Rising health consciousness is shaping the Soft Drink Production industry, with consumers increasingly reaching for diet or lower sugar soft drinks. Strong consumer interest, combined with regulatory pressure such as the 2018 Soft Drinks Industry Levy, has driven widespread reformulation as producers adapt their portfolios to meet both legislative requirements and evolving tastes. Soft drink sales are booming in the on-trade segment as consumers increasingly shift away from alcohol, boosting demand for soft drinks. Producers have struggled with escalating input costs, particularly sugar prices, which peaked in August 2024 due to shifting trade dynamics. Soft Drink Production revenue is expected to swell at a compound annual rate of 0.7% to £8.7 billion over the five years through 2025-26, with revenue expected to climb by 1.5% in the current year. The shift away from alcohol to soft drinks continues to drive industry revenue, creating opportunities for players to market themselves as premium soft drink producers. Producers are expanding their low-calorie ranges with adventurous flavour profiles to boost appeal to health-conscious consumers seeking novel drink experiences, like IRN-BRU’s launch of a Raspberry Ripple low-calorie variant in March 2024. Surging input costs, including a sharp rise in aluminium prices in March 2025, have squeezed profitability, keeping it below pre-pandemic levels. Larger Soft Drink Producers have been able to leverage strong brand loyalty to pass on these costs through higher prices and shrinking product sizes, though smaller producers struggled. Major players are also using their scale to form strategic partnerships to refresh brand image and boost appeal among younger generations, like Coca-Cola’s partnership with the Premier League. Industry revenue is forecast to climb at a compound annual rate of 3.7% to £10.4 billion over the five years through 2030-31. Flavour innovation will remain key as producers align with the growing demand for healthier soft drinks. The premium push is set to continue, with brands positioning themselves as alcohol-free beverages that still offer a sense of indulgence. Larger players are expected to use their scale to pass on rising input costs and acquire smaller, nutritional soft drink brands to strengthen their wellness credentials. UK Soft Drink Producers will face mounting environmental pressure as the nation progresses towards net zero, compounded by regulations like the Extended Producer Responsibility scheme launched on 1 January 2025. This will force producers to innovate to remain compliant and attract eco-conscious consumers in the coming years.

The UK soft drinks market has seen almost continual growth between 2014 and 2024. The soft drinks market value amounted to over ***billion British pounds in 2023. The UK soft drinks market in focus While the value of the market increased, per capita consumption of soft drinks dropped by **** liters between 2013 and 2017 but rebounded in 2018. The makeup of the market too changed. Cola carbonates, concentrates, and fruit juices saw market shares decline between 2015 and 2018. On the other hand, bottled water and energy drinks increased their market shares. Coca Cola remains the ******* brand in the market. Soft drinks market in the United States In 2024, the U.S. sales volume of liquid refreshment beverages amounted to about **** billion gallons. That same year, the U.S. sales volume growth of liquid refreshment beverages amounted to ****percent, and carbonated soft drinks (CSD) captured the lion's share of volume sales with **** percent.

The combined volume per capita in the 'Carbonated Soft Drinks' segment of the non-alcoholic drinks market in the United Kingdom was forecast to continuously decrease between 2025 and 2029 by in total 4.6 litres (-6.7 percent). After the seventh consecutive decreasing year, the combined volume per capita is estimated to reach 64.03 litres and therefore a new minimum in 2029. Find further information concerning average price per unit (PPU) in Brazil and sales volume change in Brazil.The Statista Market Insights cover a broad range of additional markets.

Number of Businesses statistics on the Soft Drink Production industry in the UK

Discover the forecasted growth of the sugary soft drinks market in the UK, with an expected increase in consumption trends over the next decade. By 2035, the market volume is projected to reach 18B litres, valued at $24.2B.

In 2024, carbonated soft drinks held the largest share of the United Kingdom’s non-alcoholic beverages market, with **** percent. Dilutables held the second largest share of the market, closely followed by bottled water with **** and **** percent, respectively. Beverage sales in the UK during Covid Beverage sales in grocery stores have been up in March and April of 2020 due to the coronavirus. However, on-trade sales have suffered greatly, and the final picture for 2020 is, as of the writing of this text, still taking form. Soft drink brands Licensed premises, foodservice, convenience stores, and grocery stores in the UK all have the same leading soft drink brand: Coca-Cola. The company only must bow down to the legion of soft drinks sold under private label brands in grocery stores.

The Carbonated Soft Drinks Market report segments the industry into Soft Drink Type (Diet Cola, Fruit Flavored Carbonates, Standard Cola, Other Types), Packaging Type (Disposable Cups, Glass Bottles, Metal Can, PET Bottles), Distribution Channel (Off-trade, On-trade), and Region (Africa, Asia-Pacific, Europe, Middle East, North America, South America). Five-year historical data and market forecasts are included.

United Kingdom Carbonated Soft Drink Market was valued at USD 9.78 Million in 2024 and is expected to reach USD 13.72 Million by 2030 with a CAGR of 5.8%.

Carbonated Soft Drinks Market Size Volume in the UK, 2021 Discover more data with ReportLinker!

The United Kingdom soft drinks market reached USD 25.32 Billion in 2024. The market is expected to grow at a CAGR of 4.88% between 2025 and 2034, reaching USD 40.77 Billion by 2034.

The UK Fruit Drink and Functional Beverage industry is growing substantially, fuelled by health-conscious consumers seeking healthier alternatives to traditional soft drinks. Younger consumers in particular are choosing beverages with added benefits like energy support, gut health and cognitive function, boosting revenue. This shift is driving brands to innovate, offering low- and no-calorie options with functional benefits to match consumer preferences and comply with regulations like the Soft Drinks Industry Levy. Producers are also investing in bold marketing campaigns and high-profile collaborations to stand out and reinforce consumer appeal, like Lucozade’s partnership with Jude Bellingham in early 2025. At the same time, producers have struggled with escalating input costs, particularly from rising wages and purchases, prompting large producers to pass on these costs to loyal consumers to protect profit – in fact, price rises have driven up profit over the past five years. Fruit drink and functional beverage production revenue is expected to swell at a compound annual rate of 5.6% over the five years through 2025-26 to £2.2 billion, including a forecast hike of 1.8% in 2025-26. Producers are under pressure to adopt more sustainable practices as consumers increasingly demand eco-friendly packaging and production methods. Businesses have responded by investing in recyclable materials and reducing carbon emissions to meet their own stringent targets and comply with tightening government regulations. Smaller brands like Firefly Tonics leverage their agility to quickly adopt sustainable practices, while major players like Britvic innovate with eco-friendly packaging to maintain market share. Despite a heightened focus on health, sales of energy drinks continue to grow, driven by innovations in low- and no-sugar options. Brands like Monster have capitalised on this trend by launching new flavours, catering to consumer preferences for bold tastes without the added sugar. Revenue is forecast to climb at a compound annual rate of 4.5% over the five years through 2030-31 to £2.8 billion. Sustainability will remain a priority, with stricter environmental regulations on the horizon, including the Deposit Return Scheme from October 2027. Producers will continue investing in sustainable practices to meet rising eco consciousness and leverage consumers' willingness to pay a premium for such products. Marketing will continue to play a crucial role as brands reposition as lifestyle companions, focusing on health credentials and emotionally resonant campaigns to differentiate themselves amid the Soft Drink Production industry's shift towards healthier options. Declining alcohol consumption presents an opportunity for brands to market themselves as premium non-alcohol alternatives and drive further expansion into on-trade markets.

In 2024, the UK soft drink market decreased by -3.6% to $15.2B, falling for the second consecutive year after five years of growth. Overall, consumption continues to indicate a notable expansion. As a result, consumption reached the peak level of $19.2B. From 2023 to 2024, the growth of the market remained at a lower figure.

This statistic depicts the share of the soft drink market in the United Kingdom (UK) from 2013 to 2023 and a forecast to 2026, by category. In 2023, the largest share was held by non-carbonated drinks, accounting for **** percent of the soft drink market, closely followed by carbonated drinks (**** percent) and Energy & Sport Drinks (**** percent)

Forecast: Soft Drinks Market Size Volume in the UK 2023 - 2027 Discover more data with ReportLinker!

Over the five years through 2025-26, the Juice, Mineral Water and Soft Drink Wholesaling industry’s revenue is forecast to expand at a compound annual rate of 1.8% to £5.2 billion. Wholesalers’ revenue heavily depends on sales to supermarkets, grocers and convenience stores. Low consumer confidence due to high inflation and high interest rates in 2022-23 dampened sales from key markets. Parallel to this, higher input costs for upstream manufacturers due to rising prices of commodities like sugar led to higher drink prices for wholesalers. However, digitalisation has seen wholesalers save on operational costs, helping to maintain positive profit margins, while consolidation and expansion among wholesalers have expanded customer reach, driving sales and stabilising revenue. Due to shifts in consumer preferences driven by increasing health consciousness and environmental awareness, the industry has witnessed enhanced product innovation and the growth of niche markets. Regulatory changes, including the Soft Drinks Industry Levy, have encouraged these trends, spurring the production of beverages with low or no sugar content. In line with wellness trends, lactose-free and functional drinks are also rising in popularity. Sales have risen as wholesalers have adapted by expanding their drinks portfolios to include healthier alternatives. Revenue is expected to climb by 1.6% in 2025-26. As the cost-of-living crisis and inflationary pressure subsides, demand is likely to inch upward, particularly from hospitality businesses like pubs and restaurants. Expanding automation in the wholesale industry will continue to push down operational costs by enhancing processing efficiency and broadening distribution systems, ultimately boosting profitability. Yet, digitalisation presents a challenge for the industry as it makes it easier for customers to bypass wholesalers. Additionally, wholesalers are likely to face increasing pricing pressures from supermarkets and own-label brands. Over the five years through 2030-31, revenue is forecast to grow at a compound annual rate of 1.3% to reach £5.5 billion.

According to Cognitive Market Research, the global Soft Drinks Market was valued at approximately USD XX billion in 2025 and is expected to grow to USD XX billion by 2031, expanding at a CAGR of XX% during the forecast period.

North America held largest share of XX% in the year 2025. Europe held share of XX% in the year 2025. Asia-Pacific held significant share of XX% in the year 2025. South America held significant share of XX% in the year 2025. Middle East and Africa held significant share of XX% in the year 2025.

Market Dynamics of Soft Drink Market

Key Drivers of Soft Drink Market

Increasing Consumer Interest in Refreshing Beverages : The rise in urban living, hectic schedules, and higher disposable incomes is fueling the demand for soft drinks. Consumers are looking for convenient, ready-to-drink options that provide refreshment, energy, and hydration throughout the day.

Growth of Retail and E-Commerce Outlets : Supermarkets, convenience stores, and online grocery services are enhancing the accessibility of soft drinks. Improved distribution systems and availability across various channels are driving global sales.

Product Development and Flavor Variety : Producers are launching new flavors, low-sugar alternatives, and functional beverages fortified with vitamins or minerals. Innovations in taste and health-oriented products are appealing to a wider range of consumers.

(Source:https://www.forbes.com/sites/jesscording/2025/04/13/the-rise-of-functional-beverages-among-millennials-and-gen-z/ )

Key Restraints of Soft Drink Market

Health Issues and Sugar Intake : Growing awareness regarding obesity, diabetes, and various lifestyle-related illnesses is reducing the intake of sugary drinks. Consumers are increasingly opting for healthier options such as fruit juices and low-calorie beverages.

Strict Regulatory Standards : Governments are implementing taxes, labeling mandates, and marketing limitations on sugary beverages. Adhering to these regulations raises production expenses and impacts market expansion.

Fierce Competition : The soft drink industry is extremely competitive, featuring numerous global and regional companies. Price competition, brand loyalty, and aggressive marketing pose significant challenges for new entrants and smaller producers.

Key Trends of Soft Drink Market

Emergence of Low-Sugar and Zero-Calorie Beverages : Consumer preferences are increasingly leaning towards beverages that are low in sugar, zero-calorie, and naturally sweetened. Manufacturers are reformulating their products to cater to health-conscious consumers while ensuring that taste is not compromised.

Introduction of Functional and Fortified Beverages : Soft drinks that are fortified with vitamins, minerals, probiotics, or energy-enhancing components are becoming more popular. Functional beverages offer a combination of refreshment and health advantages, appealing to contemporary consumers.

Sustainable Packaging Efforts : Brands are implementing environmentally friendly packaging options, including recyclable bottles and biodegradable labels, to minimize their ecological footprint. Trends in sustainability are shaping consumer purchasing choices and fostering brand loyalty.

(Source:https://www.bevindustry.com/articles/97136-functional-beverage-market-expands-to-meet-consumer-expectations )

Introduction to soft drinks market

Soft drinks are non-alcoholic, flavored and beverages that are typically carbonated, often sweetened and served cold. The market includes a wide variety of drinks including sodas like cola, lemon and fruit flavored drinks. The market is driven by innovation in flavors, packaging and functional ingredients. The rise of ready-to-drink (RTD) formats and sustainable packaging plays a key role in attracting health-conscious and eco-conscious consumers. Modern retail formats and the rise of e-commerce has further expanded product visibility and accessibility.

While the soft drink market is expanding rapidly, it is constrained by a number of factors. Key issues include rising health concerns, competition from other beverage categories, and the proliferation of sugar-free options. Price sensitivity, particularly in emerging markets, as well as shifting raw material costs, can all have an impact on profitability and market access.

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Soft Drinks Market Size 2025-2029

The soft drinks market size is forecast to increase by USD 982.4 billion, at a CAGR of 12.6% between 2024 and 2029.

The market is characterized by three key drivers: the hectic lifestyle leading to the need for instant energy, the increasing demand for craft soft drinks, and the challenges posed by rising obesity rates and related health issues. The contemporary consumer base, particularly in urban areas, is increasingly time-starved and seeks convenient energy boosters. Soft drinks, with their quick energy delivery, cater to this need effectively. Moreover, the emergence of craft soft drinks, with their unique flavors and artisanal appeal, has added a new dimension to the market. Consumers are no longer content with mass-produced, homogeneous offerings; they seek diverse, authentic, and high-quality beverage options. This trend is particularly prominent among millennials and Gen Z consumers, who are more likely to experiment with new flavors and brands. However, the market also faces significant challenges. The growing awareness of the health risks associated with excessive sugar consumption has led to increased scrutiny of the industry. Obesity rates, particularly among children, continue to rise, fueling concerns about the long-term health consequences of soft drink consumption. Governments and health organizations are responding with stricter regulations and public health campaigns, which could impact market growth. Companies must navigate these challenges by offering healthier alternatives, such as low-sugar or zero-sugar options, and by engaging in transparent marketing practices. By staying attuned to these market dynamics, companies can capitalize on the opportunities presented by the evolving soft drinks landscape while mitigating potential risks.

What will be the Size of the Soft Drinks Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with dynamic market dynamics shaping its various sectors. Production capacity expands to meet consumer demand for an array of beverage offerings, from gourmet sodas and fruit juices to sports drinks and functional beverages. Taste perception remains a key driver, with flavor profiles constantly evolving to cater to changing preferences. Filtration systems and water treatment technologies ensure product quality, while manufacturing processes are optimized for energy efficiency. Health and wellness trends influence the market, leading to an increase in sugar-free options, organic choices, and natural ingredients. Vending machines and fountain dispensers are integrated into convenience stores and retail environments, providing consumers with easy access to their preferred beverages. Beverage dispensing systems, including draft systems and cold chain technologies, ensure product freshness and consistency. Artificial sweeteners and flavoring extracts are used to create low-calorie and sugar-free options, catering to consumer preferences for healthier alternatives. Quality control measures are implemented to maintain product integrity, while supply chain management and distribution channels are optimized for efficiency. Social media marketing and digital marketing strategies are employed to reach consumers effectively. Environmental impact is a growing concern, leading to innovations in water conservation and sustainable packaging formats. Product innovation continues to drive the market, with new offerings in specialty sodas, craft sodas, and functional beverages. Pricing strategies are adjusted to remain competitive, reflecting the ongoing unfolding of market activities and evolving patterns.

How is this Soft Drinks Industry segmented?

The soft drinks industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductCarbonated soft drinksJuices and juice concentratesBottled waterRTD tea and coffeeOthersDistribution ChannelOfflineOnlineGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaRest of World (ROW).

By Product Insights

The carbonated soft drinks segment is estimated to witness significant growth during the forecast period.The carbonated the market is undergoing a notable evolution, shaped by shifting consumer preferences and a growing focus on health and wellness. Traditional sales have plateaued, but the sector continues to expand through the introduction of innovative, healthier alternatives. Major players, such as PepsiCo and Coca-Cola, are adapting to this trend by reformulating their products with reduced sugar content and natural ingredients. This shift is most prominent in developed markets, where h

Which carbonated soft drinks flavor is the most popular in the United Kingdom? Cola-flavored drinks held by far the biggest share of the UK carbonated soft drinks market in 2024. Cola-flavored drinks were so popular among consumers that there was a roughly 50 percent market share gap between cola flavored drinks and the second most popular choice, lemonade. Brands on the market Among fizzy drinks that were not Cola, Sprite had the largest number of consumers, with 5.6 million in 2023. Coca-Cola exceeded that number for cola brands, whereas cherry coke was slightly below it, with approximately 3.4 million consumers. The three leading carbonated soft drinks on the market are Coca-Cola, Pepsi Max, and Diet Coke. Soft drink market in the UK Most soft drink grocery sales were made with private label products in 2018. It is important to note that the market for soft drinks had been shrinking until 2017 when volume is considered. However, in 2018, soft drink consumption grew for the first time since 2013. Market values have been growing too.

Forecast: Soft Drinks Market Size Value in the UK 2022 - 2026 Discover more data with ReportLinker!

The UK energy drink market, a vibrant segment within the broader beverage industry, is experiencing steady growth fueled by several key factors. The market's expansion is driven by increasing consumer demand for convenient and functional beverages, particularly among young adults and professionals seeking a boost in energy and focus. Health and wellness trends are also impacting the sector, with a noticeable shift towards energy drinks featuring natural ingredients, reduced sugar content, and functional benefits beyond simple caffeine delivery. This has led to product diversification, with manufacturers introducing innovative flavors, formulations incorporating vitamins and minerals, and eco-friendly packaging options. While premiumization and functional benefits are driving growth in higher-priced segments, the competitive landscape remains intense, with established multinational corporations like Coca-Cola and Red Bull competing against smaller, niche brands focusing on specific consumer needs and preferences. The market's growth trajectory is expected to remain positive, albeit at a moderate pace, driven by sustained consumer demand and ongoing product innovation. Despite the positive outlook, the UK energy drink market faces challenges. Concerns regarding the health implications of high sugar and caffeine content continue to influence consumer choices and regulatory scrutiny. Fluctuating raw material costs and evolving consumer preferences for healthier alternatives can also impact profitability. Furthermore, increased competition and the emergence of innovative substitutes, including functional waters and plant-based energy drinks, pose a threat to market share. The established players are responding to these challenges through strategic partnerships, acquisitions, and a heightened focus on marketing and distribution strategies, specifically targeting growing online retail channels. Overall, the UK energy drink market shows promise for continued growth, but success will hinge on adapting to evolving consumer needs, embracing sustainable practices, and mitigating potential health concerns. Maintaining a balance between innovation and responsible product development is crucial for long-term success in this dynamic sector. Recent developments include: In September 2022, Virtue Clean Energy, the brand that creates clean alternatives in the energy drink category, launched its newest product, Virtue Clean Energy in the United Kingdom. Virtue Drinks contain zero sugar & zero calories, made with all-natural ingredients. It has 80mg of 100% organic caffeine derived from green coffee beans, plus B vitamins (B3, B6, B7, B12)., In June 2022, the United Kingdom plant-based energy drink company Tenzing launched two new plant power shots. The 150ml blends come in two flavors; apple, matcha, and ginger and black cherry, guarana, and goji., In March 2022, United Kingdom's start-up PerfectTed launched a range of canned natural energy drinks powered by matcha green tea. The drinks are 100% natural, plant-based, gluten-free, and free from additives, preservatives, and added sugars. Therefore, many consumers have switched to energy drinks, one of the reasons driving the market.. Notable trends are: The Drinks Segment Dominates the Energy Drink Market.