Market Trends of Soft Drink Concentrates Industry
Increased Demand of Organic Soft Drinks
Increasing awareness of the benefits of organic beverages has contributed to the growth of organic soft drinks in the market. Organic soft drinks are drinks made from fresh organic fruits or vegetables grown on farms without insecticides or pesticides, products made without ionizing radiation, and without the use of a wide variety of food additives. However, it contains natural sweetening agents, low calories, and high nutritional value. While traditional soft drinks are still popular, awareness for excessive caffeine intake, bad press about hospitalizations and deaths from soft drinks consumption, and the holistic health and wellness movement has led to a shift in the category. According to the USDA Foreign Agricultural Service; Global Organic Trade Guide, in 2022, the consumption value of organic beverages across India was USD 92 million.
The market has witnessed increasing consumption of organic soft drinks and brands are developing these beverages with organic and/or natural ingredients that are perceived as a better alternative. In addition to functional ingredient claims, brands are positioning their products as a clean label which includes clean drinks, organic drinks, natural drinks, and healthy drinks, to attract consumers and that is propelling the growth of the market.
Asia-Pacific is the Fastest Growing Region
The soft drinks concentrate market in Asia Pacific is projected to grow during the forecast period. Nations such as Australia, Japan, and India are increasingly accepting soft drink concentrates, owing primarily due to increased disposable income and growing health awareness among people. Moreover, China is expected to be the largest revenue generator in the soft drinks concentrate market. Certain soft drink concentrate manufacturers specifically target kids. Moreover, the growing range of soft drink concentrates is expected to aid market expansion. For example, in September 2021, Soft drinks concentrate brand Rasna bought Made in India soft drink called 'Indie Cola'. It entered a segment that was dominated by the likes of Coca-Cola, Thums Up, and Pepsi.
The soft drinks industry is propelled by consumers' need for processed food products, regardless of the nutritional content or taste of the product. Furthermore, increased consumer knowledge of the advantages linked with soft drinks concentrates is projected to bolster the soft drinks concentrate market growth. For instance, an India-based fruit concentrate manufacturer has positioned their products mostly for Indian kids. Besides, product and sales channel development, the soft drink concentrate manufacturers are also focusing on improving the packaging to meet the concurrent consumer demand for packaging.
