Soft Drinks Market

Soft Drinks Market Size and Share:

The global Soft Drinks market size was valued at USD 629.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 886.2 Billion by 2033, exhibiting a CAGR of 3.84% during 2025-2033.  North America currently dominates the market, holding a significant market share of over 35.5% in 2024. It is primarily through the rising demand for healthier, low-sugar variants and innovative flavors, and packaging of the product that this market is growing significantly. The growth is also driven by the premiumization of high-quality beverages, effective branding, and the expansion of distribution channels, especially e-commerce.

Advancement in consumer preferences towards more healthy and low sugar forms of soft drinks propels innovations in product formulation in this market. Branding with effective marketing campaigns also gives assurance to brand loyalty besides increasing market penetration. Enhanced distribution channels, such as ecommerce and convenience stores, increase access to products. This, coupled with improved technology in packaging will create sustainability and appeal for the product, which drives the market toward growth significantly. For instance, in June 2024, Coca-Cola India launched its Affordable Small Sparkling Package (ASSP) using 100% Recycled PET (rPET) bottles starting in Orissa. The project aims to cut carbon emissions by 66% as compared to traditional packaging, thus reinforcing the company's commitment to sustainability and its World Without Waste goal of incorporating 50% recycled content by 2030. In addition to such critical endeavors, rising disposable incomes in emerging markets boost the product consumption, thereby contributing to the market growth.

The United States soft drinks market is growing rapidly, driven primarily by the demand for healthier options, such as low-sugar, natural, and functional product variants, that reflect the trends of health and wellness. Premiumization serves as the other key driving factor with consumers seeking high-quality, craft, and specialty drinks. For example, as per industry reports, in 2024, low sugar was still the leading influencer of the purchase decision for soft drinks in the United States. There is a growing demand for caffeine-free options as well. Innovation in flavors and packaging also drives market growth. With increased importance of sustainability, this trend is driving brands to make eco-friendly packaging and practice responsible practices, which significantly contributes to the growth in the market.

Soft Drinks Market Trends:

Changing Consumer Preferences Toward Healthier Options

The global soft drinks market has seen one of its major driving forces over the last couple of years, i.e., the shift in consumer preference toward healthier beverage options. Health-consciousness is rising worldwide, and consumers are becoming more alert to their sugar intake as well as the ingredients they consume in their beverages. Consumers are now looking for alternatives to traditional carbonated soft drinks, which contain high sugar content and artificial additives. This has led to an increase in the demand for products, such as flavored water, unsweetened tea, and natural fruit juices. A recent survey by Brand Elevation Agency, reveals that 44% of U.S. consumers are likely to incorporate healthier sodas or sparkling beverages that support gut health, as well as enhanced waters with electrolytes, into their daily routines. This is a trend that has been increasing with the demand for functional beverages that offer benefits beyond basic hydration. Soft drink companies are reformulating to reduce sugar content and introducing natural flavors and ingredients to the products in order to attract this health-conscious demographic.

Expanding Middle-Class Population in Emerging Markets

Expansion of the middle-class population in the emerging markets has facilitated growth in the global soft drinks market. According to the Office of Director of National Intelligence, in 2020, approximately 36 percent of the global population was in the middle class. Countries in Asia, Latin America, and parts of Africa have experienced dramatic increases in disposable incomes and urbanization, transforming consumer behavior and tastes. Increasingly, these regions add to the growing ranks of middle-class individuals with more discretionary income and who therefore want products they could not have afforded or never needed in the past, which is, in this case, soft drinks. Demographically, this has triggered an increased demand for the different categories of soft drinks, for example, carbonated soft drinks, fruit juices, and ready-to-drink teas and coffees. Soft packages of the product and accessibility in retail outlets and convenience stores perfectly blend with busy lifestyles of the growing middle-class population. Soft drink companies have also adjusted their marketing strategies to affect these markets effectively, frequently tailoring products in line with local tastes and preferences.

Urbanization and On-the-Go Lifestyles

Increased urbanization and on-the-go lifestyles have fueled the growth in demand for convenient and portable beverages within the global soft drinks market.  According to the Our World in Data, in 2021, 56.48% of the world lived in urban settings which increased in 2022 by 0.42%. As more people around the world migrate to urban centers in pursuit of jobs and better lifestyles, their days are characterized by long drives and busy lives. Ready-to-drink soft drinks have emerged as a favourite among urban consumers who desire quick refreshment while going about their busy lives. Convenience of single-serve bottles and cans and the availability of soft drinks in vending machines and convenience stores cater to this demand. In addition, the proliferation of foodservice outlets such as fast-food chains, cafes, and convenience stores has been a factor in the increase in accessibility of soft drinks in urban areas. Often these establishments offer a wide variety of soft drink options in their menu, which accounts for increased consumption. The popularity of soft drinks among city-dwellers necessitated developing marketing strategies towards city-based consumers. For this, advertising campaigns highlighted refreshment and convenience as factors supporting the linkage of soft drinks with on-the-go lifestyles.

Innovation and Product Diversification

Innovations as well as diversifications in products are hugely propelling the growth in soft drinks markets. The continuous evolving trends of consumer demand and taste make soft drink producers continue to develop novel, unique, and more thrilling offerings that suit all aspects of various tastes and lifestyles. Perhaps most remarkable in innovations are healthy options and more variety of beverage offerings. Companies are reformulating their existing soft drinks to cut down sugar content and introducing alternatives like low-calorie and sugar-free variants. In addition, the inclusion of natural flavors, functional ingredients and botanical extracts has become a very popular strategy to enhance the appeal of soft drinks. In addition to reformulation of existing products, companies are also venturing into completely new categories. For example, the rise in sparkling water sales spurred by innovative flavors represents a move toward more healthy carbonated beverages. The growth of energy drinks, sports drinks, and ready-to-drink (RTD) iced teas and coffees represents a willingness on the part of manufacturers to diversify portfolios to meet different consumer needs.

Expanding E-Commerce and Direct-to-Consumer Channels

The increasing e-commerce and direct-to-consumer (DTC) channels have emerged as a robust growth driver in the global soft drinks market. According to the ITA, global B2C ecommerce revenue is expected to grow to USD 5.5 Trillion by 2027. Due to increased internet shopping and the ease it offers, soft drink companies have realized that they have to change their methods of distribution to cater to this new market. E-commerce has made it easier for consumers to access a wide variety of soft drinks from the comfort of their homes. The rising popularity of online retailers, grocery delivery services, and subscription box models makes it possible for consumers to discover new brands and flavors that might not be easily accessible in brick-and-mortar stores. The COVID-19 pandemic only helped speed up the transition online since consumers looked for convenient and contactless means to buy groceries and beverages. The soft drink companies quickly moved to strengthen their presence in the online world by improving their websites for effortless orders and forming alliances with online shopping sites.

Soft Drinks Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global soft drinks market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on product, distribution channel, and region.

Analysis by Product:

• Carbonated
• Non-Carbonated
   

Carbonated stand as the largest component in 2024, holding around 71.4% of the market. The carbonated soft drinks category consists of beverages such as cola, lemon-lime soda, root beer, and other fizzy drinks. Carbonation is done by dissolving carbon dioxide gas under pressure which creates the characteristic effervescence that consumers enjoy. One of the key attractions of carbonated soft drinks is their refreshing and thirst-quenching qualities making them a popular choice especially in warm weather. Brand houses, in this segment, established strong brand recognition and loyal over several decades. Consider Coca-Cola and PepsiCo. They are the brand goliaths for their age-old iconic cola brands and have adapted to the evolution of consumer preference through options such as low sugar for Coca-Cola and eco-friendly sustainable packaging solutions by Pepsi.

Analysis by Distribution Channel:

• Hypermarkets and Supermarkets
• Convenience Store
• Online
• Others
   

Hypermarkets and supermarkets lead the market with around 41.2% of market share in 2024. Hypermarkets and supermarkets account for a considerable share in the global soft drinks market. The large retail stores offer a variety of beverages such as carbonated soft drinks, fruit juices, bottled water, and other non-alcoholic beverages to the consumers. The major benefit of purchasing soft drinks from hypermarkets and supermarkets is that it offers a wide variety of products. Shoppers can access different varieties, flavors and pack-size options under one roof-a very convenient beverage shopping solution. Hypermarkets and supermarkets frequently carry out promotions wherein consumers are encouraged to buy their products in greater quantity. Both hypermarkets and supermarkets facilitate brand outreach and marketing by providing these retailers with adequate shelf placement, attractive product displays as well as the promotional work carried out inside the same stores that considerably influence their customers' decision-making patterns. In order to achieve prime shelf space, leading soft drink manufacturers invest heavily in marketing strategies in pursuit of attracting consumer attention.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

In 2024, North America accounted for the largest market share of over 35.5%. North America happens to be one of the largest and most mature markets in soft drinks. The region has a diverse soft drink offering for the market, including CSDs, bottled water, fruit juices, and energy drinks, among others. Though CSD consumption has been relatively stable of late, there is a fast-growing trend toward healthier options, such as flavored water, functional beverages, and reduced sugar. Health and wellness concerns are the key drivers in North America for a decline in sugary soft drinks and an increase in demand for products such as sparkling water and natural fruit juices. Moreover, the region has experienced an increase in craft and premium soft drink brands to meet the demands of the more discerning consumer seeking unique flavors and higher-quality ingredients.

Key Regional Takeaways:

United States Soft Drinks Market Analysis

The United States accounts for 93.7% of the market share in North America. Increasing consumer demand for enhanced, functional soft drinks featuring additional health benefits, in terms of vitamins, minerals and probiotics, is pushing the manufacturers to design newer offerings. This subsequently promotes market growth. This, in turn, has been the result of rising demand for sugar-free and low-calorie alternatives forcing companies to reformulate traditional sodas as well as introducing diet or zero-sugar versions of their offerings that appeals to health-conscious consumers and acts as an impetus to market growth. Additionally, firms are constantly investing in research and development to develop new unique products in a highly competitive market, which is increasingly focusing on new flavors, innovative designs in packaging, and functional beverages that provide additional health benefits like improved hydration, energy, or probiotic support. Launches are increasingly emphasizing the use of premium ingredients and unique production techniques that create consumer demand for unique, high-quality drinks. For instance, as of December 2023, PepsiCo launched the Starry lemon-lime carbonated soft drink for both regular and zero-sugar versions in various sizes through U.S. retailers.

Asia Pacific Soft Drinks Market Analysis

Manufacturers are actively launching healthier and more functional beverage options, like low-calorie, sugar-free, and fortified drinks, to meet the rising preference for wellness-oriented products. Expanding middle classes in countries, such as China, India, and Indonesia, are increasingly seeking premium and international beverage brands. Youth-centric marketing campaigns with celebrity endorsements and innovative product launches are also propelling growth. Also, the growth of e-commerce platforms and new retail networks allows soft drinks to be more widely available in cities and villages. Brands also continue to diversify their portfolios with premium and exotic flavors as a growing set of consumers seek unique indulgent experiences in their beverages. For example, in 2022, when the summer season reached India, Coca Cola announced the launch of the new flavor of Maaza - Aam Panna.

Europe Soft Drinks Market Analysis

European markets are witnessing a rise in demand for artisanal and premium soft drinks as consumers gravitate towards unique flavours, higher quality and exclusivity in their beverage choices. This, in turn, is impelling the market growth. For instance, in 2023, after the successful international launch of the Chupa Chups sparkling soda which has twice been granted the Superior Taste Award by Belgium’s International Taste Institute Perfetti Van Melle now brings a new licensing novelty to the market with its leading mint brand Mentos. The product is a non-sparkling drink with low sugar that contains jelly bites in a 240 ml can format. The drinks range consists of three flavour variants inspired by popular Mentos flavours: lemon and mint, apple soda kick and fruity mix. Additionally, busy lifestyles are driving an increasing preference for convenient ready-to-drink soft beverages pushing companies to innovate in portable and on-the-go packaging formats.

Latin America Soft Drinks Market Analysis

Latin America’s soft drink market is heavily influenced by consumers’ preference for traditional flavors such as tamarind, guava and other tropical fruits. The growing popularity of artisanal and natural beverages aligns with the region’s demand for locally inspired and healthier options. Economic recovery in countries like Brazil, Mexico and Argentina has improved consumer spending power enabling higher consumption of soft drinks. Dominance by global brands like Coca-Cola and PepsiCo is supported by aggressive marketing campaigns and strategic partnerships. Furthermore, soft drink companies are consistently experimenting with exotic ingredients and innovative flavours to differentiate their products in a competitive market. For instance, in 2022, Britvic mixers has launched two new flavours – Green Apple and Pink Lemonade – exclusively in Brazil.

Middle East and Africa Soft Drinks Market Analysis

Rapid urbanization is altering consumer habits, with people increasingly preferring convenient and ready-to-drink beverages, such as soft drinks, in the Middle East and Africa. In line with this, functional beverages that offer hydration and added benefits, like vitamins or energy-boosting properties, are becoming more popular among health-conscious individuals. This is providing an impetus to the market growth. For instance, in 2021, PepsiCo is rolling out its global energy drink, Rockstar, across the UAE, offering those who has the drive and determination to make things happen.

Competitive Landscape:

The soft drinks market is highly competitive, dominated by giants like Coca-Cola and PepsiCo, which leverage strong brand recognition, extensive distribution networks, and continuous product innovation to maintain market leadership. These incumbents compete through diverse portfolios, including low-sugar and functional beverages to meet evolving consumer preferences. Emerging players and niche brands are gaining traction by offering unique flavors and sustainable packaging. Additionally, aggressive marketing campaigns and strategic partnerships intensify the rivalry, while price competition and regional players further shape the competitive landscape, driving constant innovation and differentiation. For instance, in August 2024, Doodles and AriZona Beverages announced their partnership to launch a limited edition Iced Tea with Lemon, featuring collectible artwork on 20oz Tallboy bottles.

The report has also analysed the competitive landscape of the market with some of the key players being:

• Arizona Beverage Company
• Asahi Group Holdings Ltd.
• Keurig Dr Pepper Inc.
• National Beverage Corp.
• Nestlé S.A.
• Pepsico Inc.
• Purity Soft Drinks Ltd.
• Red Bull GmbH
• Refresco Group BV
• The Coca-Cola Company
   

Latest News and Developments:

• February 2024: The Atlanta beverage giant introduced Coca-Cola Spiced, the first new permanent offering to its North American portfolio in three years.
• November 2024: Red Bull is broadening its no-sugar offering with the launch of Red Bull Zero, which contains both zero sugar and zero calories.
• January 2022: The Coca-Cola Company introduced a new option to its popular Coca-Cola with Coffee.  Additionally, it has launched a limited-edition drink and a new AI-powered experience, inviting fans to imagine the future tastes of soft drinks.
• March 2022: Robinsons ready to drink launches new Blackberry & Blueberry flavour. Following the success of the Robinsons 'Ready to Drink' launch last year, the brand is now proudly adding a third flavour to the line-up.
• June 2022:  Keurig Dr Pepper Inc. has recently finalized a formal contract, solidifying its acquisition of the worldwide licensing rights for Atypique, a brand specializing in non-alcoholic, ready-to-drink cocktails. This strategic move represents Keurig Dr Pepper's commitment to expanding its product portfolio by incorporating the innovative and trending segment of non-alcoholic cocktail beverages.
   

Soft Drinks Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the soft drinks market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global soft drinks market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the soft drinks industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.