An All-Inclusive Analysis of Soft Drinks Market Value, Trends, Opportunities, and Future Demand
The soft drinks market is one of the most profitable sectors in both the global food and beverage industries. Analysis indicates that, in 2021, the carbonated soft drinks sector capitalised a revenue of $3,260 million. This amount is anticipated to soar through the ranks in the next five years with a healthy CAGR of 4.4%.
Let’s unveil the intricacies of the soft drinks market value, trends, opportunities, and future demand along those lines.
A Profound Look into the Market
Soft drinks, especially carbonated drinks, have always been linked to refreshment and relaxation. In fact, they have the potential to improve mood, boost energy, and give the consumer a more aesthetic impression. Given that they are consumed for hydration in most countries, it is no wonder that soft drinks contribute massively to the food and beverage segment.
Apart from carbonated drinks, energy and sports drinks and other non-carbonated soft drinks, too, command a significant amount of the total soft drinks market value. This is because these beverages are consumed by both children and adults alike.
Here’s a summary of how the market looks like in 2021:
- Total Revenue – $3,260 million
- Carbonated Soft Drinks – $1967 million
- Non-Carbonated Soft Drinks – $1041 million
- Energy & Sports Drinks – $173 million
Here’s a summary of the projected market in 2026:
- Total Revenue – $4,042 million
- Carbonated Soft Drinks – $2,514 million
- Non-Carbonated Soft Drinks – $1,358 million
- Energy & Sports Drinks – $170 million
Indeed, this is a fascinating analysis and reflects the potential of the soft drinks market value. Moreover, it highlights that carbonated soft drinks will still be neck-and-neck with non-carbonated soft drinks in terms of revenue.
A Look into the Trends
1. The Never-ceasing Inclination Towards Flavoured Energy Drinks
Soft drinks, especially carbonated soft drinks, have long been a popular beverage choice for both adults and kids alike. To enhance their appeal, more and more soft drink products are becoming more flavoursome.
2. Holistic Well-being After COVID-19 Pandemic Scare (fewer preservatives)
As the COVID-19 pandemic scare continues, consumers worldwide are now more likely to switch over to natural and organic food and beverages, including soft drinks. As a result, more soft drink manufacturers are producing ‘healthier’ alternatives.
3. Rising Interest in New Sensory Experiences (taste exploration)
Avid soft drink consumers are being more adventurous and are searching for tastier alternatives. This is evident from the increasing number of carbonated drinks that are being marketed, developed, and distributed all across the world. Social media certainly takes a fair share of such marketing endeavours.
A Look into the Opportunities
1. Chance to Introduce low-fat, low-sugar Carbonated Drinks
For the soft drinks market value to reach its full potential, chances are that there will be increased incorporation of low-fat and low-sugar carbonated drinks. These come in handy for the obese, diabetic and those looking for a healthier alternative to sugar.
2. Diversify the Product Line (soft drinks for diabetics)
Given that diabetes is one of the most prevalent diseases in many countries, opportunities are ripe for exploring such products. Again, there needs to be more development of drinks that are low-calorie and low-sugar.
3. Chance to Derive Natural Taste from Natural Sweeteners
The proliferation of low-calorie and low-sugar drinks is anticipated to see natural sweeteners such as fruit juices, honey, and stevia being used for producing less-sweet beverages. Considering that the production volumes are set to cross the 6000 litres mark by 2025, there’s an opportunity for the manufacturers and suppliers to experiment with the ingredients.
4. Chance to Drive Sustainable Innovation for Branding
Considering the omnichannel approach, there is a golden chance to adapt and innovate in this sector. Again, companies are also looking at adopting CRMs, ERPs, and other technologies like blockchain in their enterprise-level strategies — opening multifaceted avenues for investors to explore and invest in. In fact, the mobile and desktop revenue share is worth highlighting with regard to the branding efforts.
As of 2021:
- Mobile Sales Share: 83.2%
- Desktop Sales Share: 16.8%
In a Nutshell
With the aforementioned intricacies, it should be clear that the soft drinks market in India is on its way to achieving a revenue of $4,000 million by 2022. This is a promising sign for investors, manufacturers and suppliers. It should be noted that the rising consumer consciousness will see soft drinks companies modifying their ingredients as well as production techniques to cater to consumer preferences. Again, there is an opportunity to launch low-fat and low-sugar alternatives in order to reach out to a wider consumer base.
Curious to know more about the market insights? What are the opportunities?
There’s a lot more to be said on the topic. The above information captures just the tip of the iceberg for investors, manufacturers and suppliers. The additional potential for growth can be exploited by anyone willing to invest in the soft drinks sector.
So, if you are interested in knowing more about specific aspects of this market, we’ve got you covered. Contact us now!
