Slumping demand for diet sodas sold by PepsiCo and Coca Cola propelled a decline for the broader industry, as overall sales of carbonated soft drinks dropped for the 11th consecutive year in the U.S.
Total volume declined 1.2% in 2015, an acceleration from 2014’s 0.9% drop, as the biggest three players in the category all reported falling demand, according to a new report from industry tracker Beverage Digest. The group also reported that annual per capita consumption of carbonated soft drinks dropped to about 650 eight-ounce servings in 2015 – the lowest since 1985.
PepsiCo suffered the steepest decline among the biggest soda makers, with a 3.1% volume drop. The declines for Coke and Dr Pepper Snapple weren’t as steep as the industry, meaning those soda makers actually grew market share in a down market.
The industry has found itself out of favor as consumers seek beverage alternatives to soda that they deem healthier, notably juices and flavored waters. Those alternatives don’t contain as many calories as soda, and also don’t include ingredients like the sweetener aspartame, which has fallen out of favor in recent years.