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The Craft Soda market is influenced by a myriad of factors that collectively shape its dynamics and growth trajectory. One pivotal element steering this market is the increasing consumer demand for unique and artisanal beverage options. As discerning consumers seek alternatives to mainstream sodas, craft sodas have emerged as a flavorful and customizable choice. This demand is fueled by a growing preference for natural and high-quality ingredients, with consumers becoming more conscious of what goes into their beverages.
Another significant factor contributing to the Craft Soda market's growth is the trend towards healthier alternatives. With a rising awareness of the adverse effects of excessive sugar consumption, consumers are turning away from traditional sodas laden with artificial sweeteners and opting for craft sodas that often use natural sweeteners and fewer additives. Craft soda producers are capitalizing on this shift by offering a diverse range of low-sugar or sugar-free options, catering to health-conscious consumers without compromising on taste.
The influence of regional and local preferences is also a key market factor in the Craft Soda industry. Craft soda brands often emphasize local sourcing and unique regional flavors to cater to diverse tastes. This localized approach not only resonates with consumers seeking authentic and culturally relevant experiences but also allows craft soda producers to differentiate themselves in a competitive market. Regional partnerships with local farmers and suppliers contribute to the sustainability and authenticity of craft soda brands.
Moreover, the rise of e-commerce and online platforms has played a pivotal role in the Craft Soda market's expansion. Craft soda producers can now reach a broader audience beyond their immediate geographical locations through online sales. This has facilitated the discovery and accessibility of unique flavors, contributing to the overall market growth. The convenience of online ordering and delivery has further propelled the craft soda market, especially as consumers increasingly prefer the ease of having specialty products delivered to their doorstep.
In recent years, the emphasis on environmentally friendly practices has become a significant factor influencing the Craft Soda market. Consumers are increasingly considering the ecological impact of their purchases, prompting craft soda producers to adopt sustainable packaging solutions and environmentally conscious production methods. This shift towards sustainability not only aligns with consumer values but also enhances the brand image of craft soda companies, contributing to long-term market success.
Additionally, the role of marketing and branding cannot be understated in the craft soda landscape. The market is highly competitive, and successful brands are those that effectively communicate their unique value propositions to consumers. Creative branding, storytelling, and visually appealing packaging play a crucial role in capturing consumer attention and building brand loyalty. Craft soda companies often leverage social media platforms to engage with their audience, share their brand stories, and showcase the craftsmanship behind their products.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2023 | USD 0.57 billion |
| Growth Rate | 3.40% (2024-2032) |
Craft Soda Market Highlights:
Global Craft Soda Market Overview
Craft Soda Market Size was valued at USD 0.57 billion in 2023. The Craft Soda industry is projected to grow from USD 0.59 billion in 2024 to USD 0.77 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.40% during the forecast period (2024 - 2032). The increased health-conscious population and growing popularity of crafted beverages are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Craft Soda Market Trends
- Growing demand for healthy hydration products is driving the market growth
Growing demand for healthy hydration products positively impacts market CAGR. Consumers are inclined towards health-oriented beverages such as craft soda and other functional drinks. Rising awareness among consumers about the health benefits of low-calorie drinks, which are manufactured with natural ingredients, is the key factor projected to drive the demand for healthy hydration drinks, which is anticipated to drive the overall market's growth during the forecast period.
Additionally, the rising prevalence of cardiovascular disease, arthritis, diabetes, etc., coupled with increasing demand for healthy beverages and changing lifestyles, is the major driver for the growth. Additionally, diabetic patients are more aware of the importance of healthy diets, and because of this, they prefer beverages with natural sweeteners such as stevia. Companies like Pepsico Inc. and Coca-Cola are trying to reduce the sugar quantity in their products. Pepsico has also launched the 'Craft' soda brand worldwide, selling craft soda bottles in five flavors. Each craft soda bottle contains 90-100 calories and is sweetened with stevia and sugar cane. These factors drive the Craft Soda market revenue.
Craft Soda Market Segment Insights
Craft Soda Category Insights
Based on category, the Craft Soda market segmentation includes conventional and organic. The conventional segment dominated the market due to craft soda products being more widely available and having a lower price point than organic craft soda products. Conventional craft soda products are made with artificial flavors and sweeteners, which are less expensive and allow for longer shelf life.
Craft Soda Packaging Type Insights
Based on packaging type, the Craft Soda market segmentation includes bottles, cans, and others. The bottle segment dominated the market. Bottles assist in preserving the carbon dioxide concentration in craft soda for a longer time, guaranteeing that the flavor and quality of the product are not harmed. Bottles come with attractive packaging and are handy, resulting in consumer preference and comfort. In addition, key companies operating in the market are launching new products with innovative packaging combining new arts, styles, and logos, thus attracting new consumers toward craft soda sold in glass bottles.
They can use packaging segment is expected to grow at a significant CAGR over the forecast period. This is because of the rising focus on sustainable packaging and the emergence of additional small-scale independent brewers. Moreover, the widespread availability and low costs of cans in grocery shops and mass merchandisers will support the segment's growth. Increased use of aluminum cans has resulted in a rise in worldwide beverage consumption and a spike in demand for sustainable packaging options.
Craft Soda Distribution Channel Insights
The Craft Soda market segmentation, based on distribution channels, includes store-based and Non- store based channels. The store-based distribution channel category generated the most income. This is due to Consumer preference because it is easier for consumers to find and purchase craft soda products from the store-based channel. It provides a wide range of variety.
Figure1: Craft Soda Market, by Distribution Channel, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Craft Soda Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Craft Soda Market area will dominate this market due to the health-conscious population. Crafted beverages' growing popularity will boost the Region's market growth. Moreover, China’s Craft Soda market held the largest market share, and the Indian Craft Soda market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: CRAFT SODA MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Craft Soda market accounts for the second-largest market share due to the Increasing demand for various craft sodas from these regions, which is anticipated to drive the regional market. Further, the German Craft Soda market held the largest market share, and the UK Craft Sodamarket was the fastest-growing market in the European Region.
North America is expected to grow at the fastest CAGR from 2023 to 2032. Owing to an increase in the number of mainstream retailers, coupled with increasing health concerns and shifting preferences toward healthy drinks.
Craft Soda Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the craft soda market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The craft soda industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Craft Soda industry to benefit clients and increase the market sector. In recent years, the Craft Soda industry has offered some of the most significant advantages to medicine. Major players in the Craft Soda market, including Dr. Pepper Snapple Group Inc (US), Appalachian Brewing Company (US), Peak Drive Beverages (Canada), Cannonborough Beverage Co. (US), Five Star Soda (US),Brix Soda Company (US), Phillips Soda Works (Canada),Bucksnort Soda Company Ltd. (US), Tuxen Brewing Company (Denmark), Batch Craft Soda (US)., and others, are attempting to increase market demand by investing in research and development operations.
BrewDog is a multinational brewery and pub chain based in Ellon, Scotland. With the production of over 800,000 hectolitres, BrewDog claims to be the "#1 Craft Brewer in Europe". It was founded in 2007 by James Watt and Martin Dickie, who own 46% of the company.BrewDog, the Scottish craft brewer, plans to enter the soft drinks segment by introducing its latest P.O.P. Soda line. The new line contains four flavors: Jagged Grapefruit, Dark Cherry, Hazy Lemon, and Citizen Cola. P.O.P Soda is a pop soda developed to accelerate the brand's contribution to the battle against climate change.
Reed's Inc. is a US-based company that manufactures soft drinks and candies. The company was founded by Christopher J. Reed in 1989. It was originally based in Los Angeles, California, but moved its headquarters to Norwalk, Connecticut, in September 2018. Reed's Inc., America's top ginger brand, launches REAL Cranberry Ginger Ale for Costco members. Expected to be launched in the holiday season, Reed's REAL Cranberry Ginger Ale has cranberry and the company's Real Ginger Ale. All-natural and non-GMO, the non-alcoholic sparkling soda has organic pressed ginger, has been sweetened using cane sugar, and contains no preservatives, flavors, or artificial colors.
Key Companies in the craft soda market include
- Pepper Snapple Group Inc (US)
- Appalachian Brewing Company (US)
- Peak Drive Beverages (Canada)
- Cannonborough Beverage Co. (US)
- Five Star Soda (US)
- Brix Soda Company (US)
- Phillips Soda Works (Canada)
- Bucksnort Soda Company Ltd. (US)
- Tuxen Brewing Company (Denmark)
- Batch Craft Soda (US)
Craft Soda Industry Developments
February 2022: BrewDog, the Scottish craft brewer, plans to enter the soft drinks segment by introducing its latest P.O.P. Soda line. The new line contains four flavors: Jagged Grapefruit, Dark Cherry, Hazy Lemon, and Citizen Cola. P.O.P Soda is a pop soda developed to accelerate the brand's contribution to the battle against climate change.
November 2021: Reed's Inc., America's top ginger brand, launches REAL Cranberry Ginger Ale for Costco members. Expected to be launched in the holiday season, Reed's REAL Cranberry Ginger Ale has cranberry and the company's Real Ginger Ale. All-natural and non-GMO, the non-alcoholic sparkling soda has organic pressed ginger, has been sweetened using cane sugar, and contains no preservatives, flavors, or artificial colors.
Craft Soda Market Segmentation
Craft Soda Category Outlook
- Conventional
- Organic
Craft Soda Category Outlook
- Bottles
- Cans
- others
Craft Soda Packaging Type Outlook
- Store-Based
- Non-Store-Based
Craft Soda Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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