>>take-home soft drinks market slows
The UK take-home soft drinks market is showing 0.5% growth. Virtually all GB households buy into the soft drinks market but consumers are buying slightly less frequently than last year, so on average there is less volume per buyer. However, growth is coming from premium-priced sectors, so overall price is increasing.
The slowdown in growth for soft drinks is driven by the seasonality of the market. The record temperatures of summer 2003 boosted sales, but a comparatively poor summer in 2004 has strongly affected the category. Carbonated drinks are declining partly as a result of this, and partly because some consumers are switching to non-carbonated sectors as health concerns grow.
In line with total grocery trends, Tesco is performing well, increasing its market share of soft drinks in the past two years.
Sales in Asda have overtaken Sainsbury, and both Asda and discounters overtrade in soft drinks compared with total grocery. Morrisons is losing share of soft drinks.
Fruit juice accounts for the largest proportion of the customer’s wallet, and is growing steadily due to an increase in average volume purchased per buyer. Waters are also growing ahead of the market, driven by a slight increase in frequency of purchase.
One-shot drinks have been key to driving growth in the market through innovation and convenient pack formats. This sector, which includes smoothies, juice drinks and flavoured milk drinks of 500ml or less, taps into the lunchtime and on-the-go occasion for kids and adults.
Despite the decline in colas, Diet Coke, Coca-Cola, Pepsi Max and Diet Pepsi are among the top-selling brands. Tesco Pure juice, Ocean Spray and Tropicana are new entrants to the top brands list this year, reflecting the growth of premium juices.
Jessica Stoddart, TNS Superpanel
The UK take-home soft drinks market is showing 0.5% growth. Virtually all GB households buy into the soft drinks market but consumers are buying slightly less frequently than last year, so on average there is less volume per buyer. However, growth is coming from premium-priced sectors, so overall price is increasing.
The slowdown in growth for soft drinks is driven by the seasonality of the market. The record temperatures of summer 2003 boosted sales, but a comparatively poor summer in 2004 has strongly affected the category. Carbonated drinks are declining partly as a result of this, and partly because some consumers are switching to non-carbonated sectors as health concerns grow.
In line with total grocery trends, Tesco is performing well, increasing its market share of soft drinks in the past two years.
Sales in Asda have overtaken Sainsbury, and both Asda and discounters overtrade in soft drinks compared with total grocery. Morrisons is losing share of soft drinks.
Fruit juice accounts for the largest proportion of the customer’s wallet, and is growing steadily due to an increase in average volume purchased per buyer. Waters are also growing ahead of the market, driven by a slight increase in frequency of purchase.
One-shot drinks have been key to driving growth in the market through innovation and convenient pack formats. This sector, which includes smoothies, juice drinks and flavoured milk drinks of 500ml or less, taps into the lunchtime and on-the-go occasion for kids and adults.
Despite the decline in colas, Diet Coke, Coca-Cola, Pepsi Max and Diet Pepsi are among the top-selling brands. Tesco Pure juice, Ocean Spray and Tropicana are new entrants to the top brands list this year, reflecting the growth of premium juices.
Jessica Stoddart, TNS Superpanel
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