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Increasing health awareness among consumers has adversely affected the carbonated drinks market. Companies in the industry are working towards the development of alternative product offerings, specifically designed to address the health conscious and active lifestyle masses. Emerging new offerings such as ginger-flavored sparkling soda have seen positive feedback and upward market movement. Some companies in the Sparkling Soda Market have refocused their efforts towards expansion in developing regions. Some players have opted for rebranding their products to suit customer tastes. Diet sparkling soda is one of the offerings that is likely to garner traction during the forecast period.
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Upstream Dynamics to Create Major Changes for Sparkling Soda
The upstream costs of the sparkling soda market have seen an upward trend, with the increasing cost of raw materials and resources. Major companies in the sparkling soda market, have experienced minor changes in upstream costs due to large investments in stable infrastructure and lower per unit costs. The change in consumer orientation has majorly affected new players in the sparkling soda landscape. Relabeling of sparkling soda under different product names as seltzer has been effective in changing some perspectives among consumers. Even though seltzer is broadcasted under natural water and low additives, it is considered under sparkling soda due to the artificial carbonation of the water. Online sales of sparkling soda have risen significantly with the introduction of better weekly subscription plans from vendors such as Amazon. These subscription plans have created decent demand for manufacturers.
Segmentation of the Sparkling Soda
Sparkling soda can be differentiated by type, flavor, packaging, and sales channel. The type of the sparking soda is based on the standard and diet soda. The flavor segment of sparkling soda can be divided into flavored and unflavored. The packaging for sparkling soda is divided into cans and bottles. The bottles segment of sparkling soda is further segmented into plastic and glass. The sales channels for sparkling soda are modem trade, convenience and grocery stores, Horeca, online retail, and other sales channels. The global market for sparkling soda can be segmented into seven regions: North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
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Obsession of Healthy Lifestyle
A major consumer base for sparkling soda and related byproducts was America. But with the growing obsession regarding health, major players have been struggling to maintain their consumer base. The main strategy incorporated is constant rebranding to health-related carbonated waters. The rise of alternative health waters is likely to be one of the hurdles for the sparkling soda market. New players in the sparkling soda market have started with investing in regions with low health awareness. Developing countries are likely to present some new opportunities for new entrants to establish an economic foothold. Sparkling soda consumption in Europe and neighboring regions has been steady.
Inability of Increasing Prices for Manufacturers
Companies are facing a dire situation due to inability to increase the prices of sparkling soda. Profit margins of companies are declining due to increasing operating & input costs, and the lowering demand for these products. Increasing per capita spending costs are likely to help sparkling soda players create stable margins. Albeit the depreciations experienced by the sparkling soda industry, major players have been able to maintain their own foothold due to high consumer brand loyalty. Market entry barriers have created the need for innovation. Current major players in the sparkling soda market are The Coca-Cola Company, PepsiCo Inc., Dr Pepper Snapple Group Inc., Whole Foods, Waterloo, A.J. Canfield Company, and Ice Mountain, among others.
The research report presents a comprehensive assessment of the sparkling soda market, and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to the segments in the sparkling soda market, such as geography, type, flavor, packaging, and sales channel.
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