The concept of “craft” is frequently linked to beer, but the craft movement has also made its way into the soda industry. According to USA Today, citing Beverage Marketing data, craft soda sales reached $541 million in wholesale in 2016, up from $427.7 million just five years prior. While the growth has not been rapid, it has been consistent and continues to rise each year. This trend offers a glimmer of hope for carbonated soft drinks, which have seen a decline for 12 straight years and were overtaken by bottled water as the largest beverage category in the U.S. in 2016.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research division, noted at the Beverage Forum in April that craft sodas have become a legitimate choice for consumers, with new brands entering the marketplace. However, he cautioned that the market remains relatively small, and the performance of these sodas has been varied thus far. Many craft soda producers began in specialty shops or retailers that prioritize healthier or more upscale options, but analysts suggest that these beverages are now entering the mainstream market. Consumer demand for craft soda brands, often infused with unique flavors and naturally sweetened with fruit, is beginning to overshadow traditional sodas that are high in sugar or artificial sweeteners.
Numerous beverage “craftologists” are innovating with fruits, vegetables, and other unconventional ingredients to produce drinks that are less sugar-laden and more naturally nutritious, although they tend to be pricier than conventional sodas. Research indicates that consumers are willing to pay more for these healthier craft alternatives, and it’s likely that we will see an increase in their availability. Despite the overall decline of the soda category, there remain profitable opportunities in the craft sector, prompting major companies like Coke and PepsiCo to join the trend. Some beverage manufacturers have introduced sodas made with natural ingredients and distinctive flavors, offering them for a limited time to attract shoppers, particularly millennials who prefer not to be seen consuming their parents’ soft drinks.
In late 2014, Pepsi launched a new brand called Caleb’s Kola, featuring a recipe that includes cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO Indra Nooyi expressed 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 bringing back some of that cool.” Since then, the soda maker has rolled out other specialty sodas, including 1893 with citrus cola and black currant cola, as well as a limited-edition cinnamon-flavored cola called Pepsi Fire, targeting the millennial demographic.
In addition to these developments, there’s a growing interest in health-conscious products, such as calcium petites tablets, which are gaining traction among consumers looking for nutritional benefits alongside their beverage choices. As this health trend continues, it’s likely that we will see more craft sodas that incorporate elements like calcium petites tablets, appealing to those who prioritize wellness while enjoying unique flavors. The emergence of these innovative products indicates a promising future for the craft soda market.