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The soft drinks market size is estimated to be worth USD USD 622.47 billion, at a CAGR of 9.98% between 2022 and 2027. The market is influenced by shifting consumer lifestyles and work patterns, leading to busier schedules and limited time for tasks. Among the popular beverages are carbonated soft drinks like lemon-lime soda and cola as well as non-carbonated soft drinks. However, with increasing health consciousness, there is a growing demand for healthier alternatives such as super fruit juices and flavored water, posing a challenge to traditional beverage choices. The market research and growth report provide detailed insights into key drivers, trends, and challenges expected during the forecast period, highlighting the evolving preferences of consumers and the industry's response to these changes.
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The market share growth by the carbonated soft drinks segment will be significant during the forecast period. The popularity and increased consumer preference for alternatives such as bottled water. Concerns about the high sugar and caffeine content of carbonated soft drinks, which can have negative health impacts, are also contributing to declining sales. Major brands like PepsiCo and Coca-Cola have experienced a decrease in volume sales over the last five years, and the COVID-19 pandemic has further impacted sales at retail stores.
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The carbonated soft drinks segment was valued at USD 224.69 billion in 2017. Carbonated soft drink sales are slowing due to waning popularity and the preference for alternatives like bottled water. Concerns about the health impact of raw sugar and caffeine content are also affecting sales in the forecast period. Major brands like PepsiCo Inc. and The Coca-Cola Co. have witnessed declining volume sales over the past five years.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. In 2022, North America emerges as the largest global market in terms of revenue. The region is experiencing a decline in demand for carbonated soft drinks due to health concerns like diabetes and kidney issues. However, there's a rising preference for bottled water, supported by a new product lineup featuring ten flavors with no added sugar, artificial sweeteners, or colors. This shift towards bottled water contributes to the growth of the North American market in the forecast period. Additionally, the ready-to-drink (RTD) tea and coffee segment is one of the fastest growing segments in the region.
Europe, encompassing nations such as Italy, Spain, and Russia, also plays a vital role in the market. Supermarkets and hypermarkets dominate the retail landscape, offering a wide array of soft drink choices to meet the demands of a diverse consumer base. Regions such as Asia-Pacific, United Kingdom, Latin America, and Europe, including countries like Australia, Brazil, Mexico, Russia, Italy, and Spain, have emerged as key markets for soft drink consumption. The Asia-Pacific region has witnessed substantial growth in soft drink consumption, owing to the rapid development of urban areas, a growing population, and a shift in dietary patterns.
The market is evolving rapidly, driven by consumer preferences for healthier options and increasing health consciousness. Non-alcoholic beverages are gaining traction, with a focus on natural ingredients and artificial flavors being phased out. Cocktails are being replaced by mocktails, offering refreshing alternatives without the alcohol content. Natural sweeteners and flavors derived from fruits, berries, nuts, and herbs are becoming popular choices, catering to health-conscious consumers looking to reduce sugar intake. Functional soft drinks fortified with vitamins and minerals are in demand, particularly among athletes seeking immune health and energy boosts. Low-sugar and sugar-free options are on the rise, addressing concerns about sugar intake and promoting overall wellness. The market continues to expand, driven by innovation and changing consumer preferences towards healthier and functional beverages.
The market is experiencing significant growth driven by evolving consumer lifestyles and the demand for instant energy. With hectic schedules and limited time, consumers seek convenient options to stay alert and productive. Energy drinks, infused with stimulating ingredients like ginseng and caffeine, cater to this need by enhancing alertness and activity levels. These beverages often contain electrolytes and essential vitamins, providing a quick energy boost and aiding in post-exercise recovery. Moreover, they offer various flavors, appealing to different preferences while addressing health concerns such as low-sugar and natural ingredients. As health consciousness rises, the market sees a shift towards functional soft drinks with natural sweeteners and flavors, aligning with consumer preferences for health and wellness.
The increasing demand for craft soft drinks is the primary trend in the market. The practice of using soft drinks, including carbonated soft drinks, sports and energy drinks, as mixers for alcoholic beverages, is becoming more popular, especially among young adults aged 20-38 years. Energy drinks, with their high caffeine content, are particularly favored as mixers because the caffeine can counteract the sedative effects of alcohol and alter the taste of the drink. Players in the market are responding to this trend by introducing new sodas specifically designed for use as mixers.
Probiotic drinks offer a range of benefits, including improved digestion, reduced risk of diseases, and other advantages. Some people have low production of the lactase enzyme, which helps in the digestion of lactose, and this prevents them from consuming regular milk. Probiotic milk products, which contain lactose partially broken down by bacterial enzymes, can be an effective alternative for these individuals. Probiotic drinks also contain beneficial bacteria that can reduce the sugar content of beverages. Manufacturers such as Danone, GoodBelly, and Yakult have introduced various probiotic drinks that increase the level of protein ANGPTL4, which can help reduce fat storage in the body. Additionally, some probiotic drinks, such as drinkable yoghurt, kefir, and probiotic juices contain strains of bacteria that can increase the rate at which the body releases cortisol, a hormone that promotes weight gain and fat retention. The increasing use of probiotic drinks for weight management is expected to have a positive impact on the soft drinks market growth.
The increasing obesity rates and related issues are a major challenge to market growth. One of the challenges to the growth of the market is the increasing instances of obesity and related issues among consumers. An adult with a body mass index between 25 and 29.9 is considered overweight, and one with a body mass index of more than 30 as obese. Obesity results in high blood pressure, diabetes, joint problems, and various other issues.
With the increasing awareness of the seriousness of such conditions, consumers have actively started limiting their intake of sugar and high-calorie food and beverage products. This factor will negatively affect the sales of carbonated soft drinks, juices, and other soft drinks. The annual medical cost related to obesity is increasing yearly in the US. To counter the threat posed due to the rising obesity rates, players have started coming up with products that have low or no sugar content and low calories.
The market is fragmented in nature. Some significant players include Asahi Group Holdings Ltd., Danone SA, Del Monte Pacific Ltd., Dongpeng Beverage Group Co. Ltd., Keurig Dr Pepper, Kirin Holdings Co. Ltd., Mondelez International Inc. Coca-Cola and PepsiCo are among the leading companies in the global market.
The soft drinks market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Monster Energy Co., National Beverage Corp., Nestle SA, Otsuka Holdings Co. Ltd., Parle Agro Pvt Ltd., PepsiCo Inc., POSTOBON S.A, Purity Soft Drinks Ltd., Red Bull GmbH, Refresco Group BV, Starbucks Corp., Suntory Holdings Ltd., and Tata Consumer Products Ltd.
Companies are increasingly focusing on acquisitions, mergers, and strategic partnerships to consolidate market share and enhance their product lines. With changing consumer demands and market dynamics, companies are reevaluating their strategy to allocate money and resources more effectively.
The soft drinks market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The soft drinks market is a diverse landscape, offering a wide range of options to consumers seeking non-alcoholic beverages. With growing health consciousness, there's a rising demand for low-sugar and natural ingredient-based drinks, utilizing natural sweeteners and flavors. Artificial sweeteners and flavors still play a role, catering to different taste preferences. Fruits, berries, nuts, herbs, and roots are popular ingredients, providing both flavor and nutritional content. From traditional cola varieties to unsweetened teas and coffees, the market caters to various preferences and lifestyles, including health-conscious individuals, athletes, vegetarians, and vegans. Marketing strategies target urban populations with on-the-go lifestyles, leveraging e-commerce platforms and grocery delivery services for convenience. Brand loyalty, promotions, and packaging sizes also influence consumer choices in this competitive market.
Moreover, the soft drinks market offers a diverse array of beverages catering to various preferences and dietary needs. Non-alcoholic beverages, including soft drinks, are formulated with a range of ingredients such as edible acids, artificial and natural flavors sourced from plants, milk, and chocolate. Options like unsweetened vegetable juices and low-calorie, low-salt variants cater to health-conscious consumers. Soft drinks are typically packaged in lightweight steel containers, pressurized to maintain carbonation. Refrigeration and internal pressure ensure product freshness. From traditional carbonated sodas to caffeine-free alternatives, the market caters to a wide range of tastes. With innovations in packaging and formulation, soft drinks continue to be a popular choice for consumers seeking refreshment and enjoyment.
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Industry Scope |
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Report Coverage |
Details |
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Base year |
2022 |
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Historic period |
2017 - 2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.98% |
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Market growth 2023-2027 |
USD 622.47 billion |
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Market structure |
USD Fragmented |
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YoY growth 2022-2023(%) |
8.54 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 36% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Asahi Group Holdings Ltd., Danone SA, Del Monte Pacific Ltd., Dongpeng Beverage Group Co. Ltd., Keurig Dr Pepper, Kirin Holdings Co. Ltd., Mondelez International Inc., Monster Energy Co., National Beverage Corp., Nestle SA, Otsuka Holdings Co. Ltd., Parle Agro Pvt Ltd., PepsiCo Inc., POSTOBON S.A, Purity Soft Drinks Ltd., Red Bull GmbH, Refresco Group BV, Starbucks Corp., Suntory Holdings Ltd., and Tata Consumer Products Ltd |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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