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Global Soda Industry

The carbonated soft drink industry is expected to generate worldwide revenue in excess of $209 billion in 2014, according to research from MarketLine. This represents 12% market growth in five years, with volume also rising 10% in the same period to exceed 197 billion liters. Cola represents the leading market segment, with over 42% of the global market in terms of value.

The carbonated soft drink industry involves the manufacture and sale of diet and standard cola, fruit-flavored carbonated drinks and mixers. The Americas account for more than 54% of the global market. Coca-Cola is the number one company operating in the global carbonated soft drink market, accounting for more than 42% of the overall market.

Trends and Challenges

The global carbonated soft drink market has been facing difficulty due to reduced consumer spending brought on by the economic recession, and a general fall in demand for carbonated beverages due to declining popularity, reports Just Drinks. With increasing consumer awareness regarding health issues, carbonated drinks are being forced to compete with healthier options on the market, like fruit and vegetable juices. Other factors affecting market growth include packaging, environment, produce innovation, flavor and changing lifestyles.

Industry Leaders

Leading companies operating in the global carbonated soft drink market include PepsiCo, Coca-Cola, Red Bull and Dr Pepper Snapple. Coca-Cola is a market leader, with a share of more than 42% of the overall market. The company has close to 140,000 employees worldwide and a portfolio of more than 3,500 products for retail sale in over 200 countries. Coca-Cola’s sparkling beverage product offering includes nonalcoholic ready-to-drink beverages such as flavored water, carbonated water and energy drink. It also sells still beverages like tea, coffee, juice, sports drinks, flavored water, non-carbonated water and enhanced water.

New-York headquartered PepsiCo boasts more than 20 brands that generate revenue of over $1 billion annually, including Pepsi Max. The company’s 24 other brands generate between $250 million and $1 billion per year. PepsiCo’s 100,000 distribution routes serve around 10 million outlets regularly; the company has almost 700 manufacturing facilities across the world.

Regional Market Share

China’s carbonated soft drink market was worth more than $5.5 billion in 2009, having recorded close to 9% yearly growth for the four preceding years, reports Datamonitor. Mixers represented the leading market segment with sales of $2.5 billion in 2009 for almost 45% of the overall market. Growth is expected to slow to a yearly rate of just over 8.5% between 2009 and 2014, when it should exceed $8.5 billion.

The UK’s carbonated soft drink and concentrate market generated more than $13 billion in 2009, having increased almost $1 billion in three years, reports Key Note. The market is expected to expand by more than 11% in the four-year period ending 2015. Pepsi and Coca-Cola are market leaders with regard to value and volume produced. Manufacturers Britvic and Coca-Cola Enterprises also make other popular brands, including Schweppes, Sprite, Robinsons and Fanta.

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Parent industry: Soft Drink
Related industries: Bottled Water, Hot Drink, Juice, Sport and Energy Drink

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