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Carbonated Beverages Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global carbonated beverages market was valued at USD 627.6 billion in 2022 and is expected to register a CAGR of 4.3% during the forecast period (2023-2030). The increasing demand for healthier and convenience food products has encouraged consumers to opt for carbonated beverages. Furthermore, the growing demand for beverages, such as energy drinks and flavored drinks, is driving the market growth. The growing popularity of low-calorie and low-sugar carbonated beverages, such as diet sodas, is also boosting the market. The rising trend of sparkling water, which combines the carbonation of soda with the health benefits of water, is gaining traction in the market.
Manufacturers are introducing a wide range of flavors and product variants to meet the changing preferences of consumers. For instance, in May 2021, PepsiCo launched a new lineup of flavored sparkling water, Bubly, with eight flavors. This product launch is expected to strengthen the company’s presence in the global sparkling water market. Moreover, the growing demand for organic beverages is encouraging market participants to introduce organic carbonated drinks. For instance, in August 2021, Suntory Beverage & Food launched an organic cola drink in the Japanese market. The product is made from organic sugar from Thailand, organic cola extract from Africa, and organic lemon peel from Italy, and is certified as organic by Japan Organic and Natural Food Association.
The rising demand for convenience and on-the-go products is driving the growth of the market. The introduction of packaging formats, such as cans and PET bottles, has made it easier for consumers to purchase and consume carbonated beverages. Furthermore, the growing popularity of ready-to-drink (RTD) beverages is also driving the market. The growing popularity of RTD beverages, such as energy drinks, sports drinks, and flavored waters, is further boosting the market.
The rising demand for natural and organic beverages has encouraged market participants to introduce organic carbonated beverages. Moreover, the growing trend of sustainability and the increasing awareness among consumers regarding the health benefits of organic products are expected to drive the demand for organic carbonated drinks. Furthermore, the introduction of innovative flavors and product variants is likely to create lucrative opportunities for market players in the near future.
Product Insights
The cola drinks segment held the largest market share of 35.2% in 2022. Cola drinks have been the largest sub-segment in the carbonated beverages market and are expected to remain so over the forecast period. This is owing to the increasing demand for cola drinks among the population across the globe. Furthermore, the increasing demand for diet colas and the introduction of new flavors by manufacturers is expected to drive the growth of the segment in the coming years.
The sparkling waters segment is projected to grow at the fastest CAGR of 4.4% during the forecast period. Factors such as rising health consciousness, increasing demand for low calorie drinks, and rising preference for sparkling waters with natural fruit flavors are driving the growth of the segment. In addition, the increasing demand for organic sparkling waters with natural flavors is expected to create ample opportunities for the manufacturers in the coming years.
Distribution Channel Insights
The supermarkets and hypermarkets segment captured the major share of over 45.3% in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase carbonated beverages. According to a study by GroceryDive.com in 2020, supermarkets and hypermarkets accounted for 54.2% of all carbonated beverage sales in the U.S. The large assortment of flavors offered by these establishments and the convenience of shopping for them in one place is driving the growth of this segment.
The online segment is anticipated to expand at the highest CAGR of 11.7% over the forecast period. E-commerce development in the beverage industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in January 2022, Amazon launched Amazon Go Grocery, an online grocery store offering carbonated beverages and other grocery items. The store offers a wide selection of carbonated beverages, including soda, iced tea, energy drinks, and juice, among others. In addition, Amazon Go Grocery also offers exclusive discounts and deals on select products to encourage more customers to purchase from their website.
Type Insights
The still segment accounted for the largest revenue share of 67.3% in the year 2022. The increasing demand for healthy beverages such as juices and energy drinks has led to the growth of the still beverage segment. Consumers prefer still beverages over carbonated beverages due to their low sugar content and fewer calories. Moreover, the rising health awareness among consumers is expected to drive the still segment during the forecast period.
The sparkling segment is anticipated to expand at the highest CAGR of 5.7% over the forecast period. The increasing demand for sparkling drinks such as soda, lemonade, and fruit-flavored drinks is expected to drive this segment during the forecast period. The increasing disposable income and changing lifestyle habits have also led to the increasing demand for sparkling drinks. Furthermore, manufacturers have also been introducing new flavors, packaging, and marketing strategies to attract more customers.
Regional Insights
Europe accounted for the largest revenue share of the global carbonated beverages market in 2021, followed by North America and Asia Pacific. This can be attributed to the presence of leading manufacturers in the region. For instance, in March 2021, the Coca-Cola Company launched a new variant of its Fanta brand in the European market. Furthermore, the presence of a large number of health-conscious consumers in Europe is also a key factor driving the growth of the market.
In Asia Pacific, the demand for carbonated beverages is expected to witness a significant growth in the coming years, owing to the rising demand for healthier alternatives. For instance, in March 2021, PepsiCo, Inc. launched a new range of carbonated beverages in India, which contain natural ingredients such as ginger, lemon, and mint. The company also launched a new range of low-calorie carbonated beverages in the country to cater to the growing health-conscious consumer base.
Financial Projections
In this part of the carbonated beverages products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a carbonated beverages products business comes from sales of the drinks, wholesales, and distribution channels. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, food & beverage, the sale of merchandise, and leasing the place for parties and corporate events.
Projecting Expenses
In this section, all the regular expenses related to keeping the carbonated beverages products business running will be described. The list of operating expenses includes raw materials, labor costs, production costs, research & development costs, marketing & advertising expenses, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the carbonated beverages market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, PepsiCo launched Pepsi Café, a coffee-flavored cola.
– In September 2022, Coca-Cola Company launched the Fanta Zero Soda, a zero-sugar version of their popular Fanta soda.
– In October 2022, Dr. Pepper Snapple Group launched a new zero-calorie drink, Dr. Pepper Zero.
Some of the prominent players in the carbonated beverages market include:
– PepsiCo, Inc.
– The Coca-Cola Company
– Dr. Pepper Snapple Group
– Red Bull GmbH
– Monster Beverage Corporation
– Cott Corporation
– National Beverage Corp.
– Arizona Beverage Company
– Suntory Beverage & Food Ltd.
– Nongfu Spring Co. Ltd.
Global Carbonated Beverages Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global carbonated beverages market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Colas
– Non-Colas
– Energy Drinks
– Flavored Drinks
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– On-trade
– Online
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the key factors driving the Carbonated Beverages Market?
[A]: The key factors driving the Carbonated Beverages Market are the increasing demand for convenient and healthier beverage options, changing lifestyles, and the rising disposable income of consumers. The growing awareness about health and wellness, the demand for convenience and variety, and the trend of customization are also contributing to the growth of the Carbonated Beverages Market.
[Q]: What are the major segments within the Carbonated Beverages Market?
[A]: The major segments within the Carbonated Beverages Market are carbonated soft drinks, energy drinks, and flavored drinks. Carbonated soft drinks, which include cola, lemon & lime, and orange, account for the largest share of the overall market.
[Q]: What are the most important trends and developments in the Carbonated Beverages Market?
[A]: The most important trends and developments in the Carbonated Beverages Market include the increasing demand for natural ingredients, the focus on product innovation and packaging, the introduction of healthier options, and the rise of premium and luxury beverages.
[Q]: Who are the key players in the Carbonated Beverages Market?
[A]: The key players in the Carbonated Beverages Market include The Coca-Cola Company, PepsiCo Inc., Red Bull GmbH, Monster Beverage Corporation, Dr. Pepper Snapple Group Inc., and Keurig Dr Pepper.
[Q]: Which region offers the largest opportunity for sales of Carbonated Beverages?
[A]: Asia Pacific is expected to offer the largest opportunity for the sales of Carbonated Beverages, with an absolute dollar opportunity of $72.5 B (USD). This region is expected to be driven by the growing demand for convenient and healthier beverage options, the rising disposable income of consumers, and the growing awareness about health and wellness.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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