Craft Soda Market

Craft Soda Market Outlook 2024 to 2034

The craft soda market is estimated to clock a revenue of USD 742.8 million in 2024. Craft soda producers and distributors can expect a modest CAGR of 4.90% through 2034, with a forecast valuation of USD 1,200.8 million by 2034.

Attributes	Key Statistics
Expected Base Year Value (2024)	USD 742.8 million
Anticipated Value (2034)	USD 1,200.8 million
Estimated Growth (2024 to 2034)	4.9%

Top Trends Catalyzing Growth in the Craft Sodas Market

• The increasing popularity of craft sodas as an alternative to conventional soft drinks and alcoholic beverages reflects recent consumption patterns. This shift is driven by growing new-age consumers looking for clean and wholesome substitutes to elevate their drinking experience.
• Emerging opportunity for beverage producers and distributors as consumers show interest in craft soda. Players are acting on increasing demand for authentic flavors and ingredients as well as functional benefits in beverages.
• Key participants are focusing on sustainability, be it in terms of product packaging or ingredients selected for product development.
• Surging demand for water hybrids is also expected to lead to the progress of active companies.
• Growing development for nearly 100% fruit and vegetable juices targets consumers who seek a healthier diet. These products are usually claimed to be organic, with no traces of preservatives or natural flavors.
• Accelerating the premiumization trend presents new players with the opportunity to introduce new products. This trend is expected to empower new entrants to enter and sustainably expand in the long run.

Historical Growth of the Craft Soda Market Vs. Forecast Outlook

Attributes	Details
Craft Soda Market Value (2019)	USD 601.6 million
Craft Soda Market Value (2023)	USD 710.4 million
Historical Growth Rate % (2019 to 2023)	4.2%

The craft soda market surged from USD 601.6 million in 2019 to USD 710.4 million in 2023. The market experienced a growth trajectory of 4.2% CAGR during this period. New favor launches by well-entrenched players contributed to raised market value in the historical period. Additional factors pushing the consumption of craft soda are:

• Increasing acquisition and mergers to allow knowledge sharing, product innovation, and more customer reach.
• Surging demand for better-for-you beverage products.
• Rising demand for greener packaging alternatives to plastics, such as aluminum cans and beverage cartons.

The market is set to register a CAGR of 4.9% through 2034 to reach USD 1,200.8 million by 2034 from USD 742.8 million in 2024. The growing popularity of craft soda, as consumers put health first, is pushing product sales. Other factors steering market growth are as follows:

• Soaring demand for beverage products imbibing functional properties to promote weight loss, beauty, and gut health.
• Increasingly, beverage producers are creating plant-based beverages to resonate with consumers with a strong ethical stance.
• Innovation of different flavors and taste profiles to develop uniquely crafted sodas.

Historical CAGR % (2019 to 2023)	4.2%
Forecast CAGR % (2024 to 2034)	4.9%

Country-wise Insights

Leading Players in the United Kingdom Leveraging the Popularity Garnered by Carbonated Soft Drinks

Country	The United Kingdom
Forecast CAGR % (2024 to 2034)	5.2%

The United Kingdom craft soda market is estimated to register a relatively higher CAGR of 5.2% than their counterparts through 2034. Factors leading the market expansion are as follows:

• Key players are riding on the wave of popularized carbonated soft drinks (CSDs) that contain organic or similar superior-quality ingredients.
• Craft soda producers are seeking eco-friendly packaging formats. Thus gradually inching away from plastic-packaged craft sodas.
• Growing innovations in product flavor and tastes to arouse consumer interest in a variety of craft sodas.

Increasing Demand for Energy Boost Drinks Raising Market for Craft Soda in Germany

Country	Germany
Forecast CAGR % (2024 to 2034)	4.5%

The craft soda market in Germany is expected to expand at a CAGR of 4.5% through 2034. The following factors are propelling demand for craft soda in Germany:

• Shifts in lifestyle are driven by increasing screen time, rising average time spent working, and proclivity for on-the-go products. Players in the craft soda industry are leveraging these dynamics by developing user-friendly craft sodas packed in functional packaging formats.
• A combination of lifestyle changes and increasing work pressure is inducing demand for healthy drinks that spike energy levels. Such drinks help consumers manage their hectic lifestyles.

Key Participants in the United States are Launching Refreshing Flavors of Craft Sodas

Country	The United States
Forecast CAGR % (2024 to 2034)	3.7%

The United States craft soda market is forecast to account for a CAGR of 3.7% through 2034. Factors below are steering market growth for this product:

• Increasing investments in packaging and labeling of various craft beverage products.
• Rising count of key players introducing refreshing energy flavors of wellness sodas. For instance, in January 2023, SkinTe released two new energy flavors to its distinct line of hydrating sodas. Black Raspberry and Peach Mango are new flavors designed to boost energy levels.

Study Analysis of Recent Consumer Preferences in India Show Inclination for Better Drinking

Country	India
Forecast CAGR % (2024 to 2034)	4.7%

The India craft soda market is anticipated to account for a growth rate of 4.7% through 2034. India is expected to play a key role in uplifting the position of Asia Pacific in the global market. Given below are the leading factors catalyzing sales of craft soda in India:

• Players are focusing on prestige as consumption of premium carbonated beverages is strongly growing.
• Shifting consumer trends in India, exhibiting a preference for high-quality brands to drive their motive of drinking better.
• Increasing digital engagement is another key component for the driving up of craft sodas.

Brands in China are Optimizing User-generated Content to Drive Conversions

Country	China
Forecast CAGR % (2024 to 2034)	4.2%

The craft soda market in China is projected to rise at a CAGR of 4.2% through 2034. The market is expected to expand owing to:

• Increasing regional as well as international competitors are introducing craft soda portfolios in densely-populated developing countries. This is projected to generate higher revenues for active participants.
• Some companies are upgrading their social commerce cloud to facilitate brands to develop more shoppable content on their respective social media channels. These upgrades bring eCommerce and social media marketing closer to generating higher client conversions and sales.

Category-wise Insights

Cola Flavor Floated to the Top as Consumers Find Cola to be Appealing

The cola segment in the flavor category is estimated to acquire a total of 38.4% in 2024. Players target the young generation and millennials by infusing cola flavor in carbonated soft drinks. This can be credited to the authentic, distinctive, and non-conventional taste of cola flavor, which attracts Gen Z. By recognizing recent consumer trends, players are concocting healthier formulations for craft soda that introduce nutritive or organic sweeteners.

Leading Flavor Segment	Cola
Value Share % (2024)	38.4%

In the past, Coca-Cola returned to its handcrafted heritage by releasing two new flavors. These crafted beverages combined Coca-Cola’s timeless taste and flavors of peach and raspberry. This move was motivated by the company’s drive to build upon craft sodas' popularity. Going forward, players in this space are expected to curate innovative beverage experiences to satisfy consumer appetites.

B2C Channel to Obtain Greater Market Value

The B2C segment is expected to acquire a massive share of the global industry. As per recent estimates, the B2C segment is expected to garner a 72.4% market share in 2024.

Leading Distribution Channel	B2C
Value Share % (2024)	72.4%

The rise in delivery, online ordering, and in-store pickup has driven the segment's growth. Another key driving B2C channel sales is higher control over product pricing and branding. This is assisting brands to build a stronger brand identity and drive higher profits.

Popular Strategies Among Leading Players to Amass Increased Revenue from Craft Soda Sales

Established participants in the craft soda market enjoy an upper hand in terms of brand-loyal consumers. As customers significantly opt for craft sodas based on trust and familiarity, these companies are projected to observe higher sales projections. Besides, new and old players are leveraging heightened demand for authentic and flavorful beverages available in premium price ranges. Consequently, companies are adding new flavored concoctions like sparkling coconut water, ready-to-drink teas and coffees, and vinegar drinks to their portfolios.

Based on consumer insights, companies also offer eco-friendly packaging and craft sodas composed of fair-trade or upcycled ingredients. Leading firms are imbibing all-natural products and ingredients that give immediate energy spike or other specific benefits. Growing demand for these functional benefits is expected to fuel revenue from these craft soda varieties.

Players are also expected to observe growth by employing partnerships, acquisitions, mergers, and geographical expansions.

News Featuring Recent Developments

• In March 2023, Jones Soda Co. announced its expansion plans to international markets, including the United Kingdom and other European countries. The company aims to bring its craft soda portfolio to European markets in collaboration with American Fizz. The latter is the United Kingdom's American food and drink products distributor.
• Jones Soda Company employed the Emplifi platform for its video-powered UGC campaign in 2021. The videos were exhibited at the brand’s site via Emplifi and converted into an AR experience on original soda bottle labels. This campaign propelled DTC commerce as Jones Soda allowed visitors to buy products directly from UGC content displayed on the site.
• In July 2023, Jones Soda Co. released its first crossover unique edition flavor in collaboration with Mary Jones. The dual-flavor releases include Lime Soda and Hatch Chile.

Key Players Operating in the Craft Soda Market

• Jones Soda Co.
• Appalachian Brewing Co.
• Reed’s Inc.
• PepsiCo, Inc.
• The Original Craft Soda Company
• The Coca-Cola Company
• Crooked Beverage Co.
• SIPP eco beverage co. Inc.
• Boylan Bottling Co.
• Wild Poppy Company
• Others

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Flavor
  • 5.1. Cola
  • 5.2. Tropical Fruits
  • 5.3. Berries
  • 5.4. Others
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging
  • 6.1. Glass
  • 6.2. Cans
  • 6.3. Plastic
  • 6.4. Others
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel
  • 7.1. On-Trade
  • 7.2. Off-Trade
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 8.1. North America
  • 8.2. Latin America
  • 8.3. Western Europe
  • 8.4. Eastern Europe
  • 8.5. South Asia and Pacific
  • 8.6. East Asia
  • 8.7. Middle East and Africa
• 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Key Countries Market Analysis
• 17. Market Structure Analysis
• 18. Competition Analysis
  • 18.1. Jones Soda Co.
  • 18.2. Appalachian Brewing Co.
  • 18.3. Reed’s Inc.
  • 18.4. PepsiCo, Inc.
  • 18.5. The Original Company
  • 18.6. The Coca-Cola Company
  • 18.7. Crooked Beverage Co.
  • 18.8. SIPP eco beverage co. Inc.
  • 18.9. Boylan Bottling Co.
  • 18.10. Wild Poppy Company
• 19. Assumptions & Acronyms Used
• 20. Research Methodology