Global soft drinks growth is increasingly shaped by volatility rather than stability. Affordability pressure, shifting functional expectations, format experimentation and algorithm-driven demand are altering how brands innovate, price and scale. Success depends on flexibility, cultural relevance and the ability to adapt faster than traditional category cycles allow.
Delivery
This report comes in PPT.
Key Findings
Growth is becoming structurally more volatile
Soft drinks demand is increasingly shaped by income pressure, sustained climate disruption across beverage agriculture and algorithmic/viral amplification. Brands face faster trends, shorter product life cycles and less overall predictability, making resilience and adaptability more important than long-term forecasting.
Affordability now defines competitive advantage
Value creation is shifting towards low cost per serving, smaller packs and simplified (but often functional) formulations. Winning brands balance accessibility with margin protection, as consumers become more selective, price sensitive and unevenly impacted across markets.
Function has moved from niche to expectation
Energy, hydration and emerging mood or focus benefits are no longer premium differentiators. Functional cues increasingly act as entry requirements, forcing brands to compete on enjoyment, credibility and everyday relevance rather than claims alone.
Format innovation is outpacing category innovation
In several markets, powders, concentrates, shots and countertop systems are driving growth faster than traditional bottled (or canned) packaging. These alternative formats can unlock personalisation, sustainability and new routes to market, while challenging long-standing assumptions about packaging and consumption in the industry.
Digital culture now shapes drinks demand
Search, social feeds and online debate increasingly determine which products scale or stall. Brands must operate with greater cultural awareness and faster response capability, as brand meaning, and ingredient or flavour demand are continuously reshaped online.
Our expert’s view of soft drinks in 2026
Key findings
Developing markets fuel volume, while functional demand drives value creation
Top five trends in soft drinks
Top five trends uncovered
Adapting to a unique era of volatility in the beverage agricultural supply chain
Suntory Craft Boss Sekai no Tea (Japan): Branching beyond coffee as prices spike
Tropicana Essentials (US): Targeted reformulation for changing juice consumption
Navigating beverage agricultural volatility
A new value equation in developing markets, where local value brands gain share
Goods and Services Tax cut on still drinks (India): Keeping categories in reach
Eastroc Hydrating Water (China): The affordable and functional sweet spot
Navigating the affordability reset
Mood, focus and relaxation emerge as billion-dollar growth platforms
BECHILL and Chill Out (Japan): RTD relaxation through sauna culture and GABA
Trip (UK) and Recess (US): The race to become RTD relaxation category leader?
Navigating the next functional frontier
Format fluidity shifts growth beyond the bottle
Mio (US): Packaging redesign to emphasise wellness and functional credentials
Luckin Coffee (China): Portable concentrate format re-ignites growth
Navigating format fluidity
Algorithmic retail is reshaping beverage risk and reward
“Sprite + Tea” among the latest examples of social-powered soft drinks innovation
Mogu Mogu (UK): Leveraging K-Pop cultural power to boost Korean beverages
Navigating algorithmic retail pressure
Future implications
Opportunities for growth
Soft Drinks
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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