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Soft Drinks Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global soft drinks market was valued at USD 523.2 billion in 2022 and is expected to register a CAGR of 5.3% from 2023 to 2030. The increasing demand for soft drinks is driven by factors such as the rising disposable income of the middle-class population, the growing demand for convenience and packaged food, and the increasing number of health-conscious consumers. Additionally, the increasing trend of on-the-go consumption and the rising popularity of energy drinks are further driving the market growth.
The increasing consumption of carbonated drinks is one of the major factors driving the growth of the soft drinks market. Carbonated drinks are considered an integral part of the modern lifestyle, with consumers preferring them over traditional drinks. With the growing demand for convenience and packaged food, the demand for carbonated drinks has increased significantly in recent years. Furthermore, the introduction of innovative flavors, such as strawberry and raspberry, has further boosted the market growth.
The health-conscious consumers are opting for low-calorie and sugar-free soft drinks. Manufacturers are introducing new flavors and varieties of soft drinks, such as organic and vegan varieties, as well as low-calorie and sugar-free versions, to meet the growing demand for health-conscious beverages. For instance, in October 2021, Coca-Cola introduced Coca-Cola Plus, a low-calorie soft drink with plant-based fibers, targeting health-conscious consumers.
In addition, the increasing trend of on-the-go consumption is propelling the demand for soft drinks. The increasing number of working professionals and their preference for convenience is driving the demand for ready-to-drink beverages. Furthermore, the introduction of innovative packaging, such as slim cans and single-serve bottles, is helping manufacturers to meet the rising demand for convenience. For instance, in March 2021, PepsiCo launched a new line of single-serve cans, targeting consumers who prefer smaller-sized packaging.
Moreover, the increasing popularity of energy drinks is driving the growth of the market. The rising number of health-conscious consumers is fueling the demand for energy drinks, as they provide an energy boost with fewer calories. Furthermore, manufacturers are introducing new flavors, such as mango and lime, to meet the demand for different flavors. For instance, in March 2021, Red Bull introduced Red Bull Tropical Edition with a combination of mango and lime flavors.
Product Insights
The carbonated soft drinks segment held the largest share in the market in 2019. Carbonated soft drinks are the most popular type of soft drink, owing to their unique flavor and taste. Moreover, their availability in various flavors and sizes is further boosting their demand. As per the article published by Beverage Industry in November 2020, the carbonated soft drinks industry is projected to grow by 3.2% in 2021.
The bottled water segment is expected to be the fastest growing segment over the forecast period. This is mainly due to the increasing health consciousness among consumers. According to a survey conducted by the International Bottled Water Association, in 2018, around 56% of Americans reported drinking bottled water because they believe it is a healthier option than other beverages. Additionally, availability of bottled water in various flavors and sizes is further contributing to its growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment led the soft drinks market in 2022, with a share of over 45.2%. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase beverages. These establishments provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required soft drink.
The convenience stores segment is expected to register the highest CAGR of over 8.3% over the forecast period. Convenience stores are gaining traction among customers due to their accessibility and ability to provide a wide range of products with convenience. Furthermore, the increasing number of convenience stores and the growing availability of soft drinks products in these stores are boosting the segment growth. For instance, in January 2021, 7-Eleven, Inc. launched a new line of soft drinks, 7-Select Go! Smart, in the U.S. The product contains a blend of electrolytes, vitamins, and minerals, and is available in three flavors, namely, blackberry lemonade, cherry limeade, and blood orange.
Type Insights
The carbonated soft drinks segment accounted for the largest revenue share of 49.1% in the year 2022. The increasing demand for carbonated soft drinks and its easy availability at retail stores and supermarkets are driving the segment’s growth. Furthermore, the rising trend of health-conscious consumers has led to the introduction of new products such as low-calorie, low-sugar, and low-sodium carbonated soft drinks. This has further boosted the demand for the segment.
The non-carbonated segment is anticipated to expand at the highest CAGR of 5.7% over the forecast period. The rising demand for non-carbonated soft drinks such as juices, sports drinks, and energy drinks is driving the growth of the segment. Also, the growing demand for sugar-free and low-calorie drinks is driving the market for the segment. Several manufacturers are introducing new flavors and varieties of non-carbonated soft drinks to meet the changing consumer preferences. For instance, Coca-Cola launched its new range of non-carbonated drinks such as FUZE Tea, AdeS Soy-Based Beverage, and Fairlife Milk in 2018.
Regional Insights
Asia Pacific is expected to witness the fastest growth in the forecast period. Rising demand for convenience food and beverages, coupled with increasing disposable income, is driving the growth of the market in the region. Furthermore, the growing health consciousness among consumers is expected to boost the demand for health-related soft drinks. For instance, in April 2021, PepsiCo India launched a low-calorie cola drink, Pepsi Café, fortified with coffee extract.
Europe is expected to account for the second-largest share of the market. Rapidly changing lifestyle, coupled with rising demand for convenience and healthy food products, is driving the market in the region. In addition, the growing demand for natural products, such as organic juices, is further expected to increase the demand for soft drinks in the region. For instance, in February 2021, Carlsberg launched a new range of low-alcohol, low-calorie, and low-sugar drinks, called Jacobsen Special Brews, in Denmark.
Financial Projections
In this part of the soft drinks products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts usually include cash flow projections and capital requirements for the soft drinks products business.
Revenue Assumptions
The main sources of revenue for a soft drinks products business are sales of beverages, private label products, and merchandise. Other possible sources of profit include fundraising, catering services, and special events.
Projecting Expenses
In this section, all the regular expenses related to keeping the soft drinks products business running will be described. The list of operating expenses includes production costs, wages, delivery and transport costs, raw materials, utilities, taxes, advertising and marketing, and other related costs.
Key companies & market share insights
Some of the key companies operating in the soft drinks 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, Coca-Cola Co. launched the Orange Vanilla Coke, a new flavor of Coke.
– In August 2022, PepsiCo Inc. launched the Pepsi Max Ginger, a new flavor of Pepsi.
– In December 2022, Dr. Pepper Snapple Group Inc. launched the Dr. Pepper Zero Sugar, a new calorie-free variation of Dr. Pepper.
Some of the prominent players in the soft drinks market include:
– Coca-Cola Co.
– PepsiCo Inc.
– Dr. Pepper Snapple Group Inc.
– Red Bull GmbH
– Monster Beverage Corporation
– Arizona Beverages USA LLC
– The Kraft Heinz Company
– Nestlé S.A.
– Suntory Holdings Limited
– Danone S.A.
Global Soft Drinks 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 soft drinks market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Carbonated Soft Drinks
– Juice Drinks
– Energy Drinks
– Bottled Water
– RTD Tea & Coffee
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Convenience Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Regular
– Diet
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 Drivers of the Global Soft Drinks Products Market?
[A]: The global soft drinks products market is driven by factors such as rising consumer demand for convenience, health, and wellness-related products, increasing penetration of soft drinks products in emerging markets, and increasing health awareness among consumers.
[Q]: Which Key Regions are Expected to Experience the Most Growth in the Soft Drinks Products Market?
[A]: The Asia Pacific region is expected to experience the most growth in the soft drinks products market due to the growing demand for convenience foods and drinks, increasing consumer spending, and a growing population.
[Q]: What are the Major Trends in the Soft Drinks Products Market?
[A]: Major trends in the soft drinks products market include the growth of non-alcoholic and sugar-free drinks, the introduction of flavored soft drinks, and the increasing demand for organic and natural drinks.
[Q]: Who are the Leading Companies in the Soft Drinks Products Market?
[A]: The leading companies in the soft drinks products market include PepsiCo, Inc., Coca-Cola Company, Dr Pepper Snapple Group, and Nestle S.A.
[Q]: What are the Key Strategies Adopted by Players in the Soft Drinks Products Market?
[A]: Key strategies adopted by players in the soft drinks products market include product innovation, mergers and acquisitions, strategic partnerships, and expansion of their distribution networks.
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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