Soft Drinks - Southeast Asia

The Soft Drinks market in Southeast Asia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the region have shifted towards healthier beverage options, with consumers becoming more conscious of their health and wellness. As a result, there has been a growing demand for low-sugar and natural ingredient-based soft drinks. This shift in preferences is influenced by global health trends and a greater awareness of the negative effects of excessive sugar consumption. Trends in the market reflect these changing preferences, with a rise in the popularity of functional beverages such as herbal teas, infused waters, and natural fruit juices. These products are often marketed as healthier alternatives to traditional carbonated soft drinks and are positioned to cater to the growing demand for natural and functional ingredients. Additionally, there has been an increase in the availability of premium and artisanal soft drinks, targeting consumers who are willing to pay a premium for unique and high-quality beverages. Local special circumstances also play a role in shaping the Soft Drinks market in Southeast Asia. The region is known for its diverse culinary traditions and flavors, which are often incorporated into soft drink products. For example, tropical fruit flavors such as mango, coconut, and lychee are popular in many Southeast Asian countries. This localization of flavors helps to attract and retain local consumers who have a preference for familiar tastes. Underlying macroeconomic factors also contribute to the development of the Soft Drinks market in Southeast Asia. The region has experienced rapid economic growth in recent years, leading to an increase in disposable incomes and a growing middle class. This has resulted in higher purchasing power and an expanded consumer base for soft drink products. Additionally, urbanization and changing lifestyles have led to an increase in on-the-go consumption, driving the demand for convenient and portable soft drink options. In conclusion, the Soft Drinks market in Southeast Asia is evolving to meet changing customer preferences for healthier and more natural beverage options. This is reflected in the rise of functional beverages, premium offerings, and localized flavors. Local special circumstances, such as culinary traditions and flavors, also play a role in shaping the market. The underlying macroeconomic factors of economic growth, increased disposable incomes, and changing lifestyles further contribute to the development of the Soft Drinks market in Southeast Asia.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.