Market Insights Consumer Non-Alcoholic Drinks

Soft Drinks - Worldwide

Worldwide

The Soft Drinks market in Worldwide is projected to generate a revenue of €802.5bn in 2023.
It is anticipated to experience an annual growth rate of 4.62% (CAGR 2023-2027).
When compared globally, in the United States leads in revenue generation, reaching €308bn in 2023.
On a per person basis, the revenue generated in 2023 is estimated to be €104.50.
By 2027, out-of-home consumption, such as in bars and restaurants, is expected to account for 44% of spending and 13% of volume consumption in the Soft Drinks market.
The volume of the Soft Drinks market is projected to reach 348.2bn L by 2027.
In 2024, the segment is expected to witness a volume growth of 2.0%.
The average volume per person in the Soft Drinks market is forecasted to be 42.91L in 2023.
In the worldwide soft drinks market, the United States continues to dominate with its vast range of innovative, flavored beverages.

Key regions: Vietnam, Australia, United Kingdom, Europe, Worldwide

Definition:

The segment Soft Drinks covers varieties of prepared water-based beverages to which flavoring additives (sugar or sweeteners, aromas etc.) have been added. These include cola drinks and lemonades, but also energy drinks, fruit nectars and soft drinks with fruit juice content, as well as value-added or flavored water.
Coffee and tea-based drinks are not included.

Structure:

The Soft Drinks segment is structured into 3 subsegments:

Carbonated Soft Drinks denote all artificially sweetened and carbonated Non-Alcoholic Drinks.
Non-Carbonated Soft Drinks contain non-alcoholic liquid refreshment beverages that are not artificially carbonated.
The Energy & Sports Drinks segment includes energy drinks and sports drinks, providing functional benefits such as mental and physical stimulation.

Additonal Information:

The most important brand manufacturers in the Soft Drinks category are the Coca-Cola Company, PepsiCo, Suntory, Red Bull and Keurig Dr Pepper.
The market for Non-Alcoholic Drinks is structured into retail sales for at home consumption and on-premise or foodservice sales for out-of-home consumption. The at-home market, also called off-trade market, covers all retail sales via super- and hypermarkets, convenience stores or similar sales channels. The out-of-home market, also called on-trade market, away-from-home market or HORECA encompasses all sales to hotels, restaurants, catering, cafés, bars and similar hospitality service establishments. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes. The valuation of the out-of-home segment at retail prices means a significant change of the market definition in comparison to earlier iterations of the Consumer Market Outlook, as out-of-home consumption was valued at wholesale prices before. This means, market totals are not comparable to published data from prior years. The price per unit always references liters as a base unit. One liter of Soft Drinks roughly equals 2 to 3 servings (of 0.5 or 0.33 liters each).

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Analyst Opinion

Soft drinks are the biggest pillar on which the business of non-alcoholic drinks rests. The biggest players in the field – Coca Cola and PepsiCo – are, at their core, soft drink manufacturers. Business-wise, the segment is characterized by multinational brand players that mainly focus on product development and marketing and by regional bottlers that license their brands for distribution in selected areas. Strategically, the industry has witnessed both a trend towards streamlining operations as well as a hunt for novel products which could fill a niche.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on total consumer spending on Non-Alcoholic Drinks, which comprises all private household spending on Non-Alcoholic Drinks including at-home, out-of-home, as well as online and offline spendings.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.