The soft drink market - Germany

1.1 Introduction

The soft drinks market encompasses a wide range of products:

• Soft drinks
• energy drinks
• protein drinks
• iced teas

Worldwide, the soft drinks market has been growing strongly for several decades (around 3% a year), driven by the global rise in purchasing power and the food industry. On the other hand, this market is evolving, and for several years now consumers have been gradually reducing their consumption of sweetened beverages in favor of low-calorie recipes.

In Germany, the soft drinks market is highly developed. Demand for healthier beverages is rising sharply. German consumers are increasingly looking for natural, sugar-free recipes. German consumers are also paying attention to artificial colors and flavors. As a result, the importance of the best-known companies is declining, in favor of smaller, local firms.

The main companies in this market in Germany, however, remain giants such as Coca-Cola or Red-Bull. However, they are losing out to more natural beverage brands (such as soy), which are gaining in popularity with German consumers.

Finally, the soft drinks market in Germany is undergoing a logical evolution. German consumers are paying more attention to the health impact of these products, which explains why international brands are losing market share. To meet these new demands, companies are innovating by offering sugar-free recipes in a variety of flavors. Organic and ethically produced beverages are also gaining in popularity with German consumers. These products are often expensive. To win significant market share in Germany, companies wishing to meet this new demand will need to find a way to reduce their production costs.