Australia Carbonated Beverages Market Report and Forecast 2025-2034

Australia Carbonated Beverages Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia carbonated beverages market size reached nearly USD 7.20 billion in 2024. Aided by evolving consumer preferences, health trends, and the continued popularity of soft drinks, the market is projected to grow at a CAGR of 3.5% between 2025 and 2034 to reach around USD 10.2 billion by 2034.

Carbonated beverages, also known as fizzy drinks, are typically carbonated with carbon dioxide, creating their signature effervescence. These drinks include carbonated soft drinks (CSDs), sparkling water, and mixers, which are widely consumed by Australians across various age groups and demographics.

The growth of the Australia carbonated beverages market can be attributed to several key factors, including changing consumer tastes, innovation in beverage offerings, and the strong presence of both global and local brands. With the increasing availability of a wide range of carbonated drinks in both traditional and innovative flavours, Australians’ fondness for effervescent beverages remains unshaken, despite the growing emphasis on health-conscious consumption.

Over the past decade, health trends have had a profound impact on the market expansion. As more consumers become conscious of the health implications of sugary drinks, there has been a significant shift towards low-sugar and no-sugar carbonated beverage options. Health concerns related to obesity, diabetes, and other lifestyle-related conditions have prompted consumers to opt for sugar-free, calorie-reduced, and naturally sweetened carbonated beverages.

In response to this demand, many beverage manufacturers have introduced low-calorie versions of popular carbonated drinks. Leading brands in the Australia carbonated beverages market have also innovated by replacing artificial sweeteners with naturally derived alternatives such as stevia, sucralose, or monk fruit extract. These innovations cater to consumers who seek a fizzy drink experience without the negative health impacts associated with traditional sugary sodas. Consequently, the market for low-sugar and no-sugar carbonated beverages in Australia is expected to continue to grow, especially among health-conscious individuals and fitness enthusiasts.

A significant Australia carbonated beverages market trend is the increasing popularity of sparkling water. Over the years, sparkling water has gained a considerable following as an alternative to sugary sodas. With its natural fizz and refreshing taste, sparkling water has become a popular choice for consumers looking for a healthier, lower-calorie option.

Sparkling water’s surge in popularity can be attributed to its versatility. It can be consumed on its own or mixed with various natural flavourings such as citrus, mint, or berry, offering a refreshing drink with a sophisticated twist. Moreover, the rise of wellness-focused consumers has further driven the adoption of sparkling water, particularly as it is perceived as a cleaner, healthier option compared to traditional sodas. The expansion of sparkling water offerings from both global brands and local producers has also contributed to its growing market share.

Innovation in flavours is another driving force behind the Australia carbonated beverages market growth. Traditional carbonated beverages, such as cola, lemon-lime, and orange sodas, continue to dominate the market; however, new and exotic flavours have begun to capture consumers' attention. Flavours such as ginger, cucumber, passionfruit, hibiscus, and pomegranate are becoming increasingly popular, reflecting the evolving taste preferences of Australian consumers.

As per the Australia carbonated beverages market analysis, sustainability has emerged as a significant consideration for both consumers and beverage manufacturers in recent years. As the environmental impact of single-use plastic packaging comes under increasing scrutiny, there is a growing demand for eco-friendly and sustainable alternatives in beverage packaging. Many carbonated beverage companies in Australia have embraced initiatives to reduce their carbon footprint by adopting sustainable packaging options, such as recycled PET bottles, glass bottles, and aluminium cans.

In addition to packaging, manufacturers are increasingly focusing on reducing the carbon footprint associated with production and distribution processes. Initiatives to cut down water usage, energy consumption, and waste generation are gaining momentum within the Australian beverage industry. These environmentally friendly efforts are appealing to a more conscious consumer base that values sustainability and ethical practices.

The evolving tastes of Australian consumers are also reshaping the Australia carbonated beverages market landscape. Younger generations, particularly millennials and Gen Z, are moving away from traditional sugary sodas in favour of healthier, more artisanal beverages. As these consumers place a stronger emphasis on wellness, flavour exploration, and authenticity, there is a notable shift towards drinks that reflect these values.

In addition, a growing preference for non-alcoholic beverages and mixers has influenced the Australia carbonated beverages market dynamics. Alcohol-free sparkling drinks, including non-alcoholic ciders and mixers, are gaining popularity as a social alternative to alcoholic beverages. Many of these drinks offer complex flavours and are often perceived as healthier or more sophisticated options, allowing consumers to enjoy a fizzy experience without the effects of alcohol.

Despite the positive growth trends, the Australia carbonated beverages market development also faces certain challenges. Rising concerns about the health implications of sugar consumption, especially among younger generations, could limit the growth of traditional sugary soda products. Additionally, increasing pressure from regulatory bodies around sugar content, marketing, and environmental concerns regarding packaging could lead to more stringent regulations that may impact the carbonated beverage industry.

The Australia carbonated beverages market is poised for steady growth, driven by evolving consumer preferences, innovation in flavours, and the increasing demand for healthier, low-sugar alternatives. The popularity of sparkling water, the premiumisation of carbonated drinks, and the shift towards sustainable packaging solutions are all significant factors that will continue to influence market trends in the coming years.

As consumers increasingly seek wellness-oriented options, carbonated beverage manufacturers must adapt by offering products that meet these health-conscious demands while maintaining the effervescence and enjoyment that define the category. With these changes in mind, the Australia carbonated beverages market is set to expand, offering exciting opportunities for growth and innovation over the forecast period.

Market Segmentation

The market can be divided based on product, type, distribution channel, and region.

Market Breakup by Product

• Carbonated Soft Drinks
• Carbonated Water
• Carbonated Sports and Energy Drinks
• Others

Market Breakup by Type

• Standard
• Diet

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Speciality Stores
• Online
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia carbonated beverages market. Some of the major players explored in the report by Expert Market Research are as follows:

• The CocaCola Company
• PepsiCo, Inc.
• Refresco Group
• Suntory Holdings Limited
• Asahi Group Holdings
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.