Soft Drinks Concentrate Market Will Reflect Significant Growth Prospects Due to Rising Demand in Food and Beverages Industry

A soft drink can be defined as a beverage that is composed of carbonated or still water, a sweetening agent(s), and natural or synthetic flavoring. The sweeteners used in a soft drink may either be in the form of high-fructose corn syrup, sugar, sugar substitutes, fruit juice or other natural sweeteners. Based on the formulation and use of the soft drink, it may also contain other ingredients such as coloring agents, caffeine, preservatives, stabilizers, and other ingredients.

About 80% of a soft drink is composed of water. It is owing to this that the transportation of soft drinks incurs extra charges; soft drinks also occupy extra space in storage facilities and warehouses. In order to allay these problems, soft drink ingredients are further processed so they can be concentrated. The soft drink concentrate thus derived typically consists of ingredients such as color, sugar, and flavors. In some formulations, the use of stabilizers and fruit concentrates (with low water content) may also be seen. The soft drink concentrate industry has been growing at a rapid pace and now forms an important part of the food and beverages sector.

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This is attributable to their lower weight, availability in different varieties, and ease of use. With consumers purchasing more processed foods, the demand for soft drink concentrate is also expected to expand at a remarkable rate.

Soft Drinks Concentrate Market: Segmentation

The segmentation of the market for soft drinks concentrate can be done on the basis of applications into: Concentrate for carbonated and non-carbonated soft drinks. Furthermore, the segment of carbonated soft drink concentrate can be divided on the basis of flavor into cola and non-cola. Of these, the share of the cola concentrate segment is the largest currently.

However, subsequent to increased consciousness regarding consumer health, it is expected that the non-cola soft drink concentrate segment will grow faster. Moreover, cola is high in caffeine levels, which may also deter its demand. The segment of non-carbonated concentrates is comprised of fruit flavors or with added fruit concentrates. The common variants available on the market include: mixed fruit/mixed berries, apple, pineapple, grapes, mango, citrus fruit, and others. Consumers are increasingly becoming health conscious and are hence demanding natural products that are perceived as being healthy. This is substantially helping the expansion of the non-carbonated soft drink concentrates market.

The market for soft drinks concentrates, on the basis of form, can be segmented into: Liquid and powder concentrate. Because powder concentrates boast a longer shelf life as compared to liquid concentrates, the demand for the former is projected to be healthy. Furthermore, the soft drinks concentrate market is divided basis end-use applications into the following: Food service, fountain machine, mass merchandise, and others (quick serving restaurants and private clubs). Of these segments, fountain machines represent the fastest-growing segment. This is attributable to fountain machines’ ability to reduce the time taken for preparing a drink and overall convenience in operation.

Soft Drinks Concentrate Market: Region-wise Outlook

The market for soft drinks concentrate can be segmented basis of region into: Eastern Europe, Latin America, Asia Pacific, North America, Middle East and Africa, and Japan. The global soft drinks concentrate market is projected to show a healthy rate of growth through 2025. This will be the result of the rising demand for soft drinks available in the ready-to-drink form and the steadily growing demand for convenience foods worldwide.

Soft Drinks Concentrate Market: Drivers

The growing global population is expected to create a strong impact on food supply globally. However, the trend is now moving toward better nutrition, detailed labeling, and quality of food. Heavy spending on appealing advertisements by leading MNCs in the food and beverages industry, combined with the availability of newer soft drink varieties, will help boost sales of soft drinks concentrates the world over. Several manufacturers are also adhering to good manufacturing practices (GMP) to formulate safe products.

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Soft Drinks Concentrate Market: Key Players

The leading global players in the soft drinks concentrate market are: PepsiCo Inc., Monster Beverage Corp., Cott Corporation, the Coca-Cola Company, Kraft Foods, and Dohler Group.

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