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Carbonated Soft Drink Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global carbonated soft drink products market was valued at USD 447.9 billion in 2022 and is projected to expand at a CAGR of 5.6% from 2023 to 2030. Growing health concerns along with rising health awareness, especially among the youth is expected to drive the demand for healthier beverage options. This has encouraged market participants to introduce healthier beverages such as low-calorie and sugar-free carbonated soft drinks. For instance, in November 2021, PepsiCo launched a new range of low-sugar products in the UK, including Pepsi Max, Pepsi Diet, and Pepsi Zero Sugar.
The growing demand for convenience foods is also expected to propel market growth. Busy lifestyles and the emergence of the on-the-go trend are driving the demand for convenience foods, such as carbonated soft drinks. Furthermore, the increasing penetration of vending machines in public places such as educational institutions, offices, airports, and shopping malls is anticipated to drive the demand for carbonated soft drinks. For instance, in April 2021, Coca-Cola launched a new line of vending machines with touchscreens, allowing customers to customize their beverages.
The increasing trend of premiumization is expected to support the growth of the market. This has encouraged several market players to launch premium products to cater to the demand of the consumers. For instance, in June 2021, PepsiCo announced the launch of Pepsi Cafe, a premium cola in two flavors—original and vanilla. The new product is an amalgamation of cola and coffee, with an aroma of coffee and double the amount of caffeine.
In addition, the increasing demand for natural products is expected to further boost the market growth. Carbonated soft drink products are being introduced with natural sweeteners and flavors to cater to the health-conscious consumer base. For instance, in February 2021, Coca-Cola launched a new range of products in the UK, including Coca-Cola Energy, Coca-Cola Energy No Sugar, and Coca-Cola Energy Zero Sugar. The new products are made with natural ingredients and have no artificial flavors or colors.
Lastly, the growing demand for ready-to-drink (RTD) tea and coffee is expected to drive the market growth. RTD tea and coffee are gaining popularity among the youth due to their convenience and availability in various flavors. This has encouraged market players to introduce carbonated soft drink products with tea and coffee flavors. For instance, in August 2021, PepsiCo introduced Pepsi Cafe, a carbonated soft drink with coffee flavor, in the US. The product has a caffeine content of 69mg per 12-ounce can, which is nearly double the amount of caffeine in a standard 12-ounce can of Pepsi.
Product Insights
Cola was the largest market segment and accounted for a share of 33.0% in 2022. Colas are the most popular and preferred carbonated soft drinks among consumers due to their unique taste and flavor. The segment is expected to witness significant growth owing to rising demand from consumers, especially in the Asia Pacific region. Moreover, manufacturers are focusing on launching new product varieties, such as sugar-free colas, to offer more options to customers.
The citrus flavored carbonated soft drinks segment is expected to expand at the fastest CAGR of 7.3% over the forecast period. This can be attributed to the increasing preference of consumers for citrus-flavored drinks, owing to their strong taste and flavor. Moreover, manufacturers are turning to natural and organic ingredients to produce these drinks, which is further anticipated to drive the segment growth. Furthermore, the introduction of new flavors in the market is expected to contribute to the segment growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the highest market share in 2022. The growth of the segment is mainly driven by the growing consumer preference for shopping at supermarkets & hypermarkets. Furthermore, the increasing demand for convenience and quick access to products has been a key driver for the growth of the segment. Supermarkets & hypermarkets offer a wide range of soft drinks products and the availability of various brands of drinks at competitive prices has been driving the segment growth.
The convenience stores segment is anticipated to expand at the highest CAGR of 11.2% over the forecast period. The growing number of convenience stores in the region, such as 7-Eleven, has been a major factor for the growth of this segment. Furthermore, convenience stores offer easy accessibility and significant product visibility, which has been driving the segment growth. Additionally, the presence of vending machines for carbonated soft drinks in public places, such as schools and universities, has been increasing the demand for carbonated soft drinks from the convenience stores segment.
Type Insights
The traditional segment accounted for the largest revenue share of 59.2% in the year 2022. The popularity of traditional carbonated soft drinks is due to their low prices and wide availability. The increasing preference for natural sweeteners such as stevia, coconut sugar, and monk fruit is driving the demand for traditional carbonated soft drinks. Also, the increasing popularity of natural flavorings and additives such as ginger, turmeric, and mint is further augmenting the growth of this segment.
The premium segment is anticipated to register the highest CAGR of 6.1% over the forecast period. The increasing demand for premium and organic carbonated soft drinks is due to the healthy living trend among consumers. The rising awareness about the health benefits of premium carbonated drinks is also driving the growth of this segment. Moreover, the increasing preference for natural sweeteners and flavorings is further enhancing the demand for premium carbonated soft drinks.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 41.2% in 2022. Increasing demand for low-calorie and sugar-free carbonated soft drinks is a major factor driving the market in the region. Growing consumer concerns regarding health and fitness are fueling the demand for healthier carbonated soft drink options. In addition, Europe is a major hub for the consumption of carbonated soft drinks, which is expected to fuel the growth of the market. For instance, in May 2021, PepsiCo announced the launch of a new low-calorie cola drink in the U.K.
The Asia Pacific is expected to witness the fastest growth in the coming years. This is owing to the presence of a large consumer base and rising disposable incomes in the region. In addition, the increasing popularity of flavored drinks among the population is expected to drive the demand for carbonated soft drinks in the region. For instance, in October 2021, Coca-Cola India launched a new orange-flavored carbonated soft drink, ‘Fanta Orange Splash’, in the Indian market.
Financial Projections
In this part of the carbonated soft drink 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 soft drink products business comes from direct sales of its products, as well as from distribution agreements with retailers and wholesalers. Additionally, other sources of revenue such as the sale of advertising space, sponsorships, and other promotional activities can also be included in this section.
Projecting Expenses
In this section, all the regular expenses related to keeping the carbonated soft drink products business running will be described. The list of operating expenses includes production costs, wages, packaging, advertising, transportation, and other related costs. It is important to track all expenses in order to ensure that the business is profitable.
Key companies & market share insights
Some of the major companies operating in the carbonated soft drink 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 June 2022, PepsiCo launched the new Pepsi Mango flavor.
– In August 2022, Coca-Cola launched the Coke Orange Vanilla flavor.
– In October 2022, Dr. Pepper Snapple Group launched the Mango Madness flavor.
Some of the prominent players in the carbonated soft drink market include:
– PepsiCo, Inc.
– The Coca-Cola Company
– Dr. Pepper Snapple Group
– Suntory Beverage & Food Ltd.
– Cott Corporation
– National Beverage Corp.
– Hansen Natural Corporation
– Nestlé S.A.
– Red Bull GmbH
– Monster Beverage Corporation
Global Carbonated Soft Drink 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 soft drink products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Colas
– Lemon-Lime
– Other Flavors
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Convenience Stores
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Regular
– Low-Calorie
4. 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 Players in the Carbonated Soft Drinks Market?
[A]: The key players in the global carbonated soft drinks market include PepsiCo Inc., The Coca-Cola Company, Dr Pepper Snapple Group, Inc., Red Bull GmbH, Britvic PLC, Cott Corporation, and Nestlé S.A.
[Q]: What Region Offers the Largest Opportunity for Sales of Carbonated Soft Drinks?
[A]: Asia-Pacific is expected to have the highest growth rate in the global carbonated soft drinks market due to the increasing demand for convenience, the availability of a wide variety of products, and the presence of large populations in the region.
[Q]: What Factors are Driving the Carbonated Soft Drinks Market?
[A]: Factors such as the increasing demand for convenience, the availability of a wide variety of products, and the presence of large populations in developing countries are driving the growth of the global carbonated soft drinks market. Additionally, the rise in health consciousness among consumers, the increasing demand for low-calorie and low-sugar beverages, and the growing popularity of natural and organic products are also propelling the growth of the market.
[Q]: What are the Key Benefits of Carbonated Soft Drinks?
[A]: Carbonated soft drinks provide several health benefits, including providing a quick source of energy, helping to regulate body temperature, providing electrolytes to help maintain body hydration, and helping to regulate digestion and appetite. Additionally, carbonated soft drinks can also provide a refreshing and delicious taste, making them a popular choice for many consumers.
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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