Global Sparkling Drinks Market - 2023-2030

Global Sparkling Drinks Market - 2023-2030

The Global Sparkling Drinks market reached US$ 39.0 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 65.5 billion by 2030. The market is growing at a CAGR of 6.7% during the forecast period 2023-2030.

Growing awareness about the negative health impacts of sugary soft drinks is leading to a shift towards healthier alternatives, including sparkling drinks with no and low sugar content. This trend is expected to propel the growth of the market. The rising popularity of mixology and cocktail culture is also contributing to the growth of the sparkling drinks market. Sparkling drinks are often used as mixers in cocktails, and their versatility is making them a favorite choice among bartenders and mixologists.

Manufacturers are investing in research and development activities to introduce new and innovative products in the global sparkling drinks market. This includes the use of natural ingredients, organic certification, and functional additives to enhance the appeal and health benefits of these beverages, which further drive the sparkling drinks market growth.

Market Dynamics

Changing Consumer Lifestyles and Preferences Drive the Market Growth

Changing consumer lifestyles and preferences are playing a crucial role in driving the global sparkling drinks market. As consumers' lifestyles evolve and their preferences shift, there is a direct impact on the demand for and consumption patterns of sparkling drinks in the market. Busy schedules, on-the-go lifestyles, and the need for quick refreshments are driving the demand for convenient beverage options.

Beverage companies are responding to this trend by introducing low or zero-sugar sparkling options, natural flavors, and functional beverages. For instance, on May 16, 2022, Sunshine Beverages, renowned for its delightful Sparkling Energy Waters and Drinks, expanded its portfolio by introducing Tropical Pineapple to its range of Sparking Energy Drinks. This launch follows the recent majority investment from Cypress Ascendant, a strategic capital investment firm.

Product Innovation and Diversification of Sparkling Drinks Drive the Market Growth

Consumer preferences are constantly evolving, driven by factors such as health consciousness, flavor variety, and desire for unique experiences. Beverage companies are focusing on product innovation to cater to these changing preferences and capture market share. They introduce new flavors, formulations, and packaging is designing to offer a diverse range of options in the sparkling drinks market. By aligning their products with consumer demands, companies are attracting and retaining customers, driving market growth.

For instance, on April 4, 2023, Keventers introduced a new category of beverages called Sparkling Iced Beverages. This exciting addition offers a selection of five delightful flavors: Aam Panna, Kala Khatta, Spiced Chai, Classic Lemon Iced Tea, and Peach Iced Tea. The launch of these sparkling beverages caters to the rising demand for refreshing and enjoyable summer drinks.

Fluctuating Raw Material Prices Hamper the Market Growth

Fluctuations in raw material prices, such as sugar, natural flavors, and packaging materials, are significantly impacting the production costs for sparkling drink manufacturers. When the prices of these raw materials rise, it is leading to increased production costs, reducing profit margins for companies in the market. This is posing challenges for businesses, which further restrain market growth.

Fluctuating raw material prices are affecting the price competitiveness of sparkling drinks in the market. The cost of key ingredients and packaging materials are increasing significantly, companies are facing difficulties in maintaining competitive pricing compared to other beverages. This is impacting consumer demand and market share, as consumers are opting for more affordable alternatives in response to higher prices.

COVID-19 Impact Analysis

The pandemic has brought about changes in consumer behavior and preferences. With the implementation of social distancing measures and lockdowns, there has been a decrease in on-the-go consumption and a shift towards at-home consumption. This shift has affected the demand for sparkling drinks, as consumers had limited opportunities to consume these beverages outside the home, such as in restaurants, cafes, or events.

However, The closure of physical retail outlets and the increased reliance on e-commerce during the pandemic has resulted in changes in channel preferences for consumers. While online sales of sparkling drinks have witnessed growth.

Artificial Intelligence Impact Analysis

Artificial Intelligence (AI) can optimize the supply chain processes within the sparkling drinks market. By leveraging predictive analytics, AI algorithms can forecast demand, optimize inventory management, and streamline logistics and distribution. This can lead to improved efficiency, reduced costs, and enhanced customer service, ultimately benefiting the overall market by ensuring timely delivery and availability of sparkling drinks.

AI-powered technologies enable personalized marketing campaigns and customer engagement strategies. By analyzing consumer data and preferences, AI algorithms can deliver targeted advertisements, recommendations, and promotions to individual consumers. This personalized approach enhances customer engagement, increases brand loyalty, and drives sales within the sparkling drinks market.

Segment Analysis

The global sparkling drinks market is segmented based on product type, distribution channel, and region.

Increasing Consumer Interest in Craft and Artisanal Beverages

The cider segment, particularly craft and artisanal ciders, is seeing a rise in popularity as consumers seek unique and locally produced beverages. Craft cider makers are focusing on producing small-batch, high-quality ciders using traditional methods and a variety of apple and fruit blends. The growing interest in craft and artisanal beverages are driving by consumer preferences for authenticity and supporting local producers, is contributing to the growth of the cider segment within the overall sparkling drinks market.

To meet this demand manufacturers are developing new products in the global sparkling market. For instance, on September 6, 2022, Sunshine Beverages, renowned for its delightful Sparkling Energy Waters and Drinks, expanded its portfolio by introducing Tropical Pineapple to its range of Sparking Energy Drinks. This launch follows the recent majority investment from Cypress Ascendant, a strategic capital investment firm.

Geographical Analysis

Increasing Established Consumer Base and Diverse Product Offerings in North America

North America is positioned to dominate the global sparkling drinks market. The region is benefiting from an established consumer base that has a strong affinity for fizzy and flavored beverages. With a diverse range of product offerings, including carbonated soft drinks, flavored water, energy drinks, and other sparkling beverages, North America is catering to various consumer preferences and occasions. The region's is focusing on innovation, staying ahead of market trends, and introducing new flavors, packaging formats, and marketing strategies further strengthens its dominance.

North America is possessing strong distribution networks and efficient supply chain operations, ensuring the widespread availability of sparkling drinks. Intensive marketing and promotional activities, coupled with a growing consumer shift towards healthier options, are contributing to North America's continued market dominance in the global sparkling drinks industry.

Competitive Landscape

The major global sparkling drinks market players include Pepsico, Inc., Welch Foods Inc., Ocean Spray, Waterloo Sparkling Drinks Corporation, Sapporo Group, Seven Sparkling Drinks, LaCroix Beverages, Inc., Nestle S.A, Hint Inc. and The Coca-Cola Company.

Why Purchase the Report?
• To visualize the global sparkling drinks market segmentation based on product type, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of sparkling drinks market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global sparkling drinks market report would provide approximately 53 tables, 48 figures, and 101 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies