Pop goes fizzy drinks market, says reportConsumers 'want juice and bottled water'

01 February 2008

A woman holds a glass of orange juice

The fizz is going out of soft drinks as consumers opt for more juices and bottled water, a report out today says.

Health concerns will prompt a decline in the popularity of sugary carbonated drinks, market analysts Datamonitor predict.

Tea remains the nation's favourite hot drink but its market share is being nudged downwards by coffee.

Fizzy drinks

Fizzy drinks are set to make up 50% of the UK soft drinks market by 2011 - down from 61% today.

By contrast bottled water will increase from a 19% to a 24% share over the same period, Datamonitor said.

Juices are also tipped to get more popular, making up 22% of UK soft drink consumption by 2011 compared to 16% today.

Europe

Datamonitor says the same trend is evident in Europe and the US, where fizzy drinks are set to make up just 45% of soft drink consumption by 2011.

Matthew Jones, consumer market analyst at Datamonitor, said soft drinks firms faced growing competition.

'Due to legislation preventing sugared carbonates in schools in the US and Europe, developing products that incorporate healthy ingredients and lower sugar levels will be essential to maintaining market share,' he said.

Tea

People in the UK drank an average 2.3 soft drinks per day in 2006. This will increase to 2.9 by 2011, Datamonitor predicts.

Hot drinks are still more popular, with consumers getting through an average 3.7 per day in 2006.

Tea remains the UK's most popular hot drink, making up 64% of the sector.

But its share is expected to drop to 62% by 2011 as coffee becomes more popular, Datamonitor predicts.

Tea is forecast to increase its share of the hot drinks market in the US where it is being marketed as a health drink, the 'consumer hot and soft drink preferences' says.

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