Low Sugar Carbonated Drink Market Global Report 2026

The low sugar carbonated drink market size has grown strongly in recent years. It will grow from $23.03 billion in 2025 to $24.76 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to rising global obesity rates, increasing awareness of sugar related health risks, growth of carbonated soft drink consumption, expansion of retail beverage distribution networks, introduction of early diet soda formulations.

The low sugar carbonated drink market size is expected to see strong growth in the next few years. It will grow to $32.57 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to rising demand for healthier beverage alternatives, increasing adoption of natural sweeteners like stevia and monk fruit, growth of functional beverage consumption trends, expansion of online beverage retail channels, increasing innovation in flavor enhancement technologies. Major trends in the forecast period include growth of plant based and natural sweetener formulations in low sugar carbonated drinks, increasing demand for functional carbonated beverages with added vitamins and probiotics, expansion of prebiotic and gut health focused soda products, rising consumer shift toward clean label and zero additive beverage formulations, premiumization of low sugar craft and artisanal sparkling drinks segment.

The increasing incidence of obesity and diabetes is expected to support the growth of the low-sugar carbonated drink market going forward. Obesity and diabetes are long-term health conditions associated with excessive accumulation of body fat and elevated blood glucose levels, which may result in severe health complications. The rising occurrence of obesity and diabetes is driven by increased consumption of calorie-dense and sugar-containing processed foods, leading to weight gain and disruptions in glucose metabolism. Low-sugar carbonated beverages assist in obesity and diabetes management by providing consumers with reduced-sugar and lower-calorie substitutes for conventional soft drinks, helping control calorie consumption and support blood sugar management. For instance, in May 2025, according to the Office for Health Improvement & Disparities, a UK-based government agency, approximately 64.5% of adults aged 18 years and above in England were overweight or living with obesity between 2023 and 2024, compared with 64.0% during 2022 to 2023. Therefore, the rising prevalence of obesity and diabetes is driving the growth of the low-sugar carbonated drink market.

Leading companies operating in the low-sugar carbonated drink market are focusing on developing innovative beverage solutions, such as zero-sugar flavored sparkling beverages, to enhance product differentiation and capitalize on the growing trend toward low-sugar and functional beverages. Zero-sugar flavored sparkling beverages are carbonated drinks infused with natural or artificial flavors that contain no added sugar, offering a refreshing and low-calorie alternative to traditional soft drinks. For example, in March 2024, PepsiCo, a US-based food and beverage company, launched Bubly Burst, a refreshing, flavor-forward, lightly sweetened sparkling water. It is designed to appeal to consumers seeking a sweeter taste profile with healthier attributes. Bubly Burst features bold fruit flavors, zero added sugar, and 10 calories or less per bottle. The product is available in six fruit-inspired flavors, including Triple Berry, Peach Mango, and Watermelon Lime, offering a low-sugar carbonated beverage alternative that aligns with growing demand for better-for-you refreshment options.

In May 2025, PepsiCo, Inc., a US-based food and beverage company, acquired Poppi, Inc. for $1.95 billion. Through this acquisition, PepsiCo intends to reinforce its position in the rapidly expanding functional and low-sugar beverage market, diversify its better-for-you product portfolio, and address rising consumer demand for healthier refreshment choices. Poppi, Inc. is a US-based beverage company that develops prebiotic low-sugar carbonated beverages made with fruit juice, apple cider vinegar, and functional ingredients formulated to promote gut health.

Major companies operating in the low sugar carbonated drink market report are A.G. Barr plc, Asahi Group Holdings Ltd., Carlsberg Group, Danone S.A., Fever-Tree Drinks plc, Hal’s New York Seltzer, Jones Soda Co., Karma Drinks Limited, Keurig Dr Pepper Inc., Monster Beverage Corporation, Nestlé S.A., Nongfu Spring Co. Ltd., Ocean Spray Cranberries Inc., Olipop Inc., PepsiCo Inc., Red Bull GmbH, Reed's Inc., Spindrift Beverage Co., Talking Rain, The Coca-Cola Company, Waterloo Sparkling Water, Zevia PBC.

North America was the dominating region in the low sugar carbonated drink market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the low sugar carbonated drink market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the low sugar carbonated drink market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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