CarlsbergBritvic-SDR-Foodservice-v15 - Flipbook - Page 18
Welcome
Category overview
Sustainability
The sector’s strong performance should also inspire some
optimism as we head further into the uncertainty of 2025.
Notwithstanding the impact of potential international
trade tariffs,11 businesses are facing ongoing labour and
raw material shortages12 – this year’s Brazilian orange
harvest is expected to hit a 37-year low13 – as well as the
cost burden of new regulations such as Extended Producer
Responsibility (EPR). By focusing on what we do best, we
can continue to grow.
Taking a longer term view of recent years gives further
cause for cheer. In 2023, the overall soft drinks sector saw
value sales surge by 6.5%14 on volumes that fell by 1.5%14
as producers, retailers and out-of-home operators were
forced to pass on the soaring costs they were experiencing.
As inflation eased in 2024, we’ve been able to drive volume
growth to deliver strong top line growth.
Not all change is unwelcome, of course. As we explored in
the previous chapter, the implementation of the nationwide
Deposit Return Scheme (DRS) in October 202715 will
increase recycling rates, reduce littering and ensure greater
availability of quality recycled PET plastic – all positives
for planet and people.
QUESTIONS
OF CONFIDENCE
Consumer confidence levels have been on a rollercoaster
in recent years as global shocks and events closer to
home have made headlines and changed lives.16 All this
is affecting the beverages people are choosing to drink,
with health motivations tending to rise as confidence
increases and demand for indulgent treats rising as it
falls.17 Therefore it’s important drinks ranges meet a
variety of consumer needs.
IGD SHOPPER
CONFIDENCE INDEX16
Old weighting
Ongoing fears of higher
living costs in future
New weighting
Retail demand low, poor
Christmas trading
5
Food retail volumes
flat-lining
0
-2
-5
-4
-6
-10
Away-from-home
volumes also weak
-5
-7
-15
But not all shoppers are
in the same place
-14
-17
-20
Businesses need to be
smart and agile
-25
There are still growth
opportunities
Sep -17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
-30
11 https://www.theguardian.com/world/2025/apr/10/us-china-trade-war-intensifies-as-beijings-tariffs-come-into-effect-after-trump-pause
12 IGD Research Economic Viewpoint: Can UK food prosper in 2025
13 https://www.producereport.com/article/severe-drought-disease-drive-brazils-orange-harvest-37-year-low#:~:text=Forecasts%20from%20Brazil’s%20citrus%20
industry,lowest%20output%20since%201988%2F89.
14 NielsenIQ - grocery, impulse & convenience and discounters 52 w/e 30.12.23 - combined with CGA by NielsenIQ - out-of-home 52 w/e 31.12.23
15 https://www.thegrocer.co.uk/news/supermarket-bosses-demand-2027-deposit-return-scheme-start-date-is-scrapped/699849.article
16 IGD ShopperVista – Minimum 1,000 nationall-representative British Shoppers each month 2024
17 Lumina Intelligence Eating & Drinking Out Panel – data collected 52 w/e 10.07.22 and 52 w/e 07.07.24
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CATEGORY OVERVIEW
