Global soft drink trends

Page 17

Consumers want beverages that they deem to be green and clean Consumers want products that they deem to be 100% natural In recent years, there has been much attention given to the increased demand for products that are deemed to be clean label. However, the reality is that clean label remains something of an industry-led term rather than something that is consumer driven. As such, simply labeling a product as clean label is something that will not significantly influence consumer behavior when it comes to buying beverages. Instead, it is important to understand what the underlying trend is when it comes to the clean label movement and relate this to what evolving need states are driving consumption patterns. Clean label is the evolution of consumers wanting products that they deem to be 100% natural. This is because consumers associate beverages that are 100% natural with a variety of benefits.

Proportion of consumers who deem it important that food and drink is 100% natural Proportion of consumers who deem it important that food and drink is 100% natural Global: 72%

Africa/ME: Asia-Pacific: Europe: North America: Proportion of consumers who deem it important that food and drink is 100% natural 80% 71% 72% 62%

South America: 71%

Global: 72%

Africa/ME: 80%

South America: 71%

Asia-Pacific: Europe: North America: 71% 72% 62% Why is it important that products are 100% natural. Products are‌. important that products are that 100% natural. Products are‌. Consumers who believe it is important products are 100% natural

Why is it Consumers whoAfrica/Middle believe it is important that products areSouth 100% natural Global East Asia-Pacific North America America Why is it important that products areEurope 100% natural. Products are‌. Consumers who believe it is important that products are 100% natural

55%

55%

51%

51%

55%

55%

57%

57%

62%

51%

51%

51%

51%

Global 45%

45%

48%

48%

Africa/Middle East 44%

44%

45%

45%

43%

43%

41%

41%

Asia-Pacific 46%

46%

44%

47%

44%

47%

Europe 45%

45%

50%

50%

46%

46%

North 52% America53%

South America 53%

50%

49%

42%

62% 52%

53%

50%

53%

49% 42%

50%

47% 39%

40%

39%

40%

38% 50%

47%

Better-for-me

More sustainable

Better quality

Healthy

Tasty

Better-for-me

More sustainable

Better quality

Healthy

Tasty

38%

Source: FMCG Gurus Clean Label survey, Q1 2019/Q1 2020

However, whilst consumers have favorable perceptions towards products that are deemed to be 100% natural, they are also becoming more skeptical of claims and questioning whether products can be 100% natural. This relates to wider trust issues that consumers have towards brands, especially larger multinationals. Indeed, consumers are becoming increasingly skeptical of the practices and policies of brands, often believing that they do not have the best interests of the consumer at heart and that they are focused purely on profit maximization. Related to this, consumers can often feel that brands can make misleading claims around topics such as health and sustainability to charge a premium price. These suspicions are something that are the result of high-profile cases where brands have seen to make such claims, only for these claims to later be undermined. Unfortunately for the industry, in times of uncertainty, these levels of skepticism are something that tend to intensify.

Global soft drink trends | 17


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