Sweet carbonated drinks, along with juices, are considered one of the most popular drinks among consumers. In recent years, there has been a steady trend in the market of sweet carbonated beverages to reduce the sugar content (the use of natural sweeteners), as well as the transition to the use of natural ingredients instead of artificial preservatives and dyes.
Asia
The trend of a healthy lifestyle encourages consumers to choose foods rich in essential vitamins and not containing additives such as sweeteners, dyes or preservatives. In the countries of this region, the openness of consumers to imported products and a large percentage of young people form the demand for world-famous carbonated drinks, such as Coca-Cola, Pepsi, as well as drinks with unusual and traditional tastes for the region. Local market players are actively expanding their product lines, offering consumers products for every taste and actively conducting extensive marketing campaigns to promote their products.
Middle East
The hot and arid climate of the region, as well as the ban on the sale of alcohol in a number of countries, have made sweet carbonated drinks very popular among consumers in the Middle East, who perceive new drinks very positively and are constantly in search of different flavors. For example, the leading Pepsi-Cola player launched Pepsi Black in the UAE, which combined the familiar and beloved flavors (lime, raspberry, strawberry), and also presented a version of this sugar-free drink, which is also important for consumers, since healthy lifestyle trends are actively followed in this country. Carbonated coffee-flavored drinks are also in high demand in the Middle East, as coffee is considered a popular drink. Due to the high level of disposable incomes of the population, premium carbonated drinks are widely in demand among consumers: these drinks are often distinguished by a glass bottle with bright designer labels, as well as rare and unique ingredients, such as tropical fruits and spices.
Africa
In African countries, consumer preferences vary from country to country. In more economically developed countries, there is a shift in consumer demand towards carbonated beverages with a reduced sugar content, as well as enriched with useful trace elements and with the addition of natural fruit juices. In low-income countries, consumers are less aware of the dangers of sugar and do not follow the trend of a healthy lifestyle. In these countries, the priority when buying these products is primarily the price.
Global market
In 2017-2019, the global consumption of soft drinks showed a steady growth rate of an average of 2.9% per year, however, by the end of 2020, a decrease in consumption volumes caused by the COVID-19 pandemic by 4.6% in physical terms and 11.5% in value was followed. In 2021, consumption showed a complete recovery, increasing by 4.6% in physical terms and by 12.7% in value terms compared to 2020. According to preliminary estimates for 2022, global consumption of soft drinks showed an increase of 3.8% in physical terms and 9.3% in value and amounted to 795.6 billion liters (US$ 967.3 billion).
Bottled water accounted for the largest share in the structure of global consumption of soft drinks (46.4% in 2022). This was followed by sugary carbonated drinks (29.4%), juices (8.6%), energy drinks (2.0%) and sports drinks (1.9%). The largest increase in consumption volumes for 2017-2022 was observed in the categories of energy, sports drinks and bottled water, while the market of sugary carbonated drinks showed a fairly moderate growth of 0.9% on average per year. Sugary carbonated drinks usually contain large amounts of sugar and acids, which can have a negative effect on health. In many countries of the world, the government is paying more and more attention to reducing sugar levels in beverages by introducing increased taxes on these products.
In 2021, the volume of global consumption of sugary carbonated beverages increased by 5.0% in physical terms and by 12.9% in value to 225.0 billion liters (312.4 billion US dollars). According to preliminary estimates, global consumption of sugary carbonated beverages in 2022 also showed growth, but the growth rate was slightly lower than in 2021. Thus, in 2022 consumption increased by 4.0% in physical terms and by 9.9% in value.
Latin America accounted for the largest share (24.7%) in the regional structure of world consumption of sugary carbonated drinks. This was followed by North America (20.8%), Europe (20.0%), Asia-Pacific (19.5%), the Middle East and Africa (15.0%).
The main consumer countries of sugary carbonated beverages are the United States, which in 2022, according to preliminary estimates, accounted for 19.8% of all global consumption in this category. The top five countries in terms of consumption also include Mexico (8.5%), China (6.3%), Brazil (5.7%) and Germany (3.3%).
The share of the top 10 countries accounted for more than 55% of the total global consumption of sugary carbonated drinks. In the USA, there is a tendency among consumers to reduce the consumption of sugar, as well as drinks with the addition of artificial colors and sweeteners due to increased attention to health. The most popular alternatives to sugar are stevia and arhat fruits. The demand for functional drinks enriched with vitamins and probiotics is also growing among consumers, and new startups offering similar drinks to consumers (for example, Olipop, Poppi, Culture Pop and New Wave Soda brands) are challenging the largest international manufacturers, thereby gradually strengthening in the US carbonated drinks market.
Chinese consumers prefer carbonated drinks with no sugar or with its reduced content. It is due to the growing popularity of this type of product that the retail market in China has shown growth both in 2020 and in 2021. In addition, e-commerce is actively developing in the country, which is a significant factor in increasing the consumption of sugary carbonated drinks.
One of the current trends in the Chinese market of sweet carbonated drinks is also the strategy of localization of production among the major market players: it consists in adding tastes familiar to the local population to the classic versions of drinks or introducing radically new drinks to consumers. For example, Coca-Cola Ginger+ was the first successful new product introduced to the Chinese market. This drink was served hot like a hot punch, which changed the perception of consumers that carbonated drinks are only cold drinks.
In the Brazilian market, sales growth is largely ensured by attracting customers with new tastes. Coca-Cola continues to experiment by releasing strawberry and watermelon-flavored drinks, which has led to a significant increase in the company's sales. There is also a tendency in the country to increase soda consumption during major football competitions. The World Cup held in 2022 significantly affected the sales of this type of product. An important factor is also the desire of buyers to save money: consumers are increasingly choosing drinks at discounts and promotions (for example, "2 + 1"), more willing to buy drinks in retail chains instead of catering establishments, which became even more noticeable after the pandemic.
In Germany, there is also a tendency to increase the consumption of drinks without sugar or with its reduced content. In recent years, consumers have more often made their choice in favor of carbonated bottled water with fruit flavors, but without the addition of sweeteners, which negatively affects the volume of sales of sweet carbonated drinks. Non-carbonated and slightly carbonated beverages, such as bottled water or bottled tea, are gaining popularity in the country, particularly among the younger generation. The consumption of carbonated beverages in the country is also affected by rising inflation, as the financial pressure exerted by it forces consumers to prioritize their spending and reduce spending on non-essential goods. In addition to the price, transparency, "Clean Label", and "eco-friendly" packaging are an important factor when deciding to buy drinks for Germans, which has become especially relevant along with the ESG agenda, which is considered a key trend in all industries in the EU.
Despite the continued restrictions in some regions, consumption indicators in the catering sector are gradually recovering in Mexico after the fall caused by the COVID-19 pandemic. As people move to a healthier lifestyle, the model of their consumption is also changing: more and more consumers prefer carbonated drinks without sugar or fruit-based. Carbonated drinks with citrus flavors face serious competition from drinks such as juice, tea, flavored and functional bottled water, sports drinks, as they are perceived by the population as a healthier alternative to classic sweet carbonated drinks. One of the most dynamic trends is also considered to be the growing demand for reusable bottles, which are a hit among consumers who care about the environment.
