US carbonated water sales up while soft drink sales drop

Thursday, 18 September, 2014

As carbonated soft drink sales start to drop in the US, there’s one fizzy drink that’s gaining ground: carbonated water. The US is forecast to have a growth rate of 12% in carbonated packaged water consumption in 2014, compared to an average global growth of 1%, according to research firm Canadean.

Consumption of carbonated soft drinks could decrease by as much as 5 L per person compared to 2013 figures, Canadean says. In contrast, consumption of packaged water - both still and carbonated - is expected to increase by more than 3 L per person.

Canadean attributes the increased demand to a steady consumer shift away from carbonated soft drinks and towards packaged water. Americans are becoming more aware of the negative health effects of drinking sugar-sweetened carbonated soft drinks but still seek the mouthfeel of carbonated beverages.

Year-on-year growth rates of carbonated soft drinks and carbonated water in the USA. Source: Canadean.

Year-on-year growth rates of carbonated soft drinks and carbonated water in the USA. Source: Canadean.

“Carbonated packaged water fills this void and appeals to consumers as a healthier alternative to traditional carbonates,” said Rakhee Sturgess, Canadean analyst.

“As it is sugar-free and has no additives, the growing demand for carbonated water has started taking share from the carbonated soft drinks market.”

Flavoured carbonated water is also seeing strong progress as a result of solid distribution gains and increasing brand activity. It is also seen as a healthier alternative to carbonated soft drinks while still offering a variety of flavours.

“Carbonated packaged water is gaining traction in the US and its continued success will grow its share of the packaged water market,” said Sturgess.

“Since local manufacturers are offering lower prices, it is domestic rather than imported brands that are increasingly expected to drive this growth. Furthermore, wider distribution will also help US manufacturers to capitalise on the growing demand for carbonated packaged water.”

These findings are based on the Canadean report ‘Soft Drinks Market Insights 2014 United States of America’.

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