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Soft drinks have experienced significant growth and are now valued at £2.8bn in the convenience channel, making it the highest-growing product category in 2022, according to Britvic’s Soft Drinks Review 2023. The report also reveals the potential for further growth, with each of the nearly 48,000 convenience stores in the UK expected to see an £8,400 uplift. Ambient juice, in particular, has seen sustained growth and is now worth £907m, growing 2.4 times faster than chilled juice. Bulk-buying has become more common due to cost-of-living pressures, and big brands like Tropicana are entering the ambient category to meet the increased demand for quality, branded offerings. With rising living costs, consumers are becoming more mindful of their spending, leading to smaller transactions and indulging in smaller treats, which is known as the “lipstick effect.” Retailers should offer a range of options, including price-marked packs, to cater to individual budget management needs. The trend for healthier products has also increased, with reduced-sugar options gaining importance due to high fat, salt, and sugar (HFSS) regulations. Brands like Tango and 7UP have launched sugar-free versions to cater to consumer demand for tasty, healthier alternatives. The trend for wellness drinks has created opportunities for brands like Purdey’s, which offers low-calorie options with added vitamins and other beneficial ingredients. Functional benefits are another area of focus, with products like Robinsons Benefit Drops providing additional vitamins on the go. With hybrid working becoming the new normal, consumers are no longer limited to traditional mealtimes and look for drinks at any time of the day. Flavoured milk, including coffee and chocolate variants, has seen significant growth in convenience, with sales contributing 44% of the total category sales. Price-marked packs help reassure customers about price stability, and brands like Mars Chocolate Drinks & Treats offer HFSS-compliant, no-added-sugar options in eye-catching packaging that can be enjoyed on the go. Chilled juice is well-positioned to withstand cost-of-living pressures, especially among more affluent households, and the segment is gaining relevance beyond breakfast. The summer period is an opportunity for brands like Naked to promote their range, including new super-smoothie variants. Sports and energy drinks contribute significantly to the soft drinks category, with energy stimulation drinks growing by 15% year on year and accounting for 26% of all soft drink sales by value. Boost is a top brand in three functional drink categories and has seen rapid growth in the sports and RTD iced coffee segments. Lucozade Sport has also contributed to the growth of the sports drinks category, benefiting from an increase in sales during the summer months. Convenience stores saw a 5.4% overall growth during the heatwave of 2022, with spikes in sports drinks sales correlating with temperature increases and major events like the football World Cup.
