November 5, 2024 – Globally, carbonated soft drinks are preferred for their refreshing qualities and diverse flavor profiles. They provide a sense of indulgence, making them a popular choice for various occasions. Innova’s 360 research into carbonated soft drinks trends highlights the latest product launches, innovations, and top brands within the industry.
Carbonated Soft Drinks Market Size and Trends
Carbonated soft drinks is the leading subcategory in the soft drinks category in retail value sales. It is also second leading subcategory in retail volume sales. The sales and volume of the carbonated soft drinks market have been steadily rising throughout the past five years, by 1% CAGR, each. Carbonated soft drinks trends research predicts a projected similar growth rate in sales in the next five years.
The US sells the most carbonated soft drinks, while India and Brazil are fastest growing countries over the past year. The Czech Republic is the top country in per capita consumption of carbonated soft drinks, followed by Mexico, Norway, Argentina and Chile.
Top Soft Drinks Companies and Brands
The global carbonated soft drinks market is less fragmented than many others, with the top 10 companies accounting for 37% of product launches over the past year. Coca-Cola leads in global innovation, accounting for 17% of new product launches over the past year. Carbonated soft drinks trends research shows that it is nearly three times that of its closest competitor, PepsiCo. Coca-Cola’s recent launches include Coke Zero K Wave, Coca-Cola Creations Happy Tears Drops of Joy, raspberry-flavored Coca-Cola Spiced, and a reformulated Fanta Orange Zero with bold graphics.
Other significant players in the market include PepsiCo, Keurig Dr Pepper, Nestlé, Asahi, Fevertree, Britvic, A.G. Barr and Bundaberg Brewed Drinks. These companies continue to compete in an evolving market where innovation and branding play key roles in consumer engagement.
Consumer Soft Drinks Preferences
Half of consumers globally have purchased carbonated soft drinks over the past year, with Sweden, Finland, and Canada showing the highest global penetration. Carbonated soft drinks trends research displays that 16% of consumers have increased the consumption of carbonated soft drinks over the past year. Younger generations are more likely to drink carbonated soft drinks than older consumers. Gen Z and Millennials have increased consumption, while older consumers are limiting it.
Globally, two-thirds of consumers drink carbonated soft drinks weekly, after unflavored and functional water. Most consumers opt for these drinks for dinner, followed by lunch, mid-afternoon, and evening. However, younger generations are broadening consumption occasions to include breakfast and night.
Health concerns are increasingly influencing consumer choices in the carbonated soft drinks market, with 1 in 3 consumers seeking low/no/or reduced sugar options. This preference for lower sugar content grows stronger with age, as 3 in 5 consumers have cut back on carbonated drinks due to health concerns. Despite this, many still favor intense flavors in their beverages, with over half of consumers globally opting for cola-flavored carbonated drinks.
Carbonated Soft Drinks Launch Trends
The global carbonated soft drinks market has experienced significant growth, with product launches rising at 8% CAGR, almost double that of the total soft drinks category. Drinks trends show that West Europe leads with 29% of global launches in the past year, while Australia has displayed the fastest growth over the past five years.
Health-conscious consumers are driving trends, with 48% of consumers actively limiting sugar intake and seeking healthier options. Sugar-free claims launches have increased by 14% CAGR over the past five years. Sugar-reduction claims are most prevalent in West Europe, but North America and Asia are fastest growing. Claims related to diet restrictions, such as vegan and vegetarian, are gaining consumer attention. Additionally, non-alcoholic drinks are blurring categories, with no-alcohol claims appearing on 3% of new products in the past year.
Active claims like prebiotics, probiotics and immune health are on the rise. Packaging trends are also evolving, with 45% of new launches using aluminum cans. Environmental claims such as carbon labeling and recycled materials are becoming more prominent. The indicates the alignment of health and sustainability in the carbonated soft drinks market.
Flavor and Ingredients Drinks Trends
Cola, lemon, orange, lemonade and lime are the top 5 flavors in global carbonated soft drinks launches over the past year. Although cola is the top flavor, the fruit flavors category displays a 6% rise in launches during the same period. Strawberry and pineapple are growing fruit flavors. Alcohol and mint and menthol inspired flavors have also emerged in launches.
Functional ingredients are gradually appearing in global carbonated soft drinks trends. Ingredients like caffeine, inulin, green tea extract and L-theanine are significant in the market. Other ingredients like CBD, guarana, ginseng, ashwagandha, and lion’s mane mushroom are emerging, thus reflecting consumers increased focus on health and wellness.
What’s Next in The Global Carbonated Soft Drink Market?
Half of consumers globally purchase carbonated soft drinks, and two-thirds consume them at least weekly. Brands can boost adoption among younger consumers through energetic marketing, targeting different usage occasions to increase consumption. However, growing health concerns about sugar have stalled sales. Brands can tap into this by offering sugar-free formulations and making these claims clear to consumers.
As sugar usage declines, artificial and natural sweeteners are expanding in the market. Brands should carefully assess sweeteners to address any concerns, potentially blending sweeteners to achieve the balance of flavor and mouthfeel without sugar. Innovating with new sweetening technologies can help brands stay competitive and meet evolving consumer demands for healthier options. The future is likely to see advancements in sweetener solutions that enhance both taste and health benefits.
This article is based on Innova’s Now & Next in Carbonated Soft Drinks – Global report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
