Soft Drinks Market Size
Global Soft Drinks Market reached USD 489.4 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 756.7 billion by 2030. The market is growing at a CAGR of 5.6% during the forecast period 2024-2031. The soft drinks market is projected to experience steady growth, with a positive demand for the forecasting period.
Many companies are introducing innovative products and expanding their portfolios to include healthier alternatives, which further drives soft drinks market growth.
Soft drinks are favored for their convenience and on-the-go consumption. With busy lifestyles and the demand for immediate refreshments, ready-to-drink soft beverages are gaining popularity. The market has seen the introduction of single-serve packaging, resealable cans, and portable formats to cater to the need for convenience, which is boosting the market growth.
Market Summary
| Metrics | Details |
| CAGR | 5.6% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Product, Flavor, Packaging, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | North America |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
Increasing Consumer Preferences Towards Healthier Beverages Drives Market Growth
The growing consumer focus on health and wellness is leading to a shift in demand toward beverages that offer functional benefits, natural ingredients, and reduced sugar content. This shift is prompting soft drink manufacturers to expand their product portfolios and introduce healthier beverage options to cater to these preferences. By aligning their offerings with consumer health concerns, soft drink companies are capturing a larger market share and capitalizing on the rising demand for healthier choices, which further drives market growth.
For instance, on May 31, 2023, Bisleri International expanded its product lineup by introducing three enticing flavors: Bisleri Pop (an orange-flavored carbonated drink), Bisleri Rev (a cola-flavored carbonated drink), and Bisleri Spyci Jeera. Alongside these new additions, the company continues to offer its popular zesty lemon-minty flavor. These innovative fizzy beverages are designed to cater to the modern taste preferences of GenZ, who desire a truly refreshing experience.
Increasing Demand for Convenience and On-The-Go Consumption Beverages Drive Soft Drinks Market Growth
The fast-paced modern lifestyle and busy routines are resulting in a growing demand for convenient beverage options. Consumers are seeking beverages that can be easily consumed on the go, without the need for extensive preparation and sit-down consumption. This trend is leading to the rise of ready-to-drink (RTD) beverages, single-serve packaging, and portable formats. Soft drink manufacturers are capitalizing on this demand by introducing smaller-sized and portable packaging options, making their products easily accessible for consumers in various settings like workplaces, travel, and outdoor activities.
For instance, on March 9, 2023, Reliance Consumer Products Limited (RCPL), a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL) and a prominent FMCG company, launched the highly anticipated beverage brand, Campa. The Campa brand's initial product portfolio comprises three refreshing options in the sparkling beverage category: Campa Cola, Campa Lemon, and Campa Orange. These iconic flavors are set to captivate consumers with their distinctive taste and rejuvenating experience.
Growing Concerns about the Health Impacts of Excessive Sugar Consumption Hamper the Market Growth
Health-conscious consumers are seeking alternatives with lower sugar content, such as low-sugar, sugar-free, and naturally sweetened beverages. This change in consumer behavior poses a challenge for soft drink manufacturers as they need to adapt to evolving preferences and offer healthier alternatives to maintain market share.
The regulatory actions aimed at reducing sugar consumption are impacting the soft drinks market. Many countries are implementing and considering measures such as sugar taxes, mandatory labeling of sugar content, and restrictions on marketing to children. These regulations are intended to discourage the consumption of sugary beverages and promote healthier choices, which further restrain market growth.
Market Segmentation Analysis
The global soft drinks market is segmented based on product, flavor, packaging, and region.
Increasing Consumption of Carbonated Soft Drinks with Wide Flavors
The carbonated segment held the largest share of the global soft drinks market. Carbonated drinks have been associated with various occasions and consumption habits, further solidifying their market position. They are consumed as refreshments, with meals, during social gatherings, and as a part of celebrations. The ubiquitous presence of carbonated beverages in daily life contributes to its sustained market demand and dominance.
Soft drink companies are introducing new flavors, limited editions, and variations to cater to evolving consumer preferences and capture market attention. For instance, on May 30, 2023, Bisleri International expanded its portfolio of carbonated beverages under the renowned Bisleri brand, introducing a range of new variants and flavors. The fizzy cola, orange, and jeera categories are now covered under the sub-brands Rev, Pop, and Spyci Jeera, respectively. It is worth noting that Bisleri already offers carbonated drinks through its existing Bisleri Limonata brand.
Market Geographical Shares
Increasing Strong Presence of Vendors in North America
North America has been a dominant player in the global soft drinks market. North America consists of major soft drink companies that have a strong presence in the global market. These companies have extensive distribution networks, robust marketing strategies, and well-established brands that resonate with consumers. Their innovative product offerings, diverse flavor profiles, and effective marketing campaigns have contributed to their market dominance.
The region is witnessing the introduction of new flavors, packaging formats, and healthier beverage options in response to changing consumer preferences. For instance, on January 11, 2023, PepsiCo launched its latest offering, STARRY, a lemon-lime flavored soda designed to provide consumers with a crisp and refreshing taste experience. STARRY stands out in the lemon-lime flavored soda category, offering a great-tasting beverage that satisfies consumers' cravings for a vibrant and invigorating soda option.
Market Key Players
The major global soft drinks market players include Pepsico, Inc., Nestlé, The Coca-Cola Company, Keurig Dr. Pepper Inc (KDP), Red Bull GmbH, Unilever PLC, Monster Energy Company, PepsiCo, Appalachian Brewing Company, ITO EN INC., and AriZona Beverages USA LLC.
PepsiCo
PepsiCo, Inc. is a leading global company in beverages and convenient foods, featuring a complementary range of brands. It operates across three main segments: snacks, beverages, and nutrition. The company makes, markets, distributes, and sells a wide variety of beverages and convenient foods, serving customers and consumers in more than 200 countries and territories. The main operational regions encompass North America, Latin America, Europe, Africa, the Middle East, and Asia-Pacific. PepsiCo generated more than $91 billion in net revenue in 2023, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream.
COVID-19 Impact on Market
The COVID-19 pandemic has had a significant impact on the global soft drinks market. The global supply chain was disrupted due to logistical challenges and restrictions on international trade. This led to difficulties in procuring raw materials and ingredients, as well as disruptions in production and distribution. Many manufacturing units faced temporary closures or had to operate at reduced capacity, impacting the availability of soft drinks in the market.
However, there were also notable opportunities arising from the pandemic for some segments of the soft drinks market. The demand for functional beverages, such as those with immune-boosting properties or natural ingredients, increased as consumers sought products to support their health and well-being during the crisis.
Artificial Intelligence Impact Analysis
Artificial intelligence (AI) has empowered soft drink companies to analyze consumer data more effectively and personalize their marketing strategies. AI algorithms can process vast amounts of data, including demographic, psychographic, and purchase behavior information, to identify customer preferences, target specific segments, and deliver personalized advertisements.
AI-powered recommendation engines can provide personalized product suggestions based on consumer preferences, purchase history, and browsing patterns. This helps soft drink companies upsell and cross-sell related products, increasing customer engagement and sales.
Key Developments
- On March 30, 2023, Jack Daniel's and Coca-Cola introduced an exciting collaboration in Great Britain (GB) with the launch of their new ready-to-drink (RTD) beverage. The Jack Daniel's and Coca-Cola RTD is a delightful blend of the famous Jack Daniel's Tennessee Whiskey and the iconic Coca-Cola, offering a distinctive taste inspired by the beloved bar cocktail appreciated globally.
- On August 31, 2022, Reliance Industries acquired the well-known soft drink brand, Campa. With plans to make a significant entry into the beverage market, Reliance Industries is set to launch its own line of beverages.
- On March 15, 2021, Flying Fish, a South African brand, introduced a pioneering hard seltzer in the country, aiming to establish itself as a leader in this emerging category. The beverage, pictured above, boasts alcohol by volume (ABV) of 5.5% and is packaged in 300ml slim cans.
Why Purchase the Report?
- To visualize the global soft drinks market segmentation based on product, flavor, packaging, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of the soft drinks market level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global soft drinks market report would provide approximately 61 tables, 59 figures, and 120 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
