NEW YORK, April 1, 2022 /PRNewswire/ — The fruit-flavored soft drinks market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market. AriZona Beverages USA LLC, Britvic Plc, Brooklyn Soda Works, Callaway Family Co., Cool Mountain Beverages Inc., Dabur India Ltd., DRY Soda Co., Hydro One Beverages, Jones Soda Co., Keurig Dr. Pepper Inc., Monster Energy Co., Nestle SA, PepsiCo Inc., Red Bull GmbH, and The coca-cola co. are some of the major market participants The fruit-flavored soft drinks market value is set to grow by USD 23.95 billion from 2021 to 2026, progressing at a CAGR of 4.75% according to the latest market report by Technavio.
Fruit-flavored Soft Drinks Market 2022-2026: Scope
Product innovations are one of the key drivers supporting the fruit-flavored soft drinks market growth. Players are continuously innovating their products in terms of ingredients, formulation, packaging, and other aspects to increase sales. Realizing the potential of the growing health and wellness trend among consumers, players are introducing products with added benefits. For instance, in April 2019, PepsiCo launched three new cola flavors, namely Pepsi Lime, Pepsi Berry, and Pepsi Mango. The new product uses a combination of sugar, acesulfame K, and aspartame. This new combination is claimed to reduce the sugar content in the product by about 50%. Thus, continuous product innovations will help in the growth of the global fruit-flavored soft drinks market during the forecast period
However, the increasing obesity rates and health-related issues are the factors hindering the fruit-flavored soft drinks market growth. An adult with a body mass index between 25 and 29.9 is considered overweight and one with a body mass index of more than 30 is obese. Obesity results in high blood pressure, diabetes, joint problems, and various other issues. With the increasing awareness of the seriousness of such conditions, consumers have actively started limiting their intake of sugar and high-calorie food and beverage products. This factor will negatively affect the sales of carbonated fruit-flavored soft drinks, juices, and other soft drink products. The annual medical cost related to obesity is increasing yearly in the US. Such factors may hinder the market growth during the forecast period.
The fruit-flavored soft drinks market share growth in the fruit-flavored carbonated soft drink segment will be significant for revenue generation. The volume sales of popular brands of fruit-flavored carbonated soft drinks such as Pepsi and Coca-Cola decreased in 2020. The sales of fruit-flavored carbonated soft drinks are declining due to the growing popularity of bottled water and other alternative drinks among consumers. However, the players in the market are trying to overcome the negative image of fruit-flavored carbonated soft drinks by introducing products that are free from sugar and have low calories such as Diet Pepsi and Diet Coke. Such initiations by players will drive the segment growth during the forecast period.
37% of the market's growth will originate from APAC during the forecast period. China, India, and Japan are the key markets for the fruit-flavored soft drinks market in APAC. Market growth in this region will be faster than the growth of the market in other regions. The growing investments, introduction of new products, and product innovations will facilitate the fruit-flavored soft drinks market growth in APAC over the forecast period.