The carbonated soft drinks market size is projected to reach US$ 445.13 billion by 2031 from US$ 296.62 billion in 2023. The market is expected to register a CAGR of 5.2% during 2023–2031. The growing demand for premium carbonated soft drinks reflects evolving consumer preference for high-quality, indulgent beverages. This is likely to remain a key trend in the market.
According to the World Economic Forum, there are 1.8 billion millennials around the world, equal to 23% of the global population. These younger demographics have embraced carbonated soft drinks not just as a refreshment but also as a lifestyle choice and a means of socializing. The variety of flavors and options, from classic sodas to innovative flavored variants, offered by beverage companies, catering to the diverse tastes of millennials and Gen Z, is a major factor driving demand for carbonated soft drinks.
The carbonated soft drinks market is a highly competitive and mature industry that continues to be a popular choice among consumers globally. The market is dominated by major players such as Coca-Cola, PepsiCo, and Dr. Pepper Snapple Group; they have a strong presence in both developed and emerging markets. Despite concerns about health and wellness, carbonated soft drinks remain a staple in many households due to their refreshing taste and wide variety of flavors. In recent years, there has been a shift toward healthier alternatives such as sparkling water and natural sodas, leading to a decline in sales of traditional carbonated soft drinks. However, the market continues to innovate with new product launches, including low-sugar and zero-calorie options, to cater to changing consumer preferences. Additionally, the rise of premium and craft soda brands has created new opportunities for growth within the market.
Strategic partnerships and collaborations are also driving innovation and expansion within the carbonated soft drinks market. Beverage companies are partnering with other brands, technology firms, and startups to leverage complementary expertise, access new end users, and co-create innovative products. For instance, in February 2022, Coca-Cola launched its new global innovation platform, Coca-Cola Creations, along with its first limited-edition product, Coca-Cola Starlight. In addition, in April 2024, Microsoft Corp and The Coca-Cola Company announced a five-year strategic partnership to align Coca-Cola’s core technology strategy systemwide, enable the adoption of leading-edge technology, and foster innovation and productivity globally.
Health has become a top priority for consumers across the globe, leading to a boom in demand for functional products. With increasing awareness of the health risks associated with high sugar intake, consumers are actively seeking out alternatives that allow them to indulge in carbonated beverages without compromising their health goals. Sugar-free and zero-calorie carbonated soft drinks offer a guilt-free option for those looking to reduce their sugar intake or manage their calorie consumption. These beverages are sweetened with artificial sweeteners such as aspartame, sucralose, or stevia, providing the familiar sweetness of traditional sodas without the added sugars. Moreover, the rise of health-conscious consumers and those following specific dietary trends, such as keto or low-carb diets, has fueled the demand for sugar-free and zero-calorie options. These consumers actively seek beverages that align with their dietary preferences while satisfying their cravings for carbonation and flavors. In response to this growing demand, many companies in the carbonated soft drinks market are expanding their portfolios to include a wider range of sugar-free and zero-calorie options.
Key segments that contributed to the derivation of the carbonated soft drinks market analysis are flavor type, category, packaging type, and end user.
The geographic scope of the carbonated soft drinks market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America dominated the market. A wide range of iconic brands such as Coca-Cola Company, PepsiCo, Keurig Dr Pepper, Refresco, and National Beverage Corporation have their bases in North America. Additionally, the variety of flavors and brands appeals to diverse consumer preferences, contributing to sustained demand. Carbonated soft drinks are readily available in various formats, including bottles, cans, and fountain drinks, making them easily accessible for consumers on the go.
The regional trends and factors influencing the Carbonated Soft Drinks Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Carbonated Soft Drinks Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 296.62 Billion |
| Market Size by 2031 | US$ 445.13 Billion |
| Global CAGR (2023 - 2031) | 5.2% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Flavor Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Carbonated Soft Drinks Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Carbonated Soft Drinks Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The carbonated soft drinks market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the carbonated soft drinks market are listed below:
The “Carbonated Soft Drinks Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The carbonated soft drinks market is estimated to be valued at US$ 445.13 billion by 2031.
Rising demand for premium carbonated soft drinks is likely to bring new trends in the carbonated soft drinks market in the coming years.
Three Cents Co, The Coca-Cola Co, PepsiCo Inc, Red Bull, Fevertree Drinks Plc, Monster Beverage Corp, Britvic Plc, Keurig Dr Pepper Inc, Refresco Group, and Asahi Group Holdings Ltd are the major players operating in the market.
The market is expected to register a CAGR of 5.2% during 2023–2031.
North America dominated the global carbonated soft drinks market in 2023.
Rising consumption of carbonated soft drinks among the millennial and Gen Z population and growing strategic initiatives by key players are the key drivers benefitting the carbonated soft drinks market.