Due to shifting customer tastes and health-conscious attitudes, soft drinks has grown significantly in recent years.
AG Barr, the maker of Irn-Bru, for example, recorded a 5% growth in revenue to £420 million this year, up from £400 million the year before. Important brands like Boost, Rubicon, and Irn-Bru drove this expansion.
The surge in demand for non-alcoholic beverages during periods like Dry January has also led to innovation within the industry. Companies are expanding their portfolios to include products like sparkling teas, which have gained popularity as healthy, non-alcoholic alternatives during festive seasons.
The market for non-alcoholic and low-alcohol beverages is projected to have more than doubled in size in 2024 compared to 2023. This growth has been supported by changes in taxes and adjustments to beer alcohol content, providing a temporary boost. Forecasts suggest that total sales in this market will grow at a compound annual rate of 7% between 2024 and 2028. In terms of market size, the UK low- and no-alcohol drinks market was estimated at £380 million in 2024.
These trends indicate a significant shift in consumer behaviour, with a growing number of individuals opting for non-alcoholic alternatives. Factors contributing to this shift include health consciousness, improved quality and variety of non-alcoholic beverages, and changing social norms around alcohol consumption.
As consumers continue to prioritize health and wellness, and with the rising participation in alcohol-free months like Dry January, the soft drinks industry is well-positioned for sustained growth in the coming years.
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