Soda Water Dispenser Market

Market Overview

The global soda water dispenser market size was valued at USD 1.17 billion in 2022. It is estimated to reach USD 1.89 billion by 2031, growing at a CAGR of 5.5% during the forecast period (2023–2031). The increasing consumption of soda water in commercial spaces and the growing awareness regarding the health benefits of soda water promote market growth.

A soda water dispenser dispenses carbonated water, also known as effervescent water or soda water, and is also known as a soda fountain or carbonated beverage dispenser. It is frequently observed in various environments, such as residences, cafes, restaurants, and convenience stores. Conventional components of a carbonated water dispenser include a water supply, a carbonation system, a dispensing mechanism, and a carbon dioxide (CO2)-filled cylinder. The carbonation system creates the enthusiasm and bubbles characteristic of carbonated beverages by injecting CO2 gas into the water. The water supply may include an existing water source or bottled or tanked water. The carbonation system utilizes pressure regulators, valves, and tubing to regulate the quantity of CO2 injected to maintain the desired level of carbonation. Customers who favor soda water or sparkling beverages have a simple and sustainable option in a soda water dispenser.

The level of carbonation and flavor can be controlled by flowing carbon dioxide gas into a water supply to produce carbonated water. Some models feature touch-screen user interfaces for simple operation, while others feature a faucet or nozzle for easy access. The ability to choose the carbonation level is the primary benefit, and carbonated water dispensers are more environmentally friendly than single-use plastic bottles. Carbonated water dispensers offer numerous advantages, including simplicity, adaptability, and environmental friendliness.

Market Dynamics

Global Soda Water Dispenser Market Drivers

Increasing Consumption of Soda Water in Commercial Spaces

Soda water has become a popular and growing beverage due to health consciousness and the preference for healthier beverages like soda water. Consumers are increasingly seeking carbonated water over ordinary water, especially among younger consumers. Restaurants are incorporating soda water into their menus to meet consumer demand, monetizing a behavior that would otherwise prevent consumers from purchasing beverages. Soda water offers a slightly tangy taste due to carbonic acid and can be flavored with flavors like lime, lemon, and grapefruit.

Despite initially being seen as an expensive European extravagance, bubbly water has become one of America's fastest-growing drinks due to a decade-long preference for sodas and the shift towards diet and vitamin-enhanced blends. Restaurant operators are offering soda water on their menus, and this trend is expected to drive demand for soda water dispensers in other European countries. Dispensers save time by providing instant flavors of drinks, reducing the cost of hiring bartenders, and providing convenient access to fresh, cold, and hot water.

Growing Awareness Regarding the Health Benefits of Soda Water

Drinking soda water regularly has numerous health benefits, including hydration, relief from stomach aches, and relief from indigestion or nausea. Studies have shown no difference between sparkling water and plain water regarding hydration. Additionally, soda water can help relieve indigestion and nausea, and in a study, carbonated water was found to help treat constipation. In a study on 40 older individuals who had experienced a stroke, the average bowel movement frequency nearly doubled in the group drinking soda water, resulting in a 58% decrease in constipation symptoms.

Soda water may also reduce the risk of heart disease, but the evidence is limited. A study of pregnant Spanish women who were given carbonated drinks showed lower heart disease risks and improved overall digestion. However, the benefits of drinking carbonated water were only found through studies on groups who reported feeling better after consuming it and improving their food digestion.

Global Soda Water Dispenser Market Restraint

Rising Popularity of Packed Soda Water

The digital age has led to increased consumer awareness of health and wellness, leading to a focus on proactive beverage selections. Consumers are increasingly concerned about their health and seek functional beverages with numerous benefits. Convenience is also a significant factor in purchasing decisions, with many opting for ready-to-drink beverages like packaged soda water. These beverages are ideal for those who want to stay hydrated and receive health benefits. Consumers prioritize convenience and are increasingly choosing pre-packaged soda water in bottles or cans. This innovative packaging attracts customers and increases the shelf life of the beverage.

Millennials are the primary demographic driving market growth and innovation in the packaged soda water industry, as they prioritize their health concerns. However, the expansion of the market for soda water dispensers may be hampered by these issues, and the increasing use of bag-in-box systems for outdoor parties may also hinder market development.

Global Soda Water Dispenser Market Opportunities

People are Shifting Towards Sugar-Free Drinks.

A study published in The Lancet reveals that American sugary drink sales have declined since 2000, with the country now ranked lower for per-capita consumption. Governments have attempted to reduce sugary drink consumption through taxation policies, public awareness campaigns, and school sales restrictions. As a result, consumers are increasingly opting for carbonated water at restaurants, which has less or no sugar. Soda water, an alternative to soda, is also becoming popular worldwide.

The growing popularity of sparkling water in the Asia Pacific region and the expansion of restaurants and bars are expected to create growth opportunities for soda water dispensers. With over 1.5 million eating outlets, India is projected to witness a significant CAGR in the quick service restaurants and pubs, bars, clubs, and lounges segment, creating a significant demand for soda water dispensers in the coming years.

Regional Analysis

Based on region, the global soda water dispenser market is bifurcated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global soda water dispenser market shareholder and is estimated to exhibit a CAGR of 4.5% over the forecast period. The region's rapidly expanding presence of industry-leading quick-service restaurants, such as Subway, McDonald's, KFC, Burger King, Pizza Hut, and Domino's, is the primary factor driving the regional market. These establishments have installed soda and water dispenser machines to provide customers with their beverages more reasonably.

Additionally, the penetration of top manufacturers in the region, such as The Coca-Cola Company, PepsiCo Inc., and Dr. Pepper, has pushed sales of soda water dispensers. This is the case because these companies are known for producing high-quality products. The expansion of the market for soda water dispensers is also encouraged by the increasing demand for the fresh supply of different kinds of soft drinks.

Europe is anticipated to exhibit a CAGR of 6.3% over the forecast period. The number of quick-service restaurants in Europe is growing at a rate that is considered to be significant. They have been releasing several new beverages and food items, many of which are inspired by national as well as international cuisines, to expand their footprint in an industry that is becoming increasingly competitive. Currently, the latest trend in the beverage market is moving away from sugary drinks and toward healthier alternatives, and many different companies are working hard to make these goods available to customers in all parts of the region.

Furthermore, as customers become more aware of the harmful consequences of sugar-sweetened beverages, there has been an uptick in the use of carbonated water in settings with heavy foot traffic, such as restaurants, corporate offices, bars, and other similar establishments. In the years to come, it is anticipated that this will be a major factor in driving consumer demand for soda and water dispensers.

In Asia-Pacific, it is anticipated that the increasing demand for soda water dispensers at fast-food restaurants in countries such as China and India will drive the expansion of the market. The demand is predicted to increase as a result of an increase in the purchasing power of consumers, a preference for the consumption of healthy beverages, and a drop in the consumption of sugary beverages. This is anticipated to stimulate increased market expansion in the Asia-Pacific area throughout the analysis period.

In Central and South America, several nations have recently initiated the process of enacting various restrictions aimed at sugar-sweetened drinks (SSBs) to improve and ensure the general well-being of public health. These regulation solutions have been developed to lower the consumption of SSB and put a stop to the growth in obesity. These changes have contributed to increased demand for non-traditional beverages such as carbonated and sparkling water. Consumption of soda water is rising due to the increasing popularity of such beverages and the ease with which they can be obtained in restaurants and on the market. This, in turn, is projected to stimulate the demand for soda water dispensers throughout the forecast period.

The Middle East and Africa are anticipated to represent a sizeable portion of the global carbonated water dispenser market. It is anticipated that the continued expansion of quick-service establishments in the region and a growing preference for carbonated water and beverages will increase demand for soda water and, consequently, its dispensers throughout the forecast period. In the coming years, the rising level of consumer awareness regarding the negative effects of consuming saccharine beverages is likely to provide a positive outlook for the soda water industry as a whole and for soda water dispensers.

Segmental Analysis

The global soda water dispenser market is bifurcated into product and dispenser style.

Based on the product, the global soda water dispenser market is bifurcated into countertop and drop-in.

The countertop segment dominates the global market and is projected to exhibit a CAGR of 5.1% over the forecast period. The countertop product segment is the most popular variety because of its many practical benefits. The fact that the dispenser may be placed on any available counter area makes these units simple to install and very convenient for clients. In dispenser systems of this type, the ice bins are often located on the top of the unit. Because most countertop soda water dispensers have ice bins on the top of the unit, they can conveniently distribute ice. This function permits compatibility with automatic ice makers that are staged above the machine and avoids the need to manually refill the ice bin periodically.

Additionally, this feature allows compatibility with automatic ice makers staged below the unit. As a result of these additional hygienic benefits, machine-automated ice service has become a preferred option for both front-of-house and self-service businesses. A dispenser that is placed on a countertop is convenient not just for customers but also for personnel. Throughout the forecast period, growth in this category is anticipated to be driven by these factors.

Based on dispenser style, the global soda water dispenser market is segmented into push-button dispensers and lever dispensers.

The lever dispenser segment dominates the global market and is predicted to exhibit a CAGR of 4.9% during the forecast period. A lever-activated dispenser's sanitary hands-free push feature is the principal benefit of using one of these devices. The risks of contaminating the cups or drinks are much reduced, and the machine is maintained cleaner as a result because the lever touches the cup rather than any part of the client. The cup is guided to a position directly underneath the dispensing valve while the rocking motion of the lever lowers the likelihood of spills and messes occurring.

Certain foodservice operators are implementing technologically enhanced soda water dispensers or dispensers with extra functionality to accommodate more customers. For example, it has been demonstrated that by adding a second lever to the dispensing machine, clients can select either plain water or soda water, depending on the type of beverage that is now being dispensed from the valve. By installing a secondary lever, customers can pour soda water in addition to the post-mix beverage that is now available. It takes very little time and effort to install the secondary lever, and it is well known for enhancing the operation of pre-existing valves.

Recent Developments

• April 2020- PepsiCo declared the launch of a SodaStream-style drinks dispenser for refillable bottles. This dispenser can produce a range of still and carbonated/sparking water options.
• February 2020- Marco Beverage Systems announced the introduction of FRIIA, a sparkling water dispenser. This product will have the ability to dispense hot or cold water.