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Carbonated Beverages Market

The market for Carbonated Beverages was estimated at $617 billion in 2025; it is anticipated to increase to $838 billion by 2030, with projections indicating growth to around $1.14 trillion by 2035.

Report ID:DS1901024
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Carbonated Beverages
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Report Summary
Market Data
Methodology
Table of Contents

Global Carbonated Beverages Market Outlook

Revenue, 2025

$617B

Forecast, 2035

$1.14T

CAGR, 2026 - 2035

6.3%

The Carbonated Beverages industry revenue is expected to be around $617.3 billion in 2026 and expected to showcase growth with 6.3% CAGR between 2026 and 2035. Building on this robust outlook, the Carbonated Beverages market has become a central pillar of the global non-alcoholic drinks industry, supported by entrenched consumption habits and broad distribution across retail and foodservice channels.Soft Drinks Type dominated the Carbonated Beverages industry revenue with $346.91 billion in sales in 2025, underscoring the strength of mainstream cola, lemon-lime, and flavored soda brands that anchor category performance.Consumers aged 18-35 Years and 35-50 Years together hold 73.8% of demand, reflecting the importance of urban lifestyles, social occasions, and on-the-go consumption patterns in sustaining category relevance.Ongoing product innovation in low-sugar and functional carbonated drinks, aggressive brand marketing, and expanding modern retail and e-commerce networks continue to drive the competitive positioning and resilience of the global Carbonated Beverages market.

Carbonated Beverages comprise effervescent soft drinks, sparkling water, energy drinks, and mixers formulated with dissolved carbon dioxide, offering distinctive sensory appeal, wide flavor variety, and convenient ready-to-drink formats.Key features such as long shelf life, consistent product quality, and versatile packaging in cans and PET bottles make these fizzy drinks suitable for household consumption, quick-service restaurants, bars and cafés, cinemas, and event catering where immediate refreshment is valued.Major applications span standalone consumption, meal accompaniment, and use as cocktail and mocktail mixers, with soft drinks segments remaining core while flavored sparkling water and zero-calorie options expand the accessible consumer base of health-conscious consumers.Recent trends shaping demand include premiumization through craft and limited-edition flavors, natural ingredients and reduced-sugar formulations, more sustainable packaging, and targeted offerings such as functional energy sodas and vitamin-fortified sparkling drinks, which help Carbonated Beverages maintain strong appeal across younger and mid-aged adult demographics

Carbonated Beverages market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Carbonated Beverages Market Outlook

Market Key Insights

  • The Carbonated Beverages market is projected to grow from $617.3 billion in 2025 to $1.14 trillion in 2035. This represents a CAGR of 6.3%, reflecting rising demand across Mixology and Cocktail Making, Refreshment and Hydration, and Culinary Uses.

  • The Coca-Cola Company, PepsiCo, and Keurig Dr Pepper are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Carbonated Beverages market and are expected to observe the growth CAGR of 4.1% to 6.0% between 2025 and 2030.

  • Emerging markets including Vietnam, Nigeria and Colombia are expected to observe highest growth with CAGR ranging between 7.2% to 8.7%.

  • Transition like Shift Towards Healthier Beverages has greater influence in United States and China market's value chain; and is expected to add $23 billion of additional value to Carbonated Beverages industry revenue by 2030.

  • The Carbonated Beverages market is set to add $520 billion between 2025 and 2035, with manufacturer targeting key segments projected to gain a larger market share.

  • With

    shift towards low-calorie beverages, and

    Increasing Consumer Spending, Carbonated Beverages market to expand 84% between 2025 and 2035.

carbonated beverages market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Carbonated Beverages - Country Share Analysis

Opportunities in the Carbonated Beverages

Carbonated Beverages tailored to health-conscious millennials are shifting from traditional sugary soft drinks toward low-sugar sodas, sparkling water, and naturally flavored carbonated water with clean labels and healthy carbonation. This consumer group is also increasingly scrutinizing ingredients, driving reformulation with reduced calories and plant-based ingredients while maintaining taste and fizz. Within this opportunity, the water type of Carbonated Beverages is positioned to grow fastest, supported by a projected rise from about $95.68 billion in 2025 to $136.72 billion dollars by 2030.

Growth Opportunities in North America and Asia-Pacific

In North America, Carbonated Beverages are driven primarily by the 18-35 Years segment, which already represents the largest and fastest-growing global consumer cohort and shows strong adoption of premium soft drinks, flavored sparkling beverages, and low-calorie soda options; key opportunities lie in expanding functional drinks with added energy, mood, and digestive benefits, scaling zero-sugar and clean-label formulations, and investing in data-led personalization for convenience channels and ready-to-drink cocktails. Competition is intense, with national brands defending share against private labels and craft-style regional players through differentiated flavor innovation, packaging sustainability, and omnichannel promotions, while digital-native challengers are leveraging subscription models and direct-to-consumer engagement. Structural drivers include high per-capita income, mature cold-chain retail, and a well-established out-of-home consumption culture, suggesting that brands should prioritize portfolio premiumization for 18-35 Year consumers, targeted multipacks for 35-50 Year households, and selective investment in experiential marketing that reinforces brand loyalty and justifies higher price points.
In Asia-Pacific, Carbonated Beverages growth is anchored by a younger demographic base, with 18-35 Years emerging as the most commercially relevant segment and the Up to 18 Years group providing a strong volume engine, as rising urbanization and Western-style consumption patterns accelerate trials of soft drinks and fruit-forward sparkling beverages across developing markets. Top opportunities include localized flavor platforms that reflect regional taste profiles, affordable single-serve and small PET formats for price-sensitive consumers, and the rapid rollout of low-calorie soda and hybrid functional drinks that blend carbonation with herbal tea, juice, or vitamin fortification to address growing health awareness. Competitive intensity is increasing as agile local brands, regional bottlers, and cross-category beverage companies compete on value, distribution reach, and flavor relevance, pushing international players to deepen partnerships with modern trade, quick-service restaurants, and e-commerce marketplaces. Core growth drivers span rising disposable incomes, expansion of convenience retail, and high digital engagement among 18-35 Year consumers, indicating that strategic investment should prioritize social-media-led brand building, tier-2 and tier-3 city penetration, and youth-oriented product positioning that balances indulgence with lighter, better-for-you ready-to-drink beverages.

Market Dynamics and Supply Chain

01

Driver: Premiumization trends and flavor innovation driving evolving carbonated beverage consumption patterns

Premiumization and flavor innovation are also jointly reshaping the carbonated beverages market. On one side, consumers are also trading up toward craft sodas, premium mixers, and artisanal sparkling waters that emphasize natural ingredients, botanical extracts, and reduced sugar formulations. This shift is also especially visible in urban and hospitality channels. In parallel, advanced flavor development technologies allow manufacturers to introduce complex taste profiles, including exotic fruits and functional infusions, without compromising carbonation stability. These innovations extend product lifecycles and support higher price realization. Together, premium positioning and flavor experimentation are also expanding consumption occasions beyond traditional refreshment, strengthening margins and attracting younger, experience-driven consumers across global markets.
The growth of on-the-go consumption is also a key driver for carbonated beverages. Urbanization, busy lifestyles, and rising foodservice penetration have also increased demand across convenience stores, quick service restaurants, and vending formats. Single serve packaging and chilled display technologies enhance impulse purchases and immediate consumption. Brands investing in compact packaging, improved shelf visibility, and foodservice partnerships are also capturing incremental volume. This trend is also particularly strong in emerging markets, where expanding modern retail infrastructure directly supports higher per capita carbonated beverage consumption.
02

Restraint: Rising health concerns over sugar content and artificial additives reducing consumer demand

Growing awareness of obesity, diabetes, and related health risks is restraining carbonated beverage consumption, particularly traditional sugary soft drinks. Regulatory scrutiny and negative consumer perception around artificial sweeteners further intensify this challenge. In several markets, reduced intake directly impacts sales volumes of core cola products, forcing manufacturers to invest heavily in reformulation and marketing. This shift often leads to margin pressure and slower revenue growth in legacy product segments.
03

Opportunity: Functional energy carbonated beverages targeting esports and online gaming communities and Premium craft carbonated mixers for alcoholic beverages in North America

The rapidly expanding sports drink and online gaming ecosystem is creating a distinct demand spike for Carbonated Beverages that deliver both stimulation and wellness, positioning the energy drinks segment for the strongest global growth. Brands are introducing functional drinks fortified with nootropics, vitamins, and electrolytes, optimized for sustained focus and on-the-go consumption during long gaming sessions. With revenues projected to rise from $120.98 billion in 2025 to $179.42 billion dollars by 2030, energy-type Carbonated Beverages will outperform all other categories.
In North America, Carbonated Beverages positioned as premium mixers are gaining momentum alongside the expanding cocktail and ready-to-drink industry. Consumers are trading up from generic sodas to craft, small-batch products with precise carbonation levels, natural botanicals, and distinctive flavor profiles that complement spirits. Strategic collaborations between soft drinks market leaders, craft distilleries, and hospitality groups can unlock significant value. The Others type within Carbonated Beverages is expected to see above-average regional growth, outpacing its global 4.25% CAGR through differentiated, higher-margin offerings.
04

Challenge: Sugar taxation policies and regulatory pressures increasing costs and limiting volume growth

Government imposed sugar taxes and labeling regulations are significantly constraining the carbonated beverages market. Higher excise duties raise retail prices, dampening demand, especially among price sensitive consumers. For example, sugar taxes in parts of Europe and Asia have led to measurable volume declines in full sugar sodas. Compliance costs related to reformulation, labeling, and reporting also increase operational complexity, affecting profitability and slowing market expansion.

Supply Chain Landscape

1

Beverage Ingredient Sourcing

The Coca-Cola CompanyPepsiCoKeurig Dr Pepper
2

Carbonated Beverages Production

The Coca-Cola CompanyPepsiCoSuntory Beverage & Food
3

Drink Distribution Logistics

The Coca-Cola Company PepsiCoNational Beverage Corp
4

Retail Consumption Channels

Retail Supermarkets Foodservice Restaurants Convenience Stores
Carbonated Beverages - Supply Chain

Use Cases of Carbonated Beverages in Mixology & Cocktail Making

Mixology and Cocktail Making : Driven by evolving bar culture and premiumization trends, carbonated beverages play a vital role in mixology and cocktail making. Tonic water, club soda, ginger ale, and flavored sparkling waters are most widely used by bartenders and mixologists to balance spirits, enhance aromas, and add effervescence. Their consistent carbonation and neutral or subtly flavored profiles improve drink texture and presentation. Global players such as Schweppes and Fever Tree dominate this segment, leveraging strong brand equity, bartender-focused marketing, and premium ingredient positioning to maintain leadership.
Refreshment and Hydration : Positioned as everyday thirst quenchers, carbonated beverages used for refreshment and hydration primarily include carbonated soft drinks and unsweetened sparkling water. Consumers favor these products for their sensory appeal, cooling effect, and convenience across on-the-go and at-home consumption. Low calorie and mineral sparkling waters are increasingly chosen as alternatives to sugary drinks. Companies like Coca-Cola, PepsiCo, and Nestlé lead this application through expansive distribution networks, strong brand portfolios, and continuous flavor innovation tailored to mass and health-conscious consumers.
Culinary Uses : Within culinary applications, carbonated beverages such as soda water, cola, and flavored carbonated drinks are widely used by home cooks and foodservice operators. Soda water is commonly applied in batters and doughs to enhance lightness and texture, while cola is used in marinades and braising for sweetness and caramelization. The functional versatility of carbonation supports consistent cooking outcomes. Brands like Schweppes, Coca-Cola, and regional soda producers benefit from strong foodservice penetration and established culinary familiarity.

Recent Developments

Recent developments in the carbonated beverages market show a strong shift toward health-oriented, low-sugar and functional fizz drinks, with major players like Coca-Cola and PepsiCo innovating prebiotic and reduced-sugar sodas to appeal to wellness-driven consumers. The rise of flavored sparkling waters and functional bubbly options enhances refreshment and healthier consumption trends, while digital e-commerce and sustainability programs strengthen brand engagement and eco-friendly positioning. Emerging nostalgic flavors also boost sensory appeal and diversify product portfolios.

January 2026 : PepsiCo’s prebiotic brand Poppi launched a new Shirley Temple soda variety with low sugar and gut-friendly ingredients, expanding its functional carbonated drink portfolio and catering to health-oriented consumer demand.
May 2025 : PepsiCo completed its acquisition of poppi, the fast-growing prebiotic soda brand, for approximately $1.95 billion, bolstering its presence in the rising functional carbonated beverage category and enhancing its beverage portfolio transformation strategy
February 2025 : The Coca-Cola Company entered the prebiotic soda segment with the launch of Simply Pop, its first line of fruit-juice-based prebiotic sodas containing fiber and vitamin C, expanding Coke’s carbonated offerings into health-focused products

Impact of Industry Transitions on the Carbonated Beverages Market

As a core segment of the Packaged & Processed F&B industry, the Carbonated Beverages market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Healthier Beverages and Premium mixers gaining prominence have redefined priorities across the Packaged & Processed F&B sector, influencing how the Carbonated Beverages market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift Towards Healthier Beverages

The shift toward healthier beverages is rapidly reshaping the global Carbonated Beverages market, with the United States and China at the center of this transformation. As health-conscious consumers reduce their intake of high-sugar soft drinks, demand is accelerating for low-calorie, low-sugar and functional carbonated beverages fortified with vitamins, botanicals, and natural flavors. This structural transition across the value chain spanning product reformulation, cleaner-label ingredients, and premium sparkling drinks positioning is projected to unlock approximately $23 billion in additional industry revenue by 2030. Players that aggressively innovate in better-for-you carbonated soft drinks, optimize portfolios away from legacy sugary SKUs, and strengthen omnichannel marketing around wellness benefits are best placed to capture share, enhance brand equity, and secure pricing power in this evolving segment.
02

Premium mixers gaining prominence

Another significant transition is the rising importance of premium mixers within the carbonated beverages industry. Growth in cocktail culture and premium spirits consumption has elevated demand for high quality tonic waters and sodas. This shift influences the alcoholic beverage and hospitality industries by enabling higher value drink offerings and differentiated menus. Smaller premium brands are gaining traction alongside established players, pushing the industry toward ingredient transparency, glass packaging, and sophisticated branding strategies that support premium pricing and lower volume, higher margin models.