After independence, the food habit of Bangladeshi people has been changed a lot. People prefer to take Western food after the 1980s besides our traditional food. Due to globalization, many foreign food and beverage companies established their business in Bangladesh as beverage includes carbonated Soft Drinks, Yoghurt, Soup, and Lacchi, etc. Thirsty people take beverages for refreshment and entertainment.
At present Bangladesh has a very competitive market of soft drinks. In the 1980s, two or three soft drinks companies were available in the market. Now lots of soft drinks companies are operating in Bangladesh though some of them are very popular. In the past, the annual market size of carbonated soft drinks in Bangladesh was around Tk 1,400 crore. Which was growing at 15 percent a year. But in 2011, the market size was Tk. 1500 crore and the growth rate was 20% yearly. The mix of consumers in the soft drinks market encompasses 79% urban consumers and 21% semi-urban consumers. And the demand for soft drinks according to area and age in semi-urban areas is 65% of total consumers and in urban areas it is 100% (Source: Authors’ Survey, 2012).
Soft drinks market analysis
The soft drinks market is very competitive and the competition is very healthy. The recent condition of sales of these companies from the survey that was conducted on retailers and distributors in different areas of our country, it will be found that among the 26 retailers, 23% of retailers said Coca-Cola is in the best-selling, 20% of them said 7 up, 4% of them said Mojo and Clemon, 46% of retailers said Mountain Dew and 8% of them said Sprite is in the best-selling position. Then in the case of distributors’ point of view, it is found 30% of distributors said 7 up is in the best-selling position. Then 30% of them said Coca-Cola, 20% of them said Mojo and Clemon and 20% of them said Sprite is in the best-selling position.
Soft drinks market share in Bangladesh
| Company’s Name | Market Share |
| PepsiCo | 35% |
| Coca-Cola | 25% |
| Akij Beverage Ltd | 15% |
| Pran Beverage Limited | 10% |
| Partex Beverage Ltd | 08% |
| Others | 07% |
From the whole analysis, we see that the global brand PepsiCo is in a much better position in competitive positioning model, share of market mind and heart, brand awareness, competing brand scenarios, and consumers’ advertising awareness, ranking of soft drinks. Then in the case of retailers’ satisfaction with doing business with soft drinks companies, they prefer the local brands to do business because of lower prices with better demand than global brands. It was also found that in rural areas people like to take drinks that are relatively cheaper and most of the retailers want the minimization of the price of these global brands due to the difficulty in earning profits for the increased cost of electricity in Bangladesh.
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