The functional wellness drinks category offers business opportunities worth £27 million (€31 million), or an additional £812 per store, to the convenience channel, according to Britvic's latest Soft Drinks Review.
Almost half of respondents (47%) to a survey carried out by the drinks firm, which also formed part of the review, said they will eat more foods to support their immune systems in the future.
In addition, 37% of people are now positively interested in premium soft drinks with added benefits, the study noted.
Categories traditionally associated with 'food to go' were heavily impacted due to changing shopper behaviour during the pandemic.
However, as restrictions continue to ease, a focus on wellness is set to help retailers regain sales in the soft drinks segment.
The overall soft drinks category experienced value and volume declines in the convenience channel last year, but take home, larger format soft drinks were one of the channel's outstanding performers.
Health And Wellness
While healthier alternatives such as low- and no-sugar options have been gaining ground for some time, the pandemic has shone a light on health and wellness for many, with 64% of consumers prioritising health and seeking to integrate wellbeing into nearly all aspects of their lives, including food and drink, the study noted.
Phil Sanders, out of home commercial director at Britvic, commented, "After the challenges retailers have faced in the past year, we're dedicated to supporting our customers as they navigate changing shopper needs, and that includes looking ahead and making them aware of growing soft drink trends.
"The functional wellness market is currently worth an impressive £240.1 million, and what's more, shoppers are willing to pay more than double the average price for premium soft drinks with added benefits than a soft drink13 or 34% more than the average single-serve, which is already priced at a premium."
The Britvic report has also highlighted that convenience retailers and their stores served as lifelines for many during the pandemic.
Market Trends
The study also noted that three soft drink needs emerged last year, with 'energy boost', 'in-home refreshment and socialising', and 'a new stance of hydration' impacting the performance of the best products in each category.
The top five soft drink segments were cola, stimulants, fruit carbs, plain water and juice drinks, with the first three adding £80.3 million and stimulants the star contributor by far.
Elsewhere, carbonates and mixers outperformed soft drinks, playing a pivotal role in refreshment and socialising at home.
Cola was the largest contributor to carbonates' growth in the convenience category, adding £20.5 million to channel sales.
One of the top sugar-free cola drinks in convenience, Pepsi Max became the third biggest sub-brand in the convenience market in 2020.
Traditional mixers emerged as the fastest-growing category in the channel (+47.8%), followed by lemonade (+26%).
Squash was the top performer in the in-home hydration category, with Robinsons as 2020's leading squash brand and biggest growth contributor, through its single concentrate and double concentrate ranges and Fruit Creations.
Plain water and flavoured hydration – such as juice drinks, ice tea and water plus – had a more challenging 2020 due to the pandemic.
The category is traditionally strong in on-the-go formats and transient channels and locations like high street and travel. [Pic: ©Chris Dorney/123RF.COM]
