Carbonated Beverages Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Carbonated Beverages Market is projected to expand from USD 439.15 Billion in 2025 to USD 596.29 Billion by 2031, reflecting a CAGR of 5.23%. Carbonated beverages, characterized as non-alcoholic liquids infused with carbon dioxide to produce effervescence, typically consist of water, sweeteners, and flavoring agents. Key factors propelling market growth include rising disposable incomes in emerging economies and rapid urbanization, which drives the demand for convenient beverage options. Furthermore, the broadening of organized retail channels, such as supermarkets and e-commerce platforms, enhances global consumer access to these products, thereby ensuring consistent sales volumes.

Conversely, the market encounters significant obstacles due to heightening health concerns and regulatory actions regarding sugar consumption. Governments around the world are enacting sugar taxes to combat obesity, compelling manufacturers to reformulate their products to prevent volume declines. According to UNESDA Soft Drinks Europe, low and no-calorie variants accounted for over 30% of soft drink sales across Europe in 2024. This statistic underscores how the industry is strategically adapting to health-focused regulatory constraints to preserve its market relevance.

Market Drivers

The growth of low-calorie, sugar-free, and functional variants acts as a major catalyst for market expansion, directly catering to shifting consumer preferences for healthier lifestyles. Manufacturers are actively reformulating their product lines to lower sugar levels while adding functional ingredients like prebiotics to attract health-conscious groups. This strategy enables legacy brands to offset potential volume losses in traditional sugary sodas by providing alternatives that retain the sensory experience of carbonation without the associated health risks. For instance, The Coca-Cola Company reported in its February 2024 results that Coca-Cola Zero Sugar saw a 5% increase in unit case volume for the full year of 2023, illustrating the enduring consumer transition toward these reformulated options.

Simultaneously, innovation in diverse and exotic flavor profiles is crucial for maintaining consumer interest and expanding the customer base. Beverage companies are moving beyond standard colas to launch novel taste combinations and limited-edition products that appeal to younger demographics and the rising demand for premium, craft-style experiences. This focus on unique sensory attributes allows new entrants to gain significant market share by distinguishing themselves from established giants. As reported by CNBC in January 2024, the healthy soda brand Olipop exceeded $200 million in annual sales in 2023 by leveraging flavor innovation alongside functional benefits. This commercial activity strengthens the industry's financial resilience, as evidenced by Keurig Dr Pepper's 2024 report, which noted a 5.4% increase in net sales to $14.81 billion for the full year 2023.

Market Challenges

The Global Carbonated Beverages Market is persistently hindered by escalating health concerns and strict regulatory measures concerning sugar intake. Governments are increasingly implementing fiscal policies, such as sugar taxes, to address rising obesity rates, which directly inflates the retail prices of traditional full-calorie drinks and reduces sales volumes among price-sensitive consumers. Moreover, the constant threat of more rigorous labeling requirements creates a difficult operating environment, obliging manufacturers to redirect capital from expansion initiatives toward costly reformulation and compliance strategies to avoid financial penalties.

This regulatory pressure necessitates a fundamental shift in product portfolios, often impacting the industry's most iconic and profitable high-sugar brands. The magnitude of this forced market correction is significant, moving the production baseline away from classic formulations. Data from the American Beverage Association in 2024 indicates that nearly 60% of beverages purchased by consumers in the United States contained zero sugar. This statistic highlights the severity of the challenge, as the industry is forced to contract its core sugary segment to maintain relevance in a regulatory climate that actively discourages the consumption of traditional carbonated soft drinks.

Market Trends

The shift toward sustainable packaging solutions, particularly 100% Recycled PET (rPET) and biodegradable plant-based materials, marks a critical structural evolution in the global carbonated beverages market. Manufacturers are actively working to separate growth from virgin plastic usage by investing in circular economy frameworks to lower environmental liabilities and satisfy strict regulatory standards. This operational change is a strategic necessity rather than just a compliance measure, aiming to ensure supply chain resilience and attract eco-conscious stakeholders who prioritize environmental stewardship. As noted in Keurig Dr Pepper's June 2024 Corporate Responsibility Report, the company successfully integrated 27% post-consumer recycled content across its packaging portfolio in 2023, demonstrating the significant scale of this transition toward reduced plastic dependency.

At the same time, the market is witnessing a surge in the popularity of caffeinated sparkling water, positioning these products as strong alternatives to traditional energy drinks and coffee. Consumers are increasingly choosing lighter, functional beverage formats that provide the cognitive benefits of caffeine without the high sugar content or artificial ingredients found in legacy energy brands. This trend is reshaping the functional beverage landscape, driving substantial volume growth for brands that effectively blend hydration with performance energy. For example, Celsius Holdings, Inc. reported in March 2024 that its revenue increased by 102% to $1.32 billion for the fiscal year 2023, highlighting the rapid consumer adoption of these sparkling energy hybrids.

Key Players Profiled in the Carbonated Beverages Market

• Britvic PLC
• 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

Report Scope

In this report, the Global Carbonated Beverages Market has been segmented into the following categories:

Carbonated Beverages Market, by Product:

• Soft Drinks
• Sports & Energy Drinks
• Others

Carbonated Beverages Market, by Flavor:

• Cola
• Fruit Based
• Others

Carbonated Beverages Market, by Sales Channel:

• Departmental Stores
• Hypermarkets/Supermarkets
• Foodservice Outlets
• Online
• Others

Carbonated Beverages Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Carbonated Beverages Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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