The global soft drinks market size was valued at USD 416.19 Billion in 2021 and is expected to expand at a CAGR of 5.2% from 2022 to 2028. Rising disposal incomes, changing lifestyle, and a growing population is expected to promote market growth over the next few years. The growing demand for clean-label, gluten-free, low-calorie, and low-carb products drives the global soft drinks market. Additionally, rising popularity among the millennials and increasing investments in R&D in the food and beverage sector are expected to drive the industry demand.
During COVID 19 pandemic and lockdown situation, governments of various countries restricted or citizens prefer to stay at home as a precautionary measure. Various festivals, sports events, exhibitions, and other public events were canceled across the world. Due to this complete production as well as supply chains were distressed. Due to the disturbed supply chains and reduced demand, the market experienced a shortfall in sales. Considering this short slack in market revenue is likely to observe a healthy market growth rate during the forecast period after COIVD restrictions.
Beverages are liquid food that can be consumed by citizens for hydration or as a source of energy. Different type of drinks is available in the market that satisfies the demand of the citizens. Soft drinks are made from flavors, sweetening agents, and edible acids. Soft drinks are broadly categorized as carbonated and non-carbonated which contain energy and sports drinks, soda, Ready-To-Drink (RTD), flavored water, and diet beverages. Considering the public health, Food and Drug Administration (FDA) ensure guidelines and ensures soft drinks are safe for the citizens.
Soft drinks can be served cold, above ice cubes, or at normal temperature. They are accessible in several container formats, such as cans, glass bottles, as well as plastic bottles. Containers are available in different sizes, varying from small bottles up to large containers. Lesser amounts of alcohol may exist in a soft drink, however, the alcohol content must be less than 0.5% of the overall volume of the drink in numerous countries. Moreover, soft drinks are extensively accessible at dedicated soda stores, restaurants, convenience stores, movie theaters, vending machines, casual-dining restaurants, and bars from soda fountain machines.
The top three global soft drinks market players are Coca-Cola, PepsiCo, and Cadbury Schweppes. In the U.S., The Coca-Cola Company is the global leading company in the carbonated soft drinks market, which accounts for nearly 48% share of the total market's volume. In India, the major soft drink companies are Coca-Cola and Pepsi. This industry is largely dependent on the manufacture of quality bottles as well as drinking packs which are utilized to maintain the products fresh for a long period of time.
The soft drink market is increasing rapidly owing to continued attention on health and comfort. Soft drinks are the element of a balanced diet as well as a healthy lifestyle as they comprise health elements such as vitamins and calcium. Pure juice, bottled water, smoothies, dairy drinks, and fruit drinks, continue to drive development. Large opportunities for soft drinks producers are offered by augmented demand for functionality, like blood-pressure-reducing and also cholesterol-lowering drinks. The customers select the soft drinks that suit their lifestyle, tastes, nutritional requirements, and physiological constraints.
The carbonated segment contributed to the largest revenue share of around 70% in 2021 and is forecasted to expand with a CAGR of 4.3% from 2022 to 2028. Carbonated drinks are more popular thus capturing more market revenue. The products are continually being improved and innovated to create something for everyone. The ingredients such as flavors, sugar, coloring agents, and sweeteners generate the taste and provide coolness for every sip. Moreover, manufacturing technology such as mass production lines and improved packaging systems are contributing to the market revenue.
The non-carbonated segment is expected to register the highest CAGR of 6.9% from 2022 to 2028. Non-carbonated drinks do not undergo the carbonation process thus, are healthier than carbonated. These drinks are pasteurized to protect them from spoilage during the manufacturing process. Considering the health benefits, this segment is expected to grow during the forecast period.
Hypermarkets and supermarkets distribution channel contributed the largest market share of around 40% in 2021 and is estimated to expand at a CAGR of 3.9% from 2022 to 2028. Supermarkets and hypermarkets are a type of organized channel which offer more customer-oriented services by selling a variety of FMGC products directly to the consumers. These stores provide a choice of physical verification of products to the buyers and contribute to the market revenue.
The online distribution channel is forecast to expand with a higher CAGR of 7.1 from 2022 to 2028. An increasing trend among consumers regarding online shopping portals and mobile apps for shopping due to simplicity and convenience. Products are available at economic rates via online channels compared to offline. End-users choose and believe the brands, those who manufacture and check the quality of products. Moreover, end-users choose the most believed shopping portals or mobile apps to purchase.
North America contributed the largest market share of above 35% in 2021 and is forecasted to witness a CAGR of 4.0% from 2022 to 2028. Early adoption and well-developed economic countries including U.S. and Canada are positively contributing to the market revenue. The growing demand for soft drinks is supported by the increasing production of drinks and investments in developing manufacturing assembly lines and packaging technology. The presence of globally known brands such as PepsiCo and Coca-Cola in this region will drive the industry demand.
Asia Pacific is forecasted to register the highest CAGR of 6.2% from 2022 to 2028. Countries such as China, and India are positively contributing to the market revenue. Japan is also projected to account for major sales volume, while revenue from the market in China is projected to register the fastest CAGR. Increasing disposal income of citizens, an increasing number of food processing units, and huge consumption by a growing population, are expected to drive the growth rate of the market.
The market is characterized by the presence of various well-established players and several small and medium players. The soft drink companies are mainly focused on constant innovation and development of the quality of elements used; manufacturing methods, packaging & associated materials, and marketing to improve sales. In January 2020, Coca-Cola expanded its 2 new sugar-free products to its PowerAde for Athletes. Top players such as Sprite have started to concentrate on introducing improved and rebranded products that have minor sugar content, condensed at least by 50%, and comprising mixtures of sugar, acesulfame, as well as aspartame. Such initiatives are expected to boost the adoption rate of the products among consumers. The soft drink extractors are aggressively following the organic as well as inorganic strategies to expand their footprints across the geography. Some of the prominent players in the global soft drinks market include:
The Coca-Cola Company
Keurig Dr Pepper Inc (KDP)
Red Bull GmbH
Monster Energy Company
Appalachian Brewing Company
ITO EN INC.
AriZona Beverages USA LLC
Market size value in 2022
USD 434.50 billion
Revenue forecast in 2028
USD 592.86 billion
CAGR of 5.2% from 2022 to 2028
Base year for estimation
2017 - 2020
2022 - 2028
Revenue in USD Million and CAGR from 2022 to 2028
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product, distribution channel, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Germany; France, U.K.; China, India; Brazil; South Africa
Key companies profiled
Pepsico, Inc.; Nestlé; The Coca-Cola Company; Keurig Dr Pepper Inc (KDP); Red Bull GmbH; Unilever PLC; Monster Energy Company; Appalachian Brewing Company; ITO EN INC.; and AriZona Beverages USA LLC
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This report forecasts revenue 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 2028. For the purpose of this study, Grand View Research has segmented the soft drinks market on the basis of product, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2017 - 2028)
Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)
Hypermarkets and Supermarkets
Regional Outlook (Revenue, USD Million, 2017 - 2028)
Central & South America
Middle East & Africa
b. The global soft drinks market size was estimated at USD 416.19 billion in 2021 and is expected to reach USD 434.50 billion in 2022.
b. The global soft drinks market is expected to grow at a compound annual growth rate of 5.2% from 2022 to 2028 to reach USD 592.86 billion by 2028.
b. North America dominated the soft drinks market with a share of 36.30% in 2021. This is attributable to rising popularity among the millennials and increasing investments in R&D in the food and beverage sector.
b. Some key players operating in the soft drinks market include Pepsico, Inc.; NestlÃ©; The Coca-Cola Company; Keurig Dr Pepper Inc (KDP); Red Bull GmbH; Unilever PLC; Monster Energy Company; Appalachian Brewing Company; ITO EN INC.; and AriZona Beverages USA LLC.
b. Key factors that are driving the soft drinks market growth include rising disposable incomes, changing lifestyles, along with increasing trends among consumers regarding online shopping portals.
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