Soft drink sales continue to decline
Australian soft drink sales are expected to decline once again in 2017.
According to research agency, Mintel, by the end of 2017, the total volume sales of Australia’s carbonated soft drink category is expected to experience a 2.3 per cent decline.
The decline follows a 4.7 per cent drop that occurred between 2014 and 2016.
Mintel Global Food and Drink Analyst, Jenny Zegler, said consumer concern over sugar intake has particularly taken its toll on Australian soft drink sales.
“Carbonated soft drink companies that seek to reconnect with consumers must take into account that concerns about sugar and sweeteners will continue to be a focal point for consumers moving forward,” Zegler said.
Consumers want clarity about sugar content
Mintel Trend and Innovation Consultant, Shelly McMillian, said beverage producers may benefit from being up-front about sugar and sweetener content.
“Our research points to the necessity for simple and direct communication to reassure Australian consumers who are wary of their sugar consumption,” McMillian said.
“To avoid consumer confusion or concern, products could define the amount and type of sugar or sweeteners on product labelling to ensure that consumers can easily understand the sugar content of food and drink.”
Demand for reduced sugar formulations
Mintel also suggests manufacturers could consider more reduced sugar soft drink formulations with three in four metro Australians agreeing producers should be doing more to reduce the amount of sugar in their drinks.
“Though there is a demand for reduced sugar food and drink products, companies are not doing enough when it comes to new product development,” Zegler said.
“In fact, our research indicates that there is a definite opportunity for players in the carbonated soft drink industry to introduce more low, no or reduced sugar offerings into the Australian market.
“Another key way of enticing consumers to stay engaged with the category is for CSD brands to consider developing low, no or reduced sugar limited edition flavour offerings,” Jenny concludes.”
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