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.
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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.
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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