Global trends

USA

Water gets smarter

What America does today, Europe often does tomorrow – as, for example, with the spread of obesity and simultaneous preoccupation with health and wellbeing. So what are the next trends to come from across the Atlantic?

The US take-home soft drinks market is buoyant, with 2007 sales up 5%. Both carbonates (up 3%) and juice (up 6%) grew sales value – though, as in the UK, this was due to premium pricing while volumes actually declined. The star performer in the US was bottled water, with volume up 10% and stronger pricing taking sales value up by 13% (see footnote 1).

A closer look shows clearly what’s been driving that growth: enhanced water (with added electrolytes such as magnesium and potassium to aid hydration) has doubled in size to some £28m (see footnote 2). And water with added vitamins is growing even faster – up 135% last year to over £194m.

Footnote 1: Total US Take-home sales include an estimation for Wal-Mart.

Footnote 2: All values in GB£ equivalent based on Reuters exchange rate at the time this report was produced.

Republic of Ireland

Sports and energy pump up sales

The view across the Irish Sea is sunny, with 4% volume growth supporting 7% value growth. Carbonates performance is similar to that in the UK, with volumes squeezed and steady value growth of 2%. The Irish sports and energy drinks market is more developed, with 15% value growth taking sales to £107m in 2007 – a fifth of the total soft drinks market. Ireland shares the UK trends towards better-for-you drinks, with fruit juice and bottled water achieving double-digit growth.

Germany

Health and wellbeing begin to emerge

In Germany, soft drinks volumes were static last year, with sales value rising just 1%. Bottled water remains the country’s top seller, with a market value share of 36%. But its sales have declined slightly, with value down 2%. Carbonates have grown by a relatively healthy 3%, driven by a strong performance from fruit carbonates. The health and wellbeing trend is beginning to gather momentum. Sports and energy is still a relatively small sub-category with a market share of 4% – but it’s mirrored its UK success, growing by a fifth in the past year. Smoothies, on the other hand, are taking rather longer to make an impact in Germany than in the UK: they currently command less than 1% of the market.

France

Still drinks, sports and energy make the running

The French soft drinks market followed slightly behind the UK last year, with volumes down 4% and 2% value growth. Still drinks made the running, with fruit juices and fruit drinks delivering double-digit growth. Among carbonates, only cola grew both volume and value. Sports and energy is a small sub-category but it is growing fast – up 17% last year. Bottled water is well established, accounting for over a third of French soft drinks sales value: as a result, France is one of the few countries not experiencing a bottled water boom.

Australia

A vintage year for soft drinks

Soft drinks are doing well in Australia. The overall market grew 9% by value last year, with both stills and carbonates performing well. Sports and energy is the fastest growing sector (up 36%), while bottled water also had a good year (up 18%), demonstrating that the health and wellbeing trend is still a strong driver in the Australian market. The biggest selling sub-category is still cola, accounting for 32% of sales value.