The scope of our recent study on the "Carbonated Soft Drinks Market Forecast to 2031 - Global Analysis - by Flavor Type, Category, Packaging Type, and End user" includes the factors fueling the carbonated soft drinks market growth, revenue estimation, and forecast, market share analysis, and the identification of significant market players and their key developments.
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.
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. As part of the partnership, Coca-Cola has made a US$ 1.1 billion commitment to the Microsoft Cloud and its generative artificial intelligence (AI) capabilities. The collaboration underscores Coca-Cola's ongoing technology transformation, underpinned by the Microsoft Cloud as Coca-Cola's globally preferred and strategic cloud and AI platform. Whether it's collaborating with celebrity influencers to launch limited-edition flavors, advanced technology integration, or partnering with beverage delivery services, alliances are driving market growth and unlocking new opportunities for revenue generation.
Strategic initiatives extend beyond product and marketing efforts to include sustainability and corporate responsibility initiatives. With increasing consumer awareness and concern about environmental issues, beverage companies are implementing sustainability practices throughout their supply chains, including packaging innovations, water conservation efforts, and carbon footprint reduction strategies. These initiatives align with consumer values and contribute to brand differentiation and competitive advantage in the marketplace.
In Asia Pacific, the countries with large and diverse population, including emerging economies such as China, India, and Southeast Asian (SEA) countries, presents a vast consumer base for carbonated beverages. Rising disposable incomes, urbanization, and changing lifestyles contribute to increased consumption of convenience foods and beverages, including carbonated soft drinks. Further, growing awareness regarding the need for an active lifestyle and the rising rates of lifestyle diseases inspire health-oriented consumers to opt for sugar-free carbonated soft drinks. The sugar-free beverages market is also projected to grow due to increased promotional and advertisement strategies by various manufacturers operating in the market. According to the International Diabetes Federation (IDF), the number of people with diabetes in SEA is anticipated to increase by 68%, reaching 152 million by 2045, and the prevalence of diabetes will increase by 30%, reaching 11.3% in 2045. Consumers are becoming increasingly aware of the importance of a healthy diet and an active lifestyle due to the extreme occurrence of diabetes in Asia. Natural sweeteners, including stevia, are preferred by consumers in their beverages. Companies such as PepsiCo, Inc. and the Coca-Cola Company have pledged to eliminate artificial additives and lower the amount of sugar in their products. Thus, such initiatives taken by manufacturers boost the demand for carbonated soft drinks among consumers in Asia Pacific. The accessibility and availability of carbonated soft drinks are also driving market growth in Asia Pacific. The expansion of modern retail channels, including supermarkets, convenience stores, and online platforms, makes these beverages easily available to consumers across urban and rural areas. Additionally, vending machines and beverage dispensers in public spaces enhance the visibility and distribution of carbonated soft drinks.
Based on packaging type, the carbonated soft drinks market is divided into bottles and jars. The bottles hold a significant share of the global carbonated soft drinks market. Bottles are typically sealed with screw caps, which are easy to open and close, preserving the carbonation and protecting the drink from contaminants. The rounded shapes of these bottles are ergonomically friendly for easy handling and consumption on the go. Furthermore, bottled carbonated soft drinks are available in various sizes, from small single-serve portions to larger, family-sized options, catering to different consumption needs. This packaging type also provides ample surface for branding and nutritional information, which is crucial for marketing and consumer education.
The market is segmented into five main regions-North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. In terms of revenue, North America dominated the carbonated soft drinks market share. the growing popularity of outdoor dining in North America presents a significant opportunity for the carbonated soft drinks market. As the region experiences continuous growth in restaurants, cafes, fast-food chains, and other food service establishments, the demand for beverages to accompany meals is also on the rise. According to the National Restaurant Association, the US's food service industry is forecast to reach US$ 1 trillion in sales in 2024. Additionally, 52% of consumers-including 67% of millennials and 63% of Gen Z adults-prefer ordering takeout from a restaurant as an essential part of their lifestyle, further showing restaurants' profound impact on consumers' lives. Carbonated soft drinks, with their versatility, variety of flavors, and widespread appeal, are well-positioned to capitalize on this trend.
Carbonated soft drinks often serve as affordable indulgences or treats for consumers, providing a refreshing and enjoyable beverage option, particularly during social gatherings or meals. This affordability factor makes them popular choices among consumers of all demographics, including families, teenagers, and young adults. Furthermore, aggressive marketing and promotional strategies by major beverage companies help maintain and even increase demand for carbonated soft drinks.
Global Carbonated Soft Drinks Market Breakdown - by Region
The report includes the segmentation of the global carbonated soft drinks market as follows:
The global carbonated soft drinks market is segmented based on flavor type, category, packaging type, and end user. Based on flavor type, the carbonated soft drinks market is divided into cola, orange, lemonade, ginger, and others. In terms of category, the market is bifurcated into sugar-free and conventional. By packaging type, the market is segmented into bottles and cans. Based on end user, the market is categorized into on-trade and off-trade.
By geography, the market is broadly segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The North America market is further segmented into the US, Canada, and Mexico. The carbonated soft drinks market in Europe is sub-segmented into Germany, France, the UK, Italy, Spain, and the Rest of Europe. The Asia Pacific carbonated soft drinks market is further categorized into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The market in the Middle East & Africa is further segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The South & Central America market is further categorized into Brazil, Argentina, and the Rest of South & Central America.
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