Consumer Preferences Shift From Juices and Smoothies to Squash and Cordials in The UK

Squash and cordials are on the rise in 2022, putting the squeeze on juices and smoothies in the British beverage market. Shifting consumer trends and worsening economic conditions have resulted in dilutable beverages growing in preference over premium options, such as smoothies, that are becoming less affordable. Supermarket sales have increased by over USD 50 million, and experts anticipate a CAGR of 5% over the next two years.

In recent years, this category has seen mixed fortunes. Sales spiked during early 2020, only to plummet when lockdowns ended, and consumers rushed towards premium beverage options served at out-of-home establishments such as restaurants. The trend continued in 2021, with supermarkets purchasing 6.9 million fewer liters than the previous year. However, the squash and cordial category has recovered well this year, surpassing pre-pandemic levels as rising food costs have pushed consumers to spend more economically.

Less is being spent on out-of-home eating and drinking, which has negatively impacted the consumption of soft drinks, juices, and smoothies. Consequently, standard squashes and cordials have emerged as the most suitable alternatives. Major players in the hospitality sector are also diversifying their stock to cater to budget-conscious consumers. Squash and cordials also have a longer shelf life, offering economic and environmental advantages.

Consumers are also becoming more health conscious and reducing their alcohol and sugar intake. Premium cordials offer healthier substitutes for alcoholic beverages and carbonated/sugar-filled drinks. Squashes also offer many sugar-free and diet options and can be used for fortification. Many brands in this category are looking to enhance the nutritional benefits of their beverages through naturally derived ingredients in dilutables. The UK government is also planning to ban multi-buy offers and the advertising of food and drink high in saturated fats, salt, and sugar (HFSS). As a result, the choice of ingredients in the production of beverages is becoming more significant as these regulations restrict how HFSS products can be promoted or positioned for retail. The legislation is set to come into effect on Oct-23 and could negatively impact the sales of juices and smoothies high in sugar content, favoring squash and cordials that have low sugar content.

As financial pressures, health, and environmental concerns continue to impact the consumption of drinks, analysts forecast a significant increase in squash and cordial sales in supermarkets and the hospitality sector throughout the rest of the year.