The term “craft” is frequently linked to beer, but soda producers have also ventured into this arena. According to a report from USA Today, citing data from Beverage Marketing, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years earlier. Although the growth has not been rapid, it has been consistent and is increasing each year. This trend has provided a boost for carbonated soft drinks overall, which have been in decline for 12 straight 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 division, noted during the Beverage Forum in April that craft sodas have become a genuine alternative for consumers, with new brands continuously entering the market. However, he cautioned that the market base remains small and that the performance of these sodas has been varied. Initially, many craft brewers launched their products in specialty stores or retailers that prioritize healthier or more upscale options, but analysts indicate that craft soda is now moving into mainstream circulation.
Consumer demand for craft soda brands—often flavored and naturally sweetened with fruit—has begun to overshadow traditional sodas that are laden with sugar or artificial sweeteners. Many beverage “craftologists” are innovating with fruits, vegetables, and other unconventional ingredients to create drinks that are lower in sugar and more naturally healthy, although these options tend to be pricier than standard sodas. Nevertheless, research indicates that consumers are willing to pay a premium for these healthier craft options, suggesting that we can expect to see more of them on the market.
Despite the overall decline in the soda category, opportunities still exist for manufacturers to profit within the craft segment, which is why major companies like Coke and PepsiCo are joining the trend. Some beverage producers have launched sodas featuring natural ingredients and unique flavors, often available only for a limited time to attract interest from consumers, particularly millennials who prefer not to be seen drinking their parents’ soft drinks.
Pepsi introduced a new brand, Caleb’s Kola, in late 2014, using a recipe that combines cane sugar, kola nuts, spices, and citrus. “I think there is actually huge potential for craft cola,” stated Indra Nooyi, PepsiCo’s CEO, at a conference that year. She added that “people still love the cola taste—it’s just lost some of its cool factor, and I think products like Caleb’s are bringing back some of that cool.” Since then, the soda maker has launched additional specialty sodas, including 1893, featuring citrus cola and black currant cola, and most recently, a limited edition cinnamon-flavored cola called Pepsi Fire, targeted at millennials.
In addition to exploring innovative sodas, some consumers are also looking for ways to enhance their health, such as inquiring about calcium citrate and how much to take. This shift towards health-conscious choices might also influence the types of craft sodas that become popular, as consumers seek beverages that align with their wellness goals. As the craft soda market continues to expand, it will be interesting to see how these health trends evolve alongside traditional soda consumption.