Carbonated Soft Drinks Market

Carbonated Soft Drinks Market Size, Share, Growth (2023-2028)

carbonated soft drinks market size was valued at USD 232.01 billion in 2023 and it is estimated to reach USD 335.03 billion by 2028, with a registering CAGR of 4.7%.

Carbonated Soft Drinks Market Overview:

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. In order 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 in order to build a trustworthy relationship with the customer.

Carbonated Soft Drinks market growth:

The high sugar content and artificial sweeteners in soft drinks have led to a decline in overall business growth. The growing health concern 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.

REPORT COVERAGE:

Carbonated Soft Drinks Market- Industry Dynamics:

Drivers:

• 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 to expand their reach along with their product portfolios.

• Involvement of large-scale distribution channels. Easily available to the customers.

• 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.

Restraints:

• 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.

Carbonated Soft Drinks Market – Recent Developments

1. PepsiCo merged with SodaStream, a company with the technology to carbonate tap water.

2. Over the past few years, Coca-Cola has had several mergers and acquisitions in order to diversify its portfolio.

3. Based on research conducted in 2019, the per capita expenditure of India is expected to double in the carbonated soft drinks market.

Carbonated Soft Drinks market segmentation:

By Flavor:

• Cola

• Lemon and lime

• Orange

• Others

The Cola segment in the flavor segmentation is expected to have the highest growth rate among the other segments in the forecast period. The introduction of diet products in the market has led to the growth of the cola segment.

By Packaging:

• Bottles

• Cans

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

By Distribution:

• Store-based

• Non-store-based

Based on distribution, a larger share is expected to be held by 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.

Carbonated Soft Drinks Market Geographical Analysis:

• North America

• Latin America

• Asia Pacific

• Middle East & Africa

• Europe

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.

Carbonated Soft Drinks Market Key Players:

1. Coca-Cola

2. PepsiCo

3. Cadbury Schweppes

4. Parle Agro, Postobon

5. Cott Corporation

6. Dr. Pepper Snapple Inc.

7. AJE Groups