The term “craft” is typically linked to beer, but the craft movement has also expanded into the realm of soda. According to USA Today, citing data from Beverage Marketing, wholesale sales of craft soda reached $541 million in 2016, up from $427.7 million just five years prior. While this growth has not been explosive, it has been consistent and continues to gain momentum each year. This trend has provided a breath of fresh air for carbonated soft drinks overall, which have seen a decline for 12 straight years and were overtaken by bottled water as the leading beverage category in the U.S. in 2016.
Gary Hemphill, managing director and chief operating officer of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas are becoming a viable choice for consumers, with new brands continually entering the market. However, he cautioned that the market base remains small and the performance of these sodas has been inconsistent thus far. Many craft soda producers originally started in specialty shops that focus on healthier or upscale products, but analysts suggest these offerings are now becoming mainstream. In fact, the demand for craft soda brands—often flavored and naturally sweetened with fruits—has begun to overshadow traditional sodas that are high in sugar or synthetic sweeteners.
Many beverage “craftologists” are experimenting with ingredients like fruits, vegetables, and other unconventional elements to create drinks that are lower in sugar and more naturally health-conscious, albeit typically at a higher price point than traditional sodas. Research indicates that consumers are often willing to pay a premium for these healthier craft alternatives, suggesting that more such products are likely to emerge in the market.
Despite the overall decline in the soda category, there remain opportunities for manufacturers to profit within the craft segment, which is why major companies like Coca-Cola and PepsiCo are diving into this trend. Some beverage makers have introduced sodas featuring natural ingredients and unique flavors, often offered for a limited time to attract interest from younger consumers, particularly millennials who want to avoid the stigma of drinking their parents’ soft drinks.
In late 2014, Pepsi launched a new brand called Caleb’s Kola, which includes a formula made with cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO, Indra Nooyi, remarked at a conference that there is significant potential for craft cola, stating, “People still love the cola taste—it’s just lost some of its cool factor, and I think products like Caleb’s are restoring some of that cool.” Since then, Pepsi has introduced other specialty sodas, such as 1893 with its citrus cola and black currant cola, as well as a limited edition cinnamon-flavored cola called Pepsi Fire, aimed specifically at millennials.
As this craft soda movement grows, ingredients like calcium carbonate and calcium citrate are increasingly being integrated into formulations to enhance health benefits, appealing to a more health-conscious consumer base. Overall, the craft soda sector is on the rise, providing innovative options that cater to evolving tastes while keeping health in mind.