Carbonated Beverages Market Size, Share & Trends Analysis Report By Product (Soft Drinks, Sports & Energy Drinks), By Flavor (Cola, Fruit Based), By Distribution Channel, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global carbonated beverages market size was valued at USD 406.89 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.1% from 2020 to 2027. Strong popularity of soda drinks among the generation X and generation Y age groups is expected to play a crucial role in expanding the market size. The buyers prefer such drinks as they have an acidic bite and produce a pleasant tingling and offer cooling sensation with every sip. Along with these, the product is composed of fruit flavors, which promote the acceptance of such products among consumers. A carbonated beverage is manufactured using clean water, flavoring elements to establish the flavor profile, sugar or other sweeteners, coloring agents, and preservatives that are intended to be added. Technology has certainly played its part in the increasing consumption of carbonated beverages with the advent of glass bottles, cans, plastic bottles, high-speed packaging lines, and evolving packaging systems.

The consumption of carbonated beverages has further increased owing to the wonderful pairing of these fizzy drinks with certain food. Bacons, along with stinging Sriracha, are considered to be one of the best companions of cold cola.

Some of the other items that are extremely enjoyed with carbonated drinks are steak, ramen, Korean short ribs, meatloaf, strawberry milkshake, bagel, nachos, pizza, taco, skewers, chicken salad, roast chicken, clambake, mushrooms pasta, and Chinese chicken wings. These beverages are paired by contrasting or mirroring the flavor of the snacks. The contrasting flavor of snacks and drink works to complement each other. The fizz from an ice-cold drink helps in enhancing the mealtime experience.

Product Insights

Carbonated soft drinks accounted for more than 50.0% share of the global revenue in 2019. Companies have been using a variety of strategies for creating a wider penetration of carbonated beverages and sustaining the customer base. Product innovation is one of the major moves that most companies have been opting to enhance their revenue.

The carbonated sports and energy drinks segment is expected to witness the fastest growth during the forecast years with a CAGR of 7.2% from 2020 to 2027. A large number of sports and energy drink manufacturers have been adding fizz to the beverage to create freshness. In June 2020, VPX Sports launched Noo Fuzion, a new line of carbonated ready-to-drink pre-workout beverages, which is capable of inducing lean muscle growth and has energy-boosting features.

Distribution Channel Insights

Foodservice outlets accounted for the largest share of more than 30.0% in 2019. Popular chains like Denny's, McDonald's, KFC, Taco Bell, Chipotle, TGI Fridays, Buffalo Wild Wings, Red Lobster, The Cheesecake Factory, and Longhorn Steakhouse offer various carbonated drinks in their menu.

The online stores and D2C segment is expected to witness the fastest growth during the forecast years with a CAGR of 8.0% from 2020 to 2027. Some of the e-commerce platforms offering carbonated beverages directly to customers are Amazon, Target, Kroger, Walmart, Publix, and Burger Boss.

Flavor Insights

Cola flavor accounted for 55.8% share of the global revenue in 2019. These products have been enjoying their lead owing to the first mover’s advantage. Furthermore, a high degree of innovation deployed by key manufacturers, including The Coca-Cola Company and PepsiCo, in terms of the launch of products in zero-calorie and diet-free content is expected to maintain the popularity of the cola flavor segment in the near future.

The fruit-based flavors segment is expected to witness the fastest growth during the forecast years with a CAGR of 6.3% from 2020 to 2027. In June 2020, Rapscallion Soda launched S_01 Rhubarb - sour face pull, a fruity flavored carbonated beverage. It is a sustainable, low calorie, and slightly sour drink and has a fizzy floral finish. It is infused with Scottish rhubarb, pink grapefruit zest, Sichuan pepper, and raw organic cane sugar.

Regional Insights

Central and South America held the largest share of over 25.0% in 2019. Brazil is one of the largest consumers of carbonated beverages in the region. The young population, along with the availability of products from across the globe, is leading to a robust consumption of carbonated beverages in the region.

The Middle East and Africa is expected to register the fastest CAGR of 6.8% from 2020 to 2027. The region has been adopting the product rapidly and countries, like Nigeria and Kenya, are dominating the industry. Youthful population, rapid urbanization, widening financial sectors, and major manufacturers eyeing the region for product penetration are leading to the rapid growth of the market.

Key Companies & Market Share Insights

Product launch plays the most crucial role in the growth of carbonated beverages. For instance, in June 2020, Clear/Cut Phocus introduced sparkling water containing natural caffeine from tea and the amino acid L-theanine in cola flavor. The product has been created specifically to suit the demand of modern consumers and as a result, has a classic taste without the problematic ingredients. The drink contains extracts of cinnamon, citrus, and vanilla, with notes of caramel to create the traditional cola sensation. The product is free from sugars, sweeteners, sodium, and calories. A pack of 12, 11.5 oz cans is being sold for USD 19.99. Some of the prominent players in the carbonated beverages market include:

• ANADOLU GRUBU A.Åž.

• Danone

• JONES SODA CO.

• Keurig Dr Pepper Inc.

• Monster Energy Company

• National Beverage Corp.

• PepsiCo

• Refresco Group

• SODASTREAM INTERNATIONAL LTD.

• SUNTORY BEVERAGE & FOOD LIMITED. 

• The Coca-Cola Company

Recent Developments

• In March 2023,  Jones Soda, a prominent US craft soda company planned to expand its market for carbonated drinks such as craft sodas in the UK and Europe. 

• In March 2022, Jones Soda launched a new Mary Jones super-sized cannabis beverage to diversify its product portfolio and attract more cannabis consumers.

• In April 2022, Coca-Cola introduced the limited edition zero sugar byte drink with a metaverse theme. It aims to capture the flavor of pixels in a limited-edition beverage. The drink’s bright and upfront taste is reminiscent of powering up a game, and its cooling finish makes it the ideal gaming partner.

• In January 2022, Monster Beverage Corporation signed a deal to acquire CANarchy Craft Brewery Collective LLC, a craft beer and hard seltzer company, for $330 million in cash. The acquisition aimed to expand in the alcoholic beverage sector.

• In January 2021, SodaStream partnered with Bubly, world’s leading sparkling water brand to launch bubbly drops enabling customers to drink customized beverages in their homes in North America.

Carbonated Beverages Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global carbonated beverages market report on the basis of product, flavor, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2016 - 2027)

  • Soft Drinks

  • Carbonated Water

  • Sports & Energy Drinks

  • Others

• Flavor Outlook (Revenue, USD Billion, 2016 - 2027)

  • Cola

  • Fruit Based

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2016 - 2027)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Food Service Outlets

  • Transport Terminals

  • Online Stores & D2C

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • U.A.E.