The industry that turns over 600 billion dollars a year

The human body is made up of about 60% water, which makes water consumption necessary for the proper functioning of the various body systems. According to the recommendations of the US National Institute of Medicine (IOM), men should consume about 2.6 liters of fluids per day, while women should consume about 1.8 liters per day. This amount is based on fluids obtained from drinking only, and does not include fluids obtained from food.

Sufficient water consumption is essential for maintaining normal moisture levels, supporting metabolic processes, regulating body temperature, and maintaining the function of the cardiovascular systems. Are the sweetened soft drinks with or without sugar a substitute for water or do they meet another need.

The industry that generates over 600 billion dollars a year

The soft drink industry is one of the largest and most profitable industries in the world, with brands such as Coca-Cola, Pepsi, and Soap-Up dominating the global market. In 2023, Coca-Cola was the world's leading brand with about 43% market share in the global soft drink market, while Pepsi held about 31% of the market.

In Israel, Coca-Cola dominates the local market with a market share of about 50%, while Pepsi and others together hold about 30%. The market share of carbonated drinks, despite global health efforts to reduce their consumption, continues to be significant. In the United States, about 60% of the soft drinks consumed are carbonated, while in Israel this rate is about 45%.

The soft and carbonated drinks market is a huge and very profitable industry worldwide.  In the world: the soft and carbonated drinks market is estimated at about 605 billion dollars a year. It is a global market that includes a wide variety of products, which reflects the great popularity of these drinks among consumers of all ages and cultures. In Israel: the soft and carbonated drinks market generates about NIS 3 billion a year.

The Israeli market is affected by various factors such as regulation, sugar taxes, and changes in the consumption habits of the public, but still maintains its strength in terms of sales and market presence. It is possible to discern the segment's impact on the local and global economy and why the previous government launched a tax reform on sweet drinks as an attempt to reduce consumption as it did in the area of smoking products or in an attempt to inflate the state coffers, which the Minister of Finance canceled upon assuming office as one of the first actions he performed as if these were critical decisions for the public or to the economy.

In Israel, three main companies dominate the soft drinks market, of course the main company for Coca-Cola drinks with the variety of well-known brands Coca-Cola, Sprite, Fanta, Frigat, Fuse T Neviot, Monster and more. The Yapaura Tabori company with the brands Spring, Tafuzina, Schwops, the Tempo company with the brands Pepsi, Seven Up, Miranda, Jump, Sapa, Island, XL and more.

how much we drink

The ratio of the amount of consumption of soft and carbonated drinks in Israel compared to the world varies according to different indicators, but there are some general data that provide a picture of the situation:

Consumption of soft and carbonated drinks in the world: on average, the global consumption of soft and carbonated drinks is around 91 liters per person per year. Countries like the United States, Mexico, and Chile lead in particularly high consumption, with over 150 liters per person per year.

Consumption of soft and carbonated drinks in Israel: In Israel, the average consumption per person per year is lower and stands at about 70 liters per person per year. Although the consumption of carbonated drinks in Israel is high compared to certain European countries, it is still lower compared to the world leaders such as the United States and Mexico.

The ratio: according to these data, Israel is below the world average in the consumption of soft and carbonated drinks per person. However, it should be taken into account that Israel is one of the developed countries with relatively high consumption, but not at the high levels of the leading countries in consumption of soft and carbonated drinks.

When looking at the juice flavors preferred by consumers, you can see clear differences between different preferences in the market. For example, the orange flavor is one of the most popular flavors, with a market share of about 30% in the general juice market. The grape flavor makes up about 15% of the market share, while flavors like strawberry-banana, mango, and peach each hold about 10-12% of the market.

In general, consumer preference tends towards fruity and classic flavors such as orange, apple, and grapes, but there is an increase in demand for more exotic flavors such as mango and peach, especially among younger audiences, but it is about juices and soft drinks, nevertheless the cola flavor leads global demand.

From then until today - the effects of drinks on our bodies

Soft drinks are not a new phenomenon; There is evidence of the consumption of sweet drinks since biblical times. So, sweeten natural juices like wine and honey. With time and the advancement of technology, these drinks went through many processes of processing and modification, becoming what we know today as carbonated and sugary soft drinks. The market continues to innovate and expand with investments in low sugar products, energy drinks, and health drinks. Many companies in the industry are making efforts to reduce the negative health effects of their products, through the development of drinks with less sugar or with additional health ingredients. In addition, there is an increase in the consumption of beverages based on natural substances, such as iced tea and plant-based beverages.

Sugar is one of the main ingredients in soft drinks, and many studies point to its negative effects on health. Excessive sugar consumption can cause obesity, type 2 diabetes, heart disease, and dental problems. The amount of sugar in soft drinks can be very high; For example, one can of cola contains about 39 grams of sugar, which is about 10 teaspoons of sugar.

Following the awareness of the harms of sugar, sugar substitutes have become common in soft drinks, especially in diet drinks. Sugar substitutes such as aspartame, saccharin, and stevia offer the possibility of reducing the amount of calories in drinks, but they also raise health concerns. Sugar substitutes may affect the intestinal microbiota, i.e. the population of friendly bacteria in the digestive system, and lead to changes in the functioning of the digestive system. In addition, some studies indicate a link between the consumption of sugar substitutes and an increase in the risk of diabetes and heart disease. Moreover, there is evidence that sugar substitutes may increase appetite and lead to an increase in food consumption. And with all the desire to maintain a healthy diet and fewer calories, each substitute has its own health consequences.

Who turned off the tap?

In Israel, the use of tap water is decreasing due to concerns about its quality, and the most popular solution is water purification facilities or bottled mineral water. Although tap water in Israel is considered safe to drink, many prefer to use facilities that purify the water or purchase bottled water, believing that filtered or mineral water is healthier.

There is a dispute regarding the real need for purification facilities or mineral water, since the tap water in Israel undergoes strict filtration processes and contains essential minerals. However, the fear of contamination and chemical substances in the water leads to the fact that more and more families in Israel have home water purification facilities.

The older generation in Israel grew up on tap water, which was and still is the main and most accessible source of water for daily consumption. Although the tap water in Israel is considered safe to drink, and although the Ministry of Health regularly reports on its quality, consumption patterns in Israel have changed over the years, mainly following unusual cases published in the media regarding water quality in certain areas. These events, in which abnormalities in the quality of the tap water were reported, created a public panic and led to increased consumption of packaged water and domestic water installations such as Tami 4 and the like.

The phenomenon of consuming mineral water and purified water is not unique to Israel, but is part of a global trend that has taken root in the culture of consumption. However, in Israel, where public consciousness is strongly influenced by security considerations, a high percentage of households can be seen who keep water containers just in case, especially due to fear of unexpected security incidents.

In Israel, the use of tap water is decreasing due to concerns about its quality, and the most popular solution is water purification facilities or bottled mineral water. Although tap water in Israel is considered safe to drink, many prefer to use facilities that purify the water or purchase bottled water, believing that filtered or mineral water is healthier.

There is a dispute regarding the real need for purification facilities or mineral water, since the tap water in Israel undergoes strict filtration processes and contains essential minerals. However, the fear of contamination and chemical substances in the water leads to the fact that more and more families in Israel have home water purification facilities. If we ask the general public why they consume mineral water, many of them will present the security value as the main reason, but most of them are not aware of the minerals found in the water bottles, their health uses or the amount we really need. This pattern of consumption, of mineral or purified water, has become an integral part of Israeli and global culture, even though the local water sources, in many cases, provide a sufficient and healthy response to the body's needs.

How much does it cost us?

We have tested a number of allowed from leading brands where you will pay cheaply and where expensively and finally you will make your preference as to whether tap water can be a substitute for significant value in your home investment expenses.

Summary

The soft drink industry continues to be a major area of global consumption, with extensive health and economic impacts. Understanding the effects of sugar and sugar substitutes on the body, as well as consumer preferences in juice flavors, allows us to better understand the dynamics of the market and the health challenges associated with it. With the continued expansion of the industry, there is great importance in consumer awareness not only of their preferred flavors, but also of the health effects of their choices.

The consumption of soft drinks, in all its guises, is a complex issue that combines health, economic and cultural aspects. Although awareness of the harms of sugary drinks is growing, they are still an integral part of the daily menu for many of us. The future will continue to challenge the industry to find healthier solutions, while maintaining the attractiveness and beloved flavors that attract consumers to return again and again to the shelves.

** The data is correct as of 27/08/2024 and processed through the Pricez website by the Retail Research Institute T.L.H.