Global Soft Drinks Market Size USD 654.17 Million By 2030 | CAGR of 5.23%

Introduction

The global market for soft drinks was valued at USD 413.46 billion in 2021, and it is anticipated to reach USD 654.17 billion by 2030 at a CAGR of 5.23%.

Soft drinks are non-alcoholic beverages containing natural or artificial sweeteners, edible acids, artificial or natural flavours, and juice. Natural flavours come from fruits, berries, nuts, herbs, roots, and other plants. Soft drinks don't include coffee, tea, milk, chocolate, and undiluted juices. The term "soft drink" was coined to distinguish flavoured drinks from hard alcohol. Soft drinks were recommended to hard-drinking early Americans. Modern customers' health concerns spurred the establishment of low-calorie, low-salt, caffeine-free, and "all-natural" soft drink categories.

Carbon dioxide gas adds sparkle and tanginess and prevents spoilage. It's delivered to soft drink producers as solid (dry ice) or liquid in large steel containers at 1,200 psi (84 kilograms per square cm). Steel canisters chill liquid CO2 under 325 lbs/in2 of internal pressure. Cooling the liquid and cascading it above plates in a carbon dioxide-pressurized enclosure carbonates the water or beverage mixture.

Market Dynamics

Continuous product developments by the key market players

The industry participants' ongoing product innovations will be the main driving force behind the soft drink market. Players constantly innovate their products' ingredients, formulations, packaging, and other features to boost sales. As an illustration, PepsiCo introduced three new cola tastes in April 2019: Pepsi Lime, Pepsi Berry, and Pepsi Mango. These tastes were said to reduce the amount of sugar in the drinks by around 50%. Thus, it is anticipated that the market for soft drinks will be driven in the following years by new product introductions that take target customers' health requirements into account.

Fast food restaurants offer less expensive meals with a higher value.

One of the major factors driving the expansion of the carbonated soft drink market in numerous regions is the fast-food industry. Many fast-food restaurants, like McDonald's, Domino's, Pizza Hut, Subway, Burger King, and a host of others, provide meals with minimal prices that are of excellent value. Most of these meals come with a drink, which is typically a soft drink. The lengthy practice of consuming and savouring their food more is why fast-food restaurants serve soft beverages. The flavour of fast food is enhanced when it is served with a suitable beverage, such as a soft drink. It has been found that eating fast food alone causes a temporary obstruction in the food pipe.

Regional analysis of the global soft drinks market

The market is divided into Europe, North America, Asia-Pacific, Central & South America and the Middle East & Africa based on region. North America dominates the market.

In terms of revenue, North America was the world's largest market for soft drinks. However, one of the critical factors for the area to see a gradual decline in market share throughout the projection period is the dropping demand for carbonated drinks due to the rising health awareness among consumers, notably in the US. On the other hand, in the future, APAC will become the market for soft drinks with the quickest rate of revenue growth. The expansion of the soft drink industry in APAC is primarily due to the rising popularity of bottled water and soft drinks in developing nations like China and India. The growth of the soft drinks market in APAC throughout the projected period will also be aided by other factors, including expanding investments, the launch of new products, and the construction of manufacturing facilities.

Key Highlights

• The global market for soft drinks size was valued at USD 413.46 billion in 2021, and it is anticipated to reach USD 654.17 billion by 2030 at a CAGR of 5.23%.
• The global soft drinks market is divided into four parts based on product, flavour, distribution channel and region. Further, based on product, the market is bifurcated into Carbonated and Non-carbonated soft drinks. The non-carbonated soft drinks market is expected to grow at a significant CAGR.
• According to flavour, the market is divided into Cola, Citrus, and Others. The cola segment accounts for more than half of the global market.
• Based on the distribution channel, the market is segmented into Hypermarkets, Supermarkets &, Mass Merchandisers, Convenience Stores & Gas Stations, Food Service Outlets, Online Stores & D2C, and Others. The hypermarkets, supermarkets &, and massmerchandisers segment accounts for the largest market share.
• The market is divided into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa based on region. North America dominates the market.

Competitive Players

1. The Coca-Cola Company
2. PepsiCo
3. Nestle
4. Dr Pepper Snapple Group (now part of Keurig Dr Pepper)
5. Red Bull GmbH
6. Monster Beverage Corporation
7. Danone
8. Unilever
9. Keurig Dr Pepper
10. Suntory Beverage & Food
11. Asahi Group Holdings
12. National Beverage Corp.
13. Britvic
14. Keurig Green Mountain (now part of Keurig Dr Pepper)
15. Refresco Group

Recent Developments

• In June 2022, Keurig Dr Pepper Inc., a company located in Quebec that specializes in producing and marketing alcoholic and non-alcoholic beverages, signed a formal agreement to purchase the global rights to the non-alcoholic, ready-to-drink cocktail brand Atypique.
• In January 2022, Monster Beverage announced a $330 million acquisition of the CANarchy Craft Collective.
• In April 2022, with an expenditure of 600 crores, Hindustan Coca-Cola Beverages, the bottling division of beverage tycoon Coca-Cola in India, would build its second factory in Telangana.

Segmentation

1. By Product
   1. Carbonated
   2. Non-carbonated
   3. Bottled Water
   4. Juice Drink
   5. Functional Drink
   6. Others
2. By Packaging
   1. Bottles
   2. Canned
   3. Soda Fountain
3. By Flavour
   1. Cola
   2. Citrus
   3. Others
4. By Distribution Channel
   1. Hypermarkets, Supermarkets & Mass Merchandisers
   2. Convenience Stores & Gas Stations
   3. Food Service Outlets
   4. Online Stores & D2C
   5. Others