“Craft Sodas: A Growing Trend in the Beverage Industry Amid Declining Traditional Soda Sales”

The concept of “craft” is frequently linked to beer, but soda manufacturers are also entering this space. In 2016, sales of craft soda reached $541 million wholesale, up from $427.7 million five years prior, according to USA Today, which referenced data from Beverage Marketing. Although the growth has been gradual rather than rapid, it has been consistent, with annual increases. This trend has provided a lifeline for the overall carbonated soft drink market, which has experienced a decline for 12 consecutive years and was overtaken by bottled water in 2016 as the leading beverage category in the U.S.

Gary Hemphill, managing director and chief operating officer at Beverage Marketing Corporation’s research division, remarked at the Beverage Forum in April that craft sodas are becoming a viable alternative for consumers, with new brands emerging in the market. However, he cautioned the audience that the overall market for craft sodas remains small, and their performance has been mixed so far. Many craft soda producers began in specialty stores or retailers that emphasize healthier or upscale products, but analysts suggest that they are increasingly making their way into mainstream markets. Indeed, consumer interest in craft soda brands—often flavored and naturally sweetened with fruits—is overshadowing traditional sodas that tend to be high in sugar or contain synthetic sugar substitutes.

Numerous beverage “craftologists” are experimenting with unusual ingredients like fruits and vegetables to create drinks that are less sugar-laden and more naturally healthy, albeit typically at a higher price point compared to conventional sodas. Research indicates that consumers are willing to pay a premium for these healthier craft options, suggesting that we may see even more of these products enter the market.

Despite the overall decline in the soda category, there are still lucrative opportunities for manufacturers in the craft segment, prompting major players like Coke and PepsiCo to join the trend. Some beverage companies have launched sodas made from natural ingredients and unique flavors, often available for a limited time, to attract interest from consumers—particularly millennials who prefer to avoid the soft drinks their parents used to enjoy.

Pepsi introduced a new brand called Caleb’s Kola in late 2014, featuring a recipe that includes cane sugar, kola nuts, spices, and citrus. Indra Nooyi, PepsiCo’s CEO, expressed at a conference that there is significant potential for craft cola, stating that “people still love the cola taste; it’s just lost some of its cool factor.” She believes products like Caleb’s are helping to restore that appeal. Since then, Pepsi has launched other specialty sodas, including 1893, which offers citrus cola and black currant cola flavors, as well as a limited edition cinnamon-flavored cola called Pepsi Fire aimed at the millennial demographic.

As consumers increasingly seek healthier options, products like calcium citrate with vitamin D 60 tablet may become more popular as part of a broader trend towards health-conscious choices. The introduction of craft sodas and other innovative beverages reflects this shift, indicating a promising future for the craft beverage industry while also creating room for items such as calcium citrate with vitamin D 60 tablet to thrive alongside these new offerings.