Core categories of global soft drinks are slowing while functional, value-tier and lifestyle-led drinks rise. Affordability is vital in emerging markets of the future, while wellness and identity reshape consumption in mature regions. Tariffs, trade volatility and channel shifts demand agility. Future success will depend on brand relevance, retail strategy and resilience.
This report comes in PPT.
Category value growth in 2025 is no longer anchored to traditional CSDs or established brands. Instead value is emerging from energy, hydration and newer formats - functional sodas, electrolyte powders and adult non-alcohol. The challenge for global brand owners is scaling these new concepts, unlocking new consumer need states, while focusing on affordability and access.
In MEA and APAC, the balance of affordability and profitability is key. Brands must adapt pricing, pack size and distribution strategies to suit fragmented and independent retail. Small-format grocers, sachet-style packaging and mobile-based distribution models will be vital over the next decade as the growth of commercial beverages outpaces the rise of chained, large-format retail.
The soft drinks aisle is being reshaped: Walmart’s new allocation for BFY “modern soda” in the US, the introduction of functional mocktails and influencer-led launches are pushing traditional categories boundaries and innovation models. New products do not simply refresh, but speak to identity and aspiration. Emerging functional drinks reflect lifestyle and not just physical utility.
Consumers are demanding both physiological benefit and emotional relevance from beverage brands. Growth brands and new concepts combine performance or health outcome with social discovery and compelling online marketing. Better-for-you is necessary but not sufficient - new premium beverage brands seek to embed themselves into occasion, ritual and personal identity.
New tariffs, potential SNAP reforms in the US and commodity shocks - from orange juice to green coffee beans - pose structural risks to soft drinks. Still, the localised distribution model for key categories such as carbonates and packaged water offers partial insulation. Margin protection will depend on pricing discipline, execution agility and supply chain efficiency.
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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