South & Central America Carbonated Soft Drinks Market Forecast to 2031 - Regional Analysis - by Flavor Type, Category, Packaging Type, and End User

The South & Central America carbonated soft drinks market was valued at US$ 27.75 billion in 2023 and is expected to reach US$ 33.97 billion by 2031; it is estimated to register a CAGR of 2.6% from 2023 to 2031.

Increasing Preference for Sugar-Free and Zero-Calorie Carbonated Soft Drinks Fuels South & Central America Carbonated Soft Drinks Market

Health has become a top priority for consumers across the globe, leading to a boom in demand for functional products. With increasing awareness of the health risks associated with high sugar intake, consumers are actively seeking out alternatives that allow them to indulge in carbonated beverages without compromising their health goals. Sugar-free and zero-calorie carbonated soft drinks offer a guilt-free option for those looking to reduce their sugar intake or manage their calorie consumption. These beverages are sweetened with artificial sweeteners such as aspartame, sucralose, or stevia, providing the familiar sweetness of traditional sodas without the added sugars.

Moreover, the rise of health-conscious consumers and those following specific dietary trends, such as keto or low-carb diets, has fueled the demand for sugar-free and zero-calorie options. These consumers actively seek beverages that align with their dietary preferences while satisfying their cravings for carbonation and flavors. In response to this growing demand, many companies in the carbonated soft drinks market are expanding their portfolios to include a wider range of sugar-free and zero-calorie options. These products often come in a variety of flavors, catering to diverse consumer preferences and offering a wider selection than ever before.

For instance, in October 2023, The Coca-Cola Company launched Coca-Cola Y3000 under its Coca-Cola Creations platform, the limited-edition zero sugar and a full-sugar version. In addition, in April 2021, Dr Pepper launched Dr Pepper Zero Sugar, with the blend of its signature 23 flavors in a zero-sugar soda. Additionally, advancements in beverage technology have enabled manufacturers to improve the taste and texture of sugar-free, and zero-calorie carbonated soft drinks, making them more appealing to consumers who previous iterations may have deterred.

Thus, stringent government norms and growing health awareness among consumers toward zero-sugar and zero-calorie carbonated soft drinks is encouraging manufacturers to develop new products and boost innovation in the market. This trend is expected to provide growth opportunities to the carbonated soft drinks market.

South & Central America Carbonated Soft Drinks Market Overview

The region has a long-standing tradition of consuming carbonated beverages, making it one of the significant markets globally for these products. The warm climate prevalent across South & Central America is one of the major driving forces behind the popularity of the carbonated soft drinks market. Particularly in tropical and subtropical areas, these beverages offer a refreshing and thirst-quenching option, making them highly sought after, especially during hot and humid weather.

Additionally, carbonated soft drinks' affordability and widespread availability contribute to their widespread consumption in South & Central America. These beverages are readily accessible across various retail channels, including supermarkets, convenience stores, and street vendors, making them a convenient choice for consumers of all socioeconomic backgrounds.

The sales of carbonated soft drinks through online platforms are increasing due to the emerging e-commerce sector in South & Central America. The key market players are also strengthening their presence on online platforms to boost their revenues. Thus, factors such as a combination of cultural preferences, consumer behavior, and strategic initiatives taken by key players fuel the carbonated soft drinks market in South & Central America.

South & Central America Carbonated Soft Drinks Market Revenue and Forecast to 2031 (US$ Million)

South & Central America Carbonated Soft Drinks Market Segmentation

The South & Central America carbonated soft drinks market is categorized into flavor type, category, packaging type, end user, and country.

Based on flavor type, the South & Central America carbonated soft drinks market is segmented into cola, orange, lemonade, ginger, and others. The cola segment held the largest South & Central America carbonated soft drinks market share in 2023.

In terms of category, the South & Central America carbonated soft drinks market is bifurcated into sugar-free and conventional. The conventional segment held a larger South & Central America carbonated soft drinks market share in 2023.

By packaging type, the South & Central America carbonated soft drinks market is bifurcated into bottles and cans. The bottles segment held a larger South & Central America carbonated soft drinks market share in 2023.

Based on end user, the South & Central America carbonated soft drinks market is categorized into on-trade and off-trade. The off-trade segment held a larger South & Central America carbonated soft drinks market share in 2023.

Based on country, the South & Central America carbonated soft drinks market is categorized into Brazil, Argentina, Chile, and the Rest of South & Central America. The Rest of South & Central America dominated the South & Central America carbonated soft drinks market share in 2023.

The Coca-Cola Co, PepsiCo Inc, Red Bull, Fevertree Drinks Plc, Monster Beverage Corp, and Britvic Plc are some of the leading companies operating in the South & Central America carbonated soft drinks market.

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