Carbonated Soft Drinks Market Size (2024 – 2030)

The Global Carbonated Soft Drinks Market was valued at USD 465.59 billion in 2023 and will grow at a CAGR of 4.4% from 2024 to 2030. The market is expected to reach USD 629.37 billion by 2030.

Key Market Insights:

The carbonated soft drinks market is facing a fizz with stagnant sales in developed regions due to health concerns and a shift towards low-calorie and natural beverages. However, there's a bright side: emerging markets in Asia and Africa present a promising growth opportunity, driven by rising disposable incomes and a youthful population. This trend is countered by a growing focus on healthier lifestyles, with consumers opting for sugar-free or organic alternatives. To stay afloat, manufacturers are reformulating classic sugary drinks and developing innovative flavor profiles to entice health-conscious consumers, while also leveraging strong brand recognition and distribution networks to maintain market share.

Global Carbonated Soft Drinks Market Drivers:

Rising disposable incomes in emerging markets are driving the market

Fueled by economic booms in Asia, Africa, and Latin America, a vast new generation of consumers is emerging. This population boasts increased disposable income, translating into a greater ability to indulge in previously out-of-reach treats like carbonated soft drinks. This shift presents a golden opportunity for beverage companies. These regions boast young, growing populations with a taste for exciting flavors and established brands. To capitalize on this trend, expect to see targeted marketing campaigns and product diversification catering to these newfound consumers, potentially shaping the global soft drink landscape for years to come.

The growth of e-commerce channels is driving the market

The surge of online shopping has revolutionized how people buy groceries, including carbonated soft drinks. This convenience factor is particularly impactful for those in remote areas who previously faced limited access. Online retailers offer a wider selection of brands and flavors compared to local stores, allowing consumers to discover new favorites or find specific varieties they crave. Additionally, online grocery delivery eliminates the hassle of heavy bottles and can carry, making it easier for everyone to stock up on their favorite fizzy beverages. This online boom also benefits manufacturers by creating a direct channel to reach new customers and expand their market reach beyond traditional brick-and-mortar stores. So, whether you live in a bustling city or a remote village, the online world is making it easier than ever to quench your thirst for your favorite carbonated beverage

Shifting consumer preferences towards healthier options is driving the market

The tides are turning in the carbonated soft drink market, with health-conscious consumers driving a surge in demand for low-calorie, low-sugar, and natural ingredient options. Recognizing this shift, manufacturers are scrambling to adapt. New product lines are bubbling up, featuring innovative sweeteners, natural flavors, and a focus on reduced sugar content. This reformulation aims to retain the classic soda experience while addressing consumer concerns about health and well-being. The competition is fierce, with brands vying to develop the most appealing and guilt-free alternatives. This consumer-driven revolution is not only reshaping what's on store shelves but also pushing the boundaries of flavor creation and formulation in the soft drink industry.

Global Carbonated Soft Drinks Market challenges and restraints:

The plastic packaging used for most soft drinks raises environmental concerns

The environmental impact of plastic soft drink bottles is a major concern for eco-conscious consumers and the beverage industry alike. These single-use bottles contribute to plastic pollution, harming wildlife and ecosystems. Consumers are increasingly demanding sustainable alternatives, pushing companies to innovate. The industry needs solutions that minimize environmental impact, such as using recycled plastic content, exploring biodegradable materials, or implementing refillable bottle programs. By embracing sustainable packaging, soft drink companies can cater to environmentally conscious consumers and reduce their overall environmental footprint.

Consumers are increasingly health-conscious and are moving towards beverages perceived as healthier

The tide is turning away from sugary sodas as health-conscious consumers seek out beverages perceived as healthier. Sparkling water, for instance, offers a refreshing alternative with minimal calories and no sugar. Functional drinks, on the other hand, go beyond hydration by boasting added benefits like electrolytes for exercise or probiotics for gut health. This focus on well-being is being driven by increased access to information about the connection between diet and health. As a result, consumers are making informed choices, opting for beverages that align with their desire for a healthier lifestyle. This shift in preferences is creating a boom in the market for sparkling water and functional drinks, forcing traditional soft drink companies to adapt and innovate to stay relevant

Market Opportunities:

The global carbonated soft drinks market presents a landscape of both challenges and exciting opportunities. While developed markets grapple with stagnating sales due to health concerns, a golden opportunity awaits in the booming economies of Asia, Africa, and Latin America. This surge creates a vast new generation of consumers with disposable income ready to explore the world of fizzy beverages. Manufacturers can capitalize on this by developing targeted marketing campaigns and a wider variety of flavors to cater to these youthful, adventurous palates. However, the overall market requires strategic innovation. The health-conscious movement demands a reformulation focus, with low-calorie, low-sugar, and natural ingredient-based options taking center stage. This opens doors for exploration with alternative sweeteners and flavoring solutions. Furthermore, the e-commerce boom presents a new distribution channel, particularly for remote areas, allowing easier access to a wider selection of beverages. By embracing these trends, utilizing online platforms, and prioritizing health-conscious options, soft drink companies can navigate the changing tides and secure their place in a constantly evolving market.

CARBONATED SOFT DRINKS MARKET REPORT COVERAGE:

Carbonated Soft Drinks Market Segmentation - by Flavour

• Cola

• Citrus

While citrus flavors are a rapidly growing segment within the carbonated soft drinks market, cola still reigns supreme [1, 3]. This dominance stems from two key factors: brand recognition and established preference. Decades of marketing and brand loyalty have solidified cola's position as the most popular flavor. Citrus, on the other hand, represents a more diverse and fragmented category, with various successful flavors like lemon and orange vying for market share. Although citrus is experiencing faster growth, it hasn't dethroned the long-standing cola giants.

Carbonated Soft Drinks Market Segmentation - By Type

• Standard

• Diet/Sugar-Free

• Low-calorie

Traditional soft drinks with high sugar content likely hold the biggest market share currently. This dominance is likely due to their long-established presence, brand recognition, and familiar taste

Carbonated Soft Drinks Market Segmentation - Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America holds the crown as the dominant region, boasting strong brand loyalty, particularly for colas. Consumers here are familiar with major brands and have established preferences. On the other hand, the Asia Pacific region is the undisputed champion of growth. Fueled by rising disposable income and a young, populous demographic, this region is experiencing a surge in demand for carbonated soft drinks, making it the fastest-growing market worldwide.

COVID-19 Impact Analysis on the Global Carbonated Soft Drinks Market

The COVID-19 pandemic threw a curveball at the global carbonated soft drinks market. While the overall market size dipped initially due to lockdowns and business closures, the impact wasn't uniform across segments. The forced closure of restaurants, bars, and sporting events – typically significant channels for on-the-go consumption – resulted in a sharp decline in sales. This hit companies hard, as on-trade sales often account for a larger share of revenue compared to volume. However, the flip side of the coin saw a rise in in-home consumption as people stocked up on groceries during lockdowns. This benefitted supermarkets and hypermarkets, the primary channel for at-home purchases. Additionally, with health concerns at the forefront, consumers gravitated towards low-calorie and sugar-free options, boosting that specific market segment. Overall, the pandemic's impact on the market was mixed. While it disrupted traditional distribution channels and dampened overall consumption, it also spurred growth in certain segments and accelerated pre-existing trends toward healthier beverage choices. The long-term effects are still unfolding, but the market is expected to experience a rebound and resume its growth trajectory, albeit with a possible shift towards in-home consumption and a continued focus on health-conscious alternatives.

Latest trends/Developments

The carbonated soft drinks market is fizzing with innovation as consumer preferences shift towards health and sustainability. A major trend is the reformulation of classic sugary drinks with reduced sugar content or alternative sweeteners like stevia and monk fruit. This caters to health-conscious consumers seeking a taste of nostalgia without the sugar rush. Another key trend is the booming popularity of functional drinks infused with beneficial ingredients like probiotics, vitamins, and electrolytes. These drinks position themselves as healthier alternatives to traditional sodas, offering an added perk alongside refreshments. Flavor innovation is another exciting trend, with new options like sparkling water infused with real fruit flavors or adventurous flavor combinations like hibiscus and vanilla. Sustainability is also on the tap, with companies exploring eco-friendly packaging solutions like recycled plastic bottles, biodegradable materials, and refillable bottle programs. This caters to environmentally conscious consumers and helps reduce the industry's environmental footprint. The future of carbonated soft drinks seems to be sparkling with options that cater to health, functionality, taste bud exploration, and environmental responsibility.

Key Players:

1. The Coca-Cola Company

2. PepsiCo Inc.

3. Keurig Dr Pepper

4. Asahi Group Holdings Ltd.

5. Nestlé S.A.

6. Red Bull GmbH

7. Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA)

8. Britvic plc

9. Cott Corporation