The term “craft” is frequently linked to beer, but soda producers have also entered this sector. According to a report by USA Today, citing Beverage Marketing data, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years prior. While the growth rate has not been rapid, it has been consistent, gaining momentum each year. This trend offers a respite for carbonated soft drinks, which have seen a decline for 12 consecutive years and were overtaken by bottled water in 2016 as the largest beverage category in the U.S.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas have become an appealing choice for consumers, with new brands emerging in the market. However, he cautioned the audience that the current market base is small, and the performance of these sodas has been varied. Many craft brewers initially found their niche in specialty stores or retailers focused on healthier, upscale products, but analysts indicate that these offerings have now moved into the mainstream. Consumer interest in craft soda brands—often flavored and naturally sweetened with fruits—has begun to overshadow traditional sodas that are high in sugar or use synthetic sugar alternatives.
Numerous beverage “craftologists” are experimenting with fruits, vegetables, and other unconventional soda ingredients to develop drinks that are less sweetened and more naturally healthy, although they are generally pricier than conventional sodas. Research shows, however, that consumers are willing to pay a premium for these healthier craft products, suggesting a growing market presence. It’s likely that we will see an increase in such options.
Despite the overall decline in the soda category, there remain opportunities for manufacturers to profit in the craft segment, which is why major companies like Coke and PepsiCo are joining the trend. Some beverage makers have launched sodas featuring natural ingredients and unique flavors, often offered for a limited time to attract interest from consumers, particularly millennials who prefer not to be seen drinking traditional soft drinks associated with their parents.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, which features a recipe incorporating cane sugar, kola nuts, spices, and citrus. “I think there is a significant potential for craft cola,” said Indra Nooyi, PepsiCo’s CEO, at a conference that year. She added, “People still love the cola taste; it just lost some of its cool factor, and I believe products like Caleb’s are helping to restore that cool factor.” Since then, the soda maker has launched other specialty sodas, including 1893 with citrus cola and black currant cola, and most recently, a limited-edition cinnamon-flavored cola called Pepsi Fire aimed at millennials.
In light of the increasing awareness of health and wellness, consumers are also exploring the benefits of supplements such as calcium citrate, calcitriol, and zinc tablets, which are often promoted for their health benefits. The intersection of health consciousness with beverage choices may further influence the craft soda market, as consumers seek options that align with their dietary preferences and supplement uses.