The soft drinks industry is under increasing pressure as consumer spending stagnates, the war on sugar rages on and consumers increasingly reject artificial alternatives.  Almost half of consumers (48%) globally are actively choosing soft drinks with low or no sugar,  and74% say they always or often check nutritional labelling on food products for information on sugar content.  Consumers are more willing to experiment with new product varieties when buying more generic beverages such as bottled water and RTD coffee/tea, than beverages that serve a functional purpose like energy and sports drinks.

Low-sugar versions of standard products are currently losing ground in the country as an increasing number of consumers are turning away from sugar due to health concerns.  Rare sugars, which are sourced naturally, offer solutions in that they contain up to 70% of the sweetness of sugar with almost none of the calories.  During 2014-2016, GlobalData tracked 14 truly innovative products containing rare sugar that were launched in the market.

As well as strong consumer desire to lower sugar intake, price-sensitive consumers will turn to alternatively sweetened options to save money.  However, they may also shift their demand to substitute products with high sugar content.  Deciding to re-allocate their spending on untaxed categories that still contain high amounts of sugar could impact soft drinks sales, but it will not lower sugar intake.  Trends explored in this report  include healthy hydration solutions, the adultification of soft drinks, savory and spicy flavors, and soft drinks with just a hint of flavor or sweetness.

Manufacturers can capitalize on this trend by launching consumer goods within untaxed categories, such as ready-to-drink coffee and tea, flavored water, and milkshakes, appealing to indulgent consumers who are willing to experiment with new flavors and formulations