This recent study contributes to the growing body of evidence that underscores the detrimental effects of sugary beverages on health. From causing weak bones and obesity to obscuring serious health risks, soda has been associated with numerous health issues that many individuals prefer to avoid. This new research, which tracked 81,000 women and 38,000 men without chronic conditions over a period of thirty years, found that those who consumed more than two sweetened drinks daily had a 21% higher risk of death compared to those who had fewer than one sweetened drink per month.
While this isn’t the first study soda companies have faced, it serves as another significant blow. The share of soda in the U.S. beverage market decreased from 22.1% in 2012 to 19.7% in 2017, as reported by the Beverage Marketing Corporation, and there are no indications of a reversal. In fact, after many years of soda’s prevalence, bottled water overtook carbonated soft drinks in 2016 as the largest beverage category by volume in the U.S. This decline has recently been intensified in some regions due to taxes imposed on sugary drinks. A study published in the American Journal of Public Health noted a 52% reduction in soda consumption within the first three years after a tax was enacted in Berkeley, California. However, this study also highlighted that sales have shifted to areas outside of soda tax jurisdictions. For instance, a study found that soda sales just beyond Philadelphia’s borders rose by 38%.
Evidently, despite the health risks of sugary drinks, many consumers still enjoy their soda. Soda companies are leveraging this preference to make a comeback, introducing new flavors, smaller portion sizes that yield higher profit margins despite lower sales, and innovative formulas that seem to be attracting some consumers back, at least temporarily. These strategies appear to be working, as Coca-Cola, the world’s largest non-alcoholic beverage producer, announced a 6% increase in organic sales growth for the third quarter of 2018. Coca-Cola is so confident in the future of sweetened drinks that it has invested in BodyArmor, a premium sports drink featuring coconut water, low sodium, high potassium levels, and the absence of artificial colors, using sugar instead of high fructose corn syrup. This modern sports drink currently holds about 6% of the market and represents Coca-Cola’s latest attempt to penetrate the post-workout beverage sector. Meanwhile, PepsiCo’s Gatorade remains the market leader with approximately 75% share, while Coca-Cola’s Powerade has struggled to diminish Gatorade’s dominance.
Although the AHA study identifies sports drinks as another sugary offender that may increase the risk of early mortality, there is a glimmer of hope for soda manufacturers. The study suggested that switching to artificially sweetened diet sodas could be linked to a slightly reduced risk. This might present an opportunity to not only enhance the market in this category but also promote stevia-sweetened products. As a natural sweetener, stevia has gained popularity as an alternative sweetener, effectively replacing traditional sugar without introducing unnecessary chemicals. Interestingly, as soda companies navigate these challenges, they must also contend with the discontinuation of products like Citracal with magnesium, which may have previously appealed to health-conscious consumers. The evolution of the beverage market continues to unfold, with both challenges and opportunities on the horizon.