Soft Drinks Market Report 2025

The soft drinks market size has grown strongly in recent years. It will grow from $465.36 billion in 2024 to $491.36 billion in 2025 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to carbonated soft drinks (csd) dominance, convenience and on-the-go lifestyle, marketing and branding, affordability and widespread availability, flavor innovation.

The soft drinks market size is expected to see strong growth in the next few years. It will grow to $598.26 billion in 2029 at a compound annual growth rate (CAGR) of 5%. The growth in the forecast period can be attributed to health and wellness trends, sustainability practices, premiumization and craft soft drinks, reduced sugar and functional ingredients, cultural and regional flavors, innovative packaging. Major trends in the forecast period include low/no-calorie and sugar-free options, premium and craft soft drinks, sustainable packaging and practices, diversification of flavors and ingredients, alternative and sustainable sweeteners.

The anticipated increase in demand for food and beverages is set to drive the growth of the soft drink market. The food and beverage sector, encompassing organizations involved in the processing, packaging, and distribution of raw food products, is witnessing a surge in consumer preference for healthier and ready-to-eat beverage options with diverse flavors. This trend contributes to the expansion of the food and beverage sector, thereby propelling the growth of the soft drinks market. Notably, a report from FoodDrinkEurope in December 2022 highlighted the EU food and drink industry's robust performance, with a turnover of €1.12 trillion ($1,185.74 billion) in 2022, compared to €1.09 trillion ($1,157 billion) in 2021. The increased demand for food and beverages is a key driver fueling the growth of the soft drink market.

The rising demand for convenience food is expected to be a significant catalyst for the growth of the soft drink market. Convenience foods, designed to save time in food acquisition, preparation, and cleanup, feature soft drinks prominently due to their taste, refreshment, accessibility, marketing appeal, energy density, and value for money. A survey conducted by Japan-based trading company Itochu Corporation in August 2023 revealed that approximately 45% of 9,461 respondents consume bento boxes, or ready-to-eat (RTE) lunch boxes, sold at convenience stores. More than 10% of those buying bento boxes reported consuming them more than once a week, particularly among men and young consumers. This growing demand for convenience food, including soft drinks, is a key factor driving the expansion of the soft drink market.

Product innovation emerges as a noteworthy trend gaining traction in the soft drink market, with major companies actively pursuing innovative solutions to enhance their market standing. An example of this is PepsiCo Inc., a US-based food, snack, and beverage corporation, which introduced a new product named STARRY in January 2023. STARRY is a lemon-lime flavored soda that is caffeine-free and available in various sizes, offering a refreshing burst of lemon-lime flavor for different occasions. The product distinguishes itself with stronger, higher-level citrus flavors that stay true to the fruit, providing a more aromatic and balanced, clean finish compared to Sierra Mist. This commitment to product innovation underscores major companies' efforts to fortify their positions in the competitive landscape of the soft drink market.

Major companies in the soft drink market are focusing on launching innovative flavors, such as mango-flavored soft drinks, to gain a competitive advantage. Mango-flavored soft drinks combine the natural sweetness and taste of mangoes with the effervescence of carbonated water. For example, in March 2022, Coca-Cola introduced "Coca-Cola Starlight," a limited-edition flavor marketed for its unique "space taste." This initiative was part of a broader marketing campaign that emphasizes the brand's cosmic theme. Unlike traditional flavors like cherry or vanilla, the taste profile of Starlight was deliberately left vague, creating curiosity among consumers. The launch aimed to engage a new audience by tapping into the fascination with outer space and the unknown, reflecting the growing trend for novelty flavors in the beverage industry. This innovative strategy aligns with Coca-Cola's ongoing efforts to refresh its product offerings and attract interest in a competitive market.

In September 2022, Reliance Industries Ltd., a prominent India-based multinational conglomerate, acquired Campa-Cola for an undisclosed amount. This acquisition serves as Reliance Industries Ltd.'s entry into the fast-moving consumer goods (FMCG) sector, with plans to relaunch special soft drink products. Campa-Cola, an Indian-based soft drink provider, offers a range of products, including sundew and camp in four flavors such as orange, lemon, coca, and mango soft drinks. This strategic acquisition positions Reliance Industries Ltd. to tap into the soft drink market and leverage the unique offerings of Campa-Cola to cater to evolving consumer preferences and strengthen its presence in the FMCG sector.

Major companies operating in the soft drinks market include Pepsico. Inc., The Coca-Cola Company, Keurig Dr Pepper Inc., Red Bull GmbH, Monster Energy Company, Asahi Group Holdings Ltd., Kirin Brewery Company Limited, National Beverage Corp., Arizona Beverage Company, Parle Agro Pvt Ltd., Postobon S.A., Purity Soft Drinks Ltd., Britvic plc, Suntory Holdings Limited, Cott Corporation, Big Red Inc., Faygo Beverages Inc., Jones Soda Co., Polar Beverages, Royal Crown Cola International, Shasta Beverages Inc., Sodastream International Ltd., The Boston Beer Company, Talking Rain Beverage Co., Ajegroup.

North America was the largest region in the soft drinks market in 2024. The regions covered in the soft drinks market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the soft drinks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A soft drink encompasses a category of nonalcoholic beverages typically comprised of carbonated water, a sweetening agent, and flavorings, commonly consumed as part of an enjoyable dietary choice.

Primary classifications of soft drinks include carbonated soft drinks, juices, juice concentrates, bottled water, ready-to-drink (RTD) tea and coffee, among others. Carbonated soft drinks, known for their sweetness and effervescence, come in various flavors such as cola, citrus, and others. These products are distributed through diverse channels, encompassing both offline and online avenues, and are retailed in supermarkets, convenience stores, online retail platforms, and other sales outlets.

The soft drinks market research report is one of a series of new reports that provides soft drinks market statistics, including soft drinks industry global market size, regional shares, competitors with a soft drinks market share, detailed soft drinks market segments, market trends, and opportunities, and any further data you may need to thrive in the soft drinks industry. The soft drinks market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The soft drink market consists of sales of energy soft drinks, soda drinks, and ginger ale soft drinks. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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