Refreshing and the only beverage in 100% recyclable packaging – the canned drink has long been the consumer’s preferred choice. The market is buoyant, with more than 173 million canned drinks enjoyed in the UK every week. Despite the recession, figures for 2010 show a 7% increase in cans shipped for filling compared to 2009 and represent the 11th consecutive year of growth for drinks cans. This demonstrates not just consumers’ liking for drinks in cans, but also marketeers and brand owners’ confidence in using cans to provide attractive retail propositions to customers.
Market share and growth
The can represents 66%* of the take-home beer and cider market in the UK and it enjoys a 25%* share of the soft drinks market, which was valued at £6.1 billion retail value in the year to October 2010 (Nielsen). In 2010 can shipments were strong, particularly in the carbonated soft drinks (CSDs) sector which saw double digit growth, attributable, in part, to the good summer weather.
The CSD sector was a stellar performer in 2010 with can shipments of 4,845 million, an increase of 12.3% on 2009. Since 2008, the CSD market has grown by 1 billion cans and CSD cans now represent 51% of all cans shipped for the first time since 2002. Energy and sports drinks performed very well within the CSD sector with an overall growth of 18% and 10% respectively, with cola and fruit carbonates strong performers, up 8% and 10% respectively on 2009.
‘On the go’ consumption of carbonated soft drinks away from the home is an increasingly important market for the can, not least because consumers value the convenience of a cold, refreshing beverage. Energy and sports drinks are more reliant on the impulse sector of the market than any other CSD, with a 53% and 47% share respectively, contrasting with cola which had 27% of sales in this sector and 73% in multiple grocers.
The alcohol sector, mainly beer, cider and still and sparkling wine, has resumed its long term growth trend with 4,554 million cans shipped in 2010, and has benefited from the support of supermarket promotions, competitive retail prices and the continuing trend to drink at home. In 2010 the World Cup boosted consumption – the industry experienced an 11% increase in beer sales over the four weeks of the tournament compared to the same four-week period in 2009.
Multipacks on the rise
Multipacks continue to stimulate beverage can growth, partly driven by retailers’ promotions and the cost saving that multi-packs offer to consumers. Multipacks can also benefit retailers through a reduction in store handling costs, thanks to the can’s lighter weight and cube efficiency.
Within the soft drinks sector, there were changes in the popularity of different multipack sizes. Of particular note was the growth in sales of 8 packs, which more than doubled their share at the expense of 6 packs and benefitted from increased promotional activity. Twelve and 24 packs also enjoyed increased volumes.
Small and medium multipacks (4 – 12s) have regained their importance in the pack mix for beer and cider cans in the last year. Twelve packs were particularly important at Christmas and enjoyed the biggest increase in sales in 2010, though 15 packs were the most popular during the World Cup. Single cans of beer and cider, meanwhile, account for only around 2.5% of total sales – most of which are sold through off license outlets.
Multipacks are also at the heart of beer and cider marketing. Advertising and marketing campaigns for cider have helped it gain the fastest growing share of the beverage market, growing by 8% in 2010.
The preferred choice
The modern beverage can is designed to fit the rapidly evolving needs of consumers, fillers, brand owners and retailers. Valued by retailers for its low transport costs, ease of stacking and long shelf life which reduces the potential for product waste; by brand owners and packer/fillers for impressive graphics, super-fast filling and efficient light packaging; and by consumers for convenience and refreshment, the can is loved by many – for many reasons.
*by volume
Click here to read the UK Market Report 2011
