North America Carbonated Soft Drinks Market

North America Carbonated Soft Drinks Market Size Analysis:

North America Carbonated Soft Drinks Market size is estimated to experience reasonable growth to record a CAGR of 3.1% throughout the estimated period (2022 - 2027).

Carbonated non-alcoholic beverages are usually consumed beverages that comprise Synthetic flavoring substances, sweeteners, organic additives, and carbonated water. The added sweetener in sodas contains mixed ingredients like lots of sugar, a high fructose content like corn syrup, and fruit extracts. Carbonated drinks can also contain colors, preservatives, caffeine, and many other ingredients. The non-alcoholic carbonated beverage category also includes iced teas, fruit drinks, and other non-alcoholic beverages. Soft drink is a beverage which consists of carbonated water or still water, a sweetening agents and flavouring substances. The sweeteners could be either natural or artificial. Depending on the type of drink it may contain caffeine, coloring agents, stabilizers, preservatives and other ingredients. Soft drink has a very high percentage of which leads to extra transportation charges and occupy excess places in warehouses.

With rising urbanisation, there has been a change in the food habits of the younger generation which is a major factor for the growth of the market. The demand for carbonated soft drink has accelerated with the rising demand for processed food. Increased government scrutiny acts as a market obstacle in the forecast period. Due to the high sugar content, consumers are becoming conscious of consuming the carbonated soft drinks.

REPORT COVERAGE:

Recent Developments:

1. In April 2019, Keurig Dr Pepper collaborated with Lance Collins, a serial beverage entrepreneur.
2. In Nov 2019, Jones Soda and Harlan Fairbanks made an agreement to focus on concession and restaurant industries.  The agreement consisted of distributing Jones products in source and frozen slush in the Canadian region and in certain markets of the United States.
3. In July 2020, Keurig Dr Pepper signed a franchise agreement with Polar Beverages, a soft drink company. The agreement provided for the national distribution of Seltzer Polar Seltzer sparkling waters, which includes Polar Seltzer'ade and SeltzerJR, through channels that use the power of KDP's manufacturing and direct store delivery (DSD) network.

Market Drivers and Restraints Insights:

Large fast-food chains such as McDonald's, Dominos, Subway, Pizza Hut, Burger King, and many more offer inexpensive meals for as little as $ 1. Most of these meals are accompanied by a drink that, in most cases, is a soft drink. This greatly increases the sales of soft drinks and helps the market to grow organically without big pushes. 

In many countries, to sustain the number of obesity people, governments imposed sugar tax on the beverages that contain more than 5 grams of sugar per 100ml. This surged the demand for sugar free drinks where major companies like Coco-Cola and Pepsioco introduced carbonated drinks with very less sugar. This increased sales of the carbonated drinks that brought huges profist for the companies. The aforementioned factor is bolstering the growth rate of the market.

However, the excessive presence of sugar in soft drinks is one of the main challenges facing the carbonated soft drink market in North America. Major market players are trying to combat this problem by bringing sugar-free beverages to market by adding sweeteners to stevia that have gained immense popularity. Today's consumers can focus on convenience, and therefore a large portion of everyday shopping includes take-out items rather than conventional wholesale items. This has led to long-lasting innovations and eco-friendly packaging, made from clean, renewable materials and with fewer preservatives and chemicals. Due to growing consumer health awareness, companies are now focusing more on including natural, low calorie, and low sugar ingredients in their products, such as the use of stevia sweeteners rather than “conventional or synthetic sweeteners.”

North America Carbonated Soft Drinks Market Segmentation:

The market for Carbonated Soft Drinks is broadly categorized into type, flavour and distribution channel. By type the market is segmented into standard, diet, fruit flavoured carbonates and others. Diet products are increasingly gaining market share.  By flavour the market is divided into cola, lime, orange and others. Cola is currently dominating the market share. By distribution channel the market is classified into supermarkets, independent retailers, convenience stores and others.Supermarkets account for the largest market share. On the basis of geography, the market is analysed under various regions namely U.S.A and Canada. The consumption in the North American region has started dwindling due to the rising obesity issues.

Impact of COVID-19 on North America Carbonated Soft Drinks Market:

COVID-19 has had a negative impact on the North America Carbonated Soft Drinks Market. Coca-Cola posted a 25% drop in volumes in April due to the impact of Covid-19. There was a spread of misinformation that led to the drop in sales. Covid-19 has raised various health problems among people. As a result, people avoid products with negative health reviews. The main consuming countries were closed to trade and business, which had a negative impact on activity. Therefore, the soft drink industry has been greatly affected by Covid-19.

Regional Analysis:

The market for North America Carbonated Soft Drinks has been categorized on the basis of geography to offer a clear understanding of the market. North America Carbonated Soft Drinks Market has been divided into the United States, Canada, Mexico, and the rest of North America. 

According to United States centre for Disease Prevention and Control, approximately 84.8 millions adults consume carbonated drinks especially in the US. Almost every meal associated with a soft drink in fast-food restaurants has boosted the North American soft drink market, which has seen an extraordinary increase in recent years. This indirectly forces consumers to opt for meals over stand-alone dishes, helping to drive soft drink sales.

Leading Company

Monster Beverage Corp. had the largest share of the North America Carbonated Soft Drinks Market in terms of sales revenue in 2021.

Some of the Major Players Covered in the Market Report:

The North America Carbonated Soft Drinks Market is concentrated with well-established players. Key players in the North America Carbonated Soft Drinks Market include Dr Pepper Snapple Group, Monster Beverage Corp., Kraft Foods, Dohler Group, Cott Corporation, the Coca-Cola Company, PepsiCo Inc., Parle Agro, and Britvic PLC.