Novel Beverage Offerings to Propel Gains in US Soft Drink Production

2/16/2022

Cleveland, OH, February 16, 2022 — US production of soft drinks is forecast to increase nearly 1.0% annually in volume terms through 2025, according to Soft Drinks: United States, a report recently released by Freedonia Focus Reports. Shipments in value terms are expected to rise 2.0% yearly over that span. Although demand for certain categories of soft drinks will continue to decline amid concerns over the links between sugar consumption and health issues such as obesity, cardiovascular disease, cavities, and diabetes, producers of soft drinks in general stand to benefit from diverse beverage offerings that appeal to consumers seeking healthier options or novelty. In addition, increases in disposable personal income will drive purchases of higher-end, niche beverages, many of which feature organic ingredients and offer unconventional flavors. Further, price increases resulting from supply shortages (i.e., bottles and cans) will drive shipment gains in value terms over the forecast period, as producers attempt to soften the blow felt due to COVID-19 pandemic-driven disruptions. In a national consumer survey conducted by The Freedonia Group, nearly 77% of respondents indicated they were somewhat or very concerned about rising beverage prices.

Production of carbonated soft drinks (CSDs) – the largest segment – is forecast to see minimal annual declines in volume terms to 2025. Ongoing concerns over the ingredients in CSDs and competition from other beverages will continue to weigh on demand, limiting production. Producers will continue to introduce new formulations – including beverages with novel sweeteners and flavors – with the aim of rejuvenating sales.

Production of sports drinks in volume terms is expected to rise 2.4% annually to 2025, the fastest growth among discrete segments. Manufacturers’ efforts to expand their consumer base beyond young males will contribute to segment growth. As part of this effort, major beverage manufacturers are launching more products with functional attributes.

These and other key insights are featured in Soft Drinks: United States. This report forecasts to 2021 and 2025 US production of soft drinks in gallons and US shipments of soft drinks in nominal US dollars at the manufacturer level. Total production in volume terms is segmented by product in terms of:

  • carbonated soft drinks
  • fruit beverages
  • sports drinks
  • other ready-to-drink (RTD) beverages such as energy drinks, enhanced water, and RTD tea

Total shipments in value terms are segmented by product in terms of:

  • carbonated soft drinks
  • fruit beverages
  • non-carbonated soft drinks

To illustrate historical trends, total production, total shipments, the various segments, and trade are provided in annual series from 2010 to 2020.

The scope of this report encompasses beverages consumed from single-serving containers as well as various types of dispensing systems utilizing bulk packages (such as fountain drinks). Beverage syrups and concentrates are included in report totals in gallons of equivalent finished beverage products. Products not premade and sold ready-to-drink, such as coffee beans and grounds, dry teas, and powdered drink mixes, are excluded from the scope of this report.

This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Survey has a sample size of approximately 2,000, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.

More information about the report is available at:

https://www.freedoniafocusreports.com/Soft-Drinks-United-States-FF10018/?progid=91541