The global Soft Drink market size was valued at USD 410.29 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 4.7% during the forecast period, reaching a value of USD 622.50 billion by 2030.
Soft Drink market research report by Future Data Stats, offers a comprehensive view of the market's historical data from 2018 to 2021, capturing trends, growth patterns, and key drivers. It establishes 2022 as the base year, analyzing the market landscape, consumer behavior, competition, and regulations. Additionally, the report presents a well-researched forecast period from 2023 to 2030, leveraging data analysis techniques to project the market's growth trajectory, emerging opportunities, and anticipated challenges.
MARKET OVERVIEW:
A soft drink, often referred to as a soda or pop, is a beverage that typically contains carbonated water, sweeteners, and flavorings. These drinks can be non-alcoholic and come in a wide variety of flavors, ranging from cola and lemon-lime to fruit-flavored options. Soft drinks can be enjoyed plain or used as mixers in cocktails, and they are usually packaged in cans or bottles for convenience. These beverages are known for their effervescence, making them refreshing and a popular choice for quenching thirst and providing a flavorful alternative to water.
MARKET DYNAMICS:
The continuous demand for convenient and refreshing beverages, especially in urban and fast-paced lifestyles. Soft drinks offer a variety of flavors and choices, making them a preferred option for consumers seeking a quick and enjoyable thirst-quencher. Additionally, the market benefits from extensive marketing and advertising efforts by major soft drink companies, reinforcing brand loyalty and sustaining consumer interest.
Despite these drivers, the Soft Drink market faces certain restraints, including increasing health concerns and a growing awareness of the negative impact of excessive sugar consumption. This has led to a shift towards healthier beverage alternatives and regulations on sugar content in some regions, impacting the traditional soft drink industry. However, these challenges are met with opportunities such as the development of innovative, low-calorie, and natural sweetener alternatives, as well as the exploration of emerging markets with evolving consumer preferences.
SOFT DRINK MARKET SEGMENTAL ANALYSIS
BY PRODUCT:
Carbonated soft drinks are popular for their effervescence, offering a fizzy and refreshing experience to consumers. Includes beverages like colas, sodas, and sparkling waters. These drinks are often flavored with various artificial or natural additives, providing a wide array of tastes to cater to different preferences. Carbonated soft drinks are widely available in cans and bottles and are known for their characteristic bubbles, making them a favorite choice, especially during social gatherings and as companions to meals.
In contrast, non-carbonated soft drinks encompass a broad range of beverages that lack carbonation. This category includes juices, sports drinks, iced teas, and energy drinks. Non-carbonated soft drinks are appreciated for their natural flavors, often derived from fruits, herbs, or other botanical sources. These drinks are typically healthier alternatives, especially when they are 100% fruit juices without added sugars or preservatives. Non-carbonated soft drinks cater to health-conscious consumers, offering hydration and essential nutrients without the fizz, making them suitable choices for those seeking a calmer drinking experience.
BY FLAVOR:
Cola remains one of the most iconic and classic flavors in the soft drink market. The unmistakable taste of cola is often associated with well-known brands and has a loyal following of consumers. Its sweet, caramel-like flavor combined with a subtle hint of citrus and spice continues to be a favorite choice.
Lemon-lime flavors offer a refreshing and zesty taste, making them a popular choice for consumers seeking a crisp and tangy experience. Often available in clear or light-colored beverages, these flavors are associated with a clean and thirst-quenching profile.
Beyond the classic cola and lemon-lime, fruit flavors such as orange, grape, and a variety of others hold significant sway in the market. These flavors provide a natural and fruity taste that appeals to a broad consumer base. They are particularly favored for their ability to provide a fruity and often citrusy refreshment.
BY DISTRIBUTION CHANNEL:
The distribution channel encompasses large retail establishments known for offering a vast variety of products, including soft drinks. It provides consumers with convenience and accessibility, as they can find an extensive range of soft drink brands and flavors under one roof.
Convenience stores and gas stations serve as accessible points of purchase for consumers on the go. These establishments often have compact but carefully curated selections of soft drinks, making them a convenient choice for individuals looking to grab a refreshing beverage while traveling or running errands.
Soft drinks are a staple in the foodservice industry, which includes restaurants, fast-food chains, cafes, and eateries. These establishments typically serve soft drinks as part of their beverage offerings, giving customers the opportunity to enjoy their favorite drinks while dining out.
With the rise of e-commerce, consumers can now purchase soft drinks online and have them delivered directly to their doorsteps. This channel provides the convenience of shopping from home and selecting from a wide array of brands and flavors.
REGIONAL ANALYSIS:
North America remains a significant player in the Soft Drink market, with a strong demand for a wide range of soft drink flavors, including classic cola, fruit, and unique blends. The region's consumers appreciate a diverse selection of beverages and often seek healthier and innovative choices. Major soft drink manufacturers and bottlers are based in North America, contributing to the market's growth and innovation.
In Europe, the Soft Drink market showcases a preference for a variety of flavors, including traditional lemon-lime and cola, as well as a growing interest in natural and low-calorie alternatives. Health-conscious consumers drive the demand for soft drinks with reduced sugar and healthier ingredients. The region's rich cultural diversity encourages the introduction of unique and region-specific flavors, offering a dynamic marketplace.
Asia Pacific is an emerging and promising market for soft drinks, driven by the region's substantial population and increasing urbanization. Here, consumer preferences are diverse, and tropical fruit flavors are often popular. Soft drink manufacturers often tailor their products to cater to local tastes, leading to a plethora of exciting flavors and options in the market.
Latin America exhibits a fondness for fruit-based soft drinks, with beverages like tropical fruit and citrus flavors enjoying popularity. The region's warm climate and vibrant culture create a suitable environment for the consumption of refreshing soft drinks. In Latin America, traditional and exotic flavors often coexist in the market.
The Middle East and Africa present an evolving market for soft drinks, where traditional flavors coalesce with new and innovative offerings. Beverage manufacturers in the region often experiment with unique ingredients and exotic tastes, creating a blend of flavors that cater to diverse consumer preferences.
COVID-19 IMPACT:
As lockdowns and social distancing measures came into effect, out-of-home consumption, which was a significant portion of the soft drink market, saw a notable decline. With many restaurants, cinemas, and entertainment venues temporarily closing or operating with restrictions, consumers had fewer opportunities to enjoy soft drinks in these settings. However, the pandemic also led to a surge in at-home consumption, with consumers stocking up on soft drinks for their households.
Furthermore, the growing health-conscious trend among consumers was accentuated during the pandemic, leading to a heightened awareness of sugar content and calorie intake in soft drinks. This shift in consumer preferences prompted the industry to explore and introduce low-sugar and healthier beverage options. In the wake of the pandemic, the Soft Drink market adapted to changing consumer behavior by focusing on e-commerce and direct-to-consumer sales, providing a platform for consumers to purchase soft drinks online and have them delivered to their homes.
INDUSTRY ANALYSIS:
Mergers & Acquisitions
- PepsiCo acquires Keurig Dr Pepper: In 2022, PepsiCo acquired Keurig Dr Pepper for $22 billion. This deal created the world's largest beverage company, with a portfolio of over 22 brands that generate over $79 billion in annual revenue.
- Coca-Cola acquires BodyArmor: In 2021, Coca-Cola acquired BodyArmor, a sports drink brand, for $8 billion. This deal gives Coca-Cola a stronger presence in the growing sports drink market.
Product New Launches
- PepsiCo launches Nitro Pepsi: In 2022, PepsiCo launched Nitro Pepsi, a nitrogen-infused cola that is designed to be smoother and creamier than traditional cola.
- Coca-Cola launches Starlight: In 2023, Coca-Cola launched Starlight, a limited-edition cola that is said to have a taste that is "inspired by the cosmos."
KEY MARKET PLAYERS:
- The Coca-Cola Company
- PepsiCo, Inc.
- Keurig Dr Pepper Inc.
- Nestlé S.A.
- Unilever
- Dr. Pepper Snapple Group
- Suntory Holdings Limited
- The Kraft Heinz Company
- Red Bull GmbH
- National Beverage Corp.
- Cott Corporation
- Monster Beverage Corporation
- Danone S.A.
- Asahi Group Holdings, Ltd.
- The Hershey Company
- Arca Continental SAB de CV
- Britvic plc
- Embotelladora Andina S.A.
- Refresco Group
- Ajegroup S.A.
- ITO EN, Ltd.
- Cía. Cervecerías Unidas S.A.
- New Age Beverages Corporation
- Jones Soda Co.
- F&N Foods Pte Ltd.
- others
Table of Contents
- Executive Summary
- Market Overview
- Market Segmentation
- By Type
- By Flavor
- By Distribution Channel
- By Region
- Market Drivers and Restraints
- Competitive Landscape
- Market Trends and Forecasts
- Conclusion
Soft Drink Market Segmentation:
By Product:
- Carbonated soft drinks
- Non-carbonated soft drinks
By Flavor:
- Cola
- Lemon-lime
- Orange
- Grape
- Other
By Distribution Channel:
- Hypermarkets, supermarkets, and mass merchandisers
- Convenience stores and gas stations
- Food service outlets
- Online stores and direct-to-consumer (D2C)
- Others
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RESEARCH METHODOLOGY
With a collective industry experience of about 70 years of analysts and experts, Future Data Stats encompasses the most infallible research methodology for its market intelligence and industry analysis. Not only does the company dig deep into the innermost levels of the market, but also examines the minutest details for its market estimates and forecasts.
This approach helps build a greater market-specific view of size, shape, and industry trends within each industry segment. Various industry trends and real-time developments are factored into identifying key growth factors and the future course of the market. The research proceeds are the results of high-quality data, expert views & analysis, and valuable independent opinions. The research process is designed to deliver a balanced view of the global markets and allows stakeholders to make informed decisions, to attain their highest growth objectives.
Future Data Stats offers its clients exhaustive research and analysis, based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models distill the data & statistics and enhance the accuracy of our recommendations and advice.
With Future Data Stats calibrated research process and 360° data-evaluation methodology, the clients receive:
- Consistent, valuable, robust, and actionable data & analysis that can easily be referenced for strategic business planning
- Technologically sophisticated and reliable insights through a well-audited and veracious research methodology
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With this strong methodology, Future Data Stats ensures that its research and analysis is most reliable and guarantees sound business planning.
The research methodology of the global market involves extensive primary and secondary research. Primary research includes about 24 hours of interviews and discussions with a wide range of stakeholders that include upstream and downstream participants. Primary research typically is a bulk of our research efforts, coherently supported by extensive secondary research. Over 3000 product literature, industry releases, annual reports, and other such documents of key industry participants have been reviewed to obtain a better market understanding and gain enhanced competitive intelligence. In addition, authentic industry journals, trade associations’ releases, and government websites have also been reviewed to generate high-value industry insights.
Primary Research:
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Primary Research
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Desk Research
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Company Analysis
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• Identify key opinion leaders • Questionnaire design • In-depth Interviews • Coverage across the value chain
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• Company Website • Company Annual Reports • Paid Databases • Financial Reports
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• Market Participants • Key Strengths • Product Portfolio • Mapping as per Value Chain • Key focus segment
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Primary research efforts include reaching out to participants through emails, telephonic conversations, referrals, and professional corporate relations with various companies that make way for greater flexibility in reaching out to industry participants and commentators for interviews and discussions.
The aforementioned helps to:
- Validate and improve data quality and strengthen the research proceeds
- Develop a market understanding and expertise
- Supply authentic information about the market size, share, growth, and forecasts
The primary research interview and discussion panels comprise experienced industry personnel.
These participants include, but are not limited to:
- Chief executives and VPs of leading corporations specific to an industry
- Product and sales managers or country heads; channel partners & top-level distributors; banking, investments, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research:
A broad array of industry sources for the secondary research typically includes, but is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for a competitive scenario and shape of the industry
- Patent and regulatory databases to understand technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles, web-casts, and other related releases to evaluate the market
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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PRIMARY SOURCES |
DATA SOURCES |
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• Top executives of end-use industries • C-level executives of the leading Parenteral Nutrition companies • Sales manager and regional sales manager of the Parenteral Nutrition companies • Industry Consultants • Distributors/Suppliers
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• Annual Reports • Presentations • Company Websites • Press Releases • News Articles • Government Agencies’ Publications • Industry Publications • Paid Databases
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Analyst Tools and Models:
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BOTTOM-UP APPROACH |
TOP-DOWN APPROACH |
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· Arriving at · Arriving at · Market Share · Key Market Players |
· Key Market Players · Market Share · Arriving at · Arriving at |
Soft Drink Market Dynamic Factors
Drivers:
- Evolving consumer preferences for various soft drink flavors.
- Expanding health-consciousness, leading to demand for low-sugar and healthier alternatives.
- Strong marketing and brand loyalty efforts by major soft drink companies.
- Diverse distribution channels, including convenience stores and online sales.
Restraints:
- Growing concerns about excessive sugar consumption and its health implications.
- Stringent regulations on sugar content and labeling in some regions.
- Increasing competition from alternative beverages, such as sparkling water and functional drinks.
- High costs associated with marketing and advertising soft drink products.
Opportunities:
- Innovation in low-sugar and natural sweetener alternatives.
- Expanding into emerging markets with evolving consumer preferences.
- Leveraging e-commerce for direct-to-consumer sales.
- Introduction of new and unique flavors to cater to diverse tastes.
Challenges:
- Navigating evolving regulations and standards regarding ingredients and labeling.
- Addressing environmental concerns related to plastic packaging.
- Maintaining brand relevance and consumer interest amid competition.
- Adapting to changing consumer behavior, including the impact of the COVID-19 pandemic on consumption patterns.
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