
With South Africa having the most advanced and refined food and beverage market on the African continent, Frost & Sullivan believes in a 4-7% estimated growth in the sector by 2020. The agricultural, Agro-processing and food and beverage industries provide an abundance of opportunity for investors as well as key domestic and new players.
Crafted by people using responsible methods. Consumers are getting back to real, old-fashioned values and ethics and sustainable sourcing. Craft tells a story – about the varietals used, the fermentation process, the barrel or vat types, the terroir that’s unique to where the grapes are grown. People value real, human connection, family and the local community. Products committed to a certain responsible, sustainable sourcing, and are acutely aware of the ingredients. Supports local products, locally sourced ingredients, and local communities.
Consumers want to buy from people they know, who will employ people of the community and invest in the community. Bottled in small batches and contain natural ingredients, preferring natural sweeteners like pure cane sugar, stevia, and honey. Craft reflects the places where they are made and gives an opportunity to connect with local communities, character, and flavour. Consumers’ preference to be connected with clean, natural ingredients and local products will drive the demand for craft sodas.
Without a doubt, the most popular trends for the beverage and food industry related to being natural. We can see a huge demand for natural, organic, and GMO-free ingredients. One more parameter, which is getting more noticeable, is that the ingredient list is getting shorter and shorter. This is because consumers are requiring transparency and full comprehension. They want to know what they are paying for and what they are putting in their body.