Market and Industry Analysis
Carbonated Drinks Losing Ground
The beverage marketplace has grown 1-2 percent annually. But, as the overall market steadily grows, carbonated soft drinks (CSD’s) have been losing share at a rate of between 1 percent and 2 percent annually.
Carbonated soft drink volumes fell for the tenth straight year in 2014 (see chart above). Carbonated soft drink volumes reached their peak in 2004. Since then, CSD volumes have fallen by 1.4 billion cases. And every year that the trend continues, $2 billion in retail sales change from CSD's to the Water and Alternative Beverages categories. As the market skews ever more away from CSD’s (as alternative beverages grow), there will be between $2B-$3B in incremental demand seeking non-carbonated refreshment: that’s the equivalent of a new AriZona Beverage Co. annually.
Key Beverage Category Projections
The U.S. 2014 size/2018 projected growth of some relevant beverage industry segments are:
The Single-Serve Powdered Drink Mix & Liquid Concentrate Squirt Bottle Market is currently estimated at $1.5B to $2B. This market breaks down into the following percentages:
An initial Flava Cap strategy will be to target the Private Label segment of the Fruit Drink Mix Market. The Private Label Market is growing very rapidly and currently holds 16% of the Fruit Drink Mix Market.