With carbonated soft drinks facing mounting negative health perceptions from Americans, craft and natural options are showing promise among the most active soft drink consumers. While natural and craft comprise small, relatively new segments of the carbonated soft drink category, Mintel’s new “Carbonated Soft Drinks: Spotlight on Natural/Craft U.S. 2015” report reveals that nearly three in five (57%) U.S. adults agree that carbonated soft drinks made with natural ingredients are healthier than those made with artificial ingredients. Additionally, 34% are interested in seeing carbonated soft drinks with added benefits.
Despite being in its early stages, the craft and natural segments are poised to grow. While Mintel’s research shows that 66% of U.S. adults do not currently drink craft sodas, 44% of non-craft drinkers are interested in trying craft products. A similar trend is seen with natural soft drinks, of which 40% of consumers currently drink, with usage highest among parents (60%) and Millennials (58%).
Concerns surrounding artificial sweeteners, such as aspartame, strengthen natural and naturally sweetened carbonated soft drinks’ positioning as a better-for-you alternative to regular and diet sodas. These challenges have contributed to years of sales declines in the carbonated soft drink industry, with sales dropping 3.6% between 2011 and 2014. Of Americans who currently consume or are interested in craft soda, 54% indicate that natural or real ingredients are important to them, including 50% of parents, highlighting natural soda’s potential in the market. Another 34% of U.S. adults are interested in seeing carbonated soft drinks with added benefits, such as protein, vitamins, or minerals.
“The definition of health is changing from desiring low/no-fat and -sugar, to ‘real’ or unadulterated ingredients. Natural and craft brands tend to feature ingredients in more natural forms, to position products as a better-for-you option,” said Elizabeth Sisel, beverage analyst at Mintel. “Positive health perceptions are on the side of craft and natural soda, but manufacturers need to justify high prices and build awareness to grow sales.”