August 23, 2024 – The European carbonated beverage industry is dynamic and evolving, driven by consumer preferences for new flavors, healthier options, and innovative packaging formats. Here we will provide a comprehensive analysis of the European carbonated beverage industry, exploring key trends in product launches, sales volume, and consumer behavior. We will also analyze the top-performing countries, popular flavor profiles, and emerging positioning strategies.
Product Launch and Sales Trends
Europe is the most active region for both soft drink category and carbonates subcategory launches. 36% of soft drink launches, and 39% of carbonates launches are represented by Europe. Asia Pacific is the next most active region for soft drink and carbonates launches.
Additionally, Europe is the top region for carbonates sales value, barely edging out Latin America in market share (26% vs. 24%). For soft drink sales, Asia Pacific is the most active region; Europe is in second place.
Both carbonates launches and sales in Europe have increased over the past five years, but at different rates. Carbonates launches have grown by 6.6% CAGR, while sales have grown by 0.4% CAGR. Vegan choices, options with health claims, non-alcoholic carbonates with alcohol inspired flavors, and seasonal/limited editions help drive new product development in the region.
Carbonates is the #2 most launched subcategory of soft drinks in Europe, behind juices and nectars. Traditional choices, GMO free ranges, and launches packed in various packaging formats help support new product development.
Launch and Sales Trends Between Countries
When looking at each country individually, carbonates represent the largest share of UK soft drink launches, with 29%. This is followed by Italy, Germany, France, and Spain.
The United Kingdom is also the most active launcher within the European carbonated beverage industry, with a CAGR of 10.3% over the past three years. Floral infusions and choices with ethnic flavors help move new product development in the country. The Netherlands is the fastest growing country for carbonate launches in Europe, with a CAGR of 21% in the past three years. Lactose free ranges, options promoting energy and alertness, and protein and antioxidant rich sparkling spirulina drinks help drive product launches.
Germany is the most active market for carbonates sales, representing an average of 18% of the European carbonates industry. Sparkling ranges, vegetable infused versions, options with refreshing mint flavors, and launches with citrus flavors push new product development. Poland is the fastest growing European market for sales, with a CAGR of 2.4%. Additionally, Slovakia is exhibiting notably high innovation and value growth over the past three years.
Top Companies and Brands in the Carbonated Beverage Industry
Coca-Cola is the most active launcher in the European carbonated beverage industry, with 16% of overall share in the region. It is driven by its brands Coca Cola, Fanta, Sprite, Schweppes, and Kinley. The next most active brands in the region are SanPellegrino, PepsiCo, Aldi, and Lidl. These five companies equal 30.5% of all carbonates launches over the past year in Europe.
Positionings Trends
Sugar free is seen on one quarter of carbonates launches in Europe, with notable growth over the past year. The next most common claims in the carbonated beverage industry are low/no/reduced calorie, vegan, no additives/preservatives, and organic. Apart from the top 5 claims, other positionings growing in popularity are vegetarian, limited edition, seasonal, natural, and immune health.
When comparing top claims between countries, in the UK low/no/reduced calories is at the top, in Germany it’s vegan, in France it’s organic, in the Netherlands it’s sugar free, and in Italy it’s no additives/preservatives.
Top Flavors in the Carbonated Beverage Industry
Cola is the most common flavor in the European carbonated beverage industry. Lemonade, orange, lemon, and red apple are runner-ups. Cherry, grapefruit, lime, red raspberry, and ginger are all growing in popularity.
Cola remains the most popular flavor in the Netherlands, United Kingdom, and Italy. In Germany the top flavor is orange, while in France the top flavor is lemonade.
What’s Next in the European Carbonated Beverage Industry
The growing trend toward health-conscious choices will continue to influence carbonates. Sugar-free, low-calorie, and natural options are gaining traction, particularly in the UK and Netherlands. Expect more innovative formulations incorporating prebiotics, probiotics, vitamin/mineral fortification, and protein-rich options.
Consumers are also seeking exciting flavor experiences beyond traditional cola. Flavors like cherry, grapefruit, lime, and ginger ale are gaining popularity. Expect more innovative combinations and cross-category flavor inspiration, such as dessert-inspired flavors, floral infusions, and non-alcoholic alcohol-inspired options.
Finally, the shift toward sustainable packaging is gaining momentum. Coca-Cola’s initiative to remove labels from Sprite bottles in the UK demonstrates the industry’s commitment to reducing waste. Expect more innovative packaging solutions focusing on recyclability and eco-friendly materials.
This article is based on our report, “What’s Trending in Carbonates in Europe.” If you are interested in reading this report, feel free to request a demo.
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