Carbonated Soft Drinks Market Trends

Global Carbonated Soft Drinks Market Overview

Carbonated Soft Drinks Market Size was valued at USD 427.06 billion in 2023. The carbonated soft drinks industry is projected to grow from 432.6 billion in 2024 to USD 667.49 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.57% during the forecast period (2024 - 2032). The rising demand for sugar-free carbonated beverages and the growth in organized food service centers are driving the market growth.

Figure 1:  Carbonated Soft Drinks Market, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Carbonated Soft Drinks Market Trends

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  Rising demand for sugar-free carbonated beverages

  
  

Carbonated beverages are drinks that contain dissolved carbon dioxide in them, along with a natural or artificial sweetener. The dissolved CO2 in soft drinks is the reason for the effervescence in these types of beverages. As consumers are increasingly focusing on health, diet consciousness, and clean food habits resulting in the decreasing sales of high-sugar-based carbonated beverages. However, this has allowed the players to innovate and launch sugar-free carbonated soft drinks. Because of these many of the established players like PepsiCo, The Coca-Cola Company, Danone, etc., have launched different varieties of zero-sugar and diet-friendly beverages.  For instance, Coca-Cola launched an updated version of Coca-Cola Zero Sugar in the US in August 2021 with the same ingredients without any amount of sugar in it. In addition, the levy of a sugar tax on sweetened beverages in over 50 countries across the globe is encouraging manufacturers to innovate and launch more sugar-free carbonated soft drinks market. Thus, the rising demand for sugar-free carbonated beverages is anticipated to boost the growth of the market.

Carbonated Soft Drinks Market Segment Insights

Carbonated Soft Drinks Flavor Insights

Based on flavor, the  carbonated soft drinks market segmentation includes cola, lemon, lime, orange, and others including mango, grapefruit, cherry, apple, apricot, chocolate, blackberry, and strawberry. Cola held the majority share in 2021 contributing to around ~45-55% of the Carbonated Soft Drinks (CSD) Market market revenue. This is primarily owing to the growing organized food retail services across the globe as most consumers prefer to buy snack-based food items accompanied by a carbonated soft drink. The different type of carbonated soft drinks that are available in these food retail service centers comprises various aerated drinks including plain soda, Fanta soda water, teem soda water, carbonated water soda, carbonated chocolate soda, and fizzy soft drinks, among others.  Also, the growth is further fueled by the launch of various novel carbonated drinks in the market by various key players along with marketing campaigns like promotion on social media platforms. These initiatives are helping market players to expand their customer base and further growth of their businesses.

April 2021: Keurig Dr. Pepper launched zero-sugar soda composed of twenty-three different flavors under the brand name Dr. Pepper. The new carbonated soda was made available in United States stores in three flavors namely Original, Cherry, and Cream Soda. The zero-sugar soda comes in half-liter bottles, 20-ounce bottles, and 12-ounce cans.

March 2022: Jones Soda launched Mary Jones, a cannabis-infused soda in California. The company expects this new launch to help in better branding among cannabis consumers and the product is distributed majorly through dispensaries where most of the adult population in California shops. The company has planned to extend its launch to other states where cannabis consumption is legal.

Figure 2:  Carbonated Soft Drinks Market, by Flavor, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Carbonated Soft Drinks Packaging Type Insights

Based on packaging type, the  carbonated soft drinks industry market data has been segmented into bottles and cans. The bottles segment held the largest segment share in 2021. The commonly used material for the bottles includes plastic and glass, with glass accounting for the highest preference among the manufacturers. However, “cold feet” is more predominant in glass bottles compared to plastic bottles. The inertness of the glass bottles provides a better taste of the carbonated drink solution compared to cans. The bottles segment is anticipated to grow at a CAGR of 3.5% during the forecasted period.

Carbonated Soft Drinks Distribution Channel Insights

Based on Distribution Channel, the  carbonated soft drinks market data has been segmented into Supermarkets & Hypermarkets, Specialty Stores, Online, and Others. Pepsi market share has remained competitive in the beverage industry. Supermarkets & Hypermarkets held the largest segment share in 2021, as these stores aid consumers’ in checking out the drinks physically. The supermarkets & hypermarkets offer better customer experience and customer services that help in navigating through the wide range of carbonated soft drinks and brands. Moreover, the habit of conducting home parties and celebrations post-COVID is contributing to the demand for various kinds of carbonated beverages and non-carbonated sods. Food & Beverage manufacturers are increasingly investing in trade promotions in supermarkets, according to an article published in The Counter, an American food journal. Thus, the supermarkets & hypermarkets segment is expected to grow at a CAGR of 3.7% during the forecasted period.

September 2022:Jones Soda Co aims to strengthen its retail distribution channel and collaborated with approximately 1000 Target Café locations in the US. The collaboration introduced the new grab-and-go-coolers placement which houses four of its popular flavors including Root Beer, Berry Lemonade, Orange & Cream Sodas, and Cream Soda. This initiative is expected to strengthen the brand awareness and distribution strategy

October 2020: The Gujarat Co-operative Milk Marketing Federation’s Amul has made its debut in the carbonated soft drinks segment with the launch of AmulTru Seltzer. The composition of the product includes a combination of milk solids, real fruit, and fizz with an additional flavor. The two flavors in which the product is made available include lemon and orange and is planning to launch new varieties including apple, jeera, and cola in the upcoming years.

Carbonated Soft Drinks Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. North American carbonated soft drinks market accounts for the largest market share of USD 157.63 billion in 2021 and is expected to exhibit a Market CAGR of 4.1% due to the habitual incorporation of carbonated soft drinks in daily drinks. According to the World Population Review statistic, 1 in 5 US citizens drinks at least one soda a day, and similar is the scenario in Mexico, with consumption exhibiting an increasing trend. However, the sugar tax on high-sugar products in Mexico's carbonated soft drinks market and Canada carbonated soft drink market is expected to hamper the growth of the North American carbonated soft drink market during the forecast period. Further, the US carbonated soft drinks (CSD) Industry has held the largest market share in 2021 and is expected to continue its dominance in the upcoming years, fueled by new innovative product launches like low-calorie cola carbonated drinks, zero-sugar canned water soda, etc.

The major countries studied are the U.S., Canada, Mexico, Germany, France, the UK, Italy, Spain,  China, Japan, India, Australia and New Zealand,  and Brazil.

Figure 3:  CARBONATED SOFT DRINKS MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe’s carbonated soft drinks market accounted for the second-largest market share during the study period. This is majorly attributed to the increasingly innovative marketing strategies for product promotion and brand building by established companies in key countries like Germany,  and the UK, among others. In addition, the increasing preference for immune-boosting carbonated drinks in the UK carbonated soft drink market is expected to create lucrative opportunities for the players in the market. For instance, Gusto launched a couple of vitamin-boosted carbonated soft drinks named Super DC Blood Orange and Super DC Blackcurrant & Elderberry in October 2020. Initially, the product is made available through different retailers including Holland Barret, Natural trade retailers, and Amazon. Germany carbonated soft drinks (CSD) Industry is the largest market in the region with an average per capita consumption of soft drinks at 336.3 liters in 2019. Also, according to the ITC trade data, the country is the second largest importer of soft drinks including carbonated soft drinks.

The Asia-Pacific carbonated soft drinks market is expected to grow at a CAGR of 7.0% from 2022 to 2030. This is due to increasing per capita disposable income, the growth of middle-income groups in emerging economies like India, and the increasing investment by international brands in key economies of the region. In addition, the climate conditions of the Asia-pacific countries with most of the region experiencing summer and hot climate for a long time during a calendar year drive the growth of carbonated soft drinks. China carbonated soft drinks (CSD) held the largest market share in the Asia-Pacific.

India carbonated soft drinks (CSD)market is the favored destination for market players due to the largest youth and children population with increasing disposable income of the millennial population. Also, the increased out-of-home consumption and usage of social media platforms are creating more opportunities for established players in the forecast period. The most prominent flavor in the region is the lemon flavor, according to a report by Varun Beverages Ltd and it also highlighted the per capita soft drink consumption is increasing since 2016. Hence, Asia-Pacific is expected to register the highest growth rate over the forecast period.

Carbonated Soft Drinks Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the carbonated soft drinks market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, partnerships with local manufacturers in key markets, increased investments, and marketing initiatives to strengthen their presence. Competitors in the carbonated soft drinks industry must offer innovative products that are trending to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the  carbonated soft drinks industry to benefit clients and expand the carbonated soft drinks market sector is to innovate new carbonated soft drinks in line with the low-sugar, low-calorie, no added preservative, and immunity-boosting drinks trends. Also, the companies are working on strengthening their omnichannel presence in key growth regions.

The Coca-Cola Company (US) is a leading manufacturer of various non-alcoholic beverages including carbonated soft drinks, sports drinks, juices, sparkling water, dairy, and plant-based beverages. The company’s distribution channel includes a multi-approach of including company-owned channels and third-party bottling companies. The company’s long history, strong brand image, and well-established product portfolio in all the key markets are driving the growth of the market. In August 2022, the company launched Dreamworld a part of its creation flavors series in India. The new launch is aimed at young customer acquisition.

PepsiCo, Inc is a  leader in beverages manufacturing and marketing, apart from this the company also manufactures convenient foods. The company has a wide-consumer base situated across 200 countries and has an extensive network of research and development centers across the globe. The operating segments geographical include FLNA (Frito-Lay North America); QFNA (Quaker Foods North America); PBNA (PepsiCo Beverages North America); Latin America; Europe; AMESA (Africa, Middle East, and South Asia) and APAC (Asia Pacific, Australia, and New Zealand and China Region). In March 2020, the company acquired Rockstar Energy, a leading energy drink provider to strengthen its existing energy drinks segment and further aid to capitalize on the trend of growing preference for healthy drinks options.

Key Companies in the Carbonated Soft Drinks market include

• PepsiCo Inc.,


• Keurig Dr. Pepper Inc.,


• Jones Soda Co.


• The Coca-Cola Company


• Danone S.A.


• Appalachian Brewing Company, Ltd.


• Refresco Group


• Postobon S.A.


• Konami Holdings Corp.


• NSI International Inc.

Carbonated Soft Drinks Industry Developments

February 2022: PepsiCo Inc. launched its novel nitrogen-infused cola under the brand name Nitro Pepsi. The new cola variety is developed in such a way that the composition is softer than the conventional soft drink. The company has developed it using a similar technology used to manufacture beverages like beer and coffee to create the intended foam and froth. The Nitro Pepsi is launched with two flavors namely draft Cola and vanilla draft cola.  

January 2022: Refresco has acquired Hansa-Heemann. Hansa-Heemann is a Germany-based carbonated soft drink and mineral water manufacturing company and involves in contract manufacturing processes for other companies on an order basis. The acquisition is expected to strengthen the product portfolio, boost its geographical reach, and diversify the Refresco business.

March 2020: Britvic Plc launched a colorful packaging design for Pepsi Max. The redesign is aimed at targeting Gen-Z and millennial consumers in the UK region. The new design is launched for three of its existing flavors cherry, raspberry, and ginger with the company’s recycling message incorporated in the design.  

Carbonated Soft Drinks Market Segmentation

Carbonated Soft Drinks Flavor Outlook

• Cola


• Lemon


• Lime


• Orange


• Others

Carbonated Soft Drinks Packaging Type Channel Outlook

• Bottles


• Cans

Carbonated Soft Drinks Distribution Channel Outlook

• Supermarkets & Hypermarkets


• Convenience Stores


• Online


• Others

Carbonated Soft Drinks Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

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


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America