European Carbonated Soft Drinks (CSD) Market Size (2025 – 2030)

The European Carbonated Soft Drinks (CSD) Market was valued at USD 95.7 billion in 2024 and is projected to reach a market size of USD 122.35 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 4.18%.

The European Carbonated Soft Drinks market is a mature and deeply entrenched sector undergoing a profound and dynamic reinvention. For decades, a bastion of iconic cola brands and sugary fruit sodas, the market is now a crucible of innovation, forced to evolve by a confluence of powerful health and wellness trends, stringent government regulations, and a sophisticated consumer base demanding more than just refreshment. The classic CSD aisle, once a monolithic wall of sugar, is transforming into a vibrant canvas of choice, where tradition and disruption compete for shelf space. This is no longer simply the market for "fizzy drinks"; it is a complex battlefield of sensory experiences, functional benefits, and ethical considerations. The current landscape is defined by a fundamental pivot away from high-sugar formulations. Brands are infusing their carbonated beverages with vitamins, minerals, nootropics for cognitive function, or prebiotics for gut health, repositioning them as wellness products. The market's trajectory is thus a story of adaptation and premiumization. It is a narrative about how a legacy industry is navigating the crosscurrents of public health imperatives and the modern consumer's desire for products that are not only enjoyable but also align with their lifestyle, values, and wellness goals.

Key Market Insights:

• According to a report by Euromonitor 2024 “World Market for Soft Drinks,” Western Europe and North America are entering a phase of volume stagnation, where rising retail prices are limiting consumption growth. In this environment, value growth is increasingly driven by premiumization, product innovation (especially functional or “better-for-you” variants), and strategic mix shifts.
• The "adult soft drink" sub-segment, characterised by complex botanical and bitter flavour profiles, saw a 22% increase in new product launches across Europe in 2024, catering to the demand for sophisticated non-alcoholic alternatives.
• An analysis of consumer purchasing habits in 2024 revealed that packaging sustainability was a direct influence in the final purchasing decision for an estimated 35% of European CSD consumers, with aluminium cans seeing a 15% year-over-year increase in preference over PET bottles.
• The average sugar content in a standard full-sugar CSD in Europe has decreased by approximately 12% since 2019, a testament to industry-wide "stealth health" reformulation efforts in 2024.
• In 2024, functional CSDs—those fortified with vitamins, minerals, or nootropics—represented a niche but rapidly growing 5% of the total market value, with a sales growth rate three times higher than the traditional CSD segment.
• Private label CSDs from major supermarket chains captured an estimated 20% share of the total market volume in 2024, offering low/no-sugar alternatives at a more accessible price point.
• The online retail channel for CSDs in Europe grew by approximately 18% in 2024, driven by the popularity of bulk-buy multi-packs and the convenience of direct-to-home delivery services.
• Cola-flavoured drinks, while still dominant, saw their total market share by flavour erode by 2 percentage points in 2024, as consumers diversified their tastes towards more adventurous fruit and botanical combinations.
• An estimated 40% of all new CSD product development briefs in 2024 explicitly mandated the use of natural flavours and sweeteners, with "no artificial ingredients" becoming a critical on-pack claim.
• The on-trade channel (bars, restaurants) in 2024 saw premium CSDs, particularly those marketed as mixers for spirits, command an average price premium of 50-70% over standard offerings.

Market Drivers:

The European consumer's deep-rooted focus on health and wellness is the primary force reshaping the CSD market.

This is not merely a trend but a fundamental shift in lifestyle and purchasing criteria. Consumers are actively scrutinising labels, rejecting high-sugar products, and seeking beverages that offer more than just empty calories. This has forced the industry to innovate at an unprecedented pace, leading to the explosive growth of low- and no-sugar variants, the adoption of natural sweeteners, and the creation of "functional" CSDs fortified with vitamins and minerals, effectively transforming a traditional treat into a permissible indulgence or even a wellness product.

In an increasingly crowded market, consumers are seeking out unique, high-quality, and authentic experiences, a trend known as premiumization.

They are willing to pay more for CSDs that offer sophisticated, adult-oriented flavour profiles (e.g., botanical, herbal, spicy), use high-quality natural ingredients, and have a compelling brand story. This has fueled the rise of the craft soda movement, mirroring the trajectory of craft beer. These products serve as sophisticated non-alcoholic alternatives in social settings or as premium mixers, elevating the entire CSD category from a simple commodity to an affordable luxury.

Market Restraints and Challenges:

The most significant restraint is the enduring negative public health perception attached to the CSD category, which creates a constant headwind even for healthier variants due to concerns over artificial sweeteners and acidity. The complex and fragmented regulatory landscape across Europe, with varying sugar taxes, advertising restrictions, and labelling requirements in different countries, creates significant operational and marketing challenges for manufacturers, increasing compliance costs and hindering pan-European product strategies.

Market Opportunities:

A major opportunity lies in the burgeoning at-home entertainment and cocktail culture, creating a robust market for premium CSDs specifically designed as high-quality mixers for spirits and sophisticated mocktails. There is also immense potential in leveraging sustainable packaging as a core brand pillar; transitioning to 100% recycled PET (rPET) or promoting the infinite recyclability of aluminium cans can attract environmentally conscious consumers. Furthermore, deep innovation in functional beverages—such as CSDs with proven benefits for focus, relaxation, or gut health—can open up entirely new consumer segments.

EUROPEAN CARBONATED SOFT DRINKS (CSD) MARKET REPORT COVERAGE:

European Carbonated Soft Drinks (CSD) Market Segmentation:

European Carbonated Soft Drinks (CSD) Market Segmentation by Flavour:

• Cola
• Fruit-Flavoured (Lemon, Orange, etc.)
• Others (Ginger Ale, Tonic, Botanicals)

The fastest-growing segment is Others. This category, particularly beverages with botanical, herbal, and spicy notes, is experiencing explosive growth. It caters to the adult palate and the demand for sophisticated, less sweet non-alcoholic options, and it is also the engine of the premium mixer market.

The most dominant segment is Cola. Despite evolving tastes, the iconic and familiar flavour of cola, supported by the immense marketing power and brand equity of legacy players, ensures its continued dominance in terms of sheer volume and market value. It remains the bedrock of the CSD industry.

European Carbonated Soft Drinks (CSD) Market Segmentation by Sugar Content:

• Regular (Full Sugar)
• Low/No-Sugar

The fastest-growing segment is Low/No-Sugar. This segment's growth is phenomenal, as it aligns perfectly with all major market drivers: health consciousness, regulatory pressure (sugar taxes), and manufacturer innovation. It is rapidly capturing share from its full-sugar counterparts across all flavour categories.

The most dominant segment is also Low/No-Sugar. In a significant market inversion, low- and no-sugar variants have now surpassed traditional sugary drinks in volume in many key European markets. This reflects a permanent shift in consumer preference and has become the new centre of gravity for the industry.

European Carbonated Soft Drinks (CSD) Market Segmentation by Packaging:

• PET Bottles
• Metal Cans
• Glass Bottles

The fastest-growing segment is Metal Cans. Propelled by their strong sustainability credentials (high recycling rates), convenience for on-the-go consumption, and suitability for multi-packs, aluminium cans are gaining significant consumer preference. They are also seen as a more premium option for craft and speciality sodas.

The most dominant segment is PET Bottles. Due to their low cost, light weight, and versatility in sizing (from single-serve to large family packs), PET bottles remain the dominant packaging format by volume, especially within the high-volume supermarket and hypermarket channels.

European Carbonated Soft Drinks (CSD) Market Segmentation by Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• On-Trade (Restaurants, Bars, Cafes)
• Online Retail

The fastest-growing segment is Online Retail. The convenience of bulk purchasing, the rise of quick-commerce grocery delivery apps, and the ability for smaller craft brands to reach consumers directly have made the online channel the most dynamic and rapidly expanding route to market.

The most dominant segment is Supermarkets/Hypermarkets. These large-format retail stores remain the primary purchasing point for CSDs, accounting for the majority of sales volume. Their extensive reach, promotional activities, and focus on multi-pack formats make them the cornerstone of the industry's distribution strategy.

European Carbonated Soft Drinks (CSD) Market Segmentation: Regional Analysis:

• UK
• Germany
• France
• Italy
• Spain
• Rest of Europe

The dominant market is Germany (28%), owing to its large population and high per capita consumption. The Rest of Europe (18%) represents the fastest-growing segment, fueled by rising disposable incomes in emerging economies. Other key markets include the UK (20%), France (14%), and Spain (11%).

European Carbonated Soft Drinks (CSD) Market COVID-19 Impact Analysis:

The COVID-19 pandemic created a tale of two channels for the European CSD market. The on-trade sector (bars, restaurants, cafes) suffered catastrophic declines due to widespread lockdowns and closures. Conversely, the off-trade sector experienced a massive surge as consumers shifted to at-home consumption. This accelerated the growth of multi-packs and larger bottle formats sold through supermarkets and online channels, a trend that has shown significant post-pandemic stickiness and reshaped purchasing habits.

Latest Market News:

• September 2025: Suntory Beverage & Food Europe announced a €15 million investment in its French production facility to create a new, dedicated line for bottling its soft drinks in 100% recycled PET (rPET), aiming to meet its sustainability goals by 2030.
• July 2025: UK-based craft soda brand Franklin & Sons secured a major distribution deal with a leading European supermarket chain, placing its range of premium tonic waters and sophisticated soft drinks in over 500 stores across Germany and the Netherlands.

Latest Trends and Developments:

A key trend is the rise of "hybrid beverages" that blur categorical lines, such as carbonated drinks with cold-brew coffee, fermented kombucha-like sodas, or sparkling waters with a hint of alcohol. There is also a strong push towards "clean labels," with consumers demanding simple, recognisable ingredients and the removal of artificial additives. The use of advanced natural sweeteners and flavour-masking technologies to improve the taste profile of zero-sugar drinks remains a critical area of R&D focus.

Key Players in the Market:

1. The Coca-Cola Company
2. PepsiCo, Inc.
3. Keurig Dr Pepper Inc.
4. Suntory Beverage & Food Europe
5. Britvic PLC
6. Nichols PLC
7. Eckes-Granini Group
8. Refresco Group N.V.
9. Fever-Tree Drinks PLC
10. Royal Unibrew A/S