Home Food & Beverages Soft Drinks Market Size to Surge US$266.8 Billion by 2032

Soft Drinks Market

Global soft drinks Market Size, Share & Trends Analysis Report By Calories (Low/No Calorie, Regular, Mid Calorie), By Category (Carbonated Soft Drinks, Dilutable, Bottled Water, Still & Juice Drinks and Others) By Packaging (Pet Bottle, Metal Can, Board Carton, Glass Bottles and Others) and By Region (North America, Europe, APAC, CSA, MEA) Forecasts, (2024-2032)

Report Code: SRFB2314DR
Study Period 2020-2032 CAGR 5.23%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 216.8 Billion
Forecast Year 2032 Forecast Year Market Size USD 266.8 Billion
Largest Market North America Fastest Growing Market Asia-Pacific
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Market Overview

The global soft drinks market size was valued at USD 216.8 Billion in 2023. It is projected to reach USD 266.8 Billion by 2032, growing at a CAGR of 2.5% during the forecast period (2024–2032).

 A soft drink is a non-alcoholic beverage with juice, natural or artificial sweeteners, edible acids, artificial or natural flavours, and carbonation. However, this is not always the case. Natural flavours are produced using fruits, berries, nuts, herbs, roots, and other plant sources. Coffee, tea, milk, chocolate, and unsweetened vegetable and fruit juices are not considered soft drinks. The phrase "soft drink" was created to distinguish flavoured beverages from hard alcohol or distilled spirits. Soft beverages were suggested as an alternative to change the hard-drinking habits of the early Americans. New soft drink categories emphasizing low calorie, low salt, caffeine-free, and "all-natural" components were created in response to current customers' health concerns.

The beverage gets glitter and taste from carbon dioxide gas, which keeps it from going bad. It is transported to the soft drink manufacturer in large steel containers under the pressure of around 1,200 pounds per square inch, either in solid (dry ice) or liquid form (84 kilograms per square cm). Lightweight steel containers are used to store liquid carbon dioxide in the refrigerator. That condition has an internal pressure of about 325 pounds per square inch. Water or the finished beverage mixture can be carbonated by chilling the liquid and then cascading it over a collection of plates in an enclosure that is pressurized with carbon dioxide gas.

Market Dynamics

Global Soft Drinks Market Drivers

Continuous product developments by the key market players

The continuous product developments that market participants carry out will be the primary factor driving growth in the soft drink market. To boost their overall sales, market participants are consistently developing new iterations of their products in terms of formulation, components, and packaging, among other facets. PepsiCo, for example, introduced three new cola varieties in April 2019, namely Pepsi Lime, Pepsi Berry, and Pepsi Mango. These beverages were sold under the Pepsi brand. It was asserted that these flavours would reduce the sugar in the beverages by around fifty per cent. As a result, in the following years, it is anticipated that the market for soft drinks will be driven by introducing new products that keep and consider the health requirements of target customers.

Fast food restaurants offer less expensive meals with a higher value

Consequently, with the rapid growth of fast-food outlets, the demand for carbonated soft drinks has increased significantly in various countries. Many quick-service restaurants, including McDonald's, Domino's, Pizza Hut, Subway, and Burger King, are now providing low-cost meals with high nutritional content. The vast majority of these meals come accompanied by a beverage, the bulk of which are soft drinks. The longer tendency of consumers to digest and enjoy the food more causes fast-food restaurants to serve soft drinks. It allows customers to both digests and enjoys their food more. It has been noticed that eating fast food by itself causes a temporary blockage in the food pipe. In contrast, a beverage such as a soft drink enhances the flavour of the same fast food when served with it.

Global Soft Drinks Market Restraints

Increasing awareness about obesity & obesity-related issues

The market growth is expected to be hindered by rising obesity rates and related problems. The number of consumers who limit their intake of sugar and high-calorie food and beverage products has significantly increased. This aspect will significantly impact the sales of carbonated soft drinks, juices, and other soft drink items. Increasing awareness of the importance of obesity and obesity-related illnesses, such as high blood pressure, diabetes and joint difficulties, causing the demand for soft drinks to fall significantly in the future years. The market will suffer as a result.

Regional Analysis

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.

In terms of revenue, the market for soft drinks in North America was the largest. However, as consumers become more health-conscious, particularly in the United States, there has been a gradual decline in the demand for carbonated drinks. It is one of the primary factors that will lead to the region's witnessing a gradual decrease in its market share throughout the forecast period. Conversely, APAC will emerge as the economy that generates the most income for the soft drinks market the quickest over the next few years. The expansion of the soft drinks industry in APAC may primarily be ascribed to the growing demand for bottled water and soft drinks in rising economies such as India and China. Other factors, such as expanding investments, the launch of new products, and the construction of new manufacturing plants, are expected to contribute to the expansion of the soft drinks market in APAC during the projected period.

Report Scope

Report Metric Details
By Product
  1. Carbonated
  2. Non-carbonated
  3. Bottled Water
  4. Juice Drink
  5. Functional Drink
  6. Others
By Packaging
  1. Bottles
  2. Canned
  3. Soda Fountain
By Flavour
  1. Cola
  2. Citrus
  3. Others
By Distribution Channel
  1. Hypermarkets, Supermarkets & Mass Merchandisers
  2. Convenience Stores & Gas Stations
  3. Food Service Outlets
  4. Online Stores & D2C
  5. Others
Company Profiles The Coca-Cola Company PepsiCo Nestle Dr Pepper Snapple Group (now part of Keurig Dr Pepper) Red Bull GmbH Monster Beverage Corporation Danone Unilever Keurig Dr Pepper Suntory Beverage & Food Asahi Group Holdings National Beverage Corp. Britvic Keurig Green Mountain (now part of Keurig Dr Pepper) Refresco Group
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global soft drinks market is divided into four parts based on product, flavour, distribution channel and region.

Based on the product, the market is bifurcated into Carbonated and Non-carbonated soft drinks. During the forecast period, the non-carbonated segment has a CAGR of around 4.7%. Since they avoid the carbonation process, non-carbonated beverages are preferable to carbonated ones. Such beverages are shielded against spoilage throughout the manufacturing process by pasteurization. Because of the health benefits, the segment is expected to grow over the projection period.

According to flavour, the market is divided into Cola, Citrus, and Others. The majority, more than 50.0 per cent, is made up of the cola flavour. Due to the first mover's advantage, carbonated soft drinks with cola flavour are the most popular. HI-CHEW introduced their cola-flavoured Soda Pop Mix in June 2020. The soda's crisp flavour satisfies customers' desire for uncommon, cutting-edge, and unconventional soft beverages. The demand for flavour has been increasing quickly and consistently in the US. Candy lovers have been savouring this effervescent sensation rivalled by a sip of soda to quench their thirst. It pays tribute to the iconic soda by serving its reviving, bubbly flavour.

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 majority of the market is made up of mass merchandisers, supermarkets, and hypermarkets. Due to the shopping experiences supermarkets and general merchandisers offer, many customers prefer to purchase soft drinks from these establishments. Modern supermarkets and hypermarkets have sprung up all over the world as a result of rising income levels and global urbanization. The character of the food and beverage supply is changing due to the introduction of these supermarkets and hypermarkets.

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.

Market Size By Product

Market Size By Product
  • Carbonated
  • Non-carbonated
  • Bottled Water
  • Juice Drink
  • Functional Drink
  • Others
  • 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.

    Key Players

    Soft Drinks Market Share of Key Players

    Soft Drinks Market Share of Key Players
    The Coca-Cola Company PepsiCo Nestle Dr Pepper Snapple Group (now part of Keurig Dr Pepper) Red Bull GmbH Monster Beverage Corporation Danone Unilever Keurig Dr Pepper Suntory Beverage & Food Asahi Group Holdings National Beverage Corp. Britvic Keurig Green Mountain (now part of Keurig Dr Pepper) Refresco Group Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Soft Drinks Market?
    Soft Drinks Market size will grow at approx. CAGR of 2.5% during the forecast period.
    Some of the top industry players in Soft Drinks Market are, Monster Beverage Corp., Nestle SA, PepsiCo Inc., Refresco Group BV, Red Bull GmbH, Suntory Holdings Ltd., The Coca-Cola Co., Danone SA, Keurig Dr Pepper Inc., The Kraft Heinz Co., ANADOLU GRUBU A.Åž., COCA-COLA FEMSA, JONES SODA CO, National Beverage Corp., SODASTREAM INTERNATIONAL LTD., etc.
    North America has been dominating the Soft Drinks Market, accounting for the largest share of the market.
    The Soft Drinks Market has seen the most substantial growth rate in Asia-Pacific.
    The global Soft Drinks Market report is segmented as follows: By Product, By Flavour, By Distribution Channel

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