A new report from drinks industry analysts Zenith International shows that that UK soft drinks consumption rose by 7 per cent in 2003 to 13,925 million litres, translating into a retail value of £11,050 million. Growth came from every sector of the market, as the summer heatwave, product innovation and healthy refreshment kept consumer interest high.
Bottled water recorded the most dramatic rise in volume sales, accounting for 33 per cent of total growth, as UK consumers responded more actively to the health benefits associated with proper hydration, Zenith said. But carbonates also contributed strongly, with brand extensions such as Vanilla Coke and Fanta Zesty Berry providing the main impetus.
"Outstanding summer weather clearly also boosted sales in 2003, but the industry still has its own underlying momentum, with consumers continuing to switch from more traditional drinks such as tea, coffee and milk. Soft drinks offer consumers a better combination of refreshment, convenience and excitement at a price they can afford," said Zenith research director Gary Roethenbaugh.
Innovation has been at the heart of soft drinks growth over recent years and 2003 was no different, with consumers demanding a greater choice of healthier and more functional products. This was reflected in many of the key brand developments during the year such as Red Bull Sugarfree, Ocean Spray Light and Lucozade Sport Hydro Active.
"Consumers are seeking more from their drinks purchases in terms of health and functionality; the intensifying debate on obesity has heightened this demand," Roethenbaugh added. "Already 63 per cent of total soft drinks consumption is no or low calorie.
"Provided the soft drinks industry continues to satisfy these changing consumer needs as well as stimulating interest by constant innovation, there is no reason why it should not maintain its long term 4 per cent volume growth rate," he concluded.
Zenith expects the UK soft drinks industry to see a steady advance in consumption during the next five years, climbing to 16.8 billion litres by 2008.
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