Global Soft Drinks Market - 2023-2030

Market Overview

Global Soft Drinks Market reached US$ 489.4 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 756.7 billion by 2030. The market is growing at a CAGR of 5.6% during the forecast period 2023-2030.

Rising health consciousness among consumers has led to a demand for healthier and natural alternatives, such as low-sugar or sugar-free beverages, driving the soft drinks market towards more diverse and healthier products. The introduction of new flavors, formulations, and packaging innovations is anticipated to attract consumers and contribute to market expansion.

The growing consumer inclination towards healthier and functional beverages drives the demand for low-sugar, natural, and innovative soft drink products. Manufacturers are responding by introducing a wide range of product offerings, including flavored water, functional beverages, and low-calorie variants, to meet evolving consumer preferences, which further drive the soft drinks market.

Market Dynamics

Increasing Consumption of Convenience Beverages Drives the Market Growth

The increasing consumption of convenience beverages is prompting soft drink manufacturers to focus on product development strategies that cater to this demand. They are introducing new products to enhance portability and convenience. Packaging innovations such as resealable caps, easy-to-open lids, and lightweight materials are being adopted to provide consumers with hassle-free experiences. These product development efforts are aimed at meeting the evolving needs and preferences of consumers, driving market growth.

For instance, on April 5, 2023, Coca-Cola introduced a limited-edition beverage called Zero Sugar Byte, offering a unique flavor experience inspired by the digital realm. This new release from the renowned soft drinks giant aims to capture the essence of pixels, providing consumers with an exciting and distinctive taste sensation. The beverage's upfront taste is designed to deliver a burst of energy and excitement, while its refreshing finish makes it an ideal companion for gamers seeking a revitalizing beverage during their gaming sessions.

Increasing the Demand for Healthier Beverages Drives Market Growth

The demand for healthier beverages is stimulating product innovation within the soft drinks market. Manufacturers are responding to consumer preferences by developing new formulations, exploring natural and alternative sweeteners, and incorporating functional ingredients. They are introducing beverages with reduced sugar content, fortified with vitamins, minerals, antioxidants, and other beneficial components. This focus on innovation and healthier offerings allows soft drink companies to meet the evolving needs of health-conscious consumers and gain a competitive edge in the market.

For instance, on June 25, 2023, Marlish Waters, a UK-based drinks company, introduced a new 150ml can format for its range of tonics and mixers beverages. The launch of this glass-free aluminum format, starting in mid-June, will primarily highlight four of the brand's best-selling products: English Tonic Water, Premium Lemonade, Ginger Ale, and Soda Water. This new can size offers convenience and portability for consumers, providing them with a compact and easily accessible option to enjoy Marlish Waters' popular beverages.

Increasing Competition From Healthier Alternative Beverages Hamper the Market Growth

The rising availability and popularity of healthier alternative beverages and plant-based beverages are influencing consumer choices. Health-conscious consumers are seeking beverages that offer nutritional benefits, natural ingredients, and reduced sugar content. There is a shift in consumer preferences away from traditional soft drinks towards these healthier alternatives. This changing consumer behavior poses a challenge for the soft drinks market as it leads to a decline in demand for sugary beverages.

Soft drink manufacturers are expanding their product portfolios to include a wider range of healthier options. They are introducing low-sugar or sugar-free beverages, natural and organic drinks, and functional beverages to meet the evolving demands of health-conscious consumers. This diversification allows soft drink companies to capture a portion of the market that is shifting towards healthier alternatives and remain competitive in the evolving beverage landscape, which further restrains market growth.

COVID-19 Impact Analysis

The COVID-19 pandemic has had a significant impact on the global soft drinks market. Consumer preferences also shifted during the pandemic, with health-conscious individuals opting for healthier alternatives such as natural juices, flavored water, and low-calorie beverages. As a result, the demand for sugary and carbonated soft drinks declined.

However, the rise in e-commerce and online grocery shopping presented an opportunity for soft drink manufacturers to reach consumers directly. Many companies focused on enhancing their online presence and offering home delivery services to tap into this growing trend.

Artificial Intelligence Impact Analysis

Artificial intelligence (AI) enabled vending machines can gather real-time data on consumer preferences, purchasing behavior, and inventory levels. This data helps soft drink companies understand consumer preferences better, adjust product offerings, and optimize machine stocking.

AI-powered chatbots can provide instant customer support, answer product-related queries, and handle complaints efficiently. They improve customer satisfaction by providing quick and accurate responses, enhancing the overall customer experience. AI can be used to monitor and analyze production processes, ensuring high-quality soft drinks. AI algorithms can detect anomalies, predict equipment failures, and schedule maintenance proactively, minimizing downtime and optimizing production efficiency.

Segment 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 has emerged as the leading force in the global soft drinks market. Carbonated soft drinks have a broad consumer appeal and enjoy a high level of popularity globally. The fizzy and refreshing nature of carbonated beverages, combined with a wide range of flavors, is contributing to its widespread consumption and market dominance.

Major beverage companies are developing new products to reach the market demand. For instance, in August 2021, the Coca-Cola Company introduced a limited edition beverage called Coca-Cola Orange with No Sugar. This launch specifically targeted the Australian market during the winter season, offering consumers a unique and refreshing orange-flavored variant without the addition of sugar.

Geographical Analysis

Increasing Strong Presence of Vendors in North America

North America was dominating the global soft drinks market. North America has a well-developed infrastructure for the production, and marketing of soft drinks. The presence of major soft drink companies, with their extensive distribution networks and strong brands, further solidified North America's market dominance. These companies are leveraging innovative product offerings and effective marketing strategies to capture consumer attention.

For instance, in June 2020, VPX Sports launched its new product Noo Fuzion, an innovative range of carbonated ready-to-drink pre-workout beverages. These beverages are specifically formulated to promote lean muscle growth and provide a substantial energy boost, offering fitness enthusiasts a convenient and effective solution for their pre-workout needs.

Competitive Landscape

The major global soft drinks market players include: Pepsico, Inc., Nestle, The Coca-Cola Company, Keurig Dr. Pepper Inc (KDP), Red Bull GmbH, Unilever PLC, Monster Energy Company, Appalachian Brewing Company, ITO EN INC., and AriZona Beverages USA LLC.

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 96 Pages.

Target Audience 2023

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