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RETAIL: SOFT DRINKS – Brits get fruity

As UK consumers become more health conscious across socioeconomic classes, healthy fruit drinks see value growth boost.

The overall soft drinks market is in value growth of 3%. Fruit juice is a key growth driver, with value growing four times ahead of soft drinks at 12% year on year. Within fruit juice, average price per litre is driving growth, and has increased significantly by a staggering 15.4%, indicating premiumisation of the sector and consumers trading up to healthier, quality products.

Although fruit juice is primarily made up of private label products, growth is driven by branded products, increasing at 15.6% year on year in value terms. Within fruit juice, Tropicana is the top brand, seeing value growing 13% year on year. This growth is driven by 934,500 additional shoppers contributing £17m to the brand’s value.

In terms of soft drink buyer profiles, a definite split is highlighted. It demonstrates that a more health conscious approach has been adopted by an older and more affluent shopper, purchasing non-carbonate soft drinks, whereas younger and less affluent shoppers are purchasing carbonated soft drinks. However, carbonate sectors such as colas and flavours are showing consistent value decline because shoppers are switching to healthier options.

Tesco has seen the strongest year on year growth of the top four in soft drinks over the last year at 6.3% in value terms. All retailer value growth has been driven by premiumisation of fruit juice. Interestingly, Morrisons has seen
the strongest growth in fruit juices, significantly ahead of the top retailers with a 21.8% year on year value growth, indicating that less affluent shoppers are catching onto the healthier, non-carbonated drinks trend.

 

TNS is a leading global provider of market information. We provide research, advice and insight on market segmentation, advertising and communications, new product development and brand performance.
The TNS data is based on our continuous panel of 25,000 households. TNS tracks the alcohol purchases across all major grocery multiples and co-ops. For further information, please contact Tom Pattinson, business director for TNS Worldpanel, on tel: 020 8967 4967

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