The World Market for Soft Drinks

February 2025

In the global soft drinks industry in 2025, emerging markets are driving volume growth, while mature markets focus on premiumisation and functionality. Affordability concerns are shaping pricing and pack strategies, while e-commerce and informal retail gain traction. Local value brands are increasingly competing with multinational giants. Future growth depends on balancing cost, innovation and consumer trends, with opportunities in healthier beverages, sustainability and digital engagement.

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Key findings

Global growth, but emerging markets become increasingly key

The global market for soft drinks saw another year of growth in 2024, with volume expansion increasingly dominated by rapidly expanding but low per capita consumption consumer markets in Southeast Asia, and the Middle East and Africa. Western Europe and North America face volume stagnation entering 2025, as higher retail prices have curbed topline consumption.

Value outpaces volume in a price-led soft drinks industry

Revenue growth across the categories of global soft drinks has been primarily price-driven since the end of the pandemic. In 2025, the legacy of inflation and cost-of-living concerns will continue to shape consumer choices, boosting value-tier brands, club channels and discounter grocery. Premium and functional brands must carefully balance affordability and innovation in this climate.

A consolidated industry shows signs of growing brand fragmentation

The long-term dominance of major multinational producers like Coca-Cola and PepsiCo is being challenged like never before. On one hand, value-focused, highly localised brands in emerging markets are gaining share in carbonates, juices, bottled water and even premium energy drinks. On the other hand, premium, influencer-led independent launches now have outsized reach.

A two-track growth model over the next five years?

Over 2025-2029, the industry essentially faces a two-speed growth model. Mature markets will rely on premiumisation through promising functional innovation and category blurring (ie adult non-alcohol). In emerging consumer markets, volume growth will be driven by increased accessibility and affordability, meeting both local tastes and local economic realities.

Rising importance of both informal and digital retail to soft drinks

The changing geography of growth in global soft drinks will ensure that independent small grocers and a more fragmented, informal retail landscape will play a growing role in distribution. At the same time, online meal delivery and new smart vending (or automated market) technologies will also form a larger part of impulse consumption in higher income markets.

 

Our expert’s view of soft drinks in 2025
Soft drinks snapshot
Key findings
Price-led growth in global soft drinks, as volume slows in key regions
Top five trends in soft drinks
Top five trends uncovered
Drivers of consumer markets and impact on soft drinks
Adjacent industries and how they impact soft drinks
Price-led growth again in global soft drinks, as volume slows in key markets
Strong value growth in premium categories, despite volume challenges
Premium bottled water and zero sugar sparkling variants among top performers
Strong value growth in Asia Pacific, MEA and Latin America since the pandemic
Price rises limit demand in 2024, but health benefits remain key long-term
Rising share for local “hero” brands and value alternatives in global soft drinks
Celsius, Genki Forest and Monarch among the success stories over 2019-2024
Category shifts and value-brands erode the traditional consolidation of non-alcohol
Wave of innovation attempts to kickstart the weak performing fruit juice category
Claims of health safety and product quality may fuel “sustainable” demand
Changing geographic mix fuels the growth of small, local and informal retail
Strong growth from a small base within soft drinks e-commerce
Two-step growth challenge for global soft drinks over the forecast period
Affordability, functionality and zero-sugar formulations shape the industry outlook
Packaged water, energy drinks and RTD coffee among the standouts in APAC and MEA
Premium water categories, zero sugar CSDs and mixers are likely growth stories
Slowing price growth is expected to boost demand, although trade issues cloud outlook
There remains huge unrealised potential for commercial beverages globally
Rising functional and better-for-you demand creates opportunities, despite higher costs
Opportunities for growth
Our expert’s view of soft drinks to 2029

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

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