The soft drink market is anticipated to augment at a CAGR of around 6.0% during the forecast period. A soft drink is a non-alcoholic drink that generally contains carbonated water and natural or artificial flavoring. Dairy products are not covered in the soft drink market. Increasing disposable income, rising younger aged population bases especially in the emerging economies are some of the major factors for the growth in the market. Besides, shifting in the preference of the consumer from standard flavors (such as orange, lemon, cola) to innovative flavors such as tropical fruits or fusion of flavors are also expected to provide a significant market growth. 

Health-issue related to carbonated drinks is one of the major restraining factors for the growth of the market. Due to this, major companies are working toward and offering low-calorie, low-sugar, and diet varieties of beverages. Moreover, pollution (water & land) due to bottles of soft drinks is one of the major challenges in front of companies and governments all across the globe. 

Moreover, the negative impact of the COVID-19 pandemic has been witnessed in the soft drink industry. Restaurants, hotels, cafes, education institutions, tourism places are among the key places for the sales of soft drinks including carbonated drinks, packaged water, and fruit beverages. Amid lockdown, these places have to be closed due to which sales of the soft drink affected. Moreover, the halt of the railway, air, and cruise services has also affected the sales of soft drinks during the lockdown period. 

Market Segmentation 

The soft drink market is segmented on the basis of type and packaging. By type, the market is further segmented into carbonated drinks, packaged water, Iced/RTD tea & coffee, fruit beverages, energy drinks. During the forecast period, the demand for the carbonated drinks is expected to grow with a modest growth with the increasing shift toward diet drink as compared to standard carbonated drinks. Considerable growth in the Iced and ready-to-drink tea & coffee in the developed regions will be witnessed. Besides, significant growth in the fruit beverages, energy drinks will be registered in emerging as well as developed economies during the forecast period. 

Global Soft Drink Market Share by Type, 2019 (%)

By packaging, the market is segmented into canned, glass bottle, PET bottle, and others. Significant growth in the canned packaging is expected to be registered during the forecast period whereas PET bottles are expected to have a major market share. As per Oceana, Inc., (a non-profit organization) each year around 34 billion plastic bottles are produced by the soft drink industry. A large share of these bottles gets dumped to the sea as a marine waste. With the increasing awareness among the consumer toward water pollution and to comply with regulatory compliance, the soft drink companies will shift a percentage of their PET market to glass and refillable bottles. 

Regional Outlook

On the basis of geography, the global soft drink market is studied in North America, Europe, Asia-Pacific, and the Rest of the World (RoW). North America is anticipated to hold a major market share as a significant market of Iced/RTD drink tea & coffee, carbonated drinks, and energy drinks will be witnessed. Carbonated soft drink market is a mature market, and will grow at a modest growth all across the globe whereas growth in the bottled water segment can be witnessed in the emerging economies such as India, Brazil, and ASEAN countries as the trend toward hygiene are expected to increase due to the COVID-19 pandemic.

Global Soft Drink Market Growth, by Region 2020-2026

Market Players Outlook

The carbonated drinks market is a consolidated market and The Coca-Cola Co., and PepsiCo, Inc. hold a major market share in all major economies. The number of regional players in Iced/RTD tea & coffee market and fruit beverages market is higher as compared to carbonated drinks. Moreover, the bottled water market is a highly consolidated market with many players operating at the regional level. Some other major market players in the soft drink industry include Asahi Group Holdings, Ltd., Danone S.A., Keurig Dr. Pepper Inc., Kirin Holdings Co. Ltd., National Beverage Corp., Nestlé S.A., Parle Agro Pvt. Ltd., Red Bull GmbH, and the Hangzhou Wahaha Group Co., Ltd. These market players are adopting growth strategies including mergers and acquisitions, product launches, expansions, partnerships & collaborations, innovative packaging, and unique flavors to gain a competitive edge in the market. For instance, in April 2020, the Coca-Cola Co., through its subsidiary Costa Coffee is planning to introduce ready-to-drink products such as Black Americano and Classic Latte in China. The acquisition of Costa was completed by the Coca-Cola Co., in February 2019 for $4.9 billion with an aim to increase its footprint in the coffee business globally. 

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Soft Drink market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.