The soft drinks, juices, and bottled water category continues to be one of the most vital revenue streams for independent retailers, with its impulsive purchase nature driving significant footfall conversion.
According to Statista's 2025 UK market forecasts, the soft drinks sector represents a substantial £23.13 billion opportunity for retailers, with the average Briton consuming an impressive 119 litres annually. This market is expected to grow at a steady 1.26 per cent CAGR through 2029, offering retailers consistent revenue potential.
Health consciousness continues to reshape consumer preferences, with bottled water and juice emerging as popular alternatives to traditional fizzy drinks. The bottled water segment alone is projected to generate £1.91bn in 2025, with anticipated growth of 3.54 per cent annually to 2029 – significantly outpacing the wider soft drinks category.
Mintel's June 2024 research highlights a generational divide in bottled water consumption. Three-quarters of 16–19-year-olds regularly consume bottled water, compared to just one-third of those aged 65+. This younger demographic – which perceives bottled water as safer than tap water – represents a prime target market for convenience retailers.
The fruit juice and smoothies segment presents additional opportunities, with Mintel reporting the market reached £3.18 billion in 2024. While the cost-of-living crisis affected premium juice products, value-oriented juice drinks weathered economic pressures better, demonstrating volume growth in 2023.
A changing landscape
The soft drinks category, worth a total of £4.2bn in the convenience and impulse channel [NielsenIQ, 52w/e 30.12.23], continues to demonstrate resilience and growth potential, playing a crucial role in the convenience retail sector.
“Out of all categories in this channel, soft drinks is the biggest contributor to generating store footfall and sales - being purchased in over a quarter of visits to UK convenience stores in 2023 and appearing in more than twice as many baskets than alcohol,” Ben Parker, VP Sales – Off Trade at Carlsberg Britvic, explains, adding that maintaining a varied soft drink offering that “includes core, tried and trusted brands alongside new, trending flavours” is fundamental for retailers to leverage the full potential of the category and maximise spend.
However, the market faces evolving consumer expectations, particularly among younger demographics. Ash Chadha, Sales & Marketing Director at Mogu Mogu, notes: “Soft drinks are a staple in the nation's daily routine and the UK has one of the highest consumption rates in Europe – particularly when it comes to fruit-flavoured drinks, which are a go-to choice for over half of consumers. However, recently, the category has hit a bit of a speedbump, particularly where younger shoppers are concerned.”
Mogu Mogu Blackcurrant
This generational shift presents both challenges and opportunities. “This generation is on the hunt for fun, novel beverages which offer something genuinely different – something they're perhaps no longer finding in the category's major players,” says Chadha.
Brands that innovate are bucking broader market trends. “Mogu Mogu is standing out, thanks to the growing popularity of our unique 'Sip, Chew, Feel' drinking experience and the fact that penetration of nata de coco beverages is on the up,” Chadha continues. The brand's performance – becoming “a Top 20 brand in Juices & Smoothies” according to NielsenIQ data [52w/e 07.09.24] – reflects consumer desire for more than just refreshment.
The future appears to favour bold flavour innovation. “Today's soft drink shopper is more excited by the prospect of branching out beyond their normal colas, carbonates and energy drinks,” Chadha observes, highlighting opportunities for “playful, challenger brands” to capitalise on emerging trends with attention-grabbing new product development.
“More brands are starting to think outside the box, take inspiration from other categories and launch unexpected flavour combinations that are getting shoppers talking – just like our confectionery-inspired Bubble Gum and Cotton Candy flavours, which today sit alongside our core bestsellers,” he adds.
Drinking to go
The on-the-go market represents a significant opportunity for convenience retailers. Ben Parker, of Carlsberg Britvic, points to impressive growth figures: “The on-the-go market has grown by 17.4 per cent from 2019 to 2024, and was expected to grow by a further 3.5 per cent to £23bn in 2024.”
This trend has particular relevance for the soft drinks category. “Soft drinks is the number 1 category bought on a food-to-go mission, with instant consumption formats growing at a faster rate than deferred formats in 2023, having surged by 17.2 per cent to £2.5bn and a 4 per cent increase in units,” Parker explains.
The importance of soft drinks in driving footfall cannot be overstated. Parker notes, “57 per cent of people who purchased soft drinks stating it was the main reason they went to the store, and 34 per cent saying they would go without or elsewhere if they're not happy with the to-go drinks available.”
This makes stocking the right formats essential: “It is essential for retailers to maintain a soft drink offering that is varied in flavour and on-the-go formats, such as 330ml cans and 500ml bottles. This should include household brands, such as Tango, Pepsi MAX and Lipton Iced Tea, which have contributed to the 4.7 per cent growth in the Britvic on-the-go drinks portfolio from 2023 to 2024.”
Flavour innovation
Flavour innovation continues to drive category growth by attracting shopper interest. “Flavour innovation is crucial to maintaining shopper engagement in a category full of choice. New product development (NPD) is the key to this, enticing shoppers to come into store in search of the latest launches and also encouraging impulse purchases with additional bold new flavours,” says Parker.
This strategy has proven successful for brands such as Tango. Parker highlights, “Tango Editions combine bold tastes, liquids and pack designs to produce striking products that stand out on shelves and in chillers. The brand's successful rotational flavour series has seen Tango Paradise Punch become the number-one flavoured fruit carbonate new product development of 2023, now worth almost £15m RSV.”
Following the continued success of Tango Editions, Britvic launched its latest “Edition”, Tango Strawberry Smash, an explosion of great tasting strawberry and pineapple flavour, to shelves and chillers in February. The launch follows in the footsteps of the popular Mango flavour, whic is already worth £12.7m RSV following its 2024 launch.
Tango Strawberry Smash
The launch is expected to cement Tango's position as the second most-purchased fruit-flavoured-carbonates brand in the UK, with over 5.3 million buyers, representing a big opportunity for retailers to increase footfall and sales from their soft drinks chiller.
“We know how hotly anticipated the next big launch from Tango always is, and with its refreshing strawberry taste and striking pack design, we anticipate this launch being a big hit with shoppers,” Parker says.
Recent launches continue this trend of bold innovation. “Last April, Tango excited shoppers up and down the country with the boldest drop of 2024: Tango Blast,” Parker explains. “This latest launch looked to engage Gen Z shoppers with its bold flavours, striking colours and eye-catching packaging, while catering to the demand for on-the-go soft drinks.”
Similarly, Pepsi has disrupted the cola category with Pepsi Electric, which Parker describes as “challenging what consumers expect from a cola – boasting a zesty, citrus taste with a striking blue liquid.”
Ocean Spray Cranberry Classic
In the UK juice market overall, the three best-selling juices are apple, orange and cranberry juice, but according to Chris Marx, Country Manager for Ocean Spray UK & Ireland, as a minimum, independent retailers looking to maximise their sales should be considering stocking the following: Ocean Spray Cranberry Classic, Ocean Spray Cranberry & Raspberry, Ocean Spray Cranberry & Mango and the newest juice drink to the Ocean Spray family, Pink Cranberry – a light and sweet, very smooth cranberry-based juice drink that blends pink, red and white cranberries for a light, fruity, and refreshing taste.
Ocean Spray has introduced a fresh new look to the packaging of its ambient range for independent retailers, in a move to hero the fruit of each product, creating a high level of engagement and interest in the different fruit blends.
“The vibrant and contemporary packaging is also price marked to allow for better shelf standout and to better ‘dial up’ the associated benefits of health, taste, refreshment and enjoyment to the front of each pack,” Marx says.
Health and functionality
Health considerations are increasingly influencing consumer choices in the soft drinks aisle. “Over the last few years, we have seen consumers become increasingly interested in health and wellness, a trend which has transferred into the types of soft drinks they are choosing to purchase,” Parker notes.
Red Bull confirms this trend. “One in four now say that health and wellbeing is their number-one priority. With 75 per cent of shoppers considering health when they choose a soft drink, it's key to make sure there is a sufficient offering of sugar-free and zero alternatives alongside full sugar soft drinks to cater to this need,” a spokesperson explains.
Parker says Britvic’s NPD pipeline continues to centre around low- and no-sugar products which meet HFSS regulations and offer consumers better-for-you options.
“Our leading approach to low and no-sugar reformulations has resulted in 85 per cent of our portfolio being low or no calorie across GB and Ireland, all while maintaining our commitment to never compromising on taste,” he notes, highlighting the recent launch of sugar-free Pepsi Treats and Tango Cherry Sugar Free.
Functionality is another growing driver of purchase decisions. According to Red Bull, “Functionality is becoming more key to consumers, and with this we see growth in Functional products, which are now worth £3.9bn and seeing fast growth, +23 per cent vs last year, ahead of wider FMCG.”
Red Bull Zero
While newer functional claims are emerging, traditional benefits remain paramount: “Traditional claims [are] still at the forefront of shopper needs i.e. good source of vitamins, hydrating and energy boosting, showing the need for energy is still driving shopper choice in-store,” says the Red Bull spokesperson.
Red Bull is responding to this trend with the global launch of Red Bull Zero in January, delivering zero calories and broadening its no-sugar offer. “With taste the number-one driver of purchase, Red Bull Zero aims to fill a gap in the current line-up, with the liquid closer to the taste of Original Red Bull Energy Drink, the #1 single serve soft drink in the market,” the spokesperson says.
The can, featuring the brands’ two most distinctive and recognisable assets – the core blue and silver rhombus design and the bull brand logo, along with a “New Taste” flash, sits seamlessly into the Red Bull Energy Drink line-up and will be available in 250ml plain and PMC cans, 355ml can, 473ml can, 4 x 250ml and 8 x 250ml can multipack.
Larger formats
While on-the-go remains important, at-home consumption is creating new opportunities for different pack formats. “Shoppers are continuing to reduce spending out of home, meaning there's a huge increase in home consumption occasions and a surge in demand for quick, easy access to consumers’ favourite soft drinks in at-home-friendly formats,” Ash Chadha, of Mogu Mogu, observes.
Value perception is driving this trend: “ Alongside the fact that multipacks and larger formats are perceived to offer better value due to their lower cost per litre, this indicates that big bottles will continue to translate into big business in 2025,” Chadha explains.
Mogu Mogu has adapted its offering accordingly. “Our line-up of refreshing, flavourful nata de coco drinks is available in packs of six 320ml bottles, as well as in family-size 1L bottles. Plus, we've launched a six-pack of our 1L bottles – available to independent retailers via wholesalers, including Dhamecha and Parfetts – so that it's even easier for them to make the most of the trend towards larger formats in the year ahead,” Chadha adds.
Winning in soft drinks
Independent retailers have distinct advantages that can help them outperform multiple retailers in the soft drinks category. From strategic product selection to leveraging their unique flexibility, convenience stores can capitalise on several opportunities to drive soft drinks sales in ways supermarkets cannot match.
Convenience stores' accessible locations give them a natural edge in serving immediate consumption needs, creating a clear opportunity for on-the-go formats. “Being in handy locations means convenience stores are best positioned to serve shoppers who are making their way from A to B, and looking for something to drink there and then. This means single formats should be every independent retailer's top priority when it comes to soft drinks, as this is the format that's driving the highest sales growth,” advises Chadha.
However, convenience isn't just about immediate consumption. “C-stores are also an ideal destination for shoppers who want to top up on shopping essentials, but don't fancy trekking around a large supermarket. So, while 'Drink Now' formats should take priority, there's a strong opportunity for independents to establish themselves as 'one-stop shops' by featuring multipacks from popular and trending soft drinks brands, like Mogu Mogu, in in-aisle positions,” Chadha adds.
One of the most significant advantages independents have is their agility in ranging decisions, allowing them to stock broader ranges of trending brands. “We've got a 17-strong line-up of distinctive flavours and most of our independent retail customers are stocking up to six of these – a wider range than most multiples can accommodate,” Chadha notes.
Pepsi MAX Strawberries ‘N’ Cream
Speed to market with new products is another crucial advantage: “Independents' adaptability means they're best-placed to respond to the latest trends and growth pockets by getting stock on-shelf quickly, like with our Bubble Gum and Cotton Candy launches. Multiples can't react as quickly, which means consumers will likely head to convenience stores first to get their hands on NPD.”
When it comes to specific products that deliver in the convenience channel, energy drinks consistently lead the way. The Red Bull spokesperson highlights: “As the signpost to the Energy category Red Bull Energy Drink 250ml is the original and sells more packs than any other single serve soft drink. In fact, it is now the number one Packaged Food & Drink product by units sold, in the UK.”
Energy drinks should be given appropriate space to reflect their sales contribution: “The Sports and Energy category remains relevant all year round, accounting for 51 per cent of the single-serve soft drink value sales in impulse, so therefore should make up 51 per cent of the space with the soft drink category in store.”
Different formats serve different consumption moments: “The original Red Bull Energy Drink 250ml is ideal for on-the-go consumption, with 50 per cent of 250ml shoppers drinking the can immediately after purchase. Whereas, one in three Red Bull shoppers are likely to consume the larger cans later in the day, with Red Bull Energy Drink 355ml linked to gaming, studying, and socialising, and Red Bull Energy Drink 473ml being the can of choice for all meal occasions, making it ideal for a meal-deal offering.”
Driving experimentation
New product development is another crucial area where independents can shine. “Although core skus are important and should be well stocked regularly, we also need to make space for NPD to drive excitement, trial and value into the category,” advises the Red Bull spokesperson.
Flavour innovation in particular has been a growth driver for Energy Drinks this year, with particular engagement around new flavours, which has helped broaden the category's appeal to new groups of shoppers, where taste was previously a barrier.
“As a result, 96 per cent of all NPD growth came from flavoured energy over the last 12 months,” the Red Bull spokesperson reveals, adding that these innovations are also bringing new shoppers to brands and categories: “For Red Bull, limited editions and NPD have been largely incremental with nearly half of shoppers that bought into the Editions flavour range being new to the Red Bull brand, acting as a gateway to the core range.”
The opportunity in flavoured energy drinks is substantial: “With 86 per cent of energy drinkers open to experimenting with flavours, the subcategory has been vital to total Energy Drinks growth. Flavoured Energy Drinks are driving value, with sales of Red Bull Editions growing 39 per cent on last year, driving 33 per cent of all flavoured functional energy growth this year.”
Continuing its track record of successful flavour innovation, Red Bull has introduced its latest Summer Edition White Peach, available across all channels now.
“Red Bull Summer Edition White Peach looks to be popular, with many saying they would be likely to purchase a white peach flavoured Energy Drink, particularly younger shoppers,” the spokesperson notes. “Feedback has been widely positive, with consumers saying the new flavour sounds ‘refreshing’, ‘premium’, ‘tasty’ and ‘unique’.”
Monster Juiced Rio Punch
The soft drinks market is in fact bursting with innovation, with a wave of exciting new product launches set to energise sales.
Monster Energy, now worth £706m, continues to dominate with the launch of Monster Juiced Rio Punch, a carnival-themed blend featuring tropical flavours like papaya, vanilla ice cream, and blackcurrant. Rockstar Energy keeps the momentum going with Rockstar Energy Zero Sugar Peach, responding to the rising demand for peach-flavoured energy drinks with a no-sugar twist.
The energy market sees further influx of bold flavours with Rubicon RAW Wave Editions, featuring limited-edition Berry & Grape and Peach & Apricot variants, supported by a £1.5m marketing push. Meanwhile, CELSIUS energy drink has made its UK debut, bringing the US brand’s health-focused energy blends to British consumers.
Lucozade Sport expanded its lineup with Ice Kick, a citrus-powered sports drink launched in collaboration with football star Jude Bellingham.
Pepsi MAX taps into indulgence trends with Strawberries ‘N’ Cream and Cream Soda Zero Sugar – sweet, dessert-inspired cola flavours designed for Gen Z consumers. The brand is also tapping into the consumer demand for caffeine-free options with Pepsi MAX Caffeine Free 500ml bottles, available from this month.
For fans of refreshing citrus, Coca-Cola unveiled Coca-Cola Lime, a tangy addition to its growing flavoured cola segment. Fanta extends its zero-sugar range with Fanta Zero Apple, Fanta Zero Raspberry, and a limited-edition Fanta Tutti Frutti Zero Sugar, blending peach, pineapple, and banana for a nostalgic twist.
On the healthier hydration front, CANS introduced a new “non-sweet” soft drink range with sparkling Alpine water and real fruit, while NEO WTR and Avant Mineral Water announced partnerships with Northampton Saints and AFC Bournemouth, respectively, to bring ethical hydration to sports fans.
Bottled water
The bottled water market continues to thrive, driven by consumer demand for healthier, convenient, and sustainable hydration options. In 2024, the category saw a 7.1 per cent increase in volume, according to NIQ data, with both branded and own-label products experiencing growth.
This trend reflects a broader shift towards lower-sugar drinks and functional beverages, as well as heightened awareness of environmental issues. Recent product launches and partnerships highlight the industry’s focus on innovation, sustainability, and health-conscious offerings.
One of the standout launches in the flavoured water segment is Radnor Splash’s new Price-Marked Packs (PMP), set to hit shelves in April. The 85p PMP bottles, available in Lemon & Lime, Strawberry, and Apple & Raspberry flavours, are designed to cater to value-driven shoppers in the convenience sector.
Radnor Splash PMP
“It’s the first time we’ve launched a PMP and we’re excited to see how it performs in the convenience sector offering great margins for wholesalers and independent retailers,” Simon Knight, Managing Director of Radnor Hills, says.
“As a trusted, high-quality and great tasting flavoured water brand, it gives us a big point of difference and it allows our customers, who are looking for value, taste and healthy soft drinks, to easily see the price and the great value that Radnor Splash offers.”
Meanwhile, premium Italian sparkling drinks brand SanPellegrino has expanded its portfolio with a Zero Added Sugar range, launched in January this year. The new Limonata and Pesca & Clementina flavours, crafted from real Italian fruit juice, contain 0g added sugar and fewer than 22 calories per 330ml can.
The Zero Added Sugar range complements SanPellegrino’s core offerings, which include six citrus flavours such as Aranciata Rossa and Limone & Menta. The brand has also recently refreshed its can design, reinforcing its Italian heritage and premium positioning.
In the functional water category, Rubicon Spring Vits is set to make waves with its new still range, launching this month. Available in Black Cherry Pomegranate, Mango Passion, and Strawberry Watermelon, the drinks are packed with essential vitamins to support energy and immunity.
The launch, backed by a £2m investment, aims to capitalise on the growing demand for healthier soft drink options.
Smart merchandising
The final critical element in capitalising on the soft drinks opportunity is effective merchandising. Strategic product placement and thoughtful category management can significantly boost sales performance for independent retailers.
Creating natural pairings between soft drinks and complementary categories can encourage impulse purchases and increase basket value. Chadha highlights this opportunity: “As well as including soft drinks in meal deal promotions, merchandising shoppers' favourite soft drinks next to complementary categories is an easy way to boost basket sales. For example, having a selection of popular soft drinks next to core snacking categories, like Crisps, Nuts & Bagged Snacks, will encourage shoppers to purchase on impulse and pick up a snack to enjoy alongside their drink.”
While stocking established brands is essential, retailers should also make space for newer, disruptive offerings. “Soft drinks play a functional, thirst-quenching role in shoppers' lives, but they're also seen as a quick, easy and cost-effective way to experiment with different and exciting flavours. This means retailers need to strike a balance between maintaining stock of the category's big players, whilst also injecting excitement into the category through NPD from disruptive challenger brands,” explains Chadha.
This balance can help break through the category's familiarity. “In a category that is almost second nature given how embedded it is in the nation's everyday routine, retailers have a unique opportunity to stop shoppers in their tracks with brands that bring something genuinely new and distinct to the category, like Mogu Mogu. This is what's going to encourage impulse purchases, capture the attention of new shoppers and turn the dial on retailers' sales,” Chadha adds.
Photo: iStock
A comprehensive approach to visibility is crucial for driving sales, particularly for energy drinks. “A 360 ̊approach to visibility is the key to maximising sales of Functional and Energy Drinks. With 30 per cent of soft drinks sales unplanned, visibility and placement are essential to driving impulse purchases,” the Red Bull spokesperson emphasises.
Strategic placement at key decision points can capture these unplanned purchases. “This decision will generally be made on entry into the store, at the food-to-go fixture, or at the till point, therefore, front-of-store promotions can help to drive an increase in sales, but also secondary placed chillers by the cashier or meal deals with food to go will continue to keep core lines top of mind and drive incremental sales,” the spokesperson explains.
For planned purchases, the main chiller remains the primary focus. “For the 70 per cent of soft drinks sales that are planned, shoppers are likely to head straight to the main chiller, so it is crucial that their favourite brand is available and easy to find. Use core lines to sign post each category, stocked at eye-level, brand blocked and multi-faced to ease findability,” advises the Red Bull spokesperson.
As spring approaches and temperatures rise, convenience retailers stand perfectly positioned to satisfy consumers' growing need for on-the-go hydration through a well-curated drinks selection that balances health consciousness with indulgence.
