Carbonated Beverages Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Soft Drinks, Sports & Energy Drinks, Others), By Flavor (Cola, Fruit Based, Others), By Sales Channel (Departmental Stores, Hypermarkets/Supermarkets, Foodservice Outlets, Online, Others) By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 439.15 Billion
CAGR (2026-2031)	5.23%
Fastest Growing Segment	Sports & Energy Drinks
Largest Market	North America
Market Size (2031)	USD 596.29 Billion

Market Overview

The Global Carbonated Beverages Market will grow from USD 439.15 Billion in 2025 to USD 596.29 Billion by 2031 at a 5.23% CAGR. Carbonated beverages are defined as non-alcoholic liquids infused with carbon dioxide to create effervescence and are typically composed of water, sweeteners, and flavoring agents. The primary drivers supporting the growth of this market include increasing disposable incomes in emerging economies and rapid urbanization which fuels the demand for convenient beverage formats. Additionally the expansion of organized retail channels such as supermarkets and e-commerce platforms effectively broadens consumer access to these products globally which secures consistent sales volume.

However the market faces a significant impediment arising from escalating health concerns and regulatory interventions regarding sugar intake. Governments worldwide are implementing sugar taxes to curb obesity rates which pressures manufacturers to reformulate their product offerings to avoid volume loss. According to UNESDA Soft Drinks Europe, in 2024, low and no calorie versions represented over 30% of soft drinks sales across Europe. This data highlights how the industry is adapting to the challenge of health related regulatory constraints to maintain market relevance.

Key Market Drivers

The expansion of low-calorie, sugar-free, and functional variants serves as a primary catalyst for market development, directly addressing evolving consumer preferences for healthier lifestyle choices. Manufacturers are aggressively reformulating their portfolios to reduce sugar content while incorporating functional ingredients like prebiotics to appeal to health-conscious demographics. This strategic pivot allows legacy brands to mitigate potential volume declines in traditional sugary sodas by offering alternatives that maintain the sensory experience of carbonation without the associated health risks. According to The Coca-Cola Company, February 2024, in the 'Fourth Quarter and Full-Year 2023 Results', unit case volume for Coca-Cola Zero Sugar grew by 5% for the full year, demonstrating the sustained consumer shift toward these reformulated product lines.

Concurrently, innovation in diverse and exotic flavor profiles is essential for sustaining consumer engagement and broadening the consumer base. Beverage companies are increasingly moving beyond standard colas to introduce novel taste combinations and limited-edition offerings that resonate with younger consumers and the growing demand for premium, craft-style experiences. This focus on unique sensory attributes allows new market entrants to capture significant share by differentiating themselves from established incumbents. For instance, according to CNBC, January 2024, in the article 'Healthy soda brand Olipop is looking for an IPO', the startup surpassed $200 million in annual sales in 2023 by leveraging unique flavor innovation combined with functional benefits. This dynamic commercial activity supports the financial resilience of the broader industry. According to Keurig Dr Pepper, in 2024, the company reported that net sales for the full year 2023 increased 5.4% to $14.81 billion.

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Key Market Challenges

The Global Carbonated Beverages Market is continuously hampered by intensifying health concerns and stringent regulatory interventions regarding sugar intake. Governments are increasingly deploying fiscal measures, such as sugar taxes, to combat rising obesity rates. These levies directly inflate the retail prices of traditional full-calorie carbonated drinks, leading to a tangible decline in sales volumes as price-sensitive consumers reduce consumption. Furthermore, the constant threat of stricter labeling requirements creates a hostile operating environment, forcing manufacturers to divert capital from expansion efforts toward expensive reformulation and compliance strategies to avoid financial penalties.

This regulatory squeeze necessitates a fundamental alteration of product portfolios, often at the expense of the industry's most iconic and profitable high-sugar brands. The extent of this forced market correction is substantial, shifting the baseline of production away from classic formulations. According to the American Beverage Association, in 2024, nearly 60% of beverages purchased by consumers in the United States contained zero sugar. This statistic underscores the severity of the challenge, as the industry is compelled to contract its core sugary segment to sustain relevance amidst a regulatory climate that actively discourages the consumption of traditional carbonated soft drinks.

Key Market Trends

The transition toward sustainable packaging solutions, specifically 100% Recycled PET (rPET) and biodegradable plant-based materials, represents a critical structural evolution in the global carbonated beverages market. Manufacturers are aggressively decoupling growth from virgin plastic usage by investing in circular economy frameworks to mitigate environmental liabilities and meet stringent regulatory standards. This operational pivot is not merely a compliance measure but a strategic necessity to secure supply chain resilience and appeal to eco-conscious stakeholders who increasingly prioritize environmental stewardship in their purchasing decisions. According to Keurig Dr Pepper, June 2024, in the '2023 Corporate Responsibility Report', the company successfully incorporated 27% post-consumer recycled content across its packaging portfolio in 2023, illustrating the tangible scale of this industrial conversion toward reduced plastic dependency.

Concurrently, the market is experiencing a surge in the popularity of caffeinated sparkling water, positioning these products as potent alternatives to traditional energy drinks and coffee. Consumers are increasingly gravitating toward lighter, functional beverage formats that offer the cognitive benefits of caffeine without the high sugar content or artificial ingredients associated with legacy energy brands. This trend is reshaping the functional beverage landscape, driving massive volume growth for brands that effectively bridge the gap between hydration and performance energy. According to Celsius Holdings, Inc., March 2024, in the 'Form 10-K for the fiscal year ended December 31, 2023', the company reported that its revenue increased 102% to $1.32 billion for the full year, underscoring the rapid consumer adoption of these sparkling energy hybrids.

Segmental Insights

The Sports and Energy Drinks category currently represents the fastest-growing segment within the Global Carbonated Beverages Market. This expansion is primarily driven by shifting consumer preferences toward functional refreshments that offer tangible physical and mental performance benefits. An increasing focus on fitness and active lifestyles has accelerated the demand for carbonated formulations containing electrolytes, caffeine, and vitamins. Furthermore, manufacturers are adapting to wellness trends by introducing low-sugar variants, often in compliance with guidelines from organizations such as the Food and Drug Administration regarding labeling and ingredient safety, which reinforces consumer confidence and propels market development.

Regional Insights

North America maintains a leading position in the global carbonated beverages market due to established consumption habits and a highly developed retail infrastructure. The presence of major industry players within the United States facilitates extensive distribution networks and consistent product availability. Furthermore, strict oversight by the U.S. Food and Drug Administration regarding ingredient safety and labeling standards ensures product quality, which sustains consumer trust. This regulatory stability, combined with the rapid adoption of low-calorie and flavored variants to meet shifting health preferences, secures the region's market dominance.

Recent Developments

• In September 2024, The Coca-Cola Company and Mondelez International collaborated to launch the limited-edition Coca-Cola Oreo Zero Sugar. This strategic partnership combined the refreshing taste of the carbonated beverage with flavor hints inspired by the famous chocolate sandwich cookie. The collaboration was marketed as a celebration of friendship and included a reciprocal Oreo cookie product featuring Coca-Cola syrup. Supported by digital experiences and exclusive merchandise, this cross-category initiative aimed to leverage the strength of both global brands to generate excitement and unite their respective fanbases within the competitive beverage and snack markets.
• In May 2024, Keurig Dr Pepper expanded its product lineup with the release of Dr Pepper Creamy Coconut as a limited-time offering for the summer season. The beverage featured a unique blend of the brand's signature 23 flavors with layers of toasted coconut and a creamy finish, aiming to capitalize on trending tropical flavor profiles and the "dirty soda" phenomenon. Available in both regular and zero-sugar versions, the product was distributed to retailers nationwide. This launch was part of the company's strategy to drive consumer engagement and maintain brand relevance through seasonal flavor innovations and variety.
• In May 2024, PepsiCo launched a distinct limited-edition beverage known as Pepsi Electric in the United Kingdom market. The sugar-free cola was characterized by its striking blue liquid and a zesty citrus flavor profile, intended to challenge traditional consumer expectations of the category. The product rollout across convenience, wholesale, and grocery channels was designed to capture the attention of Gen Z consumers through vibrant visual branding that aligned with the company's refreshed logo and identity. This innovation aimed to stimulate impulse purchases and drive value in the flavored cola segment by offering an experiential and visually unique product.
• In February 2024, The Coca-Cola Company introduced Coca-Cola Spiced as a permanent addition to its North American beverage portfolio to engage younger consumers. The new product was designed to blend the traditional iconic cola taste with refreshing notes of raspberry and a curated blend of warm spices. This launch was a direct response to consumer data indicating a growing preference for bolder and more complex flavor profiles in the carbonated soft drink category. The company released the beverage in both full-sugar and zero-sugar varieties, utilizing a rapid innovation timeline to bring the product to market significantly faster than previous permanent offerings.

Key Market Players

• 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

By Product	By Flavor	By Sales Channel	By Region
Soft Drinks Sports & Energy Drinks Others	Cola Fruit Based Others	Departmental Stores Hypermarkets/Supermarkets Foodservice Outlets Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Carbonated Beverages Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE