|German carbonated soft drink market
The German carbonated soft drink (CSD) market is a fragmented market. Two of the biggest
players hold more than half the total market volume, the third biggest holding under 2 %.
Drinking 125,5 liters a year, the German CSD consumers favor fruit flavored carbonates,
which is accountable for 53 % of the market. Discounters stand for the highest sales of overall
soft drinks (including CSD, energy drinks, bottled water, RDT coffee etc.).
The German CSD market has a high threat from substitutes. Soft drinks ranging from energy
drinks to juices stand as valid purchase alternatives. The market is very brand oriented and
segmented accordingly. Trends such as the “health and fitness” continue to drive demand and
may cause brand migration if not considered.
Health and fitness
The German population is increasingly involved with “health and fitness” trends linked to
food and beverage. Solo should market accordingly. Sugar is the number one concern in
regards to CSD, 43 % of our survey respondent’s answer that they were very concerned with
the amount of sugar in their CSD. After gaining initial foothold, launching Solo Super - a
sugar free alternative - would address that concern and could be a strategic advantage.
The German culture is quite similar to the Norwegian culture; affected by factors such as an
aging population, social media and global trends. Establishing business ties in Germany does
not necessarily imply great strategic changes in terms of business culture.
Germans have a positive outlook on Norwegian products in terms of quality and willingness
to try. This country-of-origin effect was especially high in the respondents that had already
used or consumed a Norwegian product. This could be addressed by directly linking Norway
to every product by incorporating a Norwegian flag in the logo.