Saturday 12 October 2013

A short presentation of the Soda Market

Global soda drinks consumption

Let’s start by taking a look at the global soda drinks consumption. In what countries is the soda drink consumption the highest ?

Americans are the winners of the competition with an annual consumption of 165 litres per person. Mexico is ranked 2nd with 146 litres, and Argentina is ranked third. On the bottom of the list are China and India with the score 9 and 3 litres, respectively.

There is no surprise that the highest volume of carbonated soft drinks belongs to cola drinks and account for 57%. And when it comes to coke, the Mexicans beat the Americans. The average citizen of Mexico drank 108 litres of coke in 2012. It is by 26 litres more than in the US. The lowest consumption is in India and Indonesia: the rates are barely over 1 litre per year per person.   


Top 10 Soft Drinks


Carbonated Soft Drinks - market share in 2012 [1]


According to the research conducted by Beverage Digest the top 3 Carbonated Soft Drink brands are: Coke, Diet Coke and Pepsi- Cola.  As you can notice all are cola drinks. That is why we decided to focus on top cola brands, as they seem to be the most important among the CSD brands. Through this blog were are going to compare their marketing strategies. Mainly we would like to flash on the activities of two legendary rivals: The Coca Cola Company and PepsiCo.


The carbonated soft drinks market is interesting to study because it includes both giant companies but also lesser-known and regional brands (i.e Breizh Cola in France). The diversity of the offer is results in innovative marketing strategies; companies need to be continually more inventive to target consumers and to secure their loyalty.
                                                      Auteur=Brasserie Lancelot-Phare Ouest                                           

This market is also facing an important challenge: more and more people are becoming health conscious and public policies are fighting the causes of obesity such as sugary beverages [2]. The “Soda Tax” is a hot topic and not only it could decrease the producers margin but in terms of marketing it gives a bad image of soda drinks because there are associated with obesity and health problems. Soft drinks brands have to respond to those critics in a clever and informative way, and focusing on health is now a new brand strategy.