The UK soft drinks market is currently witnessing remarkable growth, largely fueled by a heightened awareness of health and wellness. With low or no-sugar options constituting two-thirds of volume sales, consumers are increasingly gravitating toward healthier choices.
Additional factors contributing to this trend include the surge in functional drinks, such as energy and immunity-boosting beverages, a focus on premium products, and an ongoing moderation of alcohol consumption. According to Carlsberg Britvic, sales in the convenience channel rose by 15.3% in 2024.
Many consumers are consciously reducing their sugar intake, with 62% attempting to consume less, and 74% moderating their alcohol consumption, spurring increased sales in alternative beverages.
Functional beverages, including prebiotic sodas, kombucha, and energy drinks, have seen a staggering 54% growth over the past year. Searches for protein-enhanced drinks have surged as much as 140%.
There is a noticeable trend of consumers opting for premium soft drinks, artisanal mixers, and unique, less sweet flavors.
Kate Abbotson, Senior External Communications Manager at Coca-Cola Europacific Partners, notes, “The soft drinks category continues to exhibit strong value growth in Great Britain, now valued at £14.56 billion (Nielsen), expanding by 8% year on year with enduring demand for recognized and flavorful brands.”
“Specifically, leading brands play an essential role, with the Coca-Cola™ portfolio representing 63.1% of cola value sales (Nielsen). Coca-Cola Original Taste remains the top-selling soft drink in Britain, now valued at £904.25 million, while Coca-Cola Zero Sugar has increased to £483 million. Innovations like Coca-Cola Cherry Float, launched in February, tap into nostalgia, combining the classic flavor with rich cherry and smooth vanilla notes.”
Cherry-based products have generated £287 million in sales over the last year (Nielsen). Diet Coke has also seen significant success, now valued at £499 million, and has introduced a permanent cherry variant to its offerings just in time for the summer season.
In the carbonated drinks sector, Fanta remains the leading brand in Great Britain, constituting one in five flavored carbonates sold. Its ongoing success is backed by a robust innovation pipeline focused on zero-sugar alternatives, including recent launches like Fanta Grape and limited-edition Fanta Dark Cherry.
Dr Pepper has emerged as the fastest-growing flavored carbonate, holding a 17.2% market share and driving 45% of segment growth (Nielsen). Their innovation, Dr Pepper Cream Swirl, launched in February, has generated significant sales, combining the brand’s signature taste with a creamy finish.
Mixers continue to play a crucial role in the soft drinks market. Schweppes stands out with products like Classic Tonic and Lemonade and has introduced Schweppes Cherry Pepper Soda to cater to contemporary flavor trends.
Energy drinks lead in market growth, now surpassing £2.4 billion in value. CCEP projects the segment will grow to £3.8 billion by 2030.
Monster energy drinks, now valued at over £856 million, account for significant value and volume growth. Their multi-platform approach includes various sugar-free and full-sugar variants, with the Core and Ultra lines demonstrating strong sales figures.
Reign Storm Clean Energy is another noteworthy player, appealing to health-conscious consumers with functional benefits. With 67% of energy drinkers preferring chilled products, keeping visibility and chilled options is critical for growth.
David Laidler, Brand Director at Carlsberg Britvic, remarks, “Consumers seek more than a mere thirst quencher, which necessitates that convenience stores offer unique soft drink options alongside elevated in-store experiences.”
Tango launched its limited-edition flavor series, Tango Editions, in 2022. This series features standout flavors with engaging pack designs. Recently, Tango launched Tango Editions Thirst Trap, featuring a bold blend of peach, orange, and pineapple flavors with eye-catching packaging targeted at younger consumers.
7UP® has also seen new products such as 7UP® Pink Lemonade, offering a refreshing zero-sugar option that caters to health-conscious consumers looking for flavorful choices.
Carlsberg Britvic started 2026 with the introduction of Pepsi MAX® Tropical, blending popular fruit flavors to meet the growing demand for exciting cola options. The rebranding also aims to make the product easily identifiable on shelves.
As consumer preferences shift towards bold flavors, the flavored cola category is expanding six times faster than its unflavored counterpart.
The market for ready-to-drink iced coffee is also growing, illustrated by Arctic Coffee’s upcoming release of a decaffeinated café latte, designed for consumers looking for lower-caffeine options.
Significant shifts in consumer demand are evident, as products that offer genuine health benefits gain traction. For instance, new functional drinks, such as Vimto Wonderfuel, are being launched to cater to these evolving preferences.
Key Takeaways
- The UK soft drinks sector is growing rapidly, largely due to increased health consciousness.
- Low/no-sugar products make up two-thirds of volume sales.
- Functional drinks, such as energy and immunity boosters, are experiencing significant growth.
- Consumers prefer premium beverages with unique flavors and artisanal qualities.
- Established brands continue to dominate the market, with Coca-Cola holding a substantial share.
- The moderation of alcohol is driving up demand for adult-oriented soft drinks.
- There is a continuous trend towards healthier, functional, and flavor-rich beverages among consumers.
FAQ
What is driving the growth of the UK soft drinks market?
The growth is primarily driven by increased health consciousness, with many consumers opting for low or no-sugar options and functional beverages.
How are established brands performing in the current market?
Established brands like Coca-Cola continue to dominate the soft drinks market, accounting for a significant portion of sales and showcasing strong growth.
What trends are influencing the soft drinks category?
Key trends include the rise of functional drinks, an emphasis on premiumization, and a shift toward healthier options.
How are consumer preferences changing regarding soft drinks?
Consumers are increasingly looking for drinks that offer health benefits while maintaining enjoyment, leading to a preference for flavor-rich and low-sugar products.
In conclusion, the soft drinks sector in the UK is evolving rapidly, shaped by the ongoing trends of health awareness and premiumization. As consumers continue to prioritize flavorful and functional beverages, this market holds significant potential for innovation and growth.
