Carbonated Drinks Market Size, Share, and Industry Analysis By Product Type (Soft Drinks, Carbonated Water, Sports and Energy Drinks, Soda, and Others), By Flavor (Cola, Lemon-Lime Flavored, Fruit Flavored, and Others), By Distribution Channel (Supermarket and Hypermarket, Convenience Store, E-Commerce, Food Service, and Others), By Age Group (Below 10 Years, 10-18 Years, 18-35 Years, 35-50 Years, and Above 50 Years), By Sugar Content (Added Sugar, No Sugar, and Alternative Sweetener), and Regional Forecast, 2025-2032

The global carbonated drinks market size was valued at USD 0.62 billion in 2024. The market is projected to grow from USD 0.76 billion in 2025 to USD 3.25 billion by 2032, exhibiting a CAGR of 6.48% during the forecast period. The global carbonated drinks market is likely to grow significantly as fizzy beverages have become the recent craze and enjoy a good market globally. With easy availability and higher standards of comfort in ready-to-drink formats, carbonated beverages from all flavors, including colas and sparkling waters, are drunk as refreshing drinks for their taste and supermarket, vending machine, and food service availability.

• In 2023, carbonated soft drink sales hit 11.84 billion gallons, with consumption per capita at 34.4 gallons in the U.S., International Bottled Water Association reported. The U.S. Bureau of Labor Statistics noted that the Producer Price Index for carbonated soft drinks for December 2024 stood at 178.083.

It is expected that sustainability practices, such as recycling aluminum cans and PET bottles, will take center stage. Growing preference for low-calorie and diet carbonated beverages highlight changing health trends among consumers.

Carbonated Drinks Market Driver

Product Innovation, Branding, and Urbanization Drive Market Growth

Product innovation and diversification are two major levers, with companies developing new flavor offerings and healthier alternatives to meet changing consumer preferences. As Albany County NY notes, soft drinks have remained in high demand for an extended period of time, for instance, in the year 2001, an American on average consumed about 53 gallons of soft drinks.

Foremost in advertising and brand promotions, sales are helped by aggressive market strategies, including celebrity advertisements and tie-ups. Meanwhile, various factors such as faster urbanization and hectic lifestyles have skyrocketed consumer needs for convenience and ready-to-drinks with supermarkets and general merchandisers being responsible for soft drink sales.

Carbonated Drinks Market Restraint

Health Concerns, Regulations, and Sustainability Challenges Impact Market Growth

Concerned about their health implications, consumers are shifting to healthier alternatives. The foregoing has significantly affected the sales of carbonated soft drinks. Regulatory action such as sugar tax and stringent policies also curtail the global market growth. Environmental issues come into play as well due to the green packaging shift concerned by people's sustainability; according to the Container Recycling Institute in 2006, PET plastic water bottles held a 15% market share.

Carbonated Drinks Market Opportunity

Healthy Alternatives and Sustainable Packaging to Offer New Prospects

The fast emerging potential for growth here is healthy alternatives, including all-natural, low-calorie, or even sugar-free, which fulfill the growing consumer preference. It is another opportunity to drive sales by entering emerging markets with increasing disposable income.

The rise in sustainable packaging innovations, including the greater use of aluminum cans, which represented a 28% market share in 2006, is appealing to environmentally conscious consumers.

Key Insights

The report covers the following key insights:

• Carbonated Soft Drink Consumption Trends, By Key Regions
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by Key Players
• Key Industry Developments (Mergers, Acquisitions, Pricing Strategies)
• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis by Product Type

By product type, the market is divided into soft drinks, carbonated water, sports and energy drinks, soda, and others.

Soft drinks command the carbonated drink market spectrum owing to consumer demand and brand allegiance. They constituted 25% of all beverages consumed in the U.S., according to Albany County. The segment is further progressing with innovations such as less sugar and diet drinks. 

Sports and energy drinks are on the path to growth, with health consciousness and fitness trends as the trend movers. The demand for these functional beverages enriched with electrolytes and energy boosters is only increasing.

Analysis by Flavor

By flavor, the market is divided into Cola, Lemon-lime flavored, and fruit flavored, and others.

Cola is popular with heavily brand-loyal and well-consuming groups, thus accounting for most carbonated drinks. Companies are pumping in resources in developing sugar-free and low-calorie types to attract health-minded individuals.

The lemon-lime flavor segment is growing and will continue to grow much for refreshing, citrus-based drinking options. Regular and diet versions maintain its increasing market share. Increased demand is attracting a booming fruit-flavored drinks to tropical and exotic flavors. Almost 450 soft drinks are available in the U.S., opening doors to innovations with real fruit extracts and sweetener from nature.

Analysis by Distribution Channel

By Distribution Channel, the market is divided into supermarkets and hypermarkets, convenience store, e-commerce, food service, and others.

The supermarkets and hypermarkets segment dominates the market owing to rising soft drink sales across various regions. Their bulk purchase offers, discounts, and convenience have propelled this channel's growth. 

The convenience stores segment is surging significantly, with 12% of the U.S. soft drinks sales coming through those channels. The stores are open for unlimited hours and appeal to impulse purchases, resulting in increased demand. 

Along with online grocery shopping and direct sales to consumers, this would bring in a whole new world of e-commerce in the form of home delivery and subscription agencies.

Analysis by Age Group

By age group, the market is divided into below 10 years, 10-18 years, 18-35 years, 35-50 years, and above 50 years.

The 18 to 35 years segment is the strongest segment with respect to the carbonated beverage market. This is predominantly due to lifestyle trends and high brand engagement.

The segment that ranges between 10 and 18 years is experiencing the highest growth due to propelling marketing and placing in vending machines and convenience stores, which represent 11% and 12% of U.S. soft drink sales, respectively, according to ChangeLab Solutions.

Analysis by Sugar Content

By sugar content, the market is divided into added sugar, no sugar, and alternative sweetener.

The added sugar segment is leading the carbonated drinks market, owing to the constantly high demand for traditional soft drinks.

The no-sugar segment is poised for significant rise due to the health-conscious consumer culture. Diet carbonated soft drinks contribute to about 11% of the U.S. beverage market (ChangeLab Solutions), with demand increasing in the wake of growing consumer awareness of obesity.

The alternative sweetener segment, which uses stevia and monk fruit, has been growing in popularity with brands that offer and market stevia-sweetened or monk-fruit-sweetened beverages. The growing interest in functional drinks and wellness boosts the market potential of these sweeteners.

Regional Analysis

Based on geography, the market has been studied across Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa.

Coca-Cola and PepsiCo are the driving forces behind high consumer demand and product innovation in favor of carbonated drinks, giving the North American market a major share.

In the Asia Pacific region, major developments are set to occur owing to urbanization, rising disposable incomes, and the presence of a younger consumer base. Growing demand for traditional and innovative beverages act as complementary stimulants for this region to be a key driver of the market's future expansion.

Health-conscious trends and sugar regulations dictate Europe's path to growth in the premium and craft line of carbonated beverages. On the other hand, the shift toward relic sugar and functionality represents a fresh trend shaping the market, along with a major push for innovation in sustainability.

Key Players Covered

The report includes the profiles of the following key players:

• The Coca-Cola Company (U.S.) 
• PepsiCo (U.S.) 
• Keurig Dr Pepper (U.S.) 
• Nestlé (Switzerland) 
• Jones Soda (U.S.) 
• Monster Energy Company (U.S.) 
• Refresco Group (Netherlands) 
• Parle Agro (India) 
• Sodastream International (Israel) 
• Anadolu Grubu (Turkey)

Key Industry Developments

• In January 2025, AG Barr, maker of Irn-Bru, announced annual revenues of GBP 420 million after a 5% rise, due to increased sales for Irn-Bru and Rubicon and Boost.
• In October 2024, Keurig Dr Pepper acquired a 60% stake in energy drink company Ghost for USD 990 million, giving a boost to the company's presence in the energy drink arena.
• In September 2024, potential price changes would come from PepsiCo, after analysts had commented that the company had hiked prices beyond what was reasonable and had affected sales due to rising cost of living.