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Overview of the global soft drinks market

Technavios research analyst predicts the global soft drinks market to grow steadily at a rate of 7% during the forecast period. The increase in the sale of premium-priced products such as RTD tea and coffee and functional drinks are the primary drivers of the growth of this market. The innovative marketing strategies being introduced by vendors is also driving the market growth. For instance, during April 2015, PepsiCo entered into a marketing partnership with NBA, making it the official partner of the NBA, Womens National Basketball Association, NBA Development League, and USA Basketball.

The stringent government regulations regarding the production and sale of soft drinks are expected to pose challenges to the market growth during the forecast period. For instance, during 2014, Mexico imposed additional taxes on the sale of soft drinks, to reduce its consumption within the country.

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Segmentation by distribution channel and analysis of the soft drinks market

Hypermarkets and supermarkets
Convenience stores
On-trade

The hypermarket and supermarket distribution channel dominated the soft drinks market during 2014 with a market share of around 45%. The emergence of strong retail networks globally has contributed to the growth of this distribution channel.

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Segmentation by category and analysis of the global soft drinks market

Carbonated soft drinks
Bottled water
Juices
RTD tea and coffee
Functional drinks

Carbonated soft drinks dominated the market with a share of 40% during 2014. The research report predicts the share of this segment to witness a decline during the forecast period. The rising awareness about the harmful effects of artificial sweeteners is driving consumers away from this segment.

Geographical segmentation and analysis of the global soft drinks market

Americas
APAC
Europe
MEA

The Americas accounted for 39% of the market share during 2014 and is expected to grow at a CAGR of 6% during the forecast period. The introduction of a soda tax in some of the countries in this region has had an adverse impact on the growth of sugary drinks. For instance, Mexico implemented a soda tax of 1% on all carbonated soft drinks during January 2014 which resulted in a 6% decline in the sales of these drinks by the end of 2014.