Europe Carbonated Soft Drinks Market  Size (2024-2030)

The Europe Carbonated Soft Drinks Market was valued at USD 120.5 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 167.98 billion by 2030, growing at a CAGR of 4.86%.

Carbonated soft drinks (CSDs) are non-alcoholic beverages created from carbonated water, flavored ingredients, and sweeteners, which may include sugar or artificial sweeteners. These drinks are characterized by the presence of additional carbon dioxide, giving them their distinctive effervescence. Ascorbic acid, a powdered form of vitamin C, is commonly incorporated into fruit juices, fruit-flavored beverages, sodas, and beverage mixes. It is recognized for enhancing the nutritional value of these drinks post-processing, making it one of the most important vitamins in this context. Ascorbic acid is the primary antioxidant found in soft drinks. The primary intermolecular forces involved in the carbon dioxide within carbonated soft drinks are electrostatic in nature.

Key Market Insights:

The growth of the European carbonated soft drinks market is largely fueled by the increasing demand for low-calorie and no-sugar options, particularly from major players like Coca-Cola, which identifies these categories as a significant growth driver in Western Europe. However, a notable challenge to this market is the reduction of calcium levels associated with high consumption of phosphoric and citric acids, which are common ingredients in sodas containing ascorbic acid. This decline in calcium absorption poses a substantial barrier to the growth of the European carbonated soft drinks market.

Europe Carbonated Soft Drinks Market Drivers:

The rising trend of fortifying soft drinks is expected to propel the growth of the carbonated soft drinks market in Europe.

Carbonated soft drinks often contain ascorbic acid. Turbid, protein-fortified citrus-flavored soft drinks can be created by adding a protein fortifier, such as cheese whey protein concentrate, provided the final pH of the drink remains within the range of 3.1 to 3.9. Alternatively, a mixture of 50%-95% cheese whey protein concentrate and approximately 50-5% non-fat dried milk can be used if the final pH does not exceed 3.1 to 3.7. This process allows for the effective fortification of soft drinks with protein.

In Europe, the functional beverage market is predominantly led by sports and energy drinks, while a wide variety of other fortified and functional products make up the remainder. There is significant activity in the development of vitamin- and mineral-enhanced beverages as well as herbal drinks. Notably, Germany stands out as one of the few countries with a measurable market for ACE drinks, which are fortified with antioxidant vitamins A, C, and E, although the focus is more on general health rather than specifically highlighting antioxidant benefits. Additionally, probiotic fruit drinks that promote gut health have recently been introduced to the market.

Europe Carbonated Soft Drinks Market Restraints and Challenges:

The rising prevalence of obesity and diabetes is hindering the growth of the carbonated soft drinks market in Europe.

Carbonated soft drinks that contain ascorbic acid generally have a high sugar content. Excessive consumption of these sugary beverages can lead to chronic health issues such as diabetes and obesity, often resulting in weight gain. According to the World Health Organization Europe (WHO-Europe), approximately 60 million individuals in the European region currently suffer from diabetes, which imposes significant personal and economic burdens on the area’s healthcare systems. Additionally, WHO-Europe indicates that the prevalence of obesity has tripled in many countries within the region since the 1980s, with the number of affected individuals continuing to rise at an alarming rate. In response to the negative health impacts associated with high sugar intake, Belgium has implemented a sugar tax on soft drinks, which also applies to diet and sugar-free beverages. These health concerns and regulatory measures are contributing to the challenges faced by the carbonated soft drinks market in Europe.

Europe Carbonated Soft Drinks Market Opportunities:

Sugar free and low calories products are creating more opportunities in the market.

There is a growing demand for low-calorie and sugar-free alternatives among consumers, driven by health concerns related to high sugar intake, as well as the rising rates of diabetes and obesity. Currently, approximately 13% of adults globally are classified as obese, while 39% are considered overweight. Another significant factor influencing the market landscape is the introduction of regulatory measures designed to curb sugar consumption. Governments in various regions are implementing taxes on sugary beverages and enforcing labeling requirements to promote healthier choices.

EUROPE CARBONATED SOFT DRINKS MARKET REPORT COVERAGE:

Europe Carbonated Soft Drinks Market Segmentation:

Europe Carbonated Soft Drinks Market Segmentation By Type:

• Standard
• Diet
• Fruit Flavored Carbonates
• Others

The diet segment currently holds the largest market share, primarily due to the absence of sugar and calories in diet sodas. Carbonated soft drinks often contain ascorbic acid, and some studies suggest that replacing regular soda with diet alternatives may help reduce fat accumulation in the liver. The growing availability of diet versions for nearly every sugar-sweetened beverage on the market is further driving the expansion of this segment.

Additionally, the "Others" segment is projected to experience the fastest growth during the forecast period, as consumers increasingly seek healthier, fortified, and organic options in carbonated soft drinks that include ascorbic acid.

Europe Carbonated Soft Drinks Market Segmentation By Flavor:

• Cola
• Lime
• Orange
• Others

Fruit-flavored carbonated beverages are projected to achieve the highest compound annual growth rate (CAGR) during the forecast period. These sodas, often formulated with natural sweeteners and low or no-calorie options, resonate with consumers' increasing health awareness. The growing preference for natural ingredients, coupled with a desire for diverse flavor profiles, is expected to drive demand for these fruit-flavored sodas infused with natural sweeteners in the coming years.

In February 2023, PepsiCo launched a caffeine-free lemon-lime soda called Starry Lemon & Lime, available in both regular and zero-sugar versions.

Europe Carbonated Soft Drinks Market Segmentation By Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Stores
• Specialist Stores
• Others

Supermarkets and hypermarkets currently dominate the market, driven by the comprehensive shopping experience they provide. Carbonated soft drinks containing ascorbic acid are available in various categories, including no-sugar and low-calorie options. The rapid urbanization and well-established distribution networks in Europe are further supporting the growth of the supermarkets and hypermarkets sector.

Additionally, the online retailing segment is projected to experience the fastest compound annual growth rate (CAGR) during the forecast period. This growth is largely attributed to the expanding landscape of online channels, including e-commerce websites, and the online presence of key players like Coca-Cola in the European carbonated soft drinks market, especially during the lockdowns and stay-at-home measures imposed globally during the COVID-19 pandemic. The convenience of online shopping, coupled with home delivery options and the easy accessibility of carbonated soft drinks containing ascorbic acid, is significantly boosting the growth of this segment.

Europe Carbonated Soft Drinks Market Segmentation- by region

• Germany
• United Kingdom
• France
• Italy
• Spain
• Rest of Europe

Belgium accounts for the highest revenue share in the carbonated soft drinks market and is expected to maintain its dominance due to the exceptionally high per capita consumption of carbonated beverages, averaging nearly 109 liters, largely influenced by the contemporary lifestyle in the region. This growth is also driven by increased home consumption of carbonated soft drinks containing ascorbic acid, particularly from leading brands during the global lockdowns and stay-at-home orders imposed during the COVID-19 pandemic. Additionally, the rising consumer interest in novel and innovative flavors is further enhancing the growth of the carbonated soft drinks market in Belgium.

On the other hand, the German region is anticipated to experience the fastest compound annual growth rate (CAGR) over the forecast period. This growth can be attributed to a growing demand for healthy and sustainable products. Consumers are increasingly shifting towards organic options with "clean labels," which include teas and lower-sugar beverages. The rising popularity of fortified carbonated soft drinks that contain ascorbic acid, as well as zero-calorie options, is driving the growth of the carbonated soft drinks market in Germany.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic significantly affected the food and beverage industry, resulting in substantial sales declines. During lockdowns, the closure of supermarkets and department stores severely impacted the carbonated soft drinks market, leading to a considerable drop in sales and revenue. Additionally, many production facilities within the industry were shut down, further disrupting distribution channels and contributing to decreased soft drink sales.

In the post-COVID era, the carbonated soft drinks market continues to encounter challenges as consumers increasingly gravitate towards organic and natural beverages. This shift is fueled by a growing emphasis on health and immunity, which has negatively influenced the demand for traditional carbonated soft drinks.

Latest Trends/ Developments:

• In November 2022, Coca-Cola launched its new campaign, “Real Magic at Christmas,” aimed at reminding everyone that the holiday season is about community and togetherness. The campaign features a short film depicting a boy who moves into a new home with his mother during Christmas and notices the absence of a fireplace. Understanding that this means there is no chimney for Santa, he decides to build one himself, with help from his neighbors. This culminates in a magical moment during a Christmas dinner shared over a Coke.