The global carbonated beverages market worth was estimated over USD 340 billion in 2014. Coca-Cola Company held over 45% of the overall revenue in the same year. Carbonated soft drinks sector is one of the matured sectors in beverages industry. In recent past the industry came across various changes and this phenomenon is expected to continue over the next seven years.
Increasing young population in developing countries coupled with increasing disposable income among consumers is expected to drive the overall carbonated beverages market growth. Increasing processed food and beverages demand coupled with rising population in BRICS countries is expected to benefit the market.
The industry has relatively low price points and margins in comparison to other consumer goods. Major industry participants hence focus on the packaging innovations to gain market revenue along with sustainability. Coca-Cola Company balances the relation between sustainability and good design of the bottles. They let go of the brand equities and the bottle is more sustainable than any normal PET bottle.
Carbonated beverages are commonly known as soft drinks which have carbon dioxide dissolved in it. They don’t have any alcoholic content; hence, they are termed as soft drinks and spans across sparkling drinks, smoothies, juices, ready-to-drink tea and coffee, concentrates, and functional drinks. Carbonated beverages market is segmented based on their product types such as carbonated beverage regular, carbonated beverages diet, lemon/lime regular, and lemon/lime diet.
Carbonated beverages demand with reduced sugar content is expected to attract consumers owing to recent health awareness across the globe. There are various flavors available such as orange, cola, and lemon. However the original carbonated beverage segment is the most dominant in terms of demand. In line with growing health awareness among consumers, natural flavored beverages, such as tropical fruits and super fruits, were introduced.
Major challenges in the carbonated beverages industry come from the health lobbyists. Reports on childhood obesity increased over the past few years. This may have a negative impact on the overall market growth. Stringent regulations on plastics usage in packaging may emerge as a hindrance and limit the overall market growth.
Product innovation and shifting focus towards manufacturing innovative packaging and reusable bottles and cans are anticipated to create ample opportunities for the market participants. This step is expected to lessen scrap material dumping and gain market sustainability.
Europe carbonated beverages dominated the overall demand in 2014. The regional market is expected to grow at an estimated CAGR of over 4.5% from 2015 to 2022. North America held significant share in the global carbonated beverages market. Rising demand for processed food & beverages in the industry is expected to have positive impact on the regional market. However, reported cases of obesity in the region led to continuous decrement in demand over the decade. Even the volume of Diet Pepsi, Diet Mountain Dew, and Diet Coke dropped across the range of 2% to 5% over the last five years. Asia Pacific market is expected to witness fastest growth over the next seven years. Less stringent norms and regulations and rising disposable income among consumers in emerging countries such as China, India, South East Asia, South Korea, and Japan is expected to benefit the overall growth.
Recognized brand loyalty is a big aspect of the carbonated beverages industry. Major business participants in carbonate beverages market are Coca-Cola, PepsiCo, Cadbury Schweppes, Parle Agro, Postobon and Cott Corporation. Macro-environmental factors have a strong effect on soft drink industry that is expected to lead to change. Frequent mergers and acquisitions are witnessed across the industry. Coca-Cola company holds the maximum market share followed by Pepsi Co.
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The demand for packaged and processed foods is expected to increase owing to their longer shelf life. Furthermore, manufacturers are closely monitoring the product supply to major retailers through specialized communication channels in order to improve restocking. In addition, processed food manufacturers have urged the packaging raw material suppliers as well as contract packers to ensure a steady flow of goods during the lockdown related to COVID-19. The report will account for Covid19 as a key market contributor.