The carbonated soft drinks market is anticipated to grow significantly, reaching a valuation of US$ 445.13 billion by 2031, up from US$ 296.62 billion in 2023. This growth represents a compound annual growth rate (CAGR) of 5.2% from 2023 to 2031.

The market for carbonated soft drinks is primarily led by industry giants such as Coca-Cola, PepsiCo, and Dr. Pepper Snapple Group, all of which maintain a robust presence in both established and developing markets. This sector is characterized by intense competition and maturity, remaining a favored choice for consumers worldwide. However, there has been a noticeable trend towards healthier options, including sparkling water and naturally flavored sodas, which has contributed to a decline in the sales of traditional carbonated beverages.

The influence of social media has been pivotal in enhancing the appeal of carbonated soft drinks, particularly among younger demographics. Brands are increasingly utilizing platforms like Instagram and TikTok to creatively present their products, effectively engaging with a younger audience that is highly active on these channels. For example, in February 2024, The Coca-Cola Company introduced Happy Tears Zero Sugar, a limited-edition drink exclusively available through TikTok's e-commerce platform, TikTok Shop. This strategy not only fosters a sense of community but also enhances engagement and loyalty among millennials and Gen Z consumers. The innovative and shareable content generated from these product launches stimulates discussions and encourages word-of-mouth marketing, further driving the demand for carbonated soft drinks.

In response to stringent government regulations and a growing consumer focus on health, there is an increasing demand for zero-sugar and zero-calorie carbonated soft drinks. This shift is prompting manufacturers to innovate and develop new products, creating growth opportunities within the carbonated soft drinks market.

The market is categorized into two main segments: sugar-free and conventional carbonated soft drinks. The sugar-free segment is projected to experience a notable CAGR during the forecast period. These beverages provide a lower-calorie alternative to their sugary counterparts, appealing to health-conscious consumers who want to reduce their sugar intake while still enjoying a fizzy drink. Sugar-free options are typically sweetened with alternatives like aspartame, sucralose, or stevia, which deliver sweetness with fewer calories. The carbonation in these drinks adds a refreshing crispness, enhancing the overall drinking experience. Additionally, manufacturers are diversifying their flavor offerings beyond traditional colas to include a wide range of fruit flavors, root beer, and even unique options like elderflower or acai, catering to diverse consumer preferences. These factors are expected to significantly boost the sugar-free segment of the carbonated soft drinks market.

Key players in the carbonated soft drinks industry include Three Cents Co, The Coca-Cola Company, PepsiCo Inc, Red Bull, Fevertree Drinks Plc, Monster Beverage Corp, Britvic Plc, Keurig Dr Pepper Inc, Refresco Group, and Asahi Group Holdings Ltd. These companies are committed to delivering high-quality products that meet consumer demands and are actively focused on launching innovative and premium offerings.

The overall size of the carbonated soft drinks market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the carbonated soft drinks sector.