Carbonated Soft Drinks on Recovery Path
November 2009
The growth rate of carbonated soft drinks dropped to half in 2008. The market is predicted to rebound next year with expansion by about five billion litres in Latin America.
In its recently published Global Carbonates Report, Canadian, beverage industry information specialist stated that there was a substantial drop in growth rate from 3 percent in 2007 to 1.4 percent in 2008.
Carbonates however are still dominant in soft drink sector accounting for almost 40 percent of the global consumption. The market analysts state that as the economic slump lifts there will be a boost in the market in 2010.
A shift in market
The emerging markets in developing countries will fetch most of the business as carbonates market has reached the state of maturity in the developed world.
Latin America is now a leading country in the carbonates market which was earlier dominated by North America. Reports reveal that sales in North America are expected to decrease further by 6 percent between the end of 2008 and 2012.
The growth rate of Canadian’s Asian team is expected to rise by a third, followed by Middle East and North America with growth of about 30 percent.
As compared to other developing parts of the globe East Europe is expected see a hike in growth rate by 2010
Diet drinks
Factors like obesity and low calorie issues have played a significant role in maintaining demand developed markets. In less affluent markets the demand for light or diet drinks is much less. Today low calorie drinks contribute to 15 percent of the total volume.
Price increase
According to analysts, the growing market of carbonate drinks in developing countries will be mitigated by price increase.
Michelle Williams from Artemis Solutions Group who specialise in recruiting for Food and Beverage sector comments “The rise in sale of carbonated drinks in developing and developed world will be regulated by price and health issues respectively. The year 2010 is expected to bring back the growth rate.”
