Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Carbonated Soft Drinks

2017 State of the Industry: Soft drinks experience modest volume declines

Craft, natural sodas stave off attrition

soft drinks
(Image courtesy of DRY Soda Co.)
Top Carbonated beverage sales by variety chart
Carbonated beverage sales by variety
soft drinks
Top Carbonated beverage sales by variety chart
July 12, 2017

Although carbonated soft drinks (CSDs) still is among the top performing beverage categories, more than a decade of volume declines has challenged the established category as it competes with better-for-you beverages and premium products.

“The category continues to struggle,” said Gary Hemphill, managing director of research at New York-based Beverage Marketing Corporation (BMC) in Beverage Industry’s April issue. “Volume declined for the 12th year in a row in 2016, and we believe more declines are ahead. The category has seen declines mostly in the range of 1 to 2 percent annually over the last decade. While consumers still like and enjoy carbonated soft drinks, they are increasingly opting for alternatives.”

In BMC’s August 2016 report titled “U.S. Carbonated Soft Drinks through 2020,” the market research firm anticipates that volume declines will continue. In reference to the five-year period from 2015 to 2020, it states: “In the next five years, volume is expected to decrease by 1.4 percent on a compounded annual basis. That would result in CSD volume of 11.7 billion gallons (7.8 billion cases) in 2020.”

These years of declines resulted in the category no longer being the most-consumed beverage based on volume. In BMC’s presentation “Beverages 2017: What’s in Store,” the market research firm announced that bottled water now is the most-consumed beverage by volume in the United States.

The presentation also noted that CSDs accounted for 19.8 percent of share of stomach in 2016. In comparison, the category accounted for 22.7 percent in 2011.

According to Information Resources Inc., Chicago, carbonated beverage dollar sales declined approximately one-tenth of a percent,  totaling more than $27.6 billion for the 52 weeks ending May 14 in total U.S. multi-outlets and convenience stores.

In Beverage Industry’s April issue, Jordan Rost, vice president of consumer insights for New York-based Nielsen, pointed out that
88 percent of American households bought CSDs in 2016, so the category still is a competitive player in the beverage market. However, he noted consumer preferences have evolved.

“The biggest shift we’ve seen over the last decade is a redefinition of what it means to eat and drink healthfully,” Rost said. “At the same time that soda sales have steadily declined 1.1 percent over the past five years, we’ve seen a similar decline in sales of low-sugar, -salt, -calorie and -fat foods. Instead, more consumers are opting for naturally healthful products that tout organic and natural appeals and this is having a dramatic impact on soda growth dynamics.”

In its April report titled “Carbonated Soft Drinks – US,” Chicago-based Mintel explains that ongoing innovation is crucial for the established category. “In particular, suppliers will need to meet the demand for more-healthful options, varied flavors and added benefits,” the report states. “Effective engagement with iGeneration and millennials, which are increasingly ethnically diverse populations, will be central to future sales growth.”

Although the CSD market is facing its share of challenges, the category still had pockets of growth that helped stave off some of the attrition.

“Despite overall category declines, sales of ginger ale actually grew 9 percent in 2016,” Nielsen’s Rost said in Beverage Industry’s April issue. “More consumers focused on gut health are likely opting for the functional and digestive health benefits of ginger-based soda. While many consumers clearly still want to indulge in soft drinks, they’re turning to ginger ale as a way to still impart some health benefits.”

He added: “In spite of overall category decline, sales of natural soft drinks are growing at 16 percent annually. However, these natural varieties still account for less than 1 percent of total soft drink sales, so natural sodas are a long way away from reaching significant scale. On the other hand, sparkling waters are now purchased by more than one in three American households. I would expect soft drink manufacturers to look outside the CSD category and blur the lines between what we’ve traditionally known as soda.” BI


Carbonated beverage sales by variety

(Individual brands)

2016 DOLLAR SALES IN MILLIONS
Low-calorie cola $6,490.2
Regular cola $11,007.0
Lemonade/lime $3,536.1
Mixers $1,887.7
Orange $2,171.1
Other non-cola $14,360.9
Total $39,453.0

*Includes brands not listed.

Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending May 14.

KEYWORDS: Carbonated Soft Drinks (CSD) Sales craft soda ginger ale State of the Beverage Industry

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Wine & Spirits
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Alternative Drinks
    By: Lauren Sabetta
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Celsius Fizz Free

CELSIUS launches new Fizz-Free flavors

PepsiCo.jpg

PepsiCo advances AI agenda

Narragansett Beer 1975 cans

Narragansett Beer celebrates 50 years of ‘Jaws’

Top 100 Beverage Companies of 2024

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

July 15, 2025

Understanding the Best Material Type for Your Conveyor Systems

Leveraging decades of beverage production expertise, join Regal Rexnord’s Jeremy Fryman, Beverage Industry Marketing Manager and Tom Eure, Senior Account Executive as they dive into the landscape of plastic conveyor belt materials on the market and how to select the proper material type by application.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Beverage News

    Coca-Cola Bottling Co. Consolidated acquires territories, facilities

    See More
  • Mooala Single Serve Banana Milks

    2024 State of the Beverage Industry: Total milk looks to stabilize volume declines

    See More
  • bottled water

    2017 State of the Beverage Industry: Bottled water top beverage based on volume sales

    See More
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing