Soft drinks enjoy standout year, says Fentimans

The fifth annual Fentimans Premium Soft Drinks and Mixers Market Report has been published, identifying a standout year for soft drinks.

Soft drinks have been among the drinks market’s winners over the last 12 months. CGA data shows year-on-year growth of 3.8% in the soft drinks and mixers segment—nearly three times the growth of 1.3% in the drinks market as a whole.

Soft drinks now attract nearly 15 pence in every pound spent on drinks in Britain’s On Premise. Soft drinks’ strong trading is also above growth in other core categories like wine (up 0.8%).This reflects a trend of drinkers reducing their alcohol consumption in favour of soft drinks and no or low alcohol alternatives.

There was a particularly impressive leap in soft drinks sales over the 2022 festive season and the ‘Dry January’ that followed, with stronger trading in key periods like the run-up to Easter, when soft drinks sales were up by 24% year-on-year. However, summer weather was broadly disappointing, and kept consumers away from outdoor drinking areas for extended periods—though heatwaves in early June and September caused weekly sales to surge by as much as 24%.

Juices overtook lemonade as consumers’ second top choice after cola in the past 12 months, while flavoured carbonates leapfrogged energy drinks in fifth position, with year-on-year growth of 4.9%. Energy drinks’ sales fell by 10.9% in the 12-month period, suggesting that consumer interest in them may have peaked.

KEY TAKAWAYS FROM THE REPORT

1 Drinking less but drinking better
Some consumers are reducing visits to licensed premises but are spending more when they do go out.

2. Focus on health continues
Many consumers—but not all—are more interested in the wellbeing-related aspects of their food and drink.

3. A surge in no and low alcohol
Top takeaway Numbers drinking alcohol-free or low-alcohol alternatives are soaring—especially in cocktails.

4. Craft drives the premiumisation trend
Top takeaway While more consumers are looking for value, the provenance and quality of drinks remain important.

5. A rise in casual food-led occasions
Soft drinks have become an important element of everyday meals out.

6. The enduring appeal of celebratory occasions
Consumers want to mark special occasions in pubs, bars and restaurants—and soft drinks are an important
part of their mix.

For the full report, click here