Through 2012, total volume sales within the US carbonates market declined by 1%, while total value sales rose by 2%.
Health and wellness trends, particularly concerns about the growing obesity of many Americans, continue to drive carbonate volume decline. Both consumer concerns as well as government policies reflect this impact.
Concerns over calorie intake would normally be an opportunity for low-calorie colas to grow. However, low-calorie cola carbonates have declined by 10% since 2008 in terms of total volume, and by 3% in 2012. Low-calorie cola carbonates are failing to attract health conscious consumers because they are wary of the artificial ingredients used to sweeten the drinks.
Although low-calorie cola carbonates have only a small or no calories, many consumers worry about artificial sweeteners amidst scientific reports speculating as to the long-term effects of such ingredients.
For consumers moving away from full flavoured carbonates, artificial ingredients may not pose as much of a concern. However, artificial sweeteners such as aspartame and ace-K still leave an unappealing aftertaste for Americans who are used to consuming the full flavoured versions.
To address this issue, both PepsiCo and Dr Pepper Snapple Group launched soft drinks that containing a blend of both artificial sweeteners and high fructose corn syrup.
According to a recent report, 'Carbonates in the US,' in 2012, mixers were the fastest growing category in carbonates. Off-trade volume sales grew by 5% and reached 1.2 billion litres, while off-trade value sales grew by 6% to reach US$1.4 billion.
More Americans are consuming spirits in the off-trade market, with off-trade volume sales of spirits increasing by 3% to reach 1.3 billion litres in 2012. This is indicative of a growing cocktail culture in the US; a trend that greatly benefits mixer manufacturers as consumers are turning towards tonics and seltzers for creative cocktails.
The Coca-Cola Company once again led carbonates sales in the US in 2012, with a 42% share of total volume. In 2012, volume sale for Coca-Cola brands declined by 3%, to 21.9 billion litres. The bulk of this decline was in the off-trade channel, where the company's volume fell by over 3%, compared to 2% in the on-trade.
For more information on the US carbonates market, see the latest research: US Carbonates Market
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.