Sparkling Drinks Market Size, Share, Industry, Forecast and outlook (2024-2031)

Sparkling Drinks Market Overview

The Global Sparkling Drinks Market reached USD 39.0 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 65.5 billion by 2031. The market is growing at a CAGR of 6.7% during the forecast period 2024-2031. The rising popularity of functional beverages, such as sparkling water infused with vitamins, minerals, and natural flavors, is driving the growth of the sparkling drinks market.

Increasing consumer demand for refreshing and carbonated beverages is driving the growth of the global sparkling drinks market. Consumers are seeking beverages that provide a fizzy sensation and a unique flavor experience. The increasing availability of sparkling drinks in convenient packaging formats, such as cans and bottles, is boosting their consumption on the go. This convenience factor is expected to drive market growth, especially in urban areas.

Consumers are increasingly looking for beverages that offer health benefits along with a refreshing taste. The introduction of sparkling drinks with natural and organic ingredients is gaining traction among environmentally conscious consumers. These beverages are perceived as healthier and more sustainable options, driving market growth. 

Sparkling Drinks Market Dynamics and Trends

Increasing Consumer Awareness of Health and Wellness Drives the Market Growth

The increasing consumer awareness of health and wellness is a significant impact on driving the global sparkling drinks market. Consumers are becoming more conscious of their dietary choices and are seeking healthier alternatives to traditional carbonated beverages. This shift in consumer preferences is creating a market demand for sparkling drinks that is offering low and zero sugar content, natural ingredients, and functional benefits. 

As a result, beverage companies are responding to this demand by introducing healthier options in the sparkling drinks market. For instance, on March 9, 2023, Reliance Consumer Products Limited (RCPL), the FMCG arm and wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL), introduced the renowned beverage brand, Campa, to the market. The initial product lineup for Campa comprises sparkling beverages, including Campa Cola, Campa Lemon, and Campa Orange.

The Increasing Demand for Healthier and Functional Beverages Drives the Market Growth

As consumers are becoming more health-conscious and are seeking beverages that offer both refreshment and functional benefits, the market for healthier and functional sparkling drinks is experiencing notable growth. Healthier beverage options, including low or zero-sugar sparkling drinks, sparkling water, and functional beverages, are gaining popularity among consumers. This shift in consumer preferences is driven by a desire to reduce sugar intake, make healthier choices, and maintain an overall balanced lifestyle. 

To meet this increasing demand for healthier and more functional options, beverage companies are innovating and introducing new products in the market. For instance, on September 14, 2022, Suntory Beverage & Food GB&I (SBF GB&I) introduced the Ribena Sparkling range, which includes the highly anticipated addition of Ribena Sparkling Zero Sugar. This new launch introduces a refreshing and sugar-free option to the Ribena Sparkling lineup. 

The High Sugar Content in Traditional Sparkling Drinks Hamper the Market Growth

Increased awareness of the negative health effects associated with high sugar consumption is leading to changing consumer preferences. Many consumers are actively seeking healthier beverage options that have reduced sugar content and are sugar-free. This shift in consumer preferences away from high-sugar beverages directly is affecting the demand for traditional sparkling drinks, which further restrains market growth.

The availability of a wide range of healthier beverage options, including flavored water, natural fruit juices, herbal teas, and functional drinks, is intensifying the competition for market share within the beverage industry. These alternatives are offering consumers the choice to quench their thirst and are meeting their taste preferences without the excessive sugar content found in traditional carbonated soft drinks. The increased availability and promotion of healthier alternatives are acting as a restraint on the demand for the high-sugar sparkling drinks market.

Sparkling Drinks Market Segmentation Analysis

The global sparkling drinks market is segmented based on product type, distribution channel, and region.

Consumers are Increasingly Seeking Healthier Beverage Options 

The juice segment holds the largest share of the global sparkling drinks market. Consumers are increasingly seeking healthier beverage options, including sparkling drinks. The juice segment is often perceived as a healthier choice compared to carbonated soft drinks due to its natural fruit content and associated vitamins and minerals. As consumer awareness about health and wellness grows, the demand for sparkling juice drinks is increasing, leading to a larger market share for this segment in the global sparkling drinks market.

Beverage companies are introducing innovative juice-based sparkling drinks that combine the natural goodness of fruit juice with the effervescence of carbonation. For instance, on June 13, 2023, Splash Beverage Group, Inc., a prominent company specializing in beverage brands, introduced TapouT Cognitive Energy, an exciting new sparkling beverage with only 10 calories. This invigorating drink comes in three distinct flavors: Cherry Lemonade, Orange, and Peach Mango.
 

Sparkling Drinks Market Geographical Share

Increasing Established Consumer Base and Diverse Product Offerings 

The North America region is dominating the global sparkling drinks market with the highest share. North America, particularly the United States, has a well-established and mature market for sparkling drinks. Carbonated soft drinks have long been popular in the region, and consumers have a strong affinity for fizzy and flavored beverages. This established consumer base is providing a solid foundation for the growth and dominance of the sparkling drinks market in North America.

The North American market is offering a wide range of sparkling drinks, including carbonated soft drinks, flavored water, energy drinks, and other sparkling beverages. For instance, on April 18, 2023, Coca-Cola introduced Topo Chico Sabores, a range of premium sparkling waters that blend fruit juice and herbal extracts, offering consumers a unique non-alcoholic category and an elevated drinking experience. With Topo Chico Sabores, Coca-Cola expands the fast-growing beverage market by providing a selection of high-quality sparkling waters infused with refreshing fruit flavors and natural extracts.

Sparkling Drinks Companies and Competitive Landscape

The major global sparkling drinks market players include Pepsico, Inc., Welch Foods Inc., Ocean Spray, Waterloo Sparkling Drinks Corporation, Sapporo Group, Seven Sparkling Drinks, LaCroix Beverages, Inc., Nestle S.A, Hint Inc. and The Coca-Cola Company.

COVID-19 Impact on Sparkling Drinks Market

The pandemic has disrupted global supply chains, leading to challenges in sourcing raw materials, packaging materials, and ingredients for sparkling drinks. Lockdown measures, travel restrictions, and temporary closures of manufacturing facilities have caused delays in production and distribution, impacting the availability of sparkling drinks in the market. 

However, the pandemic has further emphasized the importance of health and wellness among consumers. This has led to a heightened focus on healthier choices and functional beverages. Sparkling drinks with low sugar content, natural ingredients, and functional benefits have gained more attention, while traditional carbonated soft drinks with higher sugar content have faced greater scrutiny.

Artificial Intelligence Impact Analysis

Artificial Intelligence (AI) powered analytics and machine learning algorithms can analyze large volumes of data to provide valuable market research insights. By collecting and analyzing data from various sources such as social media, consumer feedback, and sales data, AI can help beverage companies understand consumer preferences, trends, and demands more effectively. This information can guide product development, marketing strategies, and personalized targeting, ultimately driving market growth.

AI can play a crucial role in product development and formulation within the sparkling drinks market. Machine learning algorithms can analyze consumer preferences, ingredient interactions, and sensory data to identify new flavor combinations, improve formulations, and optimize taste profiles. AI can help beverage companies develop innovative and appealing products, leading to increased consumer satisfaction and market competitiveness.

By Product Type 

• Alcoholic Beverages
  • Wine
  • Cider
  • Others
• Non-Alcoholic Beverages
  • Juice
  • Water
  • Tea & Coffee
  • Others

By Distribution Channel 

• E-Commerce
• Supermarkets & Hypermarkets
• Retail Stores
• Restaurants & Tap Rooms
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In September 2022, PepsiCo introduced an exciting addition to its product lineup: the zero-sugar Pepsi 18-week pack. This strategic launch coincided with the football season, capitalizing on the fervor and anticipation surrounding the sport. The introduction of the zero-sugar Pepsi 18-week pack exemplifies PepsiCo's dedication to meeting the changing preferences of health-conscious consumers. 
• In April 2022, in a groundbreaking move, Coca-Cola launched its latest creation, "Coca-Cola Zero Sugar Byte," as the first-ever Coca-Cola beverage designed for the metaverse. This innovative product takes inspiration from the world of gaming and aims to encapsulate the vibrant flavors of pixels.
• In May 2021, PepsiCo Inc. introduced its newest innovation, Soulboost, a refreshing sparkling water beverage infused with a hint of natural juice and thoughtfully selected functional ingredients. With the launch of Soulboost, PepsiCo continues to push the boundaries of beverage innovation, catering to consumers' evolving preferences for healthier and functional drink options.

Why Purchase the Report?

• To visualize the global sparkling drinks market segmentation based on product type, distribution channel, 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 sparkling 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 sparkling drinks market report would provide approximately 53 tables, 48 figures, and 101 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

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Sparkling Drinks Market is segmented By Product Type (Alcoholic Beverages (Wine, Cider, and others), Non-Alcoholic Beverages (Juices, Water, Tea & Coffee, and Others) ), By Distribution Channel (E-Commerce, Supermarkets & Hypermarkets, Retail Stores, Restaurants & Tap Rooms, and others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031