Craft Soda Market

Global Craft Soda Market Size (2024 to 2029)

Global Craft soda market was valued at USD 719.99 million in 2024 and is expected to reach USD 896.14 million by 2029. to grow at a CAGR is 5.21% in forecast period 2024 - 2029.

Craft sodas are artisanal, small-batch carbonated beverages that offer a unique flavor with natural ingredients. The market is experiencing steady growth and increasing popularity. When compared to conventional carbonated high-sugar content soda, these sodas focus on craftsmanship, authenticity, and catering to specific consumer requirements. The manufacturing companies are focusing on producing innovative and creative flavors in a wide range to differentiate them from others. They focus on unique combinations of ingredients to provide an appeal to the adventurous taste buds, a sense of discovery, and excitement to the consumers. The market focus on partnership with local suppliers and business to support the economy and create a regional identity to increase brand loyalty and customer base. The personalized and authentic experience gained by the consumer will make the market likely to experience a growth trajectory. 

Consumers are becoming more aware of the type of ingredients used in soft drinks. The unhealthy contents are making the consumers find an alternative to it, and it is surging the craft soda market demand. The insulin levels in the body are augmented after the consumption of soft drinks with high sugar. Different types of cancers, such as prostate, breast, and pancreatic cancer cases, are increasing with the consumption of the chemical substance used as a coloring agent in soft drinks. As per the studies, diabetic patients are also expected to increase in number in the future with the increase in consumption of sugar. The major side effect of carbonated drinks is they will affect the tooth by causing decay. Some other damage to the health of people is soft consumption the ingredients that are carcinogenic and acidogenic, which will cause weight gain and enamel corrosion from the teeth. Thus, the increase in the demand for healthy drinks is creating an immense opportunity for market growth during the projected period.

Global Craft Soda Market Drivers:

The market players are launching different innovative products, which is expected to drive the craft soda market shares. For example, U.S. based company launched mood-boosting sparkling and collagen-infused wellness soda at retail stores like Walmart in June 2022 across the U.S. Different variants are launched by the company, such as White Tea Ginger, Green Tea Grapefruit, and Hibiscus Vanilla. The demand for healthy hydration products is positively driving the market growth during the forecast period. Craft soda and other functional beverages are healthy beverages that have a high demand for the increase in the consumer inclination towards healthy beverages. Awareness about the health benefits associated with low-calorie drinks produced from natural ingredients propels the growth of the craft soda market. 

Global Craft Soda Market Restraints:

One of the major restraints of the craft soda market size is the high cost of craft soda and the limited speed of production. There is three times more cost of craft soda compared to conventional soda. The quantity obtained for the same cost is less than the normal conventional sodas.Lack of popularity in underdeveloped countries is straightly degrading the market growth rate. 

Impact of COVID-19 on the Craft Soda Market:

The COVID-19 pandemic has shown a significant impact on the Craft Soda Market growth. There is a new trend being followed post-pandemic. People are more conscious about healthy food and eating a healthy lifestyle which resulted in the increased demand for the sale of craft soda. Change in consumer preferences in choosing healthier products is noticed. Many innovations have arisen in the packing industry, either in terms of packaging material or methods, and these are becoming quite popular during the pandemic period. Jones Soda Co., a premium craft beverage manufacturer, has extended its portfolio of products with advanced descriptive packaging in its bottles. The economic slowdown was observed during the pandemic period, which had an effect on the industry. It also affected the pricing and accessibility of the products.

REPORT COVERAGE: 

 This research report on the Global Global Craft Soda Market has been segmented and sub-segmented based on product type, age, distribution channel, packaging & region. 

Global Craft Soda Market ­- By Product Type:

• Natural
• Organic

Organic craft soda is expected to have a significant share of the craft soda market to the change in the trends of organic food & beverages across the globe. Natural ingredients such as natural sweeteners like cane sugar, stevia, and honey are present in craft soda, and it is brewed in small batches. Increase in health concerns and the number of consumers in the world, increasing the share of organic craft soda in the market. The high penetration of craft soda in the markets is driving the market growth. It is the best alternative for people looking for an alternative to soda, and it is a non-traditional flavored drink. It is mostly driven by smart customers who are more value-oriented and concerned about health.

Global Craft Soda Market - By Age:

• Teenagers
• Young Adults
• Middle-Aged
• Adults

Mostly young adults are the occupying a large share of the craft soda market in terms of target customers in the market. The increase in awareness and growing health concerns are the drivers of the market. The shift from soft drinks and alcohol to healthy substitutes is seen more in young adults who are more concessions about their health. These are made from natural flavors such as root beer, ginger soda, crème soda, and fruity flavors like orange, cherry, and others. Clear labeling and manufacturing organically are the most attractive features for the rise in demand among adults. The shift in customer preferences and choices from unhealthy to healthy drinks is boosting the market.

Global Craft Soda Market - By Distribution Channel:

• On-trade 
• Off-trade

The on-trade distribution channel is leading with the dominant shares of the craft soda market. There is an upsurge in the consumption of soda in pubs, restaurants, hotels, and nightclubs. According to a survey, consumers enjoy the drinks like craft soda and beverages at restaurants and hotels. The increase in disposable income among the people and the spending on the consumption of drinks in bars and cafes are expected to strengthen the market. Many countries have good industrialization and are expected to see a consistent increase in economic development. The off-trade segment is also expected to have good growth in the near future owing to the increased availability of the products and ease of convenience in the purchase. Many retailers and supermarkets such as Walmart, Safeway, Carrefour, and others are vital distribution channels in the industry in reaching the end consumers. 

Global Craft Soda Market - By Packaging:

• Bottles
• Cans
• Others

The bottles are anticipated to have dominant shares in the craft soda market. The advantage of the glass bottles is the assistance provided in preserving the carbon dioxide concentration in the product for a longer time, guaranteeing the flavor and quality of the craft soda. These are preferred by consumers due to the quite comfortable handling and attractive packaging. The key market players are launching new products with attractive packaging, thus attracting more customers toward craft soda. The cans packaging is also expected to have significant growth owing to the widespread availability and low cost, and mass merchandisers are supporting the growth of the segments. The personalized and innovative designs, 3D printing, and color attract buyers and add to the constructive addition of the industry’s growth.

Global Craft Soda Market – By Region:

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

North America is expected to dominate the craft soda market in terms of high revenue share. There is a rise in awareness among consumers about health, and a high rate of growth in the number of obese people is an important factor for the increasing penetration of craft soda in the market in this region. The rise in the number of new product launches and investments is also a factor in the high demand for the market. Asia-Pacific region is the next expected fast-growing region owing to the increase in westernization, urbanization, change in lifestyle, and increase in economic condition. The people of the region are in search of healthy alternatives for the present high-sugar content and calorie drinks that are providing a great opportunity for market expansion in the region.

KEY MARKET PLAYERS:

Key Market Players Of Global Craft Soda Market are Jones Soda Co, Appalachian Brewing Co, Batch Craft Soda, PepsiCo, Inc, Crooked Beverage Co, Appalachian Brewing Company, The Original Craft Soda Company, Organic Soda pops, The Coca-Cola Company, SIPP eco beverage Co. Inc.

RECENT HAPPENINGS IN THE MARKET:

• In 2021, A soda brand of Reed’s Inc., by name Virgil’s, launched a new Zero-sugar, ketogenic-certified craft soda like Dr. Better, Grapefruit, and Ginger Ale. Virgil is more focused on strategic acquisition to reinforce their position and increase their visibility in the industry.
• In 2021, a mass-market variety of 12 packs and a rotating series every six months of special flavors was launched by Jones Soda Co. In the United States, it is available in all retail distribution channels.