Soft Drinks Market Size to grow by USD 622.47 billion between 2023-2027
According to a research report “ Soft Drinks Market” by 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)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 622.47 billion, at a CAGR of 9.98% during the forecast period. In today's fast-paced business environment, consumers face increasing demands on their time and energy. Energy drinks, rich in stimulating ingredients such as ginseng and caffeine, have gained popularity as a solution to maintain alertness and productivity. These beverages not only enhance cognitive function but also provide essential electrolytes and vitamins to restore energy balance after physically taxing activities or long work hours. By fulfilling energy and nutritional deficits, energy drinks enable individuals to perform optimally in their professional and personal lives.
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By Product, the Carbonated soft drinks segment is projected to dominate the market size in 2024
The offline distribution channel for soft drinks, which includes sales through hypermarkets, supermarkets, clubhouse stores, department stores, and independent retailers, has experienced a decline in revenue generation due to the increasing trend towards online shopping. In response, manufacturers are expanding their store presence in local and regional markets. Retailers, in turn, are implementing innovative retail strategies such as competitive pricing and expanded product assortments to remain competitive in the market. Soft drink sales are primarily made through specialized stores and retail formats, including hypermarkets, supermarkets, convenience stores, and department stores.
By Distribution Channel, Offline segment is expected to hold the largest market size for the year 2024
The carbonated soft drink market is experiencing a downturn, with decreasing consumer preference and a shift towards healthier alternatives, such as bottled water. This trend is negatively impacting the sales volume of major players like PepsiCo Inc. and The Coca-Cola Co. The negative health perception associated with high sugar and caffeine content in carbonated soft drinks is a significant concern. The COVID-19 pandemic has further impacted sales, with Coca-Cola reporting a 25% decline in monthly sales volume in April 2020. These factors are expected to influence the market dynamics during the forecast period.
North America is forecasted to hold the largest market size by region in 2024
In the global soft drinks market, North America is projected to lead in terms of revenue generation in 2022. However, the demand for carbonated soft drinks is witnessing a decline due to health concerns such as diabetes and kidney malfunction. Conversely, there is a rising trend towards bottled water consumption. Our new product offerings include ten flavors, with no added sugar, sweeteners, or colors. The increasing preference for bottled water and the growth of the RTD tea and coffee segments will drive the expansion of the soft drinks market in North America throughout the forecast period.
The Soft Drinks Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The soft drink market is a dynamic and diverse industry that caters to various consumer preferences, from athletes seeking to rehydrate and refuel, to those prioritizing immune health and wellness. Functional soft drinks, including energy drinks and those fortified with minerals and vitamins, have gained popularity among health-conscious consumers. However, concerns over sugar intake have led to the rise of low-sugar and natural ingredient options. Athletes and fitness enthusiasts often opt for drinks containing electrolytes and nutrients, while those focused on immune health may prefer drinks fortified with vitamins C and D, zinc, and ginger. Natural ingredients such as herbs, nuts, berries, fruits, and natural flavors are increasingly favored over artificial alternatives. Mocktails and cocktails, made with distilled water, natural flavors, and natural or artificial sweeteners, offer an alternative to traditional alcoholic beverages. Edible acids, such as citric and malic, add zest to these beverages, while artificial sweeteners and natural sweeteners like stevia and honey provide sweetness. Juice and non-alcoholic beverages continue to dominate the market, with consumers seeking out fresh, natural, and organic options. The soft drink industry is constantly evolving to meet the changing needs and preferences of consumers, making it an exciting and innovative space to watch.
Market Research Overview
The soft drinks market encompasses a wide range of beverages, including online retail, airport retail, liquor shop, and specialty store sales. Consumers seek various packaging options, sugar-free and low-sugar alternatives, fruit drinks, and non-carbonated beverages. Fountain machines, climate neutrality, and sustainability are key trends. Nutriscore labeling, ethical production, and transparency in component origin are essential for health-conscious consumers. Online sales, promotions, and bulk-buying discounts drive growth in the market. Convenience stores, grocery delivery services, and e-commerce platforms cater to on-the-go lifestyles and urbanization. Functional soft drinks, such as those with cognitive function, digestive enzymes, and immune health benefits, are popular among vegans, vegetarians, athletes, and those with health concerns. The beverage sector offers a diverse range of products, from sugary sodas to low-calorie and sugar-free options, energy drinks, and functional beverages. Packaged soft drinks provide convenience, while coffee, ready-to-drink teas, unsweetened tea, flavored water, and mocktails/cocktails cater to various tastes. The soft drinks market faces challenges such as climate negativity, high sugar intake, and health concerns. Sugar reduction, cola varieties, and formulation innovations are key marketing strategies. Ingredients like distilled water, concentrates, and natural flavors are used to create crisp and citrus flavors, while carbonation and pasteurization ensure shelf life. Carbonated and non-carbonated soft drinks, as well as fruit juices, unsweetened vegetable juices, chocolate, milk, tea, and coffee, are all part of the market. The use of plant sources, roots, herbs, nuts, berries, and natural flavors adds to the diversity. Artificial sweeteners and flavors, edible acids, and caffeine-free, low-salt, and low-calorie options cater to various consumer preferences.
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