Middle East and Africa Carbonated Soft Drinks Market Size (2025 – 2030)

The Middle East and Africa Carbonated Soft Drinks Market was valued at USD 23.97 billion in 2024 and is projected to reach a market size of USD 28.92 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 3.18%.

The Middle East and Africa Carbonated Soft Drinks Market characterizes the volatile segment of the beverage market that is going through significant change due to changing consumer tastes and preferences, cultural forces, and changing lifestyles. The consumer environment is influenced by a young demographic base with an increasing desire to consume refreshing, convenient, and tasty varieties of drinks, contributed by the accelerated urbanization and the escalating purchasing power. The international and regional players are constantly developing their portfolios, launching new flavours, sugar-free products, and high-end products as they seek to satisfy the different tastes of people and meet the growing demands of health awareness. Also, the increased demand in both urban and semi-urban centres has been enhanced by the increasing popularity of on-the-go consumption and the increasing popularity of fast-service restaurants. In the Middle East, the trend of the popularity of fizzy and sweet drinks remains to be blended with the new trends in wellness, whereas the growing retail infrastructure of the region and the younger population also act as prime sources of growth. Marketing campaigns, sports sponsorship, and digital interaction have been found to play a significant role in increasing brand penetration among diverse consumer groupings. The region has curbed opportunities that are promising to carbonated beverage-owned firms that seek to strike the right balance between luxury and creativity, despite the difficulties that the industry may face in terms of regulatory limitations on sugar content and the volatility of raw material prices.

Key Market Insights:

Between 2021 and 2023, online grocery sales grew at a 27% CAGR in the UAE and 25% in Saudi Arabia, driven by higher digital adoption and grocery delivery expansion — creating an outsized opportunity for branded carbonates via online promotions, subscriptions, and dark-store assortments. McKinsey & Company

Post-tax studies show carbonated drink prices in one large GCC market rose ~67% after reformulation/tax changes, and reported per-capita annual soda purchases fell 41% to 58% in follow-up measurements — underlining that taxation + reformulation can rapidly reduce sugary-carbonate volumes and accelerate low-/no-sugar launches.

Global beverage trend research shows manufacturers are prioritizing low-sugar/zero-sugar extensions and functional claims; retailers report sustained consumer interest in reduced-sugar options (top industry trend for 2024), with brands rebalancing portfolios toward sugar-reduced SKUs to protect revenues under tighter regulation and shifting preferences.

When major global brands were subject to boycotts in some markets, local cola and regional beverage labels saw rapid share gains (one Egyptian local exporter reported ~3× export volumes year-on-year), creating windows for domestic players and contract packers to expand across the region.

Packaging analysis shows plastic accounted for ~52–53% of soft-drinks packaging revenue in MEA in recent data, with bottles (especially 501–1000 mL and ≤330 mL) holding the largest revenue shares — meaning supply-chain moves (light-weighting PET, recycled PET, refill systems) will be commercially important and cost/brand differentiators.

Market Drivers:

Rising Urbanization and Evolving Lifestyles are Driving Carbonated Soft Drinks Consumption.

The Middle East and Africa Carbonated Soft Drinks (CSD) market has been experiencing tremendous growth due to urbanization and changes in the lifestyles of consumers to a large extent. The fast-growing urban population in the GCC, North Africa, and sub-Saharan Africa is rapidly adopting new-on-the-go lifestyles, which include eating out, fast foods, and socialization. Soft drinks such as Coca-Cola are easy to carry, provide a refreshing taste, and are becoming popular in such places. The young consumers who constitute a large population are defining the demand patterns with their preferences in flavoured, ready-to-consume drinks. Seasonal weather, especially in the Gulf countries, only increases the demand for chilled drinks, further resulting in continuous high demand peaks in the hot season. The international and local CSD brands also have increased awareness and demand as a result of exposure to global trends through media and social platforms.

Expansion of Modern Retail Channels and Technological Distribution Networks is Accelerating Market Growth.

The other important force of the Middle East and Africa CSD market is the speed of growth and modernization of distribution and retail chains. Neighbourhood shops are now supplemented with hypermarkets, supermarkets, convenience stores, and, to a growing extent, e-commerce sites. This new retail system enables manufacturers to target new urban and semi-urban markets. Supply chains and cold chain logistics Technology makes sure that the quality and freshness of products over long distances is maintained, which is especially essential when it comes to carbonated drinks. Also, the strategic marketing campaigns, in-store promotion, and online advertising contribute to the visibility of the brand and consumer interaction. The high product mix with an efficient promotion creates a habit of consumption that leads to a stable market trend.

Market Restraints and Challenges:

The challenges and restraints present in the Middle East and Africa Carbonated Soft Drinks market are very evident, and most of the challenges are caused by strict health laws and sugar tax policies, which force manufacturers to reformulate their products, increase the cost of production, and shift consumer tastes to healthier products. Moreover, the issue of water shortage and vulnerability of supply chains is a challenge that impedes operations since most areas in the Middle East and Africa have had a problem of water scarcity, ineffective cold storage facilities, and increased transportation expenses, which have hindered production and distribution, hence limiting market growth and profitability.

Market Opportunities:

The Middle East and Africa Carbonated Soft Drinks market offers good prospects because of the increasing levels of demand for health-conscious and functional non-alcoholic beverages such as low-sugar, zero-calorie, and vitamin-enhanced carbonated soft drinks, which demand manufacturers to innovate and attract a larger segment of health-aware consumers. At the same time, aggressive urbanization and growing retail presence, via supermarkets, convenience stores, and online, offer major growth opportunities by improving the availability of products, accessing new consumer groups, and exploiting the rising disposable income levels and changing consumption patterns in urban areas.

MIDDLE EAST AND AFRICA CARBONATED SOFT DRINKS MARKET REPORT COVERAGE:

Middle East and Africa Carbonated Soft Drinks Market Segmentation:

Middle East and Africa Carbonated Soft Drinks Market Segmentation by Type:

• Regular Carbonated Soft Drinks
• Low-Calorie Carbonated Soft Drinks
• Sparkling Water
• Energy Drinks
• Carbonated Fruit-Based Beverages
   

The Middle East and Africa carbonated soft drinks market is dominated by the Regular Carbonated Soft Drinks, as they present the largest share of the market because of the general acceptance by consumers and the loyalty to the brand name. These soft drinks, such as colas and the traditional flavoured soft drinks, still have the advantage of distribution networks that are established in retail, convenience stores, and foodservice sectors. The popularity of the segment is also supported by the fact that consumers have always wanted to consume familiar taste profiles, low prices, and regular promotional campaigns by major manufacturers. Carbonated beverages, in most countries, are the default when it comes to social events, dinner, and consumption on the go, and, on this basis, this subsegment is the lifeline of the local market.

The fastest-developing segment in the MEA region is the Low-Calorie Carbonated Soft Drinks, which is caused by the growing level of health consciousness and rising demand for low-sugar options. Consumers are moving towards products that can deliver both taste and wellness benefits, especially in urban markets. Manufacturers are turning to sugar-free products, natural Flavors, and functional ingredients. This is further boosted by marketing campaigns based on lifestyle and fitness, and government campaigns on health. The high growth rate of the segment represents the changing tastes of the consumers and an incremental shift towards healthier indulgence of the carbonated drinks.

Middle East and Africa Carbonated Soft Drinks Market Segmentation by Application:

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Retail
• Vending Machines
• Direct Selling

The market in the Middle East and Africa in the carbonated soft drinks is dominated by Supermarkets and Hypermarkets, which constitute the highest share of sales. These retail formats are competitive in price, have a wide product assortment, and are convenient for shopping habits in the consumer base. The high number of organized retail chains that exist in urban centres in countries such as Saudi Arabia, the UAE, and South Africa will lead to consistent demand for carbonated drinks. Also, advertising and the availability of special deals and offers in these stores contribute hugely to the visibility of the product and customer interaction, which ultimately secures the dominance of this segment within the region.

Online Retail, on the other hand, is the fastest-growing application segment. The rapid adoption of e-commerce platforms and mobile shopping in the Middle East and Africa is transforming consumer purchasing habits. Convenience, home delivery services, and digital payment options have accelerated online sales of carbonated soft drinks, particularly among younger, tech-savvy consumers. Growth in internet penetration, coupled with targeted digital marketing and exclusive online promotions, is propelling this segment at an unprecedented rate, making it the key driver of future expansion in the regional market.

Middle East and Africa Carbonated Soft Drinks Market Segmentation: Regional Analysis:

• Middle East
• Africa
• Saudi Arabia
• United Arab Emirates (UAE)
• Qatar
• Ethiopia   
• South Africa
• Nigeria
• Kenya 

The Carbonated Soft Drinks market is dominated by the Middle East, which has the highest percentage of production and consumption in the region. The main contributors are countries like Saudi Arabia, the UAE, and Qatar, which are backed by an increase in urbanization, a low disposable income, and a large number of young people who are increasingly using ready-to-drink beverages. The well-established retail and modern trade facilities and the growing distribution channels also serve to strengthen the argument that the Middle East is the key market centre of carbonated soft drinks in the region.

Africa is the most rapidly growing subsegment, owing to the population boom, rise in urbanization, and rise in middle-class consumers across the nations, such as South Africa, Nigeria, Kenya, and Ethiopia. Increased demand for new Flavors, low-cost beverage choices, and enhanced cold chain logistics are being witnessed in the region and are driving market growth. The entry by multinational beverage companies and increasing investments in the penetration of Africa into the tier-2 and tier-3 cities are making Africa a leading source of the future for the regional market of carbonated soft drinks.

Middle East and Africa Carbonated Soft Drinks Market COVID-19 Impact Analysis:

The COVID-19 pandemic had a significant impact on the Middle East and Africa Carbonated Soft Drinks (CSD) market, reshaping both consumer behaviour and supply chain dynamics. Lockdowns, restrictions on social gatherings, and the temporary closure of restaurants, cafes, and entertainment venues led to a sharp decline in out-of-home consumption, which traditionally accounted for a large portion of carbonated soft drink sales in the region. Simultaneously, disruptions in manufacturing and logistics created supply chain bottlenecks, affecting the availability of key ingredients and packaging materials. However, the pandemic also accelerated the shift toward e-commerce and home consumption, as consumers increasingly relied on online platforms for grocery and beverage purchases. In response, major CSD players adapted by enhancing digital sales channels, implementing contactless delivery, and introducing smaller, affordable packaging options to meet changing demand patterns. Countries such as the UAE and South Africa witnessed a moderate recovery as restrictions eased, with households continuing to drive consumption growth. Additionally, heightened awareness of health and immunity during the pandemic prompted brands to explore low-sugar, zero-calorie, and functional beverage variants, influencing product innovation in the post-pandemic era. Overall, while COVID-19 initially disrupted the market, it also catalysed structural shifts, digital transformation, and innovation that continue to shape the trajectory of the Middle East and Africa CSD industry.

Latest Market News:

• In September 2024, Reuters reported a significant decline in sales for Coca-Cola and PepsiCo in several Muslim-majority countries due to consumer boycotts linked to political sentiments regarding the Gaza conflict. In Egypt, Coca-Cola's sales plummeted, while local brand V7 saw a threefold increase in exports. Similarly, PepsiCo experienced slowed growth across the Middle East. This shift underscores a growing preference for regional brands over international soft drink giants in the MEA market.
   
• In August 2024, Reuters highlighted a surge in popularity for non-alcoholic beers in the MEA region, driven by health-conscious consumers and changing cultural preferences. Carlsberg's alcohol-free brand Mousy and Heineken's Fayrouz have gained traction, with Carlsberg establishing local production in Egypt and a sourcing hub in Saudi Arabia. This strategic move positions these brands to tap into the growing demand for non-alcoholic alternatives in the region.
• In May 2025, the Middle East exported approximately 760 million liters of sugary soft drinks in 2024, marking a 30% increase compared to 2023. This growth reflects the region's expanding production capabilities and the increasing global demand for MEA-produced soft drinks.
   
• In August 2025, the German Engineering Federation (VDMA) reported significant growth in North Africa's beverage industry, particularly in Algeria, Egypt, and Iran. In 2024, Algeria ranked fifth in Africa with a consumption of 3.5 billion liters of soft drinks, while Egypt and Saudi Arabia led the MENA region with 12.8 billion and 11.4 billion liters, respectively. This upward trend indicates a robust demand for soft drinks in these countries, driven by factors such as population growth and urbanization.

Latest Trends and Developments:

The Middle East and Africa carbonated soft drinks are undergoing a dynamic change due to the changing consumer preferences and regulatory forces. The increase in health awareness has boosted the introduction of low- and zero-sugar versions, which was supported by governmental taxation policy towards high-sugar drinks and changing labeling standards. The theme of sustainability has assumed an important role, and businesses invest in recyclable packaging, circularity, and environmentally friendly supply chain behavior to address the expectations of the consumer as well as environmental objectives. Another powerful trend is premiumization, as city consumers are more interested in new flavors and local doses, quality offerings, and demand innovative products, moving toward the modern channels of retail and e-commerce distribution in the city centers. Meanwhile, the threat of substitutes posed by sparkling water, functional beverages, and non-alcoholic options is driving brands to diversify their portfolio and be cross-category innovative. Recent events also point to increased investments in regional bottling and production plants, and most especially in North Africa and Gulf countries, in a bid to cut costs, improve logistics, and satisfy the demand as younger and urban populations increase.

Key Players in the Market:

1. The Coca-Cola Company
2. PepsiCo, Inc.
3. Red Bull GmbH
4. Monster Beverage Corporation
5. Britvic PLC
6. Parle Agro Pvt. Ltd.
7. Fevertree Drinks plc
8. Keurig Dr Pepper Inc.
9. Cott Corporation
10. Suntory Holdings Ltd.