The bottled water, soft drinks and juices category continues to play a vital role in the success of convenience retail, with exclusive research showing it remains one of the sector's most dependable sales drivers despite ongoing economic pressures.
The survey, conducted by Zebra Stripes on behalf of Asian Trader, gathered insights from 111 convenience store decision-makers across the UK, providing a snapshot of how retailers view category performance, shopper behaviour and emerging trends. The findings reinforce the importance of drinks as a traffic-driving category while highlighting opportunities for suppliers and retailers to maximise sales.
Photo: Asian Trader
One of the clearest messages from the research is just how essential the category has become to convenience retail. An overwhelming 96.4 per cent of respondents described bottled water, soft drinks and juices as at least moderately important to their overall store sales.
Even more striking, more than eight in 10 retailers (85.5 per cent) rated the category as either “very important” or “extremely important”, with almost half (45.5 per cent) placing it in the highest category. Just 3.6 per cent regarded the category as only slightly important or not important at all, underlining its status as a cornerstone of the modern convenience store.
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The survey also paints an encouraging picture of category performance over the past year. Nearly half of retailers (47.7 per cent) reported sales had increased compared with last year, including 16.2 per cent who said sales were “much higher”. A further 19.8 per cent said performance had remained stable, while only 7.2 per cent experienced declining sales.
Interestingly, a quarter of respondents admitted they were unsure how the category had performed year-on-year. That suggests there remains scope for more retailers to monitor category-specific performance more closely and use sales data to fine-tune ranging and promotional decisions.
Photo: Asian Trader
When asked which drinks segments are performing best, the results highlight the broad strength of the category. More than one-third of retailers (35.1 per cent) believe all drinks segments are performing equally well, reflecting healthy consumer demand across multiple occasions and shopper missions.
Among retailers identifying a standout performer, bottled water emerged as the leading segment, selected by 27 per cent of respondents, closely followed by energy drinks at 24.3 per cent. Carbonated soft drinks remain an important contributor but were identified as the strongest-performing segment by 10.8 per cent of retailers. Fruit juices, flavoured water and sports drinks attracted relatively few votes as the single best-performing segment, although they continue to play important supporting roles within a balanced drinks fixture.
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The dominance of convenience missions is perhaps most evident in retailers' views on pack formats. Seven in 10 respondents identified single bottles and cans as the best-performing format in store, confirming the continuing importance of grab-and-go purchases. Whether consumers are buying a drink for immediate consumption during the commute, lunch break or while travelling, single-serve formats continue to drive category sales.
Nearly one in five retailers reported that all pack formats perform equally well, while multipacks remain relevant for planned purchases, although they trail well behind single-serve options. Larger sharing bottles and chilled grab-and-go formats attracted comparatively limited support as primary sales drivers.
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Energy drinks continue to shape the direction of the wider category. Asked about emerging trends, 43.8 per cent of retailers identified increasing demand for energy drinks as the biggest change they are seeing. The finding reflects the sustained popularity of the segment, which has consistently outperformed much of the wider soft drinks market in recent years.
At the same time, 36 per cent of retailers said they had seen no major changes across the category, suggesting that while innovation continues, bottled water, soft drinks and juices remain a mature and resilient sector.
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Healthier drinks and flavoured beverages are beginning to attract greater attention, each highlighted by 6.7 per cent of respondents, indicating gradual growth in these niches. By contrast, relatively few retailers pointed to premiumisation or customers trading down to cheaper products, suggesting shoppers continue to prioritise trusted favourites regardless of broader economic conditions.
Pricing also remains a key consideration. The research shows the sweet spot for single-serve drinks lies between £1.50 and £2, identified by almost half of respondents as the strongest-performing price bracket.
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Overall, more than three-quarters of retailers reported that their best-performing drinks fall within the £1.50-£3 range, demonstrating that consumers remain willing to spend on well-known brands and popular products when the price proposition is right.
The survey also sheds light on what motivates shoppers to choose one drink over another. Price and promotional activity dominate purchasing decisions, with almost 60 per cent of retailers citing them as the biggest influence.
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Brand strength also remains hugely important, with nearly one-quarter saying brand recognition is the primary purchase driver. Together, promotions and trusted brands account for more than four-fifths of all responses, reinforcing the importance of maintaining competitive promotions while stocking the brands consumers actively seek out.
Factors such as product innovation, healthier choices and sugar content currently play a much smaller role in purchasing decisions.
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Encouragingly, most retailers reported relatively few obstacles within the category. More than half (54.1 per cent) said they face no significant challenges selling bottled water, soft drinks and juices.
For those encountering difficulties, supermarket price competition remains the biggest concern, cited by almost 23 per cent of respondents. Limited chiller space also continues to restrict merchandising opportunities for some stores, while wholesale costs and the impact of the sugar levy were identified by comparatively few retailers.
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Finally, the survey confirms the enduring strength of leading brands across each segment. Evian tops bottled water, Coca-Cola comfortably leads carbonated soft drinks, while Red Bull and Monster Energy remain neck-and-neck in the highly competitive energy drinks sector. Tropicana dominates fruit juice, Volvic Touch of Fruit overwhelmingly leads flavoured water, and Lucozade Sport enjoys by far the strongest retailer preference in sports drinks.
Taken together, the findings present a positive picture for the category. Bottled water, soft drinks and juices continue to generate strong sales, attract regular shopper traffic and provide retailers with reliable opportunities for growth. As energy drinks continue their upward trajectory and on-the-go consumption remains firmly embedded in consumer behaviour, the category looks well positioned to maintain its importance within the UK's convenience channel for the foreseeable future.