The desire for soda transcends no bounds, transcending geographical boundaries and cultural distinctions. Soda has been ingrained in modern lifestyles as one of the most extensively used beverages on a global scale. Soda has charmed the palates of millions, thanks to its effervescent bubbles and seemingly limitless variety of flavors. While soda consumption is seen all across the world, many countries have insatiable cravings for this sugary treat. Coca-Cola, for example, is the most popular soft drink in practically every country, although its consumption is highest in Mexico, Brazil, and the United States, according to Gitnux data.
According to Time Magazine, soft drinks alone account for a whopping $65 billion expenditure in the United States, with the average American household spending an estimated $850 on these carbonated beverages each year.
Examining the Global Carbonated Beverage Market
The global industry for carbonated beverages is fiercely competitive, with market leaders including The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Dr. Pepper Snapple Group. The global carbonated drinks market is expected to reach $320.1 billion by 2028, expanding at a 4.7% CAGR between 2021 and 2028.
Carbonated beverage demand is influenced by a variety of factors, including flavor, convenience, and marketing. However, the sector is facing problems as a result of rising consumer health concerns and the growth of alternative beverage options. As a result, corporations are producing new sugar-free goods and investing in marketing campaigns to promote healthier lives. Despite these obstacles, the worldwide carbonated beverage market is likely to expand in the future years.
Opportunities for Investment in High-Soda-Consumption Markets
Investment prospects in high-soda-consuming markets should be considered, as the industry is growing steadily. If you want to invest in soda firms, you must first undertake a detailed examination of each company’s financials and market position.
For example, The Coca-Cola Company (NYSE:KO), one of the world’s top beverage firms, earned $43 billion in revenue and $9.5 billion in net income in 2022. Similarly, PepsiCo, Inc. (NASDAQ:PEP), another significant participant in the soda market, generated $86.39 billion in revenue and $8.91 billion in net income in the same year.
Another option is to invest in companies that manufacture soda-making equipment and supplies. For example, SodaStream, a manufacturer of at-home soda-making machines, has seen consistent growth in recent years. In 2017, the company earned $543.37 million in revenue.
Finally, investing in firms that make healthier alternatives to soda could be a good idea. For example, LaCroix, a well-known sparkling water brand, has recently experienced tremendous growth, with a projected revenue of $563.45 million (€500 million) in 2021. Similarly, natural fruit juice brands such as Naked Juice and Odwalla may be well-positioned for expansion as customers become more health-conscious. Additionally, you can also read about- Countries with Highest Water Consumption in the World [Top 20 List]
Here Is a List of the Countries With the Greatest Levels of Soda Consumption:
Per capita soda consumption (2019): 310.3 liters
Soft drinks are popular in Hungary, a country noted for its colorful culture and rich culinary traditions. The soft drinks industry in Hungary is positioned for growth, with a turnover of US$2.70 billion anticipated for 2023 and a CAGR of 9.54% from 2023 to 2027.
Coca-Cola was Hungary’s most popular beverage brand in 2022, with 40 consumer reach points around the country. HELL was the second-ranked beverage brand, with 21 consumer reach points, illustrating the diverse interests of Hungarian soft drink consumers.
Per capita soda consumption (2019): 272.4 liters
In 2019, Belgium’s per capita soda consumption reached a new high of 272 liters, resulting in increased health problems among youngsters. To address these concerns, soda firms have launched healthier choices with lower sugar content.
To fund health efforts and discourage soda consumption, the Belgian government imposed a soda tax. The country’s soft drinks market is estimated to generate $5.73 billion in revenue in 2023, with a 2.86% annual growth rate (CAGR) from 2023 to 2027.
Per capita soda consumption (2017): 155 liters
In 2017, Argentina’s yearly per capita consumption of soft drinks reached roughly 155 liters, spurred by factors such as rising salaries and a warm environment, placing Argentina among the countries with the highest soda consumption. This increased intake, however, has created health concerns.
In 2023, Argentina’s soft drinks market is predicted to produce $3.97 billion in revenue. However, the market is expected to grow at a negative annual growth rate (CAGR) of -4.09% between 2023 and 2027, posing challenges for the sector. Coca-Cola emerged as Argentina’s leading brand in 2019, closely followed by Manaos, showing its customer popularity.
4. United States
Per capita soda consumption (2017): 154 liters
With their sophisticated lifestyles and increased earnings, Americans are among the world’s biggest soda drink consumers, drinking an average of 154 liters per person per year. However, this over consumption has resulted in an alarming increase of health problems.
Although soda taxes have been enacted in several American communities, their impact has been minimal. Surprisingly, almost one in every five people consumes a Coke on a regular basis, worsening the already concerning health issue. Soda intake has been linked to a variety of negative health effects, including blood sugar imbalances, obesity, and dental problems, according to extensive research.
Per capita soda consumption (2017): 141 liters
Chile ranked fifth among the countries with the highest soda consumption, with 141 liters consumed per capita per year in 2017. The country’s solid economy and lifestyle allow citizens to afford sugary drinks. However, health problems have arisen as a result of increased soda use and the diseases associated with it.
Coca-Cola is the biggest soft drink brand in Chile, accounting for 10% of the industry’s advertising budget in 2021. Another important market player is Bilz y Pap, which is owned by Compaa Cerveceras Unidas and has the greatest market share, 39.7%. The soft drinks market in Chile is expected to earn $4.75 billion in revenue in 2023, with a 5.44% CAGR from 2023 to 2027.
Per capita soda consumption (2017): 137 liters
Mexico is ranked sixth on our list as one of the top soda-consuming countries, with a per capita consumption of around 137 liters in 2017. Despite health concerns, such as obesity, the use of carbonated beverages continues to rise. To combat this, the government imposed a soda tax to curb sales. However, the soft drinks market is predicted to earn US$19.48 billion in revenue in 2023, with a 3.05% annual growth rate.
Per capita soda consumption (2022): 120 liters
Germany has seen a huge increase in soda consumption, with an annual per capita consumption of 120 liters. The market is driven by the popularity of caffeine-containing beverages and includes brands such as Fanta, Sprite, Delta, Mezzo Mix, and Coca-Cola. However, due to government initiatives to address health concerns and an aging population, the future of Germany’s soft drink sector is still being determined.
Except in Thuringia, where Vita-Cola is the major brand, Coca-Cola is the dominant brand nationwide. Soft drinks in Germany are predicted to earn $30.06 billion in 2023, with a 1.84% annual growth rate (CAGR) from 2023 to 2027.
Per capita soda consumption (2017): 113 liters
In 2017, per capita consumption of soda in Uruguay reached roughly 113 liters. This trend, however, has resulted in health complications such as bone and tooth disorders. People are spending more of their income to consuming carbonated drinks as the economy improves. The country’s soft drinks industry is estimated to earn $1,062.00 million in 2023, with a 3.66% annual growth rate (CAGR) from 2023 to 2027.
9. United Kingdom
Per capita soda consumption (2021): 105 liters
Coca-Cola is the most well-known soft drink brand in the United Kingdom, with a staggering 97% identification rate among internet users. Sprite, Pepsi, and Fanta are tied for second place, having gained significant traction. Bottlegreen, on the other hand, lags, with less than half of online respondents knowing the brand.
In terms of finances, the soft drinks segment in the United Kingdom is predicted to create significant revenue of US$37.37 billion in 2023, with a consistent annual growth rate (CAGR) of 1.99% from 2023 to 2027, indicating strong possibilities for industry advancement in the United Kingdom.
Per capita soda consumption (2017): 98 liters
Soft drink consumption in Norway has increased significantly, yet there are concerns regarding its impact on adolescent mental health. With a per capita consumption of roughly 98 liters, the country ranks high in worldwide soft drink consumption. Coca-Cola and PepsiCo are industry leaders, offering a wide range of carbonated beverages, including flavored alternatives.
According to UNESDA, by 2020, more than 60% of soft drinks marketed in Norway would be sugar-free, suggesting a demand for healthier options. Norway’s non-alcoholic drinks market is expected to generate $3.31 billion in revenue by 2023.
11. Saudi Arabia
Per capita soda consumption (2017): 89 liters
Saudi Arabia’s soft drink consumption has climbed dramatically, reaching 89 liters per capita in 2017. This expansion is being fueled by factors such as increased consumer expenditure, a warm climate, and the country’s prohibition on alcoholic beverages. Due to worries over consumption levels, the government has recommended that The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NASDAQ:PEP) include health warnings on their products.
The Saudi soft drinks market is estimated to earn US$6.75 billion in sales in 2023, with an expected annual growth rate (CAGR) of 6.04% from 2023 to 2027, demonstrating high demand and a bright outlook for the industry in the Saudi Arabian market.
Per capita soda consumption (2017): 89 liters
Soft drink consumption is extremely high in Bolivia, particularly among young people. Despite health-related concerns, the popularity of soft drinks continues to rise. Coca-Cola retains a dominant market presence, with high consumer reach and regular purchases per home.
Bolivia’s soft drinks eCommerce industry is predicted to grow significantly, reaching an estimated value of US$35.1 million by 2023, acquiring a large market share. Furthermore, from 2023 to 2027, the market is expected to increase at a compound annual growth rate (CAGR) of 16.7%, reaching an anticipated volume of US$64.9 million.
Per capita soda consumption (2019): 66.43 liters
Russia’s soft drink sector was growing, but after Russia invaded Ukraine, major worldwide brands such as The Coca-Cola Company (NYSE:KO) suspended manufacture and sales of their sodas in the country. In 2020, three-quarters of Russians bought Coca-Cola carbonated soft drinks and lemonades, while Rich Juice, owned by Coca-Cola HBC, was a popular juice brand. The departure of major soda corporations from Russia created a void for local players to fill.
Russia’s soft drink market is estimated to generate $2.41 billion in revenue in 2023, with a 4.37% annual growth rate (CAGR) from 2023 to 2027. The country’s soft drinks segment is expected to expand further due to consumer demand.
Per capita soda consumption (2019): 62.4 liters
Soft drink consumption in France is expected to rise steadily, reaching 23.7 billion liters by 2026. Since 2020, demand has increased at a 0.3% yearly rate. Orangina is a well-known French soda recognized for its light carbonation and distinctive combination of lemon, mandarin, grape, and grapefruit juice. In France, other well-known brands include Auvergant, which offers a variety of flavors, and Breizh, which offers flavors such as orange, peach, and cola.
Per capita soda consumption (2021): 59.5 liters
Brazil’s per capita soft drink consumption in 2021 is expected to be around 59.5 liters, up marginally from the previous year. From 2016 to 2021, the Brazilian soft drinks market earned substantial revenue of $26 billion, with a positive compound annual growth rate (CAGR) of 3.7%. According to Report Linker, market consumption volumes will reach 33,077.7 million liters in 2021, representing a 0.9% CAGR. Coca-Cola was the most purchased brand in Brazil in 2019, followed by Maratá, indicating strong consumer preference.
Per capita soda consumption (2021): 50.8 liters
Soft drinks in Canada have a rich and varied history, beginning as therapeutic elixirs in the nineteenth century. The sector has expanded tremendously, with top-selling flavored soft drinks generating over 1.4 billion Canadian dollars in annual sales. Renowned brands such as Pepsi and Coca-Cola dominate the market, although Canadian favorites such as Canada Dry and Crush are also popular.
Soft drink consumption per capita in Canada has decreased due to worries about obesity and sugar intake. The rate of consumption has decreased from 82.93 liters in 2010 to 50.88 liters in 2021. Despite this decline, Canada’s soft drinks market is expected to generate $14.69 billion in revenue in 2023.
Per capita soda consumption (2019): 50.1 liters
In 2019, per capita soft drink consumption in Italy fell from 63.8 liters to 50.1 liters. In 2017, the country consumed around 3.1 billion liters of soft drinks. Low or no-calorie soft drinks held 9% of the market, a modest rise from 2016. The Italian soft drinks market will earn $13.7 billion in revenue in 2021, but at a -1.8% annual growth rate. Market consumption volumes reached 15,370.8 million liters in 2021, a -0.2% decrease from the previous year.
Per capita soda consumption (2021): 39.2 liters
Spain’s soft-drink consumption includes a wide range of carbonated beverages, including well-known brands such as Coca-Cola and PepsiCo, Inc. (NASDAQ:PEP). Cultural preferences, tourism, and social gatherings all play important roles in generating demand. Alternatives that are more health-conscious have also gained popularity. The estimated trajectory predicts an increase in soft drink consumption in Spain, reaching 22.4 billion liters by 2026, with a 0.7% annual growth rate. Notably, demand has regularly increased by 2% per year since 2013.
Per capita soda consumption (2021): 30 liters
Green tea and other tea-based beverages have long been popular in Japan, but ready-to-drink options have exceeded traditional tea preparations. Retail establishments and vending machines make it easy to get a variety of soft drinks, with bottled options favoured, making Japan one of the countries with the highest soda consumption rates in the world. Manufacturers are expanding into the health food sector to appeal to health-conscious consumers with sugar-free and fortified products. The Japanese soft drink market is estimated to increase at a CAGR of 2.87% from 2023 to 2027, with a projected revenue of $27.14 billion in 2023.
Per capita soda consumption (2019): 23 liters
Indonesia’s soft drink market is thriving, with projected revenue of US$16.17 billion in 2023 and a CAGR of 4.37% from 2023 to 2027, reflecting changing consumer preferences and rising disposable incomes, providing opportunities for domestic and international beverage companies to innovate and meet rising demand. Soft drink consumption per capita in Indonesia is 23 liters.