Carbonated Soft Drinks Market

Global Carbonated Soft Drinks Market Size (2024 to 2029)

The size of the global carbonated soft drinks market was valued at USD 232.01 billion in 2023. The global market is estimated to reach USD 305.6 billion by 2029 from USD 242.9 billion in 2024, registering a CAGR of 4.7% from 2024 to 2029.

MARKET DRIVERS

The brand loyalty and strong marketing campaigns by the manufacturers of the carbonated soft drinks market are majorly boosting the global market growth. In addition to that, rapidly expanding distribution channels in emerging markets, growing innovation in flavor variations and packaging, rising demand for ready-to-drink beverages, growing demand for low-calorie and zero-sugar options continuous product development to cater to changing tastes are promoting the growth of the carbonated soft drinks market.

Carbonated soft drinks have been in demand by high-net-worth individuals (HNWI) in developed nations leading to growth in the market. Research & Development of minimal-calorie drinks catering to the needs of customers concerned with health. Diet drinks are trending due to the transparency in their content mentioned through labeling. Acquisition of small vendors by the major players in order to gain global presence and expand their reach along with their product portfolios. Automation in production has led to higher supply catering to the high demand in the market. Due to automation, the production time and cost of production have been reduced fueling the growth in the market. Another major driver of market growth in the forecast period is expected to be aggressive business strategies. These strategies include wide-scale advertisements through digital media.

The high sugar content and artificial sweeteners in soft drinks are making the manufacturers of carbonated soft drinks invest in R&D to develop products as per the preferences of consumers. The growing health concerns and awareness have completely shifted the market dynamics towards the innovation of the new product. More focus is being concentrated on R&D to develop new products with minimal calories. The trends that keep the market steady are the growing demand for soft drinks by high-net-worth individuals in developed nations. Major players in the carbonated soft drinks industry have been in the act of acquiring small-scale vendors to expand their reach and customer base.

The key trend in the carbonated soft drinks market is tied to the increasing demand for products concerning health and sustainability. The market is witnessing a shift to organic products with clean labels, such as teas, low-sugar beverages, and fortified drinks. These products claim to be healthy, significantly challenging the carbonated soft drinks market. To remain competitive, companies are focused on developing products aligned with the consumer’s interests. Also, more people have been paying attention to labeling. Therefore, transparency is also a priority to build a trustworthy relationship with the customer.

MARKET RESTRAINTS

Factors such as health concerns related to sugar content, growing awareness of the negative health impacts of artificial sweeteners and competition from healthier beverage options are hampering the growth of the global market. The shift in consumer preferences towards natural and organic products and increasing demand for alternative refreshment options such as tea and coffee are hindering the growth of the carbonated soft drinks market. Health lobbyists cause a major challenge to the carbonated soft drinks market. Rising health concerns are restraining the growth of the market. Carbonated soft drinks are being replaced by drinks with health benefits. Another restraint in the market growth may be linked to the packaging of the material. Due to stringent rules against the usage and disposal of plastic, the market is expected to face a hindrance in its growth. Another limitation in the market is the low profit margin associated with the sale of the product. The decline in sales may lead to loss by the companies due to lower profits generated.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Carbonated Soft Drinks Market Analysis By Flavor

The cola segment is expected to witness the fastest CAGR among the other segments in the global market over the forecast period. The introduction of diet products in the market has led to the growth of the cola segment.

Global Carbonated Soft Drinks Market Analysis By Packaging

The bottles segment has been registering a higher growth rate than the cans segment, and it is expected to maintain its dominance over the forecast period.

Global Carbonated Soft Drinks Market Analysis By Distribution

The store-based segment had the leading share of the global carbonated soft drinks market in 2023. The store-based segment, but as far as the growth rate is concerned, non-store-based is expected to lead during the forecast period. The store-based segment can be further classified into supermarkets, hypermarkets, and others.

REGIONAL ANALYSIS

The global leader in the carbonated drinks market in terms of consumption in Europe. North America shares a significant portion of the market. The share can be attributed to the lack of awareness among customers and the presence of major players. Even though a decline was registered due to health concerns related to the product, the introduction of low-calorie drinks picked up sales. In Asia, Cola is one of the most popular drinks in terms of flavor. There is a growing demand for carbonated and dairy drinks combination. Also, increasing disposable income in developing nations, particularly in the Asia Pacific region, is fueling the growth of the market in those regions. However, cases of obesity damaged the overall market which led to the introduction of several drinks without unwanted chemicals. The forecast period is in favor of the European market in terms of growth in the global carbonated soft drinks market. In Europe, countries such as Germany, France, and the UK are leading due to changing preferences for food and the early introduction of carbonated soft drinks.

KEY PLAYERS IN THE GLOBAL CARBONATED SOFT DRINKS MARKET

Coca-Cola, PepsiCo, Cadbury Schweppes, Parle Agro, Postobon, Cott Corporation, Dr. Pepper Snapple Inc. and AJE Groups are a few of the dominating players in the global carbonated soft drinks market.

RECENT HAPPENINGS IN THE MARKET

• PepsiCo merged with SodaStream, a company with the technology to carbonate tap water.
• Over the past few years, Coca-Cola has had several mergers and acquisitions in order to diversify its portfolio.
• Based on research conducted in 2019, the per capita expenditure of India is expected to double in the carbonated soft drinks market.

DETAILED SEGMENTATION OF THE GLOBAL CARBONATED SOFT DRINKS MARKET INCLUDED IN THIS REPORT

This research report on the global carbonated soft drinks market has been segmented and sub-segmented based on flavor, packaging, distribution and region.

By Flavor

• Cola
• Lemon and lime
• Orange
• Others

By Packaging

• Bottles
• Cans

By Distribution

• Store-based
• Non-store-based

By Region

• North America
• Europe
• Latin America
• Asia Pacific
• Middle East & Africa