Innovations in Soft Drinks: Opportunities in detox, anti-energy and appetite suppressing drinks

Soft drinks are non-alcoholic, carbonated as well as non-carbonated beverages and can be classified into seven categories. The global soft drinks market was valued at $479bn in 2009 and is projected to grow at a CAGR of 3.1% to reach $556bn in 2014. In Western Europe and the US, the soft drinks market is fairly matured, registering a moderate growth rate. Emerging markets such as Russia, China, Brazil and Mexico will play critical role in the development of global soft drinks industry due to rise in purchasing power of middle class population and investment in food and drink supply chain infrastructure. Naturally functional and indulgence are the emerging trends in innovation and NPD in soft drinks market. Ethical concerns are driving innovation and NPD in packaging material and technologies.
The report contains a summary of the important and novel soft drinks launched between 2006 and 2009 as reported by Product Launch Analytics, an in-house database of new product launches in fast moving consumer goods. This report analyzes market data on the value growth of the soft drinks market. Innovation and NPD are analyzed by region and category and emerging market trends are illustrated in the report. Moreover, this report enables manufacturers to identify the emerging trends and growth opportunities in soft drinks.

Key features of this report

• Dynamics of the major soft drinks markets during the period 2009–14.
• Key trends, market drivers and resistors to the growth of global soft drinks markets.
• NPD and innovation trends in the major soft drinks markets based on the analysis of growth in major categories and sub-categories.
• Analysis of innovative new soft drinks launched between 2006 and 2009 from the data sourced from Product Launch Analytics.

Key Market Issues

• Health claim regulations – The implementation of Article 13 health claim regulations in EU may adversely impact innovations and NPD in soft drinks, as manufacturers will need to bear additional expense for scientifically proving the health claims before launching a new product in the market.
• Health concerns in carbonates – Consumption of carbonated soft drinks containing HFCS is directly related to health problems such as obesity and diabetes, which is a primary reason for their declining sales in the developed markets such as the US. Soft drinks manufacturers are therefore required to add low calorie sweeteners such as stevia and fortify their products with vitamins and minerals to position them as ‘good-for-health’.
• Consumers saying ‘no’ to artificial additives – Artificial ingredients such as such as aspartame (artificial sweetener) may cause certain cancers while some permitted artificial colors are associated with hyperactivity and diseases such as ADHD among children. Not only food and drugs authorities, but also consumer groups in the developed markets such as the US and the UK are largely discarding food and drinks containing artificial additives and instead demanding ‘All Natural’ products.
• Biodegradable packaging – The soft drinks manufacturers rely heavily on recyclable but non-biodegradable PET bottles. But they are facing regulatory pressure for using biodegradable material in their product package. This shift will increase operating cost of manufacturers and create pressure on their margins.

Key findings from this report

• Asia-Pacific recorded the highest number of product launches (growing at a CAGR of 9.0% during 2006–09) with a share of 33.8% in NPD globally in 2009. Asia-Pacific ranks second only to North America with 31.0% of soft drinks launches made in Asia-Pacific classified as innovative in 2009.
• The 100.0% fruit juice (not from concentrate) will register the highest growth among all soft drinks sub-categories during 2009–14 driven by an increase in consumer preference for natural drinks for their high level of antioxidants and freshness.
• Of all the innovative products launched through 2006–09, 75.3% were innovative in terms of formulation and only 12.3% were innovative in terms of positioning. Health/wellbeing continues to be a key driver of formulation launches.
• Bottles have been commonly used for packaging purpose in soft drinks industry through 2006–09, accounting for a share of 41.0% in all the new launches made globally in 2009. The use of cans as a packaging format in soft drinks has declined ever since the advent of PET bottles.
• Among the top 20 tags, private label registered the highest increase in share in 2009, about 2.5 times (2.6 percentage points) over 2006 partly led by recession with consumers trading down and spending more on off-premise consumption. Moreover, own label manufacturers are strategically enhancing the ubiquity of their beverages by penetrating fast food and garage forecourt chains.

Key questions answered

• What are the key drivers and resistors to the growth of global soft drinks markets?
• What key consumer trends are driving NPD and innovations in soft drinks?
• What are the key growth opportunities within the soft drinks market?
• What was the market size of the global soft drinks market by value in 2009 and what will be the market size of the global soft drinks market during 2009–14?
• Which soft drinks categories and sub-categories will achieve the highest value growth during 2009-14?
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Table of Contents
Innovations in Soft Drinks
Executive summary 12
Growth opportunities in the soft drinks market 12
Innovation and new product development 13
Key trends and product examples 14
Chapter 1 Introduction 16
What is this report about? 16
The market defined 17
Report structure 18
Chapter 2 Growth opportunities in the soft drinks market 20
Summary 20
Introduction 21
Global soft drinks market value overview 21
Soft drinks market by geography 23
Soft drinks market value by country 24
Global soft drinks market value by category 26
Global soft drinks market value by subcategory 28
The soft drinks market in Western Europe 30
The soft drinks market in the US 34
The soft drinks market in Japan 36
Emerging markets 38
Chapter 3 Innovation and new product development 42
Summary 42
Introduction 43
Innovation type 43
Regional analysis 44
Asia Pacific 45
Japan 47
China 49
Europe 52
UK 54
Germany 56
Russia 60
North America 63
US 64
Latin America 68
Mexico 69
Category analysis 72
Category overview 72
Performance analysis of soft drinks categories based on new product launches during 2006–09 73
Carbonates 74
Unconventional flavors in carbonates 74
Healthy carbonate variants 76
Functional drinks 78
Hybrid energy drinks 78
'Natural' energy drinks 79
Energy drinks promoting mood and mind health 80
Nutricosmetics for skincare 81
RTD tea and coffee 83
Juices 85
Bottled water 88
Functional bottled water 89
Exotic fruit-flavored bottled water 93
Concentrates 94
Smoothies 96
Packaging analysis 98
Packaging overview 98
Bottles 98
Cans 102
Changing positioning in soft drinks 103
Flavor trends 105
Chapter 4 Key trends and product examples 108
Summary 108
Introduction 109
Health and wellness 110
Article 13 health claims legislation 111
Increasing focus on preventive healthcare 111
Functional soft drinks 113
Weight management soft drinks 114
Nutraceuticals for heart health 118
Wellness 120
Mental stress 120
Beauty drinks 121
Detoxification (detox) drinks 123
Pretox drinks 124
Soft drinks fortified with antioxidants 125
Beverages promoting digestive and immune health 126
Daily-dosage beverages 128
'Natural' soft drinks 129
Growing demand for 'natural' beverages 129
Sports and energy functional drinks 131
Anti-energy/relaxation drinks 134
Indulgence 135
Drinks with exotic flavors 135
Food ingredients used in soft drinks 136
Ethics 137
Provenance 138
Organic drinks 138
Sustainable and convenient packaging 139
Chapter 5 Conclusions 144
Key trends for the future 144
1 – 'Natural' functionality 144
2 – Health claims 144
3 – Emerging markets 146
4 – Indulgence/premium 146
5 – Sustainable packaging 146
6 – Private labels 147
Appendix 148
Index 148
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Figure 2.1: Global soft drinks market value ($bn), 2 22
Figure 2.2: Global soft drinks market value by region ($bn), 2009–14 24
Figure 2.3: Top 10 soft drink markets by value ($bn), 2009–14 26
Figure 2.4: Soft drinks market value by category (%), 2009–14 27
Figure 2.5: Soft drinks subcategories with fastest growth projections (%), 2009–14 30
Figure 2.6: Share of major countries in Western European soft drinks market by value (%), 2009 33
Figure 2.7: Performance of select emerging markets for soft drinks, 2009–14 39
Figure 3.8: Share of soft drink launches by innovation type (%), 2006–09 44
Figure 3.9: Share of soft drink launches by region (%), 2006–09 45
Figure 3.10: Share of soft drinks launched by category in Asia Pacific (%), 2006–09 46
Figure 3.11: Pokka Kirei no Ajiwai 48
Figure 3.12: Thorpedo sports drink 49
Figure 3.13: Share of soft drinks launched by category in China (%), 2006–09 50
Figure 3.14: Dazhai Walnut Drink and Zhili Walnut Powder 52
Figure 3.15: Share of soft drinks launched by category in Europe (%), 2006–09 53
Figure 3.16: Share of soft drinks launched by category in the UK (%), 2006–09 56
Figure 3.17: Share of soft drinks launched by category in Germany (%), 2006–09 57
Figure 3.18: Voelkel and Albi Bio 59
Figure 3.19: Diva's The Beauty of Nails and Hair and Shining Eyes 61
Figure 3.20: Bjni Classic carbonated mineral water 62
Figure 3.21: Share of soft drinks launched by category in North America (%), 2006–09 64
Figure 3.22: Share of soft drinks launched by category in the US (%), 2006–09 65
Figure 3.23: Muscle Milk Refuel protein shot 66
Figure 3.24: FastShot A.M. Awake and P.M. Relax 67
Figure 3.25: LIV agave nectar soft drink 68
Figure 3.26: Share of soft drinks launched by category in Latin America (%), 2006–09 69
Figure 3.27: Share of soft drinks launched by category in Mexico (%), 2006–09 70
Figure 3.28: New product launches in soft drinks market by category (%), 2009 73
Figure 3.29: Performance analysis of soft drinks categories based on new product launches during 2006–09 74
Figure 3.30: Pepsi Azuki and Shiso and Pepsi Ice Cucumber 75
Figure 3.31: Mary Jane's Relaxing Soda 76
Figure 3.32: Sprite Green and Pepsi Raw 77
Figure 3.34: Java Monster Chai Hai, Lo-Ball and Nut-up 79
Figure 3.35: Sambazon Amazon Energy 79
Figure 3.36: Ajmera Coco Energy 80
Figure 3.37: Potion Herbal Remedy energy shots 81
Figure 3.38: Saan Placenta-Pro 30,000 Orange, Go Girl GLO vitamin enhanced energy drink and Skinny Beach Sticks food supplement sticks 82
Figure 3.39: Vida Tea, a mojito-flavored sparkling tea 84
Figure 3.40: AGF Blendy Kaoru Back RTD coffee 85
Figure 3.41: Carrefour Fermented Turnip Juice and Bravo Friscus apple juice with cranberry and active bacterial culture 86
Figure 3.42: Tree Top Trim Enlightened Fruit Beverage 87
Figure 3.43: AGV Grass Jelly Drink, Doikham Fruit Juice Grass Jelly and Yeo's Grass Jelly Drink 88
Figure 3.44: H.A.R.D. Nutrition Functional Water Systems and JT Fragra Water 90
Figure 3.45: SoBe Lifewater vitamin-enhanced water beverage and Pique Energy Water 91
Figure 3.46: Beauty Spring Water and Melodian H2 Suiso Mizu no Chikara 92
Figure 3.47: Hint flavored water and Skinny Water Crave Control Water 93
Figure 3.48: Prairie Naturals Morning Rise & Shine drink mix 94
Figure 3.49: Crystal Light LiveActive and Skin Essentials drink mixes 95
Figure 3.50: Nestlé Beba 95
Figure 3.51: Smoove smoothies 96
Figure 3.52: Innocent Superfoods smoothie 97
Figure 3.53: Pocari Sweat in lightweight PET bottle 99
Figure 3.54: Oi O-Cha O-Matcha and Isotop Exprime with airtight lid 100
Figure 3.55: Juicina fruit drink in Tetra Wedge Aseptic bottle 101
Figure 3.56: Bawls Guarana high-caffeine soda in a can 102
Figure 4.57: Key trends in soft drinks market 109
Figure 4.58: Major drivers and resistors to the healthy soft drinks market 110
Figure 4.59: National healthcare expenditure in the US ($bn), 2004–18 112
Figure 4.60: Steaz Zero Calorie sparkling green tea 114
Figure 4.61: Trim-U liquid energy shot with hoodia gordonii 115
Figure 4.62: Lo-Gly low glycemic juice beverage and Haba Slim Energy with glucomannan 116
Figure 4.63: Coca-Cola Plus with catechin and Diet Coke Plus 117
Figure 4.64: BeneVia Therapeutic Nutrition concentrated 'natural flavored' fruit drink 119
Figure 4.65: Noni Maui premium seedless noni powder and Becel Pro-Activ for blood pressure 120
Figure 4.66: Beauty To Go! spring water 122
Figure 4.67: Borba Skin Balance Aqua-Less Crystalline powder drink mix 123
Figure 4.68: Alcohol Killer, a non-alcoholic refreshing drink, and Security Feel Better Digestif Drink 124
Figure 4.69: Alibi Active Pretox Drink 124
Figure 4.70: Lipton Orange Mint Tea & Purple antioxidant beverage 125
Figure 4.71: Pre Probiotic Enhancer and Taisho Livita Gluco Care Ryokucha with indigestible dextrin 127
Figure 4.72: Health Shot Immunity in blackberry flavor 128
Figure 4.73: RDA Organic 100% organic fruit juice 129
Figure 4.74: Zevia carbonated stevia supplement and Health Cola with organic agave nectar 131
Figure 4.75: Rosbacher Sport isotonic drink & Java Monster coffee and energy drink 132
Figure 4.76: Mountain Dew Voltage and SoBe Essential Energy 133
Figure 4.77: Tranquila Relaxation Shot 134
Figure 4.78: Red Light energy drink 135
Figure 4.79: Odwalla Wholly Grain! and Boots Delicious Smoothie 137
Figure 4.80: US Grown Tomato Juice 138
Figure 4.81: Betamix organic juice 139
Figure 4.82: Ito En Reito Bottle Kachiwari Lemon Georgia Gear Black and Gear Ice Coffee 140
Figure 4.83: Aquamantra natural spring water in biodegradable bottles 141
Figure 4.84: Native Water 100% natural spring water 141
Figure 5.85: Key future trends in the soft drinks market 145

Table 2.1: Global soft drinks market value ($bn), 2009–14 22
Table 2.2: Global soft drinks market value by geography ($bn), 2009–14 23
Table 2.3: Top 10 soft drink markets by value ($bn), 2009–14 25
Table 2.4: Soft drinks market value by category ($bn), 2009–14 27
Table 2.5: Global soft drinks market value by subcategory ($bn), 2009–14 29
Table 2.6: Soft drinks market in Western Europe* by category and subcategory ($bn), 2009–1431
Table 2.7: Share of major countries in Western European soft drinks market by value ($bn), 2009 32
Table 2.8: Soft drinks market in the US by category and subcategory ($bn), 2009–14 35
Table 2.9: Soft drinks market in Japan by category and subcategory ($bn), 2009–14 37
Table 3.10: Share of soft drink launches by innovation type (%), 2006–09 43
Table 3.11: Share of soft drink launches by region (%), 2006–09 45
Table 3.12: Share of soft drinks launched by category in Asia Pacific (%), 2006–09 46
Table 3.13: Share of top 10 product tags used in Japanese new product launches (% share), 2006– 09 47
Table 3.14: Share of soft drinks launched by category in China (%), 2006–09 50
Table 3.15: Share of top 10 product tags used in Chinese new product launches (% share), 2006– 09 51
Table 3.16: Share of soft drinks launched by category in Europe (%), 2006–09 53
Table 3.17: Share of top 10 product tags used in the UK new product launches (% share), 2006–09 54
Table 3.18: Share of soft drinks launched by category in the UK (%), 2006–09 55
Table 3.19: Share of soft drinks launched by category in Germany (%), 2006–09 57
Table 3.20: Share of top 10 product tags used in new juices launched in Germany (%), 2006–09 58
Table 3.21: Share of material used in soft drinks packaging in Germany (%), 2006–09 60
Table 3.22: Share of top 10 product tags used in Russia new product launches (% share), 2006–09 61
Table 3.23: Share of soft drinks launched by category in North America (%), 2006–09 63
Table 3.24: Share of soft drinks launched by category in the US (%), 2006–09 65
Table 3.25: Share of soft drinks launched by category in Latin America (%), 2006–09 69
Table 3.26: Share of soft drinks launched by category in Mexico (%), 2006–09 70
Table 3.27: Share of top 10 product tags used in Mexico new product launches (% share), 2006–09 71
Table 3.28: New soft drinks launches by category, 2006–09 72
Table 3.29: Top 10 package types used in new soft drink launches (%), 2006–09 98
Table 3.30: Top 20 tags on new soft drink launches (% of products with tag), 2006–09 103
Table 3.31: Top 20 flavors in new product introductions (% of new soft drinks launches), 2006–09 105
Table 4.32: Share of top 10 product tags used in new product launches globally (%), 2006–09 129
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