New York, Jan. 23, 2024 (GLOBE NEWSWIRE) -- The Craft Soda Market has experienced significant growth in recent years, driven by consumer demand for unique and artisanal beverage options. Craft sodas are characterized by their premium quality ingredients, distinctive flavors, and often, lower sugar content compared to traditional sodas. The global craft soda market is forecast to expand at a CAGR of 5.3% and thereby increase from a value of US$7.5 Bn in 2023 to US$1.08 Bn by the end of 2030.
This market benefits from consumers increasing preference for healthier and more natural beverage choices, as well as their desire for unique taste experiences. Craft soda producers often emphasize local and sustainable sourcing, further appealing to eco-conscious consumers. As a result, the craft soda market continues to expand and innovate, offering a diverse range of flavors and packaging options to cater to a growing and discerning customer base.
Craft soda is a variety of carbonated water enriched with various additives, such as fruit and vegetable juices, sweeteners, alcohol, and other blends, aside from carbon dioxide. Often classified as a soft drink, it falls into the category of flavored carbonated beverages, primarily catering to consumers in search of unique and non-traditional soft drink flavors. Craft soda distinguishes itself by incorporating organic plant and fruit extracts, typically sourced from local farms where producers craft limited quantities of these beverages.
Driven by the growing consumer inclination toward artisanal, natural, and health-conscious beverage choices, the craft soda market is experiencing rapid expansion. The demand for low-sugar, low-calorie alternatives to conventional soft drinks is on the rise, propelling this market's growth. Furthermore, as consumers increasingly prioritize pure and wholesome beverage options, craft sodas are poised to replace traditional soft drinks, contributing significantly to the market's expansion in the foreseeable future. Leading companies are also diversifying their product portfolios by introducing new and contemporary offerings, aiming to capture a larger share of the market's potential revenue.
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Craft Soda Market Report Scope:
| Report Coverage | Details | |
| Market Revenue 2023 | US$7.5 Billion | |
| Estimated Revenue 2030 | US$1.08 Billion | |
| Growth Rate – CAGR | 5.3% | |
| Forecast Period | 2023-2030 | |
| No. of Pages | 150 Pages | |
Key Market Segments Covered |
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Regions Covered |
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Key Companies Profiled |
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Craft Soda Market Dynamics
Drivers:
The Craft Soda Market is being driven by several key factors that are contributing to its robust growth. One of the primary drivers is the changing consumer preferences for healthier and more natural beverage options. As consumers become more health-conscious and seek out products with fewer artificial ingredients and lower sugar content, craft sodas, which often use organic and natural ingredients, have gained popularity.
Another significant growth driver is the demand for unique and non-traditional soft drink flavors. Craft sodas offer a wide range of innovative and distinctive flavor profiles that attract consumers looking for something different from the standard soda offerings. This diversity in flavors and the novelty factor contribute to increased consumer interest and market growth.
Furthermore, the trend towards supporting local and small-scale producers has benefited the craft soda market. Many craft soda producers source their ingredients locally and create limited batches of their beverages, aligning with the consumer preference for artisanal and sustainable products.
In addition to these factors, the craft soda market is experiencing growth due to its ability to cater to the needs of health-conscious consumers seeking low-sugar and low-calorie alternatives to traditional soft drinks. This trend is expected to persist and further drive market expansion.
Overall, the craft soda market's growth is a result of its alignment with changing consumer preferences, innovative flavor offerings, support for local producers, and its positioning as a healthier alternative to conventional soft drinks.
Surging product launches
The surging product launches and other innovations by market players will drive the market's growth rate. For instance, SkinTe which is a U.S.-based brand has launched mood-boosting sparkling and collagen-infused wellness soda at 1,289 Walmart stores in June 2022 across the country. In this launch the company will offer three variants to consumers such as White Tea Ginger, Green Tea Grapefruit, and Hibiscus Vanilla.
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Rising demand for healthy hydration products
Increasing demand for healthy hydration products positively affects the market's growth during the forecast period. Consumers are inclined more towards healthy beverages such as craft soda and other functional beverages. Increasing awareness among consumers regarding the health benefits of low-calorie drinks, which are prepared with natural ingredients, is the major factor that is expected to drive the demand for the healthy hydration drinks and propel the overall market’s growth in the forecast period.
Opportunities
Rising awareness among consumers regarding unhealthy ingredients used in soft drinks.
Increasing awareness among consumers regarding unhealthy ingredients used in soft drinks is surging the growth of the market. Soft drinks are high in sugar which augments the insulin level in the body. Chemicals which are used for coloring soft drinks can also upsurge the chances of creating prostate cancer, breast cancer and pancreatic cancer. Augmented levels of sugar consumption can major factor to increase the chance of being diabetic. Tooth decay is one of the major side effect of carbonated drinks on the body. Soft drinks comprise added ingredients that are carcinogenic and acidogenic and thus causes weight gain and also cause corrosion of enamel from teeth. Thus, increasing demand of craft soda in the market will create immense opportunities for the market growth during the forecast period 2023-2030.
Restraints/ Challenges
High cost of craft soda
The high price of craft soda and limited speed of production hamper the market's growth. The cost of craft sodas can 3 times as much as a conventional soda. Now, they are available in 4 packs, rather than 6 packs or 12-packs. For instance, a 4-pack of 12-ounce glass bottles of Dry Sparkling costs USD 5.99, however which contains less soda than a regular carbonated beverage.
This craft soda market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the craft soda market.
Analyst’s Viewpoint
The market is poised for growth due to increasing health consciousness and a growing understanding among consumers of the advantages of consuming organic products. Shifting consumer preferences from high-sugar beverages to those with lower or moderate calorie content, along with a preference for craft soda over alcoholic drinks, is expected to accelerate market expansion. Additionally, the expanding populations and urbanization levels in developing nations are projected to drive market growth. The trend towards customization and personalization is also contributing to the revenue surge in the craft soda industry. Consumers are seeking unique and tailored products that align with their tastes and preferences. To cater to this trend, the craft soda market is offering a wide array of flavors and personalization options, including distinctive labels and packaging. Furthermore, the rising popularity of specialized and gourmet foods is positively impacting the craft soda market's revenue growth, as craft sodas pair well with upscale, gourmet meals. Consequently, they are gaining popularity in pubs, hotels, and premium restaurants. Furthermore, the growing demand for unique and complex flavors in non-alcoholic alternatives is boosting sales in the craft soda market, driven by the appeal of craft beers and spirits.
Supply-side Dynamics
The US craft soda manufacturing industry is primarily propelled by the increasing consumer awareness of health-related issues, particularly the high rate of obesity in the region. North America and Europe currently dominate the craft soda consumption and manufacturing market. However, the expanding sales in various Asian countries position the region as a potential major player in the industry. In terms of production volume, North America held a commanding 94.7% of the craft soda market share in 2017, making it the region with the highest production capacity. Europe ranked second with a 4.10% market share. Notably, companies in the US are actively investing in innovative products with attractive packaging, contributing to the overall growth of the market. These suppliers have introduced creative packaging and labels featuring inspiring images and graphics in their expanding product portfolios. Furthermore, market players in the region are offering single-serve packaging with extended shelf life through the use of recyclable plastic materials. For example, Southside Craft Soda, a company based in San Antonio, Texas, launched a Go Local Giveaway for its customers in May 2020, showcasing its commitment to community engagement and sustainability.
Market Segmentation
Which Flavor is Expected to Lead in Revenue Generation?
The craft soda market is set to witness the most substantial revenue growth in a specific flavor category. In 2022, the cola category took center stage, asserting its dominance in the market. The driving force behind this expansion is the increasing demand from younger generations, particularly millennials, who are showing a heightened preference for soda-flavored soft drinks. The cola flavor stands out as a perfect fit for consumers seeking unique, innovative, and unconventional beverage options, thanks to its distinct and original taste profile. Responding to this growing consumer appetite, product manufacturers are actively diversifying their offerings, introducing a wide array of craft sodas with novel and distinct flavors. Additionally, the tropical fruits category is poised for significant growth during the forecast period due to the rising consumer inclination towards fruit-infused beverages. Recent years have witnessed notable transformations in the global market, marked by the introduction of innovative products and services. To navigate these evolving challenges and cater to changing consumer preferences, businesses are introducing new flavors while also addressing health and wellness concerns.
Which Packaging Holds the Spotlight for Future Installations?
The craft soda market in 2022 was dominated by the glass packaging category. Glass bottles play a pivotal role in preserving the flavor and quality of craft soda by extending the preservation of carbon dioxide concentration. Customers find glass bottles practical and visually appealing, which adds to their popularity. Furthermore, leading companies in the industry are launching innovative products featuring creative packaging that combines fresh designs with branding, effectively attracting new customers to opt for craft sodas in glass bottles. Additionally, the cans category is expected to experience substantial growth in the forecast period, driven by a heightened focus on environmentally friendly packaging and the increasing presence of small-scale independent brewers. This category is also anticipated to benefit from the affordability and widespread availability of cans in mass retail stores and supermarkets. The demand for sustainable packaging solutions has surged in tandem with global beverage consumption, resulting in a growing adoption of aluminum cans.
Which Distribution Channel Will Contribute the Most to Market Revenue?
In 2022, the on-trade category emerged as the dominant force in the craft soda market. The segment's growth is primarily fueled by the increasing consumption of craft sodas at bars, restaurants, hotels, and nightclubs. A consumer survey conducted by The British Soft Drinks Association in 2020 revealed that patrons of dining and lodging establishments increasingly favor craft sodas and other carbonated beverages. Given that consumer purchasing power plays a pivotal role in the adoption of such products at bars and cafes, sustained improvements in disposable income are expected to support this segment in the projected period.
Moreover, the off-trade category also commanded a significant share of the market. This category encompasses supermarkets, discount retailers, grocery stores, e-commerce platforms, hypermarkets, and convenience stores. Prominent retail giants such as Carrefour, Walmart, and Safeway are among the key players selling craft sodas through these channels. These outlets are considered essential distribution channels for delivering artisanal beverage products to end consumers. The growth of this segment is likely to correlate positively with the expansion of product offerings across diverse distribution channels.
Craft Soda Market Research Segmentation
By Flavor:
- Cola
- Tropical Fruits
- Berries
- Others
By Packaging:
- Glass
- Cans
- Plastic
- Others
By Distribution Channel:
- On-Trade
- Off-Trade
- B2C
By Region:
- North America
- Europe
- East Asia
- South Asia & Oceania
- Latin America
- Middle East & Africa
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