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Craft Soda Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global craft soda products market was valued at USD 6.7 billion in 2022 and is projected to expand at a CAGR of 7.4% from 2023 to 2030. Craft soda products have gained traction among consumers due to their interesting flavors and natural ingredients, such as herbs and spices. Furthermore, health-conscious consumers are increasingly shifting from regular sodas to craft sodas due to their fewer calories and sugar content. The rising trend of craft soda and craft beer products is expected to drive the market growth.
Furthermore, craft soda products are gaining growth in the beverage industry, as the demand for soft drinks is increasing around the world. Vendors are introducing innovative flavors to cater to the changing consumer preference and rising demand for craft soda products. For instance, in October 2021, Kombucha Wonder Drink launched a line of craft sodas in four flavors, namely ginger ale, root beer, orange-pineapple, and creme soda. These products are USDA certified organic, non-GMO, and gluten-free.
In addition, the growing number of craft soda bars and lounges is expected to drive the market growth. These bars and restaurants offer a wide range of craft soda products, including craft soda floats, craft soda cocktails, and craft soda mocktails. Furthermore, the growing trend of food and beverage festivals is also driving growth in the craft soda products market. For instance, the Dublin Craft Beer Festival took place in August 2021, and around 5,000 attendees had the opportunity to sample various craft soda products from over 25 different brands.
Furthermore, the increasing demand for low-calorie drinks due to rising health and fitness awareness is expected to drive the market growth. Moreover, the rising trend of premiumization in demand for craft soda products due to the influence of clean label ingredients has led to the high price of craft soda products. This has further propelled the growth of the craft soda products market.
Moreover, the increasing number of innovative product launches to cater to the growing product demand from customers is expected to further support the growth of the market. For instance, in April 2021, Square Root Soda Co. launched a new line of craft soda products in four flavors, namely orange and ginger, lemon and lime, cherry and cardamom, and raspberry and elderflower. The company’s products are made with natural ingredients, and are free from artificial sweeteners and preservatives.
Product Insights
The flavored soda segment accounted for the largest market share in 2019 and is anticipated to maintain its dominance during the forecast period. The segment is expected to grow significantly in the near future on account of increasing demand for craft soda products due to their distinctive taste and flavors. Furthermore, craft soda products are becoming increasingly popular among Millennials, Generation X, and Generation Z, as they prefer craft soda beverages as an alternative for other carbonated drinks.
The organic soda segment is expected to expand at the fastest CAGR over the forecast period. Growing health consciousness among consumers has been driving the demand for organic craft soda products, as they contain natural ingredients and low or no sugar content. In addition, the introduction of new varieties of organic craft sodas is driving the segment growth. Furthermore, manufacturers are focusing on introducing new flavors of organic craft soda products to meet the changing tastes of consumers. This factor is expected to drive the organic soda segment during the forecast period.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the major share of the craft soda products market in 2022. Supermarkets and hypermarkets have been preferred for purchasing craft soda products due to their vast selection of products and ease of access. The supermarkets & hypermarkets segment captured the major share of the craft soda products market in 2022. In addition, supermarkets and hypermarkets offer convenience in terms of browsing the products, which helps to make the purchase decision easier.
The online segment is anticipated to expand at the highest CAGR of 12.6% over the forecast period. The increasing use of e-commerce websites and applications to purchase craft soda products has been a major factor driving the segment growth. In addition, the increasing number of craft soda brands and the availability of craft soda products on e-commerce platforms are further contributing to the segment growth. Moreover, the presence of numerous discounts, offers, and rewards provided by the e-commerce companies to attract more customers towards their websites and applications is also aiding the segment growth.
Type Insights
The craft segment accounted for the largest revenue share of 70.5% in the year 2022. This is attributed to the growing demand for unique beverages among consumers. The craft segment includes beverages made with natural ingredients that are low in sugar content and provide an interesting flavor profile. The increasing trend of health-consciousness among consumers is driving the demand for craft soda products. Additionally, the increasing number of craft soda producers in the developed countries has contributed to the growth of the craft segment.
The non-craft segment is anticipated to expand at a CAGR of 8.9% over the forecast period. This is attributed to the affordability of the non-craft soda products. Consumers in the developing countries prefer low-cost alternatives, which is driving the demand for non-craft soda products. Additionally, the increasing demand for sodas with natural flavors in the non-craft segment is creating new opportunities for the market. For instance, PepsiCo launched Pepsi Natural, a naturally-flavored soda, in the United States in 2021.
Regional Insights
North America is expected to hold a major market share in the global craft soda products market. The presence of leading manufacturers of craft soda products in the region, such as Jones Soda Co. and the increasing demand for craft soda products from consumers in the U.S. and Canada, is expected to drive the growth of the market. Additionally, the rise in popularity of craft soda in the U.S. is further expected to boost the regional market.
Europe is expected to hold the second-largest market share in the global craft soda products market. The region has witnessed an increase in demand for craft soda products due to the presence of prominent manufacturers, such as Fentimans, based in the U.K. Moreover, the increasing demand for craft soda products from the health-conscious population in the region is also expected to drive the growth of the market.
The Asia Pacific craft soda products market is anticipated to witness a high growth rate over the forecast period. The rising disposable income of consumers in the region, coupled with an increase in the number of health-conscious consumers, is expected to drive the growth of the market. Furthermore, the increasing demand for craft soda products from countries, such as India and China, is expected to further boost the growth of the market in the Asia Pacific region.
Financial Projections
In this part of the craft soda 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 craft soda business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a craft soda products business comes from direct sales of soda products, as well as from sales of merchandise, such as apparel, mugs, and other promotional items. Depending on the size of your operation, you may also be able to generate revenue from partnerships with local and online retailers.
Projecting Expenses
In this section, all the regular expenses related to keeping the craft soda business running will be described. The list of operating expenses includes ingredients and packaging, production costs, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the major companies operating in the craft soda 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 October 2022, Reed’s Inc. launched a new line of craft sodas in five different flavors.
– In June 2022, Jones Soda Co. launched a new line of craft sodas with natural ingredients.
– In August 2022, Brooklyn Crafted launched a line of craft sodas flavored with real fruit juices.
Some of the prominent players in the craft soda market include:
– Reed’s Inc.
– Jones Soda Co.
– Brooklyn Crafted
– Red Bull GmbH
– Zevia LLC
– Spindrift Beverage Company
– House of Shandy
– Virgil’s Craft Sodas
– Jones Soda Co.
– Kona Brewing Co.
Global Craft Soda 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 craft soda products market based on type, flavor, distribution channel, and region:
1. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Craft Sodas
– Craft Sodas with Alcohol
2. Flavor Outlook (Revenue, USD Million, 2017 – 2030)
– Fruit-based
– Spice-based
– Herb-based
3. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
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 factors driving the craft soda products market?
[A]: The growing demand for healthier and low-calorie craft soda products, increasing preference for craft soda products with natural ingredients, and the growing health consciousness among consumers are some of the factors that are driving the craft soda products market. Additionally, the increasing popularity of craft soda products among millennials and Gen-Z is also expected to boost the growth of the market.
[Q]: Who are the Key Players in the Craft Soda Products Market?
[A]: Key players in the craft soda products market are Coca-Cola Company, PepsiCo Inc., Red Bull GmbH, Dr. Pepper Snapple Group Inc., Suntory Beverage & Food Ltd., The Jones Soda Company, and Reed’s Inc.
[Q]: What are the emerging trends in the craft soda products market?
[A]: Some of the emerging trends in the craft soda products market include the introduction of organic craft soda products, the increasing popularity of craft soda products in the on-trade market, and the increasing focus of manufacturers on product innovation.
[Q]: Which Region Offers the Largest Opportunity for Sales of Craft Soda Products?
[A]: The Asia Pacific region is expected to offer the largest opportunity for sales of craft soda products, owing to the increasing demand for craft soda products in countries such as China, India, Japan, and South Korea.
[Q]: What is the Potential of Product Innovation?
[A]: Manufacturers of craft soda products are focusing on product innovation to keep up with the changing trends. They are introducing new flavors, such as pineapple, mango, and orange, in craft soda products, as well as introducing packaging innovations, such as cans with unique shapes, to attract customers.
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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