Beverage producers and bottlers are always looking for ways to promote growth – and in today’s market, one way to do that is by capitalizing on the increased popularity of craft beverages in general, and of craft soda in particular.
According to openPR’s Global Craft Soda Market Research Report, the craft soda market is valued at $665.8 million and is expected to reach $946.8 million by the end of 2026, growing at a CAGR of 5.1% between 2021 and 2026.
Bottling craft soda such as RC Cola International’s Royal Crown Cola allows bottlers to maximize revenue and grow market share. A powerful example of this can be seen in the Czech Republic beverage company Kofola ČeskoSlovensko a.s., which was able to penetrate the attractive but highly competitive HORECA market segment in both Czech Republic and Slovakia. Kofola was incredibly successful; in the Czech Republic, Royal Crown’s sales grew 200%, while in the Slovak region sales grew by 290% in the year after the product’s launch.
Why Demand for Craft Soda is on the rise
Specialty or premium beverage products like craft soda are disrupting the beverage industry and taking up a growing market share, this creates new challenges for the more traditional beverage mass-producers.
There are several reasons behind the popularity of craft sodas. Firstly, there’s been a real shift in consumer preferences with consumers more interested in their health and developing a greater attraction to premium products.
Consumer demand has increased for products that have natural rather than artificial ingredients. And increasingly, consumers are watching their sugar intake. These relatively new interests on the part of consumers creates an opportunity to increase beverage sales by offering beverage products that meet these needs.
Moreover, as other beverage companies jump on the “craft” bandwagon, you certainly don’t want to be left behind. And of course, there’s the component of brand loyalty that you benefit from over the long term, i.e., the consumers who get into the habit of drinking craft soda you provide are likely to continue buying your brand even if craft per se (or any other particular trend) has gone out of fashion.
Breaking it down: The Craft Soda Experience
A drink of craft cola is viewed as an experience to savor, not just as a regular drink. With its higher price point (generally, craft sodas can cost 3x more than a standard soda), it’s not something people consume every day. It’s generally viewed as more of a treat; a beverage to really indulge in, and to enjoy.
Part of what contributes to the craft soda experience is that “all-things craft” intersects with a lot of other popular consumer trends, such as:
- Eating healthy – An overall movement toward consuming healthier foods and beverages means a shift toward adopting a healthier lifestyle and drinking healthier beverages. Craft soda meets this trend as it is usually made from natural ingredients, some of which provide extra energy or other specific health benefits.
- Small batches – The term “craft” generally means that an activity requires skill, e.g., the making of things by hand. When it comes to craft soda, we’re usually looking at locally produced beverages that offer higher quality and an authentic experience. Many craft soda bottlers stick to a small batch mentality for their specialty craft soda lines.
- Nostalgia – If you go back to the period before Prohibition, you’ll notice craft soda isn’t an innovation. At that time, most towns had bottling works operations that produced both beer and soda. Because of the nostalgia associated with craft sodas, traditional flavors, like ginger ale, root beer, cream soda and more, continue to be popular in the craft “space” today.
- Plastic free – Environmental concerns continue to be a burning issue; and the fact that craft soda comes in glass rather than plastic bottles is a draw for those who don’t want to use disposable plastics.
- Alcohol alternative – Low-alcohol and no-alcohol beverages are a growing trend (see this analysis by Forbes). With an increasing number of consumers adopting “mindful drinking”– i.e., seeking to limit their alcohol intake – craft soda “mocktails” (as they’ve been dubbed) have become an alternative of choice, a fun, stylish, trendy beverage you can drink in a bar and avoid the alcohol.
- Clean label – More consumers are seeking beverage products that are “clean label” – what people call “the return to real food”: products with natural, familiar, and simple ingredients, not artificial ingredients or synthetic chemicals. This consumer-driven movement also leads to people being interested in knowing about the production chain of a product.
The Advantages of Beverage Bottling Using Glass Bottles
The massive cultural shift that has made craft soda so popular is a change that we expect is here to stay, possibly representing as much as 10 to 15% of the total soda market. As underscored by Food & Wine, it’s both a “push” and a “pull” – on the one hand, there’s the scrutiny that mass-made sodas are currently under, and on the other hand, new options being sought by alcohol avoidants. Bottom line: the trend is on the rise.
From the perspective of beverage bottlers, there are several advantages to bottling premium beverage products. For example, glass bottles have lower order minimums for bottles, and lower cost of bottling line equipment and maintenance. That’s one reason they are so popular for craft soda production.
Then there’s the health and environmental benefits of using glass. Concerns about plastic include worries about ingesting harmful chemicals in plastics and contributing to the pollution of the environment. As glass becomes increasingly viewed as the better option, perceived by consumers as healthier, and 100% recyclable, craft beverage bottlers can anticipate growing popularity.
Royal Crown Craft Cola – Become a Distributor Today!
Bottlers and distributors can capitalize on the growth of premium products in general, and of craft cola in particular, by bottling RC Cola international’s Royal Crown Cola.
Adding Royal Crown Cola to your beverage portfolio is a worthy investment due to its rise in popularity. Royal Crown Cola is exclusively sweetened with pure cane sugar – part of the reason behind its authentically refreshing flavor. And now, RC Cola International has also added Royal Crown Cola Slim, which is sweetened with stevia and has 50% less calories than the traditional version.
Contact us to learn how you can become a Royal Crown bottler or distributor and benefit from the many advantages of beverage bottling craft sodas!
