Carbonated Soft Drinks Market is expected to reach US$ 445.13 Billion by 2031

PRESS RELEASE BY The Insight Partners 23 May 2024

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Rising Consumption of Carbonated Soft Drinks Among the Millennial and Gen Z Population Driving Market Growth

According to our latest market study on "Global Carbonated Soft Drinks Market Forecast to 2031 – Global Analysis – by Flavor Type, Category, Packaging Type, and End User," the market is projected to reach US$ 445.13 billion by 2031 from US$ 296.62 billion in 2023. The market is expected to register a CAGR of 5.2% during 2023–2031.

The rise of social media has played a crucial role in fueling the popularity of carbonated soft drinks. Further, brands increasingly leverage social media platforms to showcase their products in creative and engaging ways, effectively reaching and resonating with younger consumers who are highly active on these platforms. For instance, in February 2024, The Coca‑Cola Company launched Happy Tears Zero Sugar, a limited-edition beverage available solely through TikTok's emerging e-commerce platform, TikTok Shop. This approach fosters a sense of connection and community, driving engagement and loyalty among millennials and Gen Z. The creative and sharable content associated with these launches sparks conversations and drives word-of-mouth promotion, further fueling the demand for carbonated soft drinks.

Global Carbonated Soft Drinks Market – by Region

Global Carbonated Soft Drinks Market – by Region

Carbonated Soft Drinks Market Forecast, Trends, Scope by 2031

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Carbonated Soft Drinks Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Flavor Type (Cola, Orange, Lemonade, Ginger, and Others), Category (Sugar-Free and Conventional), Packaging Type (Bottles and Cans), End User (On-Trade and Off-Trade), and Geography

Carbonated soft drinks are also readily available in supermarkets, convenience stores, and vending machines, making them easily accessible to millennials and Gen Z, who value convenience in their fast-paced lifestyles. Through a combination of flavor innovation, social media influence, convenience, and cultural resonance, these fizzy beverages have cemented their status as staples in the lives of today’s younger generations, driving the market to new heights of growth.

Beverage companies are investing heavily in product diversification and innovation to meet the changing demands of consumers. New flavors, formulations, and packaging options are being introduced to appeal to a broader audience. Whether it is launching low-sugar or zero-calorie variants to cater to health-conscious consumers or introducing exotic and unique flavors to capture the interest of adventurous taste buds, strategic product initiatives are driving market expansion and differentiation. In addition, there is a growing emphasis on marketing and branding strategies to create compelling narratives and engage consumers on multiple platforms. Beverage companies leverage social media, influencer partnerships, and experiential marketing campaigns to build brand awareness, foster consumer loyalty, and drive product adoption. Thus, all these factors are driving the overall carbonated soft drinks market size.

Despite their popularity, carbonated soft drinks have been linked to various health concerns, including obesity, dental issues, and chronic diseases such as type 2 diabetes and heart concerns. As awareness of these health risks increases, consumers are becoming more cautious about their beverage choices, leading to a decline in consumption and a shift toward healthier alternatives. Sugar and phosphoric acid are considered to be the main ingredients in carbonated soft drinks. Many carbonated beverages contain large amounts of added sugars, which can contribute to weight gain and obesity when consumed in excess.

According to the Centers for Disease Control and Prevention’s National Diabetes Statistics Report for 2022, cases of diabetes have risen to an estimated 37.3 million in the US. There is an increase in cases of type 1 and type 2 diabetes among the youth in the US. Due to this upward trend, a total of 526,000 young people may have diabetes (including both type 1 and type 2 diabetes) by 2060. Thus, the shifting consumer preferences toward healthier alternatives restrain the carbonated soft drinks market growth.

The carbonated soft drinks market analysis has been carried out by considering the following segments: flavor type, category, packaging type, end user, and geography. Based on flavor type, the market is segmented into cola, orange, lemonade, ginger, and others. In terms of category, the market is bifurcated into sugar-free and conventional. Based on packaging type, the market is segmented into bottles and cans. In terms of end user, the market is segmented into on-trade and off-trade. By geography, the scope of the carbonated soft drinks market report is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.

Based on flavor type, the cola segment held a significant carbonated soft drinks market share in 2023. Carbonated cola is a popular type of soft drink that is effervescent and caffeine-infused, distinguished by its unique combination of sweetness, acidity, and slightly bitter flavor derived from its base ingredients. The primary components include carbonated water, high fructose corn syrup or sugar as sweeteners, caramel color for a distinctive dark appearance, phosphoric or citric acid to add tartness and a blend of natural flavors including extracts from the kola nut and sometimes caffeine. Colas might also contain other flavoring agents, such as vanilla and cinnamon, which adds depth to the overall taste profile. These factors are boosting the demand for cola flavor and are anticipated to continue to propel the market growth in the upcoming years.

Three Cents Co, The Coca-Cola Co, PepsiCo Inc, Red Bull, Fevertree Drinks Plc, Monster Beverage Corp, Britvic Plc, Keurig Dr Pepper Inc, Refresco Group, and Asahi Group Holdings Ltd are among the prominent players profiled in carbonated soft drinks market report. These companies develop innovative products to strengthen their position. For instance, in October 2023, Fever-Tree signed a three-year distribution deal with Asahi in Japan, allowing the company to distribute its products in the country from January 2024. The deal is seen as a significant market opportunity for the company, as it aims to capitalize on rising consumer demand for long-mixed drinks and premium adult soft drinks. Such strategic initiatives by key players in the market boost the carbonated soft drinks market growth.

Norh America dominates the carbonated soft drinks market share in terms of revenue. Moreover, the Asia Pacific region is expected to register highest CAGR in the forecast period. Rising disposable incomes, urbanization, and changing lifestyles contribute to increased consumption of convenience foods and beverages, including carbonated soft drinks. Further, growing awareness regarding the need for an active lifestyle and the rising rates of lifestyle diseases inspire health-oriented consumers to opt for sugar-free carbonated soft drinks. These factors are expected to drive the carbonated soft drinks market in Asia Pacific.  

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