Coca-Cola continues its dominance of the Australian soft drinks market

The Australian soft drinks market accounted for A$11.5 billion in total value sales in 2012, representing growth of 4% on the previous year's performance.

The affordable and indulgent nature of soft drinks ensured a resilient performance in Australia in 2012.

Health and wellness is a key trend amongst Australian soft drinks consumers. In response, manufacturers are placing more emphasis on, and expanding, their health and wellness offerings.

Sugar-free, low-carbohydrate, and reduced-calorie are important focus areas for manufacturers, while additional benefits, such as antioxidants and fortification through added vitamins and minerals, have also become popular product claims.

With sharp declines among the under 35s over the last five years, middle-aged Australians aged 35 to 49 years are now the group most likely to have soft drink in an average week.

Overall, half of Australians (50 per cent) aged 14 years or over now consume soft drink in a seven-day period, down from 56 per cent in 2009.

The Australian soft drinks market was lead by Coca-Cola in 2012 with a 29% share in retail volume terms.

The company enjoys broad national distribution and operates key brands in categories, such as carbonates, bottled water, sports and energy drinks, and RTD tea. Furthermore, it is proactive in bringing sugar-free options to consumers.

In fact, the company has placed greater emphasis on its low-calorie cola carbonates Diet Coke and Coca-Cola Zero, and launched Powerade Zero in April 2012 and Mother Sugar Free in July 2012.

Subdued but stable trading is expected in soft drinks over the next five years. The refreshing, indulgent and affordable nature of soft drinks will ensure they remain popular with Australian consumers.

Weak consumer confidence will see consumers continue to appreciate value for money in soft drinks over the forecast period, while health and wellness will also remain in the forefront of consumers' minds as they make soft drinks purchasing decisions.

For more information on the Australian soft drinks market, see the latest research: Australian Soft Drinks Market

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