Suntory Beverage and Food highlights £1.2bn additional soft drinks sales opportunity

Suntory Beverage and Food GB&I (SBF GB&I) has highlighted a £1.2bn additional soft drink sales opportunity for retailers.

Its latest analysis uncovered soft drink category data from the past decade, revealing the increased importance of soft drinks to retailers post-pandemic and how this feeds into the category for the future.

It found that between 2012 and 2018, soft drink sales value grew from £13.4bn to just over £16bn with a total market growth of 19.9%.

While the category was hit during the pandemic in 2020 which saw the overall annual sales decline to just under £15bn, sales have consistently grown since then, reaching almost £19bn in 2022. SBF GBI said that the 27% sales growth demonstrates a faster growth than pre-pandemic.

SBF GB&I also explained that the growth is being driven by an overall rise in purchase frequency, with the total soft drinks penetration (the number of households that buy a soft drink over a year) rising to 95.2% compared to 90% in 2012. The continued growth since the covid can also be demonstrated as the figure stood at 94.8% during the summer prior to the pandemic.

While soft drink prices have risen and inflation has played a part in value growth, the study found that there is a measurably increased appetite from shoppers to buy into the soft drinks category.

Shopper habits

The SBF GB&I research found that habits have changed since the pandemic with more people buying into the category, which is driven largely by growth across three key demographics: pre-families, empty nesters and retirees. Men were found to be purchasing soft drinks more often than before with a 3.7% share change in consumption.

Other findings included how sales have also seen fewer “ups and downs” since the pandemic, with the gap between sales at the summer peak and the end of January is narrowing; a spike in stimulation drinks over the past two summers with the category hitting a record 9% in terms of penetration, and the rise of health as a sales driver. 

The findings informed SBF GB&I’s category vision which focuses on five areas:

· Choose wellness: A £289m opportunity that can be unlocked by ensuring the 7/10 consumers who say they are interested in purchasing functional drinks can find what they need, at a price they can afford; and the 54% of the population who say they are focusing on their mental health can find drinks that positively impact their mood and emotions.

· Recharge the moment: this driver can deliver up to £238m, if the 75% of society who say they are concerned about tiredness buy into buying drinks that energise and refuel them, according to SBF GB&I.

· Elevate the experience: SBF GB&I believes this £186m opportunity can be unlocked by getting the 30% of people who claim to be teetotal to buy into soft drinks for special moments and occasions.

· Enjoy hydration: a £203m opportunity for retailers if they can encourage more shoppers to buy into tastier hydration options than water.

· Enhance food moments: while 25% of soft drink occasions are with food, for 20% of these, tap water is chosen. To open up £263m over the next five years, SBF GB&I advised retailers to make soft drinks easier to buy into for the 9% of people who buy into the category with their evening meal.