Market Research Report
Global Craft Soda Market - 2021-2028
|Global Craft Soda Market - 2021-2028|
Published: July 30, 2021
Content info: 180 Pages
Delivery time: 2 business days
Craft soda is mainly defined as being manufactured in smaller batches with more natural ingredients and less artificial additives as well as mainly sold locally. The nostalgic taste and appeal of craft soda are generated from the production method of old times when preservatives and artificial flavoring did not exist. The focus of craft soda production is on local small batch production, where the quality of the product came first and foremost. Many beverage companies are adhering to a small batch mentality, creating an exclusive recipe with intentional ingredients, flavor profiles, and packaging. Not only just the small, independent brands such as Virgil's or Bruce Cost Ginger Ale adding to the ever-increasing selections of craft soda in the marketplace, but international giants such as Pepsi have introduced their own lines of specialty craft sodas. Craft soda's many recipes contain various ingredients from the lemon peel or lime rind to other highly aromatic ingredients such as hops, cola nut or different herbal and floral elements. The global craft soda market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%
Growing trend of health awareness, demand for natural and fresh food & beverages instead of processed food products and consumer awareness regarding the negative effect of processed soda products with chemical additives is driving the growth of the craft soda market which is more inclined towards the use of natural ingredients. With conventional colas and other soft drinks under attack by nutritionists, craft soft drinks also called artisanal, specialty or small-batch soda are capturing market share by promoting premium and natural ingredients, original flavors, limited stocks, unusual packaging or beverage's local roots. The competition is such that soda giants such as Coca-Cola and Pepsico have created their own portfolios to compete right along with the smaller players. For instance, PepsiCo began selling bottles of Caleb's Kola in 2016, as well as Dewshine from Mtn. Dew, which is a clear version of its popular namesake. According to the industry experts, even if craft sodas represent a fairly small share of the global soft drinks market, mainly present in North America and Europe, but have grown at triple-digit growth for the past years. And it is expected that craft sodas will represent a solid ten to fifteen percent of the total soda market in the coming years.
But, the high cost of craft soda and limited production speed is hindering the market growth. Craft sodas can cost three times as much as a conventional soda and they are available in four-packs, rather than six- or 12-packs. For example, a four-pack of 12-ounce glass bottles of Dry Sparkling, a juniper-flavored soda, costs USD 5.99, yet contains less soda than a regular carbonated beverage.
In terms of product type, organic craft soda held the largest share in the global craft soda market in 2020 and is expected to grow at a CAGR of XX% during the forecast period. Organic craft soda is mainly brewed in small batches and contains natural ingredients, along with natural sweeteners such as pure cane sugar, stevia, and honey and mainly focused on quality rather than quantity. Increasing health concerns and desire for better quality beverages is driving the segment of organic craft soda.
On the basis of target consumers, the young adult have the largest share in the craft soda market in 2020 and is expected to grow at a CAGR of XX% during the forecast period. Clean labels and organic source of production is driving the young adult's demand as they prefer healthy beverages rather than alcohol and soft drinks. Shifting customer choices from sugared drinks to zero-calories or low-sugar drinks and perception of craft sofa as a substitute for alcoholic drinks is boosting the market growth.
North America is the largest market for craft soda, with nearly XX% of the global sales revenue in 2020, due to the presence of a number of small and large craft soda manufacturers, the trend of consumption of nutritional beverages and negative campaign as well as growing awareness of the adverse effect of alcohol and soft drinks. Some of the leading craft brands are publicly traded in USA are Seattle-based Jones Soda and Los Angeles-based Reed's to small-batch producers such as Brooklyn Soda of New York, Dry Sparkling of Seattle, Cool Mountain Beverages in suburban Chicago, Real Sugar Soda in the Dallas area and Cannonborough Beverage in Charleston, S.C. The increasing demand for these soda products also forced the industry giants such as Coca-Cola and Pepsi to have craft soda lines in their beverage portfolios. Europe is the second-largest market with a share of XX% in 2020 and is expected to grow rapidly due to growing demand for self-made craft soda in restaurants & bars, growing experimentation in making new flavored soda drinks and health awareness.
In craft soda market, product diversity is a necessary factor that is driving research & development activities. Demanding consumers long with changing customer behavior is creating the need for new product development and product augmentation. The manufacturers are competing among themselves in terms of product portfolio expansion and innovation. The leading market players of global craft soda market are Brix Soda Co., Jones Soda Co., Reed's Inc., Boylan Bottling Co., Appalachian Brewing Co., SIPP eco beverage co., Crooked Beverage Co., Bruce Cost Ginger Ale., The Original Craft Soda Company, Boylan Bottling Co. and others
The Covid-19 pandemic and the resultant long-drawn-out global lockdown severely impacted the restaurant and bars market globally which has affected the craft soda market up to some extent, but overall craft soda market was positively affected. Throughout the COVID-19 pandemic, people have considerably changed drinking habits, changing places of consumption from bars and restaurants to home. Out of growing importance on health and immunity, many consumers have preferred craft soda with nutritional value compared to alcoholic beverages and soft drinks. The customers who missed the interesting and unpredictable varieties of food and drink found in bars and restaurants have become familiar with receiving regular selection boxes full of exotic snacks and exotic beverages during the lockdown. For instance, According to industry experts, this trend may have been the reason for Cracker Drinks Co's CRAFTED mango and passion fruit juice drink was chosen as a craft mixer for the Craft Gin Club's July box. COVID-19 pandemic has made consumers think far more carefully about their health. That's why it is expected that, beyond the corona virus-fuelled surge in demand for vitamin-rich juices and craft sodas, the continuing consumer demand for healthier, less-artificial beverages will grow further.