NEW YORK, Oct. 15, 2024 /PRNewswire/ — Report with the AI impact on market trends- The global soft drinks market size is estimated to grow by USD 790.9 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 11.4% during the forecast period. Hectic lifestyle and need for instant energy is driving market growth, with a trend towards increasing demand for craft soft drinks. However, increasing obesity rates and related issues poses a challenge. Key market players include Asahi Group Holdings Ltd., Danone SA, Del Monte Pacific Ltd., Dongpeng Beverage Group Co. Ltd., Keurig Dr Pepper, Kirin Holdings Co. Ltd., Mondelez International Inc., Monster Energy Co., National Beverage Corp., Nestle SA, Otsuka Holdings Co. Ltd., Parle Agro Pvt Ltd., PepsiCo Inc., POSTOBON S.A, Purity Soft Drinks Ltd., Red Bull GmbH, Refresco Group, Starbucks Corp., Suntory Holdings Ltd, and Tata Consumer Products Ltd..
Technavio has announced its latest market research report titled Global Soft Drinks Market 2024-2028
Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View the snapshot of this report
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Soft Drinks Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.4% |
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Market growth 2024-2028 |
USD 790.9 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
9.3 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 41% |
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Key countries |
US, China, Germany, UK, and Japan |
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Key companies profiled |
Asahi Group Holdings Ltd., Danone SA, Del Monte Pacific Ltd., Dongpeng Beverage Group Co. Ltd., Keurig Dr Pepper, Kirin Holdings Co. Ltd., Mondelez International Inc., Monster Energy Co., National Beverage Corp., Nestle SA, Otsuka Holdings Co. Ltd., Parle Agro Pvt Ltd., PepsiCo Inc., POSTOBON S.A, Purity Soft Drinks Ltd., Red Bull GmbH, Refresco Group, Starbucks Corp., Suntory Holdings Ltd, and Tata Consumer Products Ltd. |
Market Driver
The craft soft drinks market in the US is experiencing significant growth, with small-batch beverages made from premium, natural ingredients and unique flavors gaining popularity among consumers, particularly millennials. Companies such as Jones Soda, Reed’s Brooklyn Soda Works, Dry Sparkling, and Cool Mountain Beverages are leading this trend, offering their products through various retail and online channels. Supermarkets, including Waitrose, have increased shelf space for these beverages, and major soft drinks companies are also entering the market. This growing demand for craft soft drinks is set to drive expansion in the global soft drinks market.
The soft drink market is experiencing various trends in 2023. Consumers are increasingly seeking beverages with digestive enzymes and those that support cognitive function. The internet has made it easier to buy soft drinks online, including non-carbonated options like fruit drinks and low-sugar or sugar-free versions. Sustainability is a key concern, with a focus on CO2 neutrality, climate neutrality, and climate negativity. Fountain machines continue to be popular, but specialty stores, liquor shops, airports, and online retail are growing channels. Component origin matters, with a preference for natural sweeteners, natural flavors from fruits, berries, nuts, herbs, roots, and plant sources, and edible acids. Ethical production and Nutriscore labeling are important considerations. Coffee and tea are popular non-alcoholic beverage categories. Artificial sweeteners and artificial flavors remain in use but are facing growing scrutiny. Overall, the market is diverse, with offerings ranging from juice to carbonated beverages, and from traditional sodas to innovative new products.
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Market Challenges
The global soft drinks market faces a significant challenge due to the rising health concerns, particularly obesity. According to the World Health Organization, an adult with a Body Mass Index (BMI) between 25 and 29.9 is considered overweight, and one with a BMI over 30 is obese. Obesity can lead to various health issues like high blood pressure, diabetes, and joint problems. With increasing awareness of these health risks, consumers are limiting their intake of sugar and high-calorie food and beverages. This trend will negatively impact the sales of carbonated soft drinks, juices, and other soft drinks. In response, market players are introducing low-sugar and low-calorie options to counter this challenge. However, the annual medical cost related to obesity continues to rise, which may further hamper the growth of the global soft drinks market during the forecast period.
The Soft Drinks Market faces several challenges in today’s business landscape. Cocktails and Mocktails have gained popularity, pushing companies to offer more variety in their product lines. Health consciousness is a significant trend, leading to the demand for Low-sugar and Natural Ingredient drinks. Health and wellness, Functional Soft Drinks, Flavored Water, Unsweetened Teas, Ready-to-Drink Teas, Coffees, and Convenience are key areas of focus. Urbanization and on-the-go lifestyles have increased the demand for Packaged Soft Drinks. Marketing strategies have shifted towards E-commerce, Online Shopping, E-commerce Platforms, and Grocery Delivery Services. Bulk-buying discounts, Brand Recognition, and Brand Loyalty are crucial for market success. Packaging sizes, Promotions, Online Sales, Concentrates, Distilled Water, Sweeteners, and Flavors are essential considerations. Functional Drinks, including Energy Drinks, Vitamins, Minerals, and Health Crisis-related drinks, are growing segments. Immune health, Plant-based Protein Drinks, and drinks for Athletes, Vegetarians, and Vegans are emerging trends. Sugar reduction and the use of alternative sweeteners are essential to cater to changing consumer preferences.
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Segment Overview
This soft drinks market report extensively covers market segmentation by
Product
1.1 Carbonated soft drinks
1.2 Juices and juice concentrates
1.3 Bottled water
1.4 RTD tea and coffee
1.5 Others
Distribution Channel
2.1 Offline
2.2 Online
Geography
3.1 North America
3.2 Europe
3.3 APAC
3.4 South America
3.5 Middle East and Africa
1.1 Carbonated soft drinks- The carbonated soft drinks market has experienced a decline in sales volume over the past five years. Brands like PepsiCo and Nestle have been affected by decreasing consumer preference and the growing popularity of alternatives, such as bottled water. The negative perception of carbonated soft drinks due to their high sugar and caffeine content has also impacted sales. The COVID-19 pandemic further affected retail sales. To counteract this, companies have introduced sugar-free and low-calorie options. However, the demand for these products has been limited due to the negative image of carbonated soft drinks. As a result, the carbonated soft drinks segment is expected to continue declining in the global soft drinks market during the forecast period.
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Research Analysis
The soft drinks market encompasses a wide range of non-alcoholic beverages, including juices, made from natural fruits, berries, and nuts, as well as those made with artificial flavors and sweeteners. Edible acids and herbs are also used to enhance the taste of these beverages. Ingredients like natural sweeteners, artificial sweeteners, and various types of sugars are essential in creating the desired sweetness. Cocktails and mocktails are popular variations, with an increasing focus on health consciousness leading to the development of low-sugar, natural ingredient-based options. Functional soft drinks, infused with vitamins, minerals, and immune health boosters, are gaining popularity among health-conscious consumers. Distilled water is used as a base for many beverages, while functional drinks, energy drinks, and sports drinks cater to specific consumer needs, such as hydration and energy.
Market Research Overview
The soft drinks market encompasses a wide range of non-alcoholic beverages, including juices, made from natural and artificial sweeteners, edible acids, and artificial or natural flavors derived from fruits, berries, nuts, herbs, roots, coffee, tea, milk, chocolate, and plant sources. These beverages come in various forms, such as liquid and solid, carbonated and non-carbonated, and are sold in steel containers under pressure or in refrigerated form. Soft drinks include cola varieties, fruit juices, unsweetened vegetable juices, and low-calorie, low-salt, and caffeine-free options. The carbonation process is crucial in soft drinks, which involves the addition of carbon dioxide gas to the beverage mixture. However, this process also presents challenges, such as spoilage and the need for pasteurization. The soft drinks sector caters to various target customers, including fast food restaurants, low-cost meals, and those seeking healthier options with low sugar, natural ingredients, and long shelf life. Beverages are enjoyed for their taste, digestion, and temporary blockage of hunger, but excessive consumption can lead to obesity, high blood pressure, diabetes, and joint difficulties. The market includes various components, such as formulation, plates, enclosures, and carbonation equipment, and is sold through mass merchandisers, convenience stores, gas stations, food service outlets, online stores, and other channels. The carbonated soft drinks segment dominates the market, but non-carbonated soft drinks and cocktails/mocktails are gaining popularity due to health consciousness and the trend towards low-sugar and natural ingredients.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Product
Carbonated Soft Drinks
Juices And Juice Concentrates
Bottled Water
RTD Tea And Coffee
Others
Distribution Channel
Offline
Online
Geography
North America
Europe
APAC
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio
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