Soft Drinks Market - Forecasts from 2025 to 2030

The soft drinks market is estimated to grow at a CAGR of 3.76% to reach US$329.080 billion in 2030 from US$273.589 billion in 2025.

Over the next years, market development is anticipated to be aided by rising disposable incomes, changing lifestyles, and an expanding population. Additionally, it is anticipated that millennial popularity and increased R&D spending in the food and beverage business would fuel industry demand. Consequently, major players are witnessing high profits in the market. For instance, for the fiscal year that ended on March 31, 2022, RRVL recorded consolidated sales of 199,704 crores ($ 26.3 billion) and a net profit of 7,055 crores ($ 931 million). The purchase of the Campa brand was a component of Reliance's plan to expand its FMCG division and give it a clear focus through the creation of its private labels as well as the purchase of formerly well-known regional brands.

Key players have been focusing on product launches and innovations. For instance, in June 2023, Bisleri International, India's leading packaged drinking water brand and the country's first manufacturer of carbonated soft drinks (CSD), introduced three new, enticing flavors: Bisleri Pop (a carbonated drink with an orange flavor), Bisleri Rev (a carbonated drink with a cola flavor), and Bisleri Spyci Jeera. The new lineup of fizzy drinks captures GenZ's contemporary palate and the quest for the most refreshing flavor. Each beverage has a distinctive flavor that is powerful and goes well with the functional stimulus.

In May 2022, to replace the legendary brands that had abandoned the Russian market in the aftermath of its invasion of Ukraine, a Russian beverage manufacturer introduced a new line of soft drinks. Russian drink manufacturer Ochakovo stated that CoolCola, Fancy, and Street will be available to consumers in place of Coca-Cola, Fanta, and Sprite. Since the Coca-Cola Company discontinued operations in Russia, the three international soda brands have been mostly absent from Russian store shelves. While Coca-Cola products are still available in stores, their costs have soared since the ban by almost 200%.

To draw in more customers, major manufacturers are continuously experimenting with new flavors and innovations for zero-calorie beverages. For instance, PepsiCo announced the reopening of the Pepsi-Cola Soda Shop in October 2022 with the introduction of a new, limited-edition flavor called Zero-Sugar Cream Soda Cola. As customers look for low-calorie choices, the demand for goods with lower sugar content is rising. Some nations employ budgetary measures, such as raising taxes, to lower the consumption of sugarybeverages.

Soft drinks market growth drivers

Continuous product developments

Over the forecast period, it is anticipated that new product releases will continue to be a top strategy for industry players. In November 2022, NourishCo Beverages, a 100% subsidiary of Tata Consumer Products Ltd (TCPL) and the manufacturer of Himalayan packaged water, premium honey and preserves, and ready-to-serve fruit drinks is betting on the unorganized nature of the beverages market in India and plans to introduce products that satisfy regional tastes while standing out from the competition in terms of innovation.

Moreover, companies are adopting strategies to entice a younger generation of tech-savvy customers. For instance, in April 2022, Zero Sugar Byte, a limited-edition beverage from Coca-Cola, is said to have "the flavor of pixels," according to the company. It is inspired by the gaming industry, namely the online video game Fortnite, and the metaverse (the collective term for 3D virtual worlds that stimulate social engagement).

Soft drinks market Geographical outlook

The North American region is expected to hold a major market share in the coming years.

This market is a highly competitive and dynamic industry. The United States is one of the largest consumers of soft drinks in the world, with a significant portion of its population regularly consuming these beverages. The market is dominated by well-established brands such as Coca-Cola, PepsiCo, and Dr. Pepper Snapple Group, which have a strong presence and offer a diverse portfolio of products.

Cola drinks, particularly Coca-Cola and Pepsi, hold a significant share of the soft drinks market. These iconic brands have loyal customer bases and engage in aggressive marketing and advertising campaigns to maintain their market dominance. However, in recent years, there has been a growing trend towards healthier alternatives, leading to the rise of low-calorie and diet sodas.

Shifts in consumer lifestyles and preferences have had a significant impact on the market. Consumers are increasingly seeking convenient and on-the-go beverage options to fit their busy routines. Soft drinks, especially bottled water, energy drinks, and ready-to-drink teas and coffees, cater to these evolving consumer needs. Moreover, soft drink companies are continuously innovating and introducing new products to attract consumers. They are expanding their product portfolios with new flavors, variations, and packaging designs. This constant innovation helps drive consumer interest and supports market growth.

On the other hand, increasing disposable income levels have a positive impact on the soft drinks market. As consumers have more purchasing power, they are more likely to spend on beverages, including soft drinks, as a part of their daily routine and social activities. Moreover, technological advancements have enabled the development of new manufacturing processes, packaging solutions, and distribution channels. These advancements streamline operations, improve product quality, and enhance the overall efficiency of the soft drink industry.

Reasons for buying this report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What do businesses use our reports for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The soft drinks market is analyzed into the following segments:

By Type

• Carbonated
• Bottled Water
• Juice Drink
• Functional Drink
• Others

By Packaging

• Bottles
• Canned
• Soda Fountain

By Distribution Channel

• Online
• Offline

By Geography

• North America
• South America
• Europe
• Middle East and Africa
• Asia-Pacific