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The global soft drinks market is estimated to be worth USD USD 622.47 billion, at a CAGR of 9.98% between 2022 and 2027. The market is driven by consumer lifestyles and evolving work habits, which result in busier lives with limited time to accomplish tasks. Some of the most well-liked beverages on the market are carbonated soft drinks, including lemon-lime soda and cola. Due to growing health concerns, there has been a rise in demand for healthier options such as fruit juices and flavored water, which presents a significant challenge to the market. This market research and growth report includes in-depth information about key market drivers, trends, and challenges during the forecasted period.
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The hectic lifestyle and need for instant energy are major drivers boosting the market. Consumer lifestyles and work habits have evolved, leading to busier lives with limited time to complete tasks, necessitating increased effort to thrive in a competitive environment. Energy drinks, enriched with stimulating ingredients like ginseng and caffeine, play a vital role in keeping both the mind and body alert. Caffeine, a key component of these drinks, enhances overall productivity by boosting alertness and activity levels. Some energy drinks also include electrolytes and essential vitamins, aiding in the restoration of balance post-exercise or after demanding work schedules. These beverages promptly replenish energy and vitamin deficiencies in the body. Furthermore, they offer a variety of flavors, delivering both taste and health benefits to consumers.
The industry is undergoing a transformative phase shaped by various influential trends. The major trend is the convenience offered, readily available in supermarkets, hypermarkets, and convenience stores across the world. These retail channels cater to diverse consumer needs and preferences, offering a wide variety of soft drink types, including sports drinks, bottled beverages, and canned options. These beverages cater to consumers seeking functional drinks that supplement their active lifestyles and diet needs.
Bottles and cans remain popular choices due to their convenience, portability, and recyclability, contributing to sustainability efforts within the industry. The worldwide market continues to thrive, driven by factors such as changing dietary habits, convenience, and the ever-evolving preferences of the global population. With innovations in product types and packaging, the market is poised for further growth and diversification in the coming years.
Market - Revenue Share, 2017-2027
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Carbonated Soft Drinks Segment Dominates the Market
The carbonated soft drinks segment was valued at USD 224.69 billion in 2017 and continue to grow by 2021. Carbonated soft drink sales are slowing due to waning popularity and the preference for alternatives like bottled water. Concerns about the health impact of 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 Holds a Prominent Position in the Market
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, 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 burgeoning population, and a shift in dietary patterns.
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 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 is experiencing significant growth, driven by factors such as rising disposable incomes, changing lifestyles, and the growing population. Consumers are increasingly seeking clean-label, gluten-free, low-calorie, and low-carb products, especially Millennials. Governments and citizens are prioritizing health, influencing demand even at festivals, sports events, and exhibitions. Production and supply chains are adapting to meet this demand, focusing on liquid food and hydration solutions, often fortified with energy sources, sweetening agents, and edible acids.
The market encompasses a range of products, including non-carbonated beverages, energy and sports drinks, and diet beverages, regulated by bodies like the Food and Drug Administration (FDA). Leading players like The Coca-Cola Company and Cadbury Schweppes drive innovation in containers, manufacture of quality bottles, and drinking packs to ensure health and comfort, supporting a healthy lifestyle with products rich in calcium, pure juice, and functionality such as blood-pressure-reducing drinks and cholesterol-lowering drinks. Distribution channels are expanding, encompassing online distribution channels, shopping portals, and mobile apps, as well as soda stores, vending machines, and soda fountain machines, catering to diverse consumer preferences.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2027.
Soft Drinks Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.98% |
Market growth 2023-2027 |
USD 622.47 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.54 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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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