Powdered soft drinks are available as powdered mixes, in which, water is added and consumed as flavoured drinks. Their key ingredient is powdered fruit concentrate, and other ingredients that are added are sweeteners, preservatives, stabilizers, emulsifiers, and other functional ingredients required to provide a consistent product when mixed with water or other liquid.
They are also referred to as powder dilutables in some regions. The global market for powdered soft drinks is estimated to account for over US$ 10 billion in revenue in 2018, growing at a CAGR of 2.5% between 2018 and 2027.
Increase in Outdoor Activities Amongst Youngsters to Propel the Utilization of Powdered Soft Drinks
Consumer demand for on-the-go products is a key factor that is driving the growth of the powdered soft drinks market. Busy schedules and tiring lifestyles are reducing the time spent on preparing healthy, tasty, and flavourful beverages. Hence, packaged items such as powdered soft drinks have become a likeable and preferred option amongst consumers in almost all age groups.
Preparing a powdered soft drink is also effortless. Moreover, handy and pocket-friendly packaging such as sachets in the powdered soft drinks segment is even more convenient for consumers. An increase in the number of hiking, trekking, camping, and travelling activities has resulted in more demand for packaged products meant for refreshment, such as powdered soft drinks.
Thus, powdered soft drinks also add up to the value of a fun and easy experience for travelers, as they can be easily prepared for a quick refreshment. The shelf life of powdered soft drinks usually ranges from one to three years. Long shelf life not only helps in storing powdered soft drinks for a longer period of time, but also eases the transportation and use of powdered soft drinks at a later stage.
Powdered Soft Drinks Outscore the Demand for Juices and Fizzy Soft Drinks Due to Rise in Health Consciousness
Powdered soft drinks are being remodeled in all regions by the inclusion of low-calorie and natural sweeteners. This paves an opportunity for health conscious consumers to consume soft drinks without comprising on their health routines. Powdered soft drinks can easily be diluted/ concentrated according to individual needs, unlike still drinks and ready-to-drink soft drinks.
Besides, powdered soft drinks are a delicious modicum for the consumption of nutrients. Powdered soft drinks have gained considerable attention in the clinical nutrition and sports nutrition spaces, especially amongst consumers suffering from dysphagia. Due to the gym and fitness trend, the sports nutrition industry has witnessed a surging demand for varying product types and product formats, such as powder and gels.
Hence, customized development of powdered soft drinks to cater to the demands of these specific segments is also on the rise, and is expected to drive the growth of the powdered soft drinks market.
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Robust Supply Chain in the Powdered Soft Drinks Market
The supply chain of powdered soft drinks has proven be decent in terms of transportation facilities, which helps in the easy flow of concentrate products. Existing supply models have benefitted powdered soft drinks in reaching customers without any obstacles. The powdered soft drinks that are supplied to foodservice and institutional outlets are supplied in bulk, and are facilitated with effective storage and transportation.
Also, with food quality becoming increasingly important to consumers, powdered soft drink manufacturers, distributors, and other participants in the supply chain are investing in maintaining transparency in the supply chain and enhancing the traceability of products. In developed countries, 7 out of 10 companies in the powdered soft drinks market are getting their manufacturing processes certified by regulatory bodies.
Good services play an important role in building customer relations, and in a bid to enhance services, quick and on-time delivery have become significantly important. Online selling has also contributed in shaping the evolution of the transportation and logistics vertical in the powdered soft drinks market.
Pragmatic and Affordable Mechanisms in Processing and Producing Powdered Soft Drinks
Standardized processes and technological innovation have helped companies maintain the standards of powdered soft drinks as per the norms laid down by FDA, BRC, and HACCP. Despite the rise and fall of fruit prices all over the world, the prices of powdered soft drinks are almost constant, with a minor deviation of 15% in a year, because of the low cost of raw materials and fixed wages of labour.
Powdered Soft Drinks Market Saturated in Developed Regions
With major key players launching novel products and expanding their product portfolios of powdered soft drinks, the market has become highly saturated. In some countries, powdered soft drinks are also being perceived as old and boring. As health consciousness is sweeping Europe and North America, products like plant-based and vegan drinks are winning more space on retail shelves, and traditional beverages such as powdered soft drinks have been suffering a serious backlash.
An increase in investments on powdered soft drink production has led to cut-throat competition in the market. As more players expand their production capacity, there could come a sloping point where production growth meets, or may even outpace the demand for powdered soft drinks.
Global Powdered Soft Drinks Market: Segmentation
Analysis by Flavour
- Mixed Fruit
Analysis by End Use
- Household (Retail)
Analysis by Sales Channel
- Discount Stores
- Mass Grocery Retailers
- Wholesale Club Stores
Analysis by Packaging
- Carton Boxes
- Pouches & Sachets
- Bulk Packaging
Analysis by Region
- North America
- Latin America
- Asia Pacific excluding China
- Middle East & Africa