Carbonated Soft Drinks Market

Global Carbonated Soft Drinks Market Size (2024 to 2029)

The size of the global carbonated soft drinks market was valued at USD 232.01 billion in 2024. The global market is estimated to reach USD 305.6 billion by 2029 from USD 242.9 billion in 2024, registering a CAGR of 4.7% from 2024 to 2029.

Current Scenario of the Global Carbonated Soft Drinks Market

The carbonated soft drinks market is matured and saturated in developing countries like the United States, Germany, Germany, Japan, etc. The market is also extensively popular in emerging economies like India and Brazil due to the growing middle-class population. However, the recent economic ups and downs, the high inflation rate, and the substantial increase in the price of food continue to influence customer’s buying decisions in online platforms or supermarkets. People now desire to have the finest of every item they purchase at the best possible price. The necessity has surpassed the good taste.

MARKET DRIVERS

The brand loyalty and strong marketing campaigns by the manufacturers of the carbonated soft drinks market are majorly boosting the global market growth. In addition to that, rapidly expanding distribution channels in emerging markets, growing innovation in flavor variations and packaging, rising demand for ready-to-drink beverages, growing demand for low-calorie and zero-sugar options continuous product development to cater to changing tastes are promoting the growth of the carbonated soft drinks market.

Carbonated soft drinks have been in demand by high-net-worth individuals (HNWI) in developed nations leading to growth in the market. Research & Development of minimal-calorie drinks catering to the needs of customers concerned with health. Diet drinks are trending due to the transparency in their content mentioned through labeling. Acquisition of small vendors by the major players in order to gain global presence and expand their reach along with their product portfolios. Automation in production has led to higher supply catering to the high demand in the market. Due to automation, the production time and cost of production have been reduced fueling the growth in the market. Another major driver of market growth in the forecast period is expected to be aggressive business strategies. These strategies include wide-scale advertisements through digital media.

The high sugar content and artificial sweeteners in soft drinks are making the manufacturers of carbonated soft drinks invest in R&D to develop products as per the preferences of consumers. The growing health concerns and awareness have completely shifted the market dynamics towards the innovation of the new product. More focus is being concentrated on R&D to develop new products with minimal calories. The trends that keep the market steady are the growing demand for soft drinks by high-net-worth individuals in developed nations. Major players in the carbonated soft drinks industry have been in the act of acquiring small-scale vendors to expand their reach and customer base.

The key trend in the carbonated soft drinks market is tied to the increasing demand for products concerning health and sustainability. The market is witnessing a shift to organic products with clean labels, such as teas, low-sugar beverages, and fortified drinks. These products claim to be healthy, significantly challenging the carbonated soft drinks market. To remain competitive, companies are focused on developing products aligned with the consumer’s interests. Also, more people have been paying attention to labeling. Therefore, transparency is also a priority to build a trustworthy relationship with the customer.

MARKET RESTRAINTS

Factors such as health concerns related to sugar content, growing awareness of the negative health impacts of artificial sweeteners and competition from healthier beverage options are hampering the growth of the global market. The shift in consumer preferences towards natural and organic products and increasing demand for alternative refreshment options such as tea and coffee are hindering the growth of the carbonated soft drinks market. Health lobbyists cause a major challenge to the carbonated soft drinks market. Rising health concerns are restraining the growth of the market. Carbonated soft drinks are being replaced by drinks with health benefits. Another restraint in the market growth may be linked to the packaging of the material. Due to stringent rules against the usage and disposal of plastic, the market is expected to face a hindrance in its growth. Another limitation in the market is the low profit margin associated with the sale of the product. The decline in sales may lead to loss by the companies due to lower profits generated.

MARKET OPPORTUNITIES

Asia Pacific presents potential opportunities for the expansion of the carbonated soft drinks market. The region will experience a steep rise in sales volume of low-calorie soft drinks in the coming five years. This can be attributed to the expanding middle-class population which is ready to pay more for healthier drink products. Also, the APAC population is comparatively younger than that of North America and Europe, so the demand for carbonated soft drinks is anticipated to be high. Besides these, drinkers are presently impacted by elevated inflation and are exploring the right balance between cost and performance. There are possibilities or chances for the beverage companies to capitalize on this. Particularly in the case of drinks having a high percentage of fruit juice.

MARKET CHALLENGES

The rising demand for ready-to-drink (RTD) cocktails is a key hurdle for the carbonated soft drink market. This market has already reached the maturity level and is extremely saturated, so the introduction of new RTD cocktails will take the customers looking for something new. For instance, in February 2024, Sprite and Absolute Vodka introduced a new ready-to-drink cocktail in Europe under the partnership and is known as Absolut Vodka & Sprite. This drink is only available in Europe.  Additionally, according to industry experts, the market is expected to see further challenges will Asian-flavoured cocktails becoming more popular. It appears that several cocktail or RTD customers are a little bored of overpowering flavours like passion fruit and coffee, they are exploring more soft and pure flavours, and lychee is a fine, however still exotic flavour.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Carbonated Soft Drinks Market Analysis By Flavor

The cola segment is expected to maintain the growth rate among the other categories in the carbonated soft drinks market over the forecast period. The introduction of diet products in the market has led to the growth of the cola segment. Moreover, the surging sales of cola-based fizz drinks due to the hot summer in 2024 is driving the market share of the segment. As per industry experts, 52 per cent of customers weigh claims for food and beverage products associated with health and mood to be attractive. On the other hand, the lemon and lime segment also holds a notable share of the market because of growing awareness about being healthy.

Global Carbonated Soft Drinks Market Analysis By Packaging

The bottles segment has been registering a higher growth rate than the cans segment, and it is expected to maintain its dominance over the forecast period. The majority of consumers prefer bottled drinks for several reasons including chilled beverages taking a longer time to get a warm, comfortable grip over hands, low cost as compared to canned ones, etc. Apart from this, a large section of the population in developing and poor countries further use the empty bottle for other purposes which is another factor influencing the sales of this segment. Furthermore, the adoption of recyclable plastic to draw public attention and subsequent incentives by governments are elevating the market size.

Global Carbonated Soft Drinks Market Analysis By Distribution

The store-based segment had the leading share of the carbonated soft drinks market in 2023. The segment is further classified into supermarkets/ hypermarkets, and others. The supermarkets/hypermarkets experienced the maximum growth which is driven by the extensive reach and lucrative weekly offer by these big retail chains worldwide. In addition, the rising penetration of companies like Tesco, Target, Walmart and others will redefine the segmental sales channels during the estimation period. As of 2023, Walmart was present in about 19 nations with a total of over 10000 stores.

REGIONAL ANALYSIS

The global leader in the carbonated drinks market in terms of consumption in Europe.

In the region, countries like Germany, France, and the UK are leading due to changing preferences for food and the early introduction of carbonated soft drinks. Also, the market is influenced by the increasing consumption of low-calorie and no-sugar drinks of main companies such as Coca-Cola Cola with zero- and low-calorie segments being a “development powerhouse” for the company in Western Europe.

In Asia Pacific, Cola is one of the most popular drinks in terms of flavour.

There is a growing demand for carbonated and dairy drinks combination. Also, increasing disposable income in developing nations, particularly in the Asia Pacific region, is fueling the growth of the market in those regions.

North America accounts for a major share of the carbonated soft drinks market.

Uniqueness and portfolio expansion have emerged as major propellers for the growth of the North American market. Regional development has been fuelled by rapid urbanization and the widespread existence of on-the-go lifestyles, which has surged the consumption of handy and portable drinks. The rising direct-to-consumer (DTC) and e-commerce channels have become robust growth factors in the carbonated soft drinks market in North America.

KEY PLAYERS IN THE GLOBAL CARBONATED SOFT DRINKS MARKET

Key players in global carbonated soft drinks market are Coca-Cola, PepsiCo, Cadbury Schweppes, Parle Agro, Postobon, Cott Corporation, Dr. Pepper Snapple Inc. and AJE Groups are a few of the dominating players in the global carbonated soft drinks market.

RECENT HAPPENINGS IN THE MARKET

• In April 2024, Varun Beverages Ltd reported the commencement of the manufacturing process of energy drinks and carbonated soft drinks at its factory located in Gorakhpur (India). The company had 40 advanced production facilities, of these 6 are overseas and 34 are in India, as of December 31, 2023.
• In December 2023, PepsiCo press released the introduction of Starry which is a lime and lemon carbonated soft drink with a refreshing and crisp taste. Initially, the beverage was available at United States retail shops in zero-sugar and regular versions.

DETAILED SEGMENTATION OF THE GLOBAL CARBONATED SOFT DRINKS MARKET INCLUDED IN THIS REPORT

This research report on the global carbonated soft drinks market has been segmented and sub-segmented based on flavor, packaging, distribution and region.

By Flavor

• Cola
• Lemon and lime
• Orange
• Others

By Packaging

• Bottles
• Cans

By Distribution

• Store-based
• Non-store-based

By Region

• North America
• Europe
• Latin America
• Asia Pacific
• Middle East & Africa