Carbonated Soft Drinks Market Report 2025

The carbonated soft drinks market size has grown steadily in recent years. It will grow from $122.34 billion in 2024 to $126.15 billion in 2025 at a compound annual growth rate (CAGR) of 3.1%. The growth in the historic period can be attributed to consumer demand for convenience, globalization of beverage brands, marketing and branding strategies, lifestyle and on-the-go culture, affordability and accessibility, flavor innovation and variety.

The carbonated soft drinks market size is expected to see steady growth in the next few years. It will grow to $143.53 billion in 2029 at a compound annual growth rate (CAGR) of 3.3%. The growth in the forecast period can be attributed to innovation in low-calorie and functional drinks, sustainability initiatives, rise of craft and artisanal beverages, regulatory measures and sugar taxes, health, and wellness trends. Major trends in the forecast period include digital marketing and e-commerce, expansion of flavored and functional beverages, growing interest in premium and artisanal soft drinks, sustainability and eco-friendly packaging practices, rise of premium mixers for cocktails.

An increase in recreational activities is expected to drive the growth of the carbonated soft drinks market in the future. Recreational activities are enjoyable pursuits that individuals typically plan for their leisure time, providing psychological or physical stimulation. Carbonated drinks are often consumed during these activities to help keep people hydrated throughout the day, and they also experiment with additives to cater to consumers' desires for a mental boost. For instance, in 2023, the Outdoor Industry Association (OIA), a US-based non-profit organization, reported that the number of outdoor recreation participants rose by 2.3% in 2022, reaching a record 168.1 million, which represents 55% of the U.S. population aged 6 and older. Thus, the rise in recreational activities is set to propel the carbonated soft drinks market.

The growing demand within the beverage industry is expected to drive the growth of the carbonated soft drinks market in the future. The beverage industry encompasses the production, distribution, and sale of drinks for human consumption, catering to refreshment, enjoyment, and nutritional needs. As the beverage industry expands, the demand for carbonated soft drinks is likely to rise, offering fizzy or effervescent qualities in various flavors, formulations, and packaging to satisfy consumers' thirst and taste preferences. For example, in October 2023, Agriculture and Agri-Food Canada, a government department, reported that exports of processed food and beverage products reached a record high of $54.3 billion in 2022, reflecting a 14.1% increase from the previous year and accounting for 34.7% of the total production value. Thus, the increasing demand in the beverage industry is fueling the growth of the carbonated soft drinks market.

Product innovations are a significant trend gaining traction in the carbonated soft drinks market. Major companies in the industry are concentrating on developing innovative solutions to enhance their market presence. For example, in January 2023, Pepsi, a US-based food and beverage corporation, introduced its newly formulated Pepsi Zero Sugar. This upgraded recipe features a new sweetener system aimed at delivering a more refreshing and bolder taste compared to its predecessor. Additionally, the caffeine content has been adjusted to align with that of regular Pepsi, providing a more familiar experience for consumers who enjoy the original flavor but seek a sugar-free alternative.

Prominent companies in the carbonated soft drinks market are strategically focusing on product innovation, incorporating artificial intelligence (AI) technology to gain a competitive advantage. The concept of AI-Crafted Flavor in carbonated soft drinks involves the utilization of artificial intelligence algorithms to design and optimize unique taste profiles, thereby enhancing sensory experiences for consumers. A noteworthy example is the launch of Coca-Cola Y3000 Zero Sugar by the Coca-Cola Company in September 2023. This limited-edition mystery flavor drink utilizes AI-crafted flavor, blending carbonated water created by both human expertise and cutting-edge artificial intelligence technology. Offered in both zero sugar and original taste versions, Coca-Cola Y3000 Zero Sugar aims to provide consumers with a futuristic taste experience, showcasing the integration of AI in the creation of unique and enticing beverage flavors.

In August 2022, Coca Cola HBC, a Switzerland-based beverage company, undertook the acquisition of Three Cents for approximately USD 48 million. This strategic acquisition is expected to complement Coca-Cola HBC's existing portfolio of adult sparkling beverages, which already features well-known brands such as Schweppes and Kinley. Three Cents, a UK-based producer of carbonated beverages, adds value to Coca-Cola HBC's offerings, further strengthening its position in the competitive beverage market. The acquisition aligns with the industry trend of strategic partnerships and acquisitions to expand product portfolios and meet evolving consumer preferences in the carbonated soft drinks segment.

Major companies operating in the carbonated soft drinks market include PepsiCo Inc., Keurig Dr Pepper Inc., Monster Energy Company, National Beverage Corporation, Jones Soda Co., Refresco Group B.V., Suntory Beverage & Food Limited, Postobon S.A., Parle Agro Private Limited, Britvic Soft Drinks Limited, Asahi Soft Drinks Co.Ltd., The Kraft Heinz Co., Ektam Machinery Co., Q-BEV Sp. z o.o., The Coca-Cola Company, Cheerwine, Crush International, ANADOLU GRUBU A.S., Danone S.A., Cott Corporation, Royal Crown Cola International, SODASTREAM INTERNATIONAL LTD., Schweppes International Limited, Faygo Beverages Inc., Big Red Inc., Nestlé S.A., Molson Coors Beverage Company, Heineken N.V.

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

Carbonated soft drinks, known for their inclusion of small bubbles of carbon dioxide, are a type of non-alcoholic beverage crafted from carbonated water combined with flavorings and sweeteners, such as sugar or non-nutritive alternatives.

The primary categories of carbonated soft drink products include soft drinks, carbonated water, sports and energy drinks, among others. Soft drinks encompass flavored beverages that incorporate carbon dioxide, sweeteners (nutritive, nonnutritive, or intense), and permissible food additives, available in various flavors such as cola, citrus, and more. These beverages are packaged in bottles and cans, reaching consumers through a diverse array of distribution channels such as hypermarkets, supermarkets, mass merchandisers, convenience stores, gas stations, food service outlets, online stores, direct-to-consumer (D2C) platforms, and others.

The carbonated soft drinks market research report is one of a series of new reports that provides carbonated soft drinks market statistics, including carbonated soft drinks industry global market size, regional shares, competitors with a carbonated soft drinks market share, detailed carbonated soft drinks market segments, market trends and opportunities, and any further data you may need to thrive in the carbonated soft drinks industry. This carbonated 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 carbonated soft drinks industry consists of the sales of sparkling water (seltzer water) and carbonated wine. 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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