The term “craft” is frequently linked to beer, but the craft movement has also made its way into the soda industry. In 2016, craft soda sales reached $541 million wholesale, up from $427.7 million five years earlier, according to a report by USA Today, which referenced data from Beverage Marketing. Although the growth of craft sodas has not been rapid, it has been consistent and continues to gain traction each year. This trend offers a reprieve for the carbonated soft drink market, which has seen a decline for 12 consecutive years and was overtaken by bottled water in 2016, becoming the largest beverage category in the U.S.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas have emerged as a viable alternative for consumers, with new brands entering the market. However, he cautioned that the overall base remains small and the performance of these sodas has been varied. Many craft brewers initially found their niche in specialty retailers focusing on healthier or more upscale products, but analysts indicate that craft sodas are now entering the mainstream. In fact, the demand for craft soda brands—which are often fruit-flavored and naturally sweetened—has begun to overshadow traditional sodas that are high in sugar or contain synthetic sweeteners.
Numerous beverage “craftologists” are experimenting with unconventional ingredients like fruits and vegetables to create sodas that are less reliant on sugar and more aligned with healthy living, albeit at a higher price point than typical sodas. Research shows that consumers are willing to pay a premium for these healthier craft products, similar to how they seek out items like Citracal Z tablets for their health benefits. It’s likely that more craft sodas will emerge in the market.
Despite the overall decline in the soda category, opportunities still exist for manufacturers to profit in the craft space, prompting major companies like Coca-Cola and PepsiCo to join the trend. Some beverage makers have launched sodas featuring natural ingredients and unique flavors, often available for a limited time to pique the interest of consumers, especially millennials who prefer to avoid traditional soft drinks associated with their parents.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, using a recipe that includes cane sugar, kola nuts, spices, and citrus. “I believe there is immense potential for craft cola,” said Indra Nooyi, PepsiCo’s CEO, at a conference that year. She added that “people still appreciate the cola flavor—it just needs a revival in its cool factor, and products like Caleb’s are helping to restore that.” Since then, Pepsi has rolled out additional specialty sodas, including 1893 with citrus cola and black currant cola, as well as a limited edition cinnamon-flavored soda called Pepsi Fire aimed at millennials. As the craft soda market continues to grow, it’s clear that there’s a space for innovative products that resonate with health-conscious consumers, much like Citracal Z tablets do in the supplement market.