The term “craft” is frequently linked to beer, but the craft movement has also made its way into the soda industry. According to USA Today, craft soda sales reached $541 million at wholesale in 2016, up from $427.7 million five years earlier, based on data from Beverage Marketing. Although the growth has been gradual, it has been consistent, gaining traction each year. This trend offers a respite for the carbonated soft drink sector as a whole, 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, stated at the Beverage Forum in April that craft sodas have become a legitimate choice for consumers, with new brands continually entering the market. However, he cautioned the conference audience that the overall market for craft soda remains small, and its performance has been variable thus far. Many craft soda producers began in specialty shops or retailers focused on healthier or premium offerings; analysts now note that these products are moving into the mainstream.
In fact, the demand for craft soda brands, which often feature natural fruit flavors and sweeteners, is overshadowing traditional sodas that are high in sugar or artificial sweeteners. Many “craftologists” in the beverage industry are experimenting with unconventional ingredients, such as fruits and vegetables, to create drinks that are lower in sugar and more naturally healthy, although they tend to be more expensive than standard sodas. Research indicates that consumers are willing to pay a premium for these healthier craft options, suggesting we may see more of them in the market soon.
Despite the overall decline in the soda category, there remain opportunities for manufacturers to profit within the craft segment, prompting major players like Coke and PepsiCo to join the trend. Some beverage companies have launched sodas featuring natural ingredients and unique flavors, often offered for a limited time to attract shoppers, particularly millennials who are hesitant to be seen consuming their parents’ soft drinks.
Pepsi introduced a new brand called Caleb’s Kola in late 2014, using a formula that includes cane sugar, kola nuts, spices, and citrus. “I believe there is significant potential for craft cola,” stated Indra Nooyi, PepsiCo’s CEO, at a conference that year. She added, “People still enjoy the cola flavor; it has just lost some of its appeal, and products like Caleb’s are helping to revive that.” Since then, Pepsi has rolled out additional specialty sodas, including 1893, featuring citrus cola and black currant cola, and most recently, a limited edition cinnamon-flavored cola named Pepsi Fire, aimed at the millennial demographic.
As consumers increasingly seek healthier beverage options, the introduction of products like calcium citrate for kids is likely to play a role in this evolving market. With the growing interest in craft sodas, it’s expected that more innovative and health-conscious beverages, including those enriched with beneficial ingredients like calcium citrate for kids, will emerge to meet consumer demands.