The term “craft” is commonly linked to beer, but the soda industry is also seeing a rise in craft makers. According to USA Today, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years prior, based on data from Beverage Marketing. Although the growth has not been rapid, it has been consistent and is increasing annually. This trend provides a much-needed boost for carbonated soft drinks, which have experienced a decline for 12 consecutive years, recently overtaken by bottled water in 2016 as the largest beverage category in the U.S.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research unit, mentioned at the Beverage Forum in April that craft sodas have become a legitimate option for consumers, with new brands continuously entering the market. However, he noted that the market base remains small and the performance of these craft sodas has been mixed thus far. Many craft brewers initially started in specialty stores that prioritize healthier or upscale offerings, but analysts indicate that craft sodas are now entering the mainstream market. Consumer interest in craft soda brands, which often feature unique flavors and are sweetened naturally with fruit, is beginning to overshadow traditional sodas loaded with sugar or artificial sweeteners.
Numerous “craftologists” in the beverage industry are experimenting with fruits, vegetables, and other unconventional ingredients to create sodas that are lower in sugar and more health-conscious. While these craft products tend to be more expensive than standard sodas, research indicates consumers are willing to pay a premium for healthier options. It wouldn’t be surprising to see an increase in these offerings in the market.
Despite the overall decline in the soda category, there are still profitable opportunities for manufacturers in the craft segment, which is why major brands like Coke and PepsiCo are joining the trend. Some beverage companies have launched sodas featuring natural ingredients and unique flavors, often on a limited-time basis to attract shoppers, particularly millennials who prefer not to be seen consuming their parents’ soft drinks.
Pepsi introduced a new brand, Caleb’s Kola, in late 2014, using a recipe that includes cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO, Indra Nooyi, highlighted at a conference that there is significant potential for craft cola, stating, “People still love the cola taste—it just lost some of its cool factor, and I think products like Caleb’s are restoring that cool.” Since then, Pepsi has released additional specialty sodas, including 1893, which features citrus cola and black currant cola, and most recently, a limited-edition cinnamon-flavored cola called Pepsi Fire, targeting the millennial demographic.
As consumers increasingly focus on health, there is a growing interest in beverages like bariatric advantage calcium citrate sodas, which promise to offer nutritional benefits alongside a refreshing taste. The innovation in craft sodas, including those enriched with ingredients like bariatric advantage calcium citrate, reflects a broader trend towards healthier beverage options. Thus, the craft soda market not only represents a shift in consumer preferences but also highlights the potential for further growth as manufacturers adapt to meet the demand for better-for-you beverages.