Soft drinks sales have fallen in the UK every year since 2012.
The decline is mainly due to increasingly health concerns around the amount of sugar in them.
It was found that 64 percent of people in the UK were were concerned about soft drink sugar levels and have made active attempts to reduce how much they drink, accord to a recent GlobalData survey.[verdict_chart id=”24779″]
What are governments and companies doing?
Health concerns have led to the announcement of a so-called sugar tax by the British government that specifically targets soft drinks.
Taking effect in April 2018, the tax is designed to placate the health-conscious worried about overly sugary drinks.
This new tax will add to the declining sales of soft drinks, with the market set to shrink by 0.5 percent from 5bn litres in 2016 to less than 4.9bn in 2021.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Bottled water is expected to suck up some of these sales, however as people choose drinks they think are better for them.
The premium, healthy, and natural positioning of many water brands means bottled water sales are forecast to rise in the UK from 2.3bn litres in 2016 to over 3.2bn litres in 2021, a growth rate of 6.7 percent.
Soft drink companies are well aware of this shift and are heavily investing in water.