Global carbonated beverages market worth was estimated over USD 340 billion in 2014. Coca-Cola Company held over 45% of the overall revenue in the same year. Carbonated soft drinks sector is one of the matured sectors in beverages industry. In recent past the industry came across various changes and this phenomenon is expected to continue over the next seven years.
Increasing young population in developing countries coupled with increasing disposable income among consumers is expected to drive the overall market growth. Increasing processed food and beverages demand coupled with rising population in BRICS countries is expected to benefit the market.
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The industry has relatively low price points and margins in comparison to other consumer goods. Major industry participants hence focus on the packaging innovations to gain market revenue along with sustainability. Coca-Cola Company balances the relation between sustainability and good design of the bottles. They let go of the brand equities and the bottle is more sustainable than any normal PET bottle.
Carbonated beverages are commonly known as soft drinks which have carbon dioxide dissolved in it. They don’t have any alcoholic content; hence, they are termed as soft drinks and spans across sparkling drinks, smoothies, juices, ready-to-drink tea and coffee, concentrates, and functional drinks. Carbonated beverages market is segmented based on their product types such as carbonated beverage regular, carbonated beverages diet, lemon/lime regular, and lemon/lime diet.
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Carbonated beverages demand with reduced sugar content is expected to attract consumers owing to recent health awareness across the globe. There are various flavors available such as orange, cola, and lemon. However the original carbonated beverage segment is the most dominant in terms of demand. In line with growing health awareness among consumers, natural flavored beverages, such as tropical fruits and super fruits, were introduced.
Major challenges in the industry come from the health lobbyists. Reports on childhood obesity increased over the past few years. This may have a negative impact on the overall market growth. Stringent regulations on plastics usage in packaging may emerge as a hindrance and limit the overall market growth.
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