The soft drinks market is projected to grow at a 5.17% CAGR through 2031, driven by functional formulations, packaging innovation, and evolving beverage preferences.
According to a research report by Mordor Intelligence, the Soft Drinks Market size is expected to grow from $740.59 billion in 2026 to $952.87 billion by 2031, registering a CAGR of 5.17% during the forecast period. Consumer preferences are shifting beyond traditional refreshment toward beverages that support hydration, immunity, and cognitive focus. This transition is creating opportunities for functional and premium products while increasing pressure on conventional carbonated soft drinks amid sugar-related health concerns and taxation. Packaging innovation, changing on-trade and off-trade dynamics, and omnichannel distribution strategies are also influencing competition across the global beverage industry.
Functional Beverages Redefine Consumer Expectations
Soft drinks are increasingly positioned around benefits that extend beyond taste and refreshment. Consumer interest in hydration, immunity support, and cognitive focus is encouraging manufacturers to explore functional formulations that can appeal to more specific needs and justify premium pricing.
This shift creates opportunities for brands to differentiate their portfolios through product positioning, formulation choices, and targeted marketing. Functional beverages can help companies reach consumers seeking drinks that align with their wellness priorities while maintaining convenience and accessibility.
For manufacturers, the challenge is to communicate product benefits clearly while delivering an appealing drinking experience. As the category expands beyond conventional refreshment, innovation and effective brand positioning can help businesses respond to changing expectations and establish differentiated market propositions.
Carbonated Soft Drinks Face Health and Regulatory Pressure
Carbonated soft drinks contributed a major share of global market revenue in 2025, according to the supplied market overview. However, growing health concerns and the introduction of sugar taxes in various markets are creating challenges for traditional high-sugar offerings.
These pressures can encourage companies to reconsider formulations, broaden product portfolios, and respond to demand for beverages with different nutritional profiles. Reformulation and the development of alternative product options offer potential ways to address changing consumer preferences, although the commercial response will depend on local regulations and purchasing behavior.
The transition does not eliminate the importance of carbonated drinks. Instead, it highlights the need for manufacturers to balance established products with innovations that reflect evolving health and wellness expectations.
Packaging Innovation Creates New Differentiation Opportunities
Polyethylene terephthalate (PET) bottles dominated soft drinks packaging in 2025, based on the supplied report information. At the same time, premium craft sodas in glass bottles are gaining popularity, creating opportunities for brands to differentiate their products through packaging and presentation.
Packaging decisions influence more than product appearance. They also affect how brands position products across price segments, retail environments, and consumption occasions. PET bottles, glass bottles, metal cans, and other formats serve different product and distribution requirements.
Sustainable packaging solutions are another area of industry innovation. Companies seeking to improve their packaging strategies must consider material choices, product protection, operational requirements, and consumer expectations. Packaging innovation can therefore support both product differentiation and broader brand positioning.
Distribution Channels Adjust to Changing Consumption Patterns
Off-trade retail channels held a significant share of the market in 2025, but the supplied market overview points to increasing momentum for on-trade outlets. Restaurants and quick-service operators are recovering toward pre-pandemic levels and securing long-term exclusive fountain contracts, strengthening the role of foodservice in beverage distribution.
This development highlights the importance of serving different consumption occasions. Off-trade channels provide access to packaged beverages purchased for home consumption and other settings, while on-trade outlets connect brands with consumers through restaurants and foodservice establishments.
An effective distribution strategy must account for both channels while adapting to local market conditions. Omnichannel approaches can help manufacturers coordinate product availability and brand positioning across retail and foodservice, supporting access to consumers through multiple purchasing environments.
Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/global-soft-drinks-market?utm_source=blogger
Market Segmentation
The Soft Drinks Market is segmented across the following categories:
- By Soft Drink Category: Carbonated soft drinks, juices, and other soft drink categories.
- By Packaging Type: PET bottles, glass bottles, metal cans, and other packaging types.
- By Distribution Channel: On-trade and off-trade.
- By Geography: North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
Market forecasts are provided in terms of both value (USD) and volume (liters).
Competitive Landscape
The global soft drinks industry includes established beverage companies with broad portfolios and distribution networks. Competition is influenced by brand strength, product innovation, packaging choices, channel access, and the ability to respond to changing consumer preferences.
The industry leaders identified in the report are:
- The Coca-Cola Company
- PepsiCo Inc.
- Keurig Dr Pepper Inc.
- Suntory Holdings Ltd.
- Red Bull GmbH
As consumer demand evolves, manufacturers face the challenge of maintaining established product lines while exploring functional beverages, premium offerings, and packaging innovations. Effective distribution across on-trade and off-trade channels remains another important consideration for companies competing in the market.
Outlook Through 2031
The Soft Drinks Market is forecast to expand from $740.59 billion in 2026 to $952.87 billion by 2031, registering a CAGR of 5.17%. The market's evolution reflects a combination of changing wellness priorities, regulatory pressure on sugar content, packaging developments, and shifts in beverage distribution.
Functional formulations are creating new avenues for differentiation, while conventional carbonated soft drinks continue to face health-related and regulatory challenges. At the same time, premium packaging and evolving foodservice partnerships are reshaping how brands compete across consumption occasions.
Companies that align product development with consumer expectations and coordinate packaging and distribution strategies will be better positioned to respond to the market's changing dynamics.
About Mordor Intelligence
Mordor Intelligence is a global market intelligence firm, founded in 2014, helping businesses make informed decisions through data-driven insights, industry expertise, and advanced analytics. With 550+ domain experts and on-ground specialists across 150+ countries, the company delivers comprehensive intelligence across aerospace & defense, agriculture, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, and logistics.
Its offerings include syndicated industry reports, custom research and advisory, and Data Center Intelligence. Mordor Intelligence is ISO 9001:2015 and ISO/IEC 27001:2022 certified, a member of ESOMAR and the Market Research Society of India, and a four-time Great Place to Work® honoree. Learn more at mordorintelligence.com.
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