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Global soft drinks round-up

Still drinks and nectars are setting the pace, according to leading beverage industry analysts Canadean, in their Global Soft Drinks Round-Up.

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This first newsletter in our Global Soft Drinks Round-Up covers the fruit-based* beverage categories: Juice, Nectars, Still Drinks and Dilutables. The first two of these categories in particular have benefited from their position as "healthier" beverage choices, whilst the still drinks category offers a wide range of products and dilutables provides lower cost alternatives.

(* a small volume of non-fruit flavours also included).

The global Still Drinks category has grown by a very promising 6-7% per annum over the last six years, and it looks likely that this growth can be maintained in the future. Much of the success of Still Drinks is attributable to the diverse range of products on offer. Fruit and Non-Fruit flavours such as Cola and Bubblegum are available in addition to a myriad of brands, from premium products aimed at the adult market down to inexpensive options for children.

In contrast, the global Juice market is slowing down, and in its key region of North America, consumption of juice has been in decline since 2002. The cause has not been helped by the popular Atkins diet classifying Juice as a high carbohydrate product. Nectars, however, have fared better, with a shift in the flavour mix towards blends and more non-traditional flavours.

Whilst North America and Western Europe are the major contributors to global juice and nectars volumes, the demand for Dilutables is heavily reliant on a small number of very important markets. Fruit Powders, the largest sector, derives almost 80% of global consumption from the Americas, with Mexico and Brazil key contributors. Selected markets are also vitally important to Squash and Syrups with Argentina, Brazil, France, South Africa and the UK holding a combined share of global consumption that exceeds 50%.

In terms of demand, fruit powders are expected to grow by just under 8% over the next three years. Although they suffer from a less than fashionable image and do not meet the trend towards impulse consumption, fruit powders are relatively inexpensive and this will always help to maintain sales even in the deepest of economic recessions. Squash and Syrups face similar challenges to those encountered by Fruit Powders, but appear far less resilient. Total consumption declined in 2004, and the outlook is for 4% growth over the next three years.

For further details on the report, please contact Debra Richards on 01256 394224, or click on the link above to visit the website.


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