The US soft drink sales fell last year by 2.3% owing to price rise and changing behavior of consumers who give preference to a particular drink on a particular occasion.
According to Beverage Digest, a US beverage industry publication, there was a steep decline in the sales of soft drinks in the US last year because consumers chose other alternatives such as bottled water and teas, as reported by Reuters.
Beverage Digest revealed that the total sales of carbonated soft drinks plunged by 2.3% to 9.92 Billion cases last year whereas 0.6% and 0.2% decline was recorded in 2006 and 2005 respectively. In 1990, the industry grew 3% but during the period of 2005-2007, the industry fell sharply.
Although both fruit beverage and carbonated drinks volume plunged in 2007, many non-carbonated beverages witnessed strong growth. Refreshment beverage category contains a wide range of varieties, ranging from vigorous energy drinks to unimpressive fruit beverages to carbonated soft drinks.
As per the industry experts, continuous price rise of soft drinks in last few years is mainly responsible for the lack of demand of carbonated soft drinks as compared to non-carbonated beverages.
Another reason for decline in sales of carbonated soft drinks is that people are opting for healthier drinks. There is a change in the perception of people with regard to varieties of beverages. They need a specific beverage as per the requirement of the time; for instance, people prefer energy drinks during working hours/reinvigoration after a work out.
Moreover, owing to fall in the sales of carbonated soft drink, some beverage manufacturers, who were previously depended upon carbonated soft drink sales, are now turning to water and sports drinks because people are increasingly favoring healthier drinks over carbonated drinks.
Beverage Digest also forecasted considerable growth in the enhanced and functional beverages over traditional refreshment beverages and the high growth trend will continue in future as well.
