United Kingdom Carbonated Soft Drink Market, By Flavor (Cola, Citrus, Others), By Distribution Channel (Hypermarkets, Supermarkets & General Merchandisers, Convenience Stores & Gas Stations, Food Service Outlets, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

United Kingdom carbonated soft drink market was valued at USD 9.78 Million in 2024 and is expected to reach USD 13.72 Million by 2030 with a CAGR of 5.8% during the forecast period. The United Kingdom carbonated soft drink market is poised for significant growth between 2020 and 2030, driven by evolving consumer preferences, increasing disposable incomes, and rising demand for a diverse range of flavours and product innovations. The market is segmented primarily by flavour, including cola, citrus, and others, with cola maintaining a dominant share due to its iconic status and consumer loyalty. Citrus-flavoured soft drinks have also seen a surge in popularity, driven by health-conscious trends and the demand for refreshing, less sugary options. Distribution channels play a crucial role in market dynamics, with hypermarkets, supermarkets, and general merchandisers leading the way due to widespread accessibility and large-scale availability of popular brands.

The rise of e-commerce and online retail channels has further contributed to market growth, particularly as consumers seek convenience and the ability to explore a variety of products from the comfort of their homes. Challenges include increasing regulatory pressure on sugar content and health-related concerns, which are pushing manufacturers toward reformulating products and promoting low-sugar or sugar-free alternatives. Moreover, shifting consumer preferences for healthier beverages such as bottled water, fruit juices, and energy drinks have also presented challenges for carbonated soft drink sales. Additionally, competition in the market is intensifying with the presence of both global and local brands, each vying for market share by offering unique flavors, packaging, and promotional strategies. Nevertheless, the market's overall growth is expected to continue as innovations, strategic marketing, and evolving consumer trends balance out the challenges, ensuring a positive outlook for the UK carbonated soft drink industry.

Key Market Drivers

Growing Demand for Healthier and Low-Calorie Alternatives

As health-consciousness among consumers increases, there has been a notable shift in preferences towards healthier beverage options, impacting the UK carbonated soft drink (CSD) market. Consumers are becoming more aware of the negative health impacts of sugary, high-calorie drinks, including obesity, diabetes, and heart disease. This has led to a rise in the demand for low-calorie, sugar-free, and reduced-sugar carbonated soft drinks. Many established brands are innovating their product lines by introducing diet or "light" versions, as well as beverages with added health benefits such as vitamins, electrolytes, and fiber. Diet/Low-sugar variants now account for ~45% of total CSD sales (Britvic Soft Drinks Report, 2023). Additionally, the popularity of naturally flavored sodas with organic ingredients is contributing to the expansion of the market. The regulatory environment also encourages healthier consumption through measures like sugar taxes, further fueling the shift toward healthier alternatives in the carbonated drink space.

Rising Popularity of Convenience Retail and Online Shopping

The UK retail landscape has been evolving rapidly, with significant changes in consumer shopping habits, especially in the wake of the COVID-19 pandemic. One of the major drivers of the carbonated soft drink market is the growing prominence of online and convenience shopping. Consumers are increasingly opting for the convenience of shopping at local convenience stores, gas stations, and online platforms, particularly for small, quick purchases. The rise of e-commerce platforms offering home delivery and the growth of convenience retail formats are allowing consumers to access their favorite CSDs with minimal effort. This trend is not just driven by the pandemic but reflects broader shifts in lifestyle, with time-strapped consumers opting for the ease and efficiency of modern retail channels. As a result, carbonated soft drinks are now more accessible than ever, contributing to sustained demand.

Innovative Product Offerings and Flavor Variations

The demand for diverse and unique flavor profiles has led to the introduction of an increasing variety of carbonated soft drinks in the UK. Traditionally dominated by cola and citrus flavors, the market is now witnessing a surge in the popularity of new and exotic flavors, which cater to a wide range of consumer tastes and preferences. The diversification of flavors, including tropical fruits, ginger, berry blends, and even savory options, is helping attract a broader consumer base. The UK government’s Plastic Packaging Tax (2022) pushed brands to use 30% recycled PET (British Soft Drinks Association, 2023). Furthermore, brands are leveraging seasonal or limited-edition flavors to stimulate consumer interest and drive sales. This innovation in product offerings not only captures the attention of adventurous consumers but also allows brands to differentiate themselves in a highly competitive market. The variety in product offerings enables carbonated soft drinks to cater to a range of demographic segments, from younger consumers seeking novel tastes to older individuals who prefer traditional flavors with a modern twist.

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Key Market Challenges

Health Concerns and Regulatory Pressures

One of the most significant challenges faced by the UK carbonated soft drink market is the increasing concern over the health risks associated with sugary beverages. Consumers are becoming more health-conscious and are increasingly turning away from sugary carbonated drinks due to their link with obesity, diabetes, and other health issues. This growing awareness has led to a decline in demand for traditional carbonated soft drinks, especially those with high sugar content. The UK Soft Drinks Industry Levy (Sugar Tax), introduced in 2018, led to a 50% reduction in sugar content in branded drinks (Public Health England, 2023). Furthermore, regulatory pressures, including the implementation of sugar taxes and stricter labeling requirements, are pushing manufacturers to reformulate their products, often resulting in higher production costs. While brands are investing in healthier alternatives such as low-sugar and sugar-free options, these products often face challenges in gaining consumer acceptance. The shift towards healthier beverages is forcing CSD brands to reconsider their product lines and marketing strategies, making it difficult for traditional CSDs to maintain their market share.

Intense Competition and Price Sensitivity

The carbonated soft drink market in the UK is highly competitive, with several established global players, including Coca-Cola, PepsiCo, and smaller regional brands, vying for market share. This intense competition puts significant pressure on companies to constantly innovate, improve product offerings, and reduce prices to maintain or expand their consumer base. Price sensitivity is another challenge, as consumers are increasingly looking for value for money, particularly in a challenging economic environment. The proliferation of discount retailers and private-label products that offer lower-priced alternatives adds further competition for traditional carbonated soft drinks. Smaller brands and private-label products, often marketed as cheaper yet comparable alternatives, have successfully captured a significant share of the market, particularly among price-sensitive consumers. This price competition challenges larger players to balance their premium offerings with the need for cost-efficient production while maintaining brand loyalty.

Environmental Impact and Sustainability Concerns

Environmental sustainability is another growing challenge for the UK carbonated soft drink market. As consumer awareness regarding environmental issues increases, there is greater scrutiny on the carbon footprint of manufacturing processes, packaging waste, and the use of plastic bottles. Environmental concerns, such as the detrimental impact of single-use plastic and carbon emissions from production, have led to demands for more sustainable practices in the beverage industry. In response, companies are under pressure to adopt eco-friendly initiatives, such as using recyclable packaging, reducing plastic usage, and adopting carbon-neutral production processes. However, these sustainability efforts come with high implementation costs, which could affect profit margins. Additionally, consumer demand for environmentally friendly products is often in conflict with cost-effective production strategies, creating a challenging balance for companies looking to both meet sustainability expectations and maintain competitive pricing.

Key Market Trends

Rise of Premium and Craft Carbonated Soft Drinks

A significant trend in the UK carbonated soft drink market is the increasing demand for premium and craft sodas. Consumers are shifting away from mass-market, mass-produced beverages and are gravitating towards artisanal, small-batch drinks with unique flavor profiles and high-quality ingredients. These premium sodas often come in innovative flavors, such as hibiscus, elderflower, or kombucha-inspired options, and typically boast natural, organic, or ethically sourced ingredients. This trend is particularly noticeable among health-conscious consumers, younger generations, and those who seek products that reflect their values, such as sustainability, authenticity, and craftsmanship. Craft sodas also appeal to the growing trend of 'experiential drinking,' where consumers are not just purchasing a product but are seeking an elevated, unique, or artisanal experience. This movement is also supported by the increasing number of small, independent soda brands gaining traction through local retailers, farmer’s markets, and e-commerce platforms. As a result, the market is witnessing the diversification of flavor profiles and a premiumization of carbonated beverages, catering to niche consumer segments who are willing to pay a premium for a higher-quality, more personalized beverage experience.

Functional and Fortified Beverages

The trend of functional beverages is rapidly transforming the carbonated soft drink market in the UK. Consumers are becoming increasingly interested in beverages that offer more than just refreshment, seeking products that provide health benefits beyond basic hydration. This includes carbonated soft drinks fortified with vitamins, minerals, antioxidants, and other functional ingredients such as probiotics, electrolytes, and adaptogens. 42% of UK consumers prefer beverages with natural ingredients (IWSR, 2023). Brands are responding to this demand by introducing drinks that promise benefits such as improved digestion, enhanced energy levels, immune system support, and stress relief. For example, beverages infused with natural probiotics or prebiotics aim to cater to consumers looking for digestive health benefits, while those with added electrolytes appeal to active consumers or those looking for post-workout hydration. Additionally, drinks with ingredients like turmeric, ginger, or matcha offer functional benefits in terms of anti-inflammatory properties or energy boosts. This shift towards functional drinks allows companies to cater to health-conscious consumers who seek more from their beverages than just taste. The growing acceptance of functional sodas is a testament to the ongoing trend of health and wellness becoming integral to food and beverage choices in the UK.

Sustainability and Eco-friendly Packaging

Sustainability continues to be a key trend influencing the UK carbonated soft drink market, with brands increasingly prioritizing eco-friendly practices in both product formulation and packaging. Consumers are becoming more environmentally aware and are showing preference for brands that adopt sustainable and eco-friendly practices. This is especially true for packaging, where there is growing concern over the use of plastic bottles. In response, many CSD brands are transitioning to more sustainable packaging solutions, such as using glass bottles, cans, or recyclable PET bottles. Some companies are also exploring the use of biodegradable or compostable materials, and a few are making the shift toward zero-waste production processes. Additionally, brands are adopting refillable packaging models or encouraging consumers to reuse bottles to reduce waste. This sustainability movement is being driven not just by consumer preferences but also by regulations aimed at reducing plastic waste, such as the UK's plastic packaging tax. For carbonated soft drink brands, committing to sustainability can serve as a competitive differentiator, and companies that fail to address environmental concerns risk alienating eco-conscious consumers. As sustainability continues to gain importance, companies are exploring innovative solutions to reduce their environmental impact while maintaining product quality and affordability.

Segmental Insights

Flavor Insights

Cola was by far the largest and most dominant segment in the UK carbonated soft drink market. Cola drinks have become iconic worldwide, with established brands like Coca-Cola and Pepsi leading the category. The demand for cola remains robust in the UK due to its long-standing presence in the market and strong brand loyalty. Cola-based carbonated soft drinks are deeply ingrained in the everyday culture of the UK, appealing to a broad demographic, from teenagers to adults.

A major driver for the continued strength of the cola segment is the entrenched marketing and brand equity built over decades. Cola brands are heavily advertised through television campaigns, sponsorships, and digital marketing, ensuring that they remain top of mind for consumers. The flavor profile of cola, with its sweet, slightly tangy taste, is widely favored for its versatility and appeal to a broad range of taste preferences. While cola remains dominant, the segment is facing challenges, primarily related to increasing health-consciousness among UK consumers. The rising awareness of the negative health effects of sugary drinks has led to a gradual shift away from traditional cola products. In response, major cola brands have innovated by introducing low-sugar and zero-sugar versions, such as Coca-Cola Zero and Diet Pepsi. These options cater to health-conscious consumers and have contributed to the continued success of the cola segment in the face of growing concerns about sugar consumption.

Distribution Channel Insights

The hypermarkets, supermarkets, and general merchandisers segment remains the largest and most influential distribution channel for carbonated soft drinks in the UK. Large retail chains like Tesco, Sainsbury’s, Asda, and Morrisons dominate the market, offering a wide variety of carbonated beverages in various sizes and price points. These stores provide convenience and accessibility for consumers, allowing them to purchase a broad selection of soft drinks during their regular grocery shopping trips. One of the primary advantages of this distribution channel is its extensive reach and ability to serve large numbers of customers. Hypermarkets and supermarkets often offer promotional deals, bulk discounts, and loyalty programs, which attract price-sensitive consumers. The presence of carbonated soft drinks in these retail outlets is consistent, ensuring that the products are easily accessible to consumers across the UK. Additionally, supermarkets and hypermarkets offer a diverse range of options, including both mainstream and niche products, catering to a broad spectrum of consumer preferences. The convenience of purchasing soft drinks alongside other household goods ensures that this channel will continue to dominate.

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Regional Insights

In the United Kingdom, England was the largest and most dominant region in the UK carbonated soft drink market, contributing significantly to both volume and value sales. With a population of over 55 million, England is home to a large and diverse consumer base, making it the primary hub for carbonated beverage consumption. The country’s urban centers, such as London, Manchester, Birmingham, and Liverpool, represent key markets, where convenience, variety, and availability drive high sales volumes. England is also where major retailers, including hypermarkets, supermarkets, and convenience stores, are concentrated, further bolstering the region’s market share. Cola remains the leading flavor in England, with global brands like Coca-Cola and Pepsi enjoying significant consumer loyalty and market penetration. However, health-conscious trends are also shaping consumption patterns, leading to an increase in demand for low-sugar and sugar-free options, as well as citrus-flavored drinks, which have gained popularity due to their refreshing taste and health appeal. Moreover, England’s large and well-developed retail infrastructure, coupled with the growing trend of e-commerce, makes it the largest market for online soft drink sales. While the market in England is mature and highly competitive, it remains the largest contributor to the overall UK carbonated soft drink market, and its influence on product trends and innovations is substantial.

Recent Developments

• In April 2024, Coca-Cola reintroduced its iconic "Share a Coke" campaign in the UK after a 12-year hiatus. This nostalgic initiative features bottles and cans personalized with popular names and affectionate nicknames like "My Bestie" and "My Bae." The campaign aims to engage a new generation of consumers through a modern twist, including the digital "Coke Memory Maker" tool that allows users to create personalized virtual cans and share content.
• In early 2025, Pepsi launched two new zero-sugar flavors in the UK: Cream Soda and Strawberries 'N' Cream, inspired by classic British summer desserts. Available exclusively at Tesco, these flavors received enthusiastic feedback on social media, with customers expressing hope for their permanent addition to the product line. The launch targets Gen Z consumers and reflects Pepsi's strategy to offer innovative, indulgent options.
• In January 2025, Dr Pepper introduced a limited edition of Zero Sugar Cherry Crush variant in the UK, available for Valentine's Day. This new flavor adds to Dr Pepper's diverse range, which includes various limited-time offerings like Strawberries & Cream and Blackberry, catering to evolving consumer preferences.
• In February 2025, CANS, a Czech Republic-based brand known for its unsweetened carbonated soft drinks, launched in the UK. The product line, including Apple, Cherry, and Lemon flavors, contains no added sugar, sweeteners, or artificial additives. Initially focusing on direct-to-consumer sales, CANS plans to expand availability through wholesalers. The brand aims to promote healthier beverage options and has set a target to sell 8 million cans globally by the end of the year.
• In mid-2024, Danish brewer Carlsberg acquired Britvic, a leading UK soft drinks manufacturer, for £3.3 billion. This acquisition, part of Carlsberg's "Beyond Beer" strategy, allows the company to diversify its product offerings and strengthen its position in the non-alcoholic beverage market. Britvic's portfolio includes 39 brands, such as Robinsons and an exclusive agreement with PepsiCo, enhancing Carlsberg's presence in the UK and Western Europe.

Key Market Players

• National Beverage Corp.
• The Coca-Cola Company
• Refresco Group B.V.
• Monster Beverage Corporation
• The Coca-Cola Company
• Jones Soda Co.
• Keurig Dr Pepper Inc.
• Suntory Beverage & Food Limited
• PepsiCo, Inc.
• Danone S.A.

Report Scope:

In this report, the United Kingdom Carbonated Soft Drink market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United Kingdom Carbonated Soft Drink Market, By Flavor:

o   Cola

o   Citrus

o   Others

• United Kingdom Carbonated Soft Drink Market, By Distribution Channel:

o   Hypermarkets, Supermarkets & General Merchandisers

o   Convenience Stores & Gas Stations

o   Food Service Outlets

o   Online

o   Others

• United Kingdom Carbonated Soft Drink Market, By Region:

o   England

o   Scotland

o   Wales

o   Northern Ireland

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United Kingdom Carbonated Soft Drink market.

Available Customizations:

United Kingdom Carbonated Soft Drink market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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

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