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Craft Soda Market

Market Study on Craft Soda: PMR Foresees Various Opportunities, Analysing include increasing consumer interest in premium and unique beverage options, a shift away from artificial ingredients, and a focus on local and authentic flavors

A Detailed Analysis of the Craft Soda Market Based on Robust Growth Driven by Consumer Demand for Unique, Artisanal Flavors and a Preference for Natural, High-Quality Ingredients

Craft Soda Market

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.


Key Insights

Craft Soda Market Size (2023E)

US$7.5 Bn

Projected Market Value (2030F)

US$1.08 Bn

Global Market Growth Rate (CAGR 2023 to 2030)


Historical Market Growth Rate (CAGR 2018 to 2022)


Revenue Share of Top Four Countries (2022E)


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Market Introduction and Definition

Craft soda is a kind of soda water that has additional additives, such as fruit and vegetable juices, alcohol, sweeteners, and other mixes, in addition to carbon dioxide. Often categorized as a soft drink, craft soda is a kind of flavored carbonated beverage. In order to draw in a sizable number of customers searching for alternatives, it primarily falls under non-traditional soft drink flavors. Craft soda, on the other hand, is made from organic plant and fruit extracts that are usually grown nearby on farms. Typically, these farms' producers create limited amounts of their beverages.

The need for low-sugar, low-calorie alternatives to traditional soft drinks is growing as consumers' preferences for artisanal and natural beverages are rising. The craft soda market is growing at a quick rate due to consumer interest in natural and organic products as well as increased awareness of health and wellness. Moreover, the global craft soda market is anticipated to expand during the forecast period as sodas are starting to replace regular soft drinks as consumers seek out pure, healthful beverage options. This trend is expected to be a major factor in increasing product demand during the forecast period. Furthermore, important companies have combined new and contemporary products from the market to broaden their product ranges in an effort to take the biggest potential revenue share.

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Market Growth Drivers

Growing Inclination Among Young Folks to Consume Natural Drinks

The market for craft soda is expanding due to the growing popularity of healthy lifestyles, rising health concerns, and young folks' increased inclination toward genuine beverages. These days, consumers choose drinks with greater health advantages and take a holistic approach to wellbeing. Drinks are following the trend of consumers seeking healthy and useful beverages. People are prepared to test healthier alternatives to conventional soft drinks since they are becoming more health conscious. Craft soda with added sweetness is becoming a huge hit on the market, particularly with consumers looking for high-quality, health-conscious products that don't break the bank. With less time throughout the workday for exercise, young individuals favor healthy drinks that suit their busy lifestyles. The younger generation's growing interest in preventative measures these days indicates a change in behavior and awareness.

Rising Problems with Health as a result of Increased Usage and High Prices Related to Craft Beverages

The consumption of soft drinks has been linked to a number of chronic health problems. Soft drink additives, primarily sugar, are to blame for the increased dangers. Some soft drinks with added sugar, however, include two or more grams of sugar per ounce serving—more than the daily recommended amount for adults. Craft soda with added sugar has a strong negative impact on the development of type 2 diabetes and metabolic syndrome. One to two cups per day are recommended. Craft soda sales are being adversely affected by all of these issues. Moreover, the growth of the market is hampered by the high cost of craft soda and its slow manufacturing rate. Craft sodas can cost up to three times as much as regular sodas. Instead of 6 or 12 packs, they are now only available in 4 packs. A 12-ounce glass bottle of Dry Sparkling, for example, comes in a 4-pack for USD 5.99, but it has less soda than a typical fizzy drink.

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Market Restraints

Growing Consumer Awareness of the Unhealthful Substances Present in Soft Drinks

Growing consumer knowledge of the harmful substances found in soft drinks is driving the market's expansion. Soft drinks have a lot of sugar, which raises the body's insulin level. Chemicals used in soft drink coloring may potentially increase the risk of developing pancreatic, breast, and prostate cancers. Increased sugar intake is one of the main risk factors for developing diabetes. One of the main negative effects of carbonated drinks on the body is tooth decay. Soft drinks have additional components that are acidogenic and carcinogenic, which leads to weight gain and tooth enamel erosion. As a result, over the projection period, the industry's growing demand for craft soda will present numerous potential for market expansion.

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Increasing Competition in the Drinks Sector

One of the factors limiting the craft soda business is the heightened rivalry from other beverage industries. As tastes change and people become more health conscious, they are looking into a wider variety of beverage options, including flavored water, functional drinks, and plant-based beverages. This change in consumer tastes may impact the craft soda market share. When they enter the market, new and creative goods could draw consumers' attention away from conventional soda options. Furthermore, consumers are choosing healthier options because of worries about the sugar and calorie content of regular soda. Manufacturers may need to investigate other sourcing tactics and enhance production procedures in order to lessen this constraint.

Analyst’s Viewpoint

The market is anticipated to be driven by rising health concerns and rising consumer awareness of the benefits of consuming organic products. It is anticipated that shifting consumer tastes from high-sugar to low- or mid-calorie beverages and the preference for craft soda in place of alcoholic beverages will accelerate market expansion. Moreover, growing populations and rising levels of urbanization in developing nations are predicted to boost market expansion. Growing inclinations toward customization and personalization are also fueling the revenue growth of the craft soda industry. Consumers want unique, customized products that suit their tastes and inclinations. The craft soda market is reacting to this trend by providing a wide range of flavors and personalization choices, including distinctive labels and packaging. Additionally, as specialized and gourmet foods gain popularity, the craft soda market's revenue growth is being pushed by them. Since craft sodas go well with pricey, gourmet meals, they are becoming more and more popular at pubs, hotels, and premium restaurants. In addition, the growing demand for unique and complex flavors in non-alcoholic alternatives is fueling the craft soda market's sales growth due to the appeal of craft beers and spirits.

Supply-side Dynamics

Growing consumer awareness of health issues is one of the main factors propelling the US craft soda manufacturing industry. Furthermore, the region's high rate of obesity is a significant element supporting its supply. The majority of the market for the consumption and manufacturing of craft sodas is held by North America and Europe. However, expanding sales in many Asian nations position the region as a potential major player. Based on output volume, North America accounted for 94.7% of the craft soda market share in 2017, making it the region with the greatest production capacity. Europe, with 4.10% of the market, is ranked second. Additionally, firms in the US are investing in and introducing fresh, creative items with appealing packaging, which has helped the market as a whole flourish. These suppliers have added creative packaging and labels with motivational photos and graphics to their growing product line. Market companies in the area supply single-serve packaging with a longer shelf life by using recyclable plastic packaging. For instance, Southside Craft Soda, a company located in San Antonio, Texas, introduced a Go Local Giveaway for its patrons in May 2020.

Market Segmentation

Which Flavor is Expected to Benefit the Most from Revenue Generation?

Growth of Cola Category Due to Increased Demand from Younger Generation

The cola category dominated the craft soda market in 2022. The increasing desire among younger people and millennials for soft drinks with soda flavors is fueling the segment's expansion. The cola flavor perfectly satisfies customer needs for unique, inventive, and non-traditional soft drinks thanks to its distinctive, original, and non-traditional taste. Product producers are currently creating a variety of craft sodas with unique flavors in response to growing consumer demand. Moreover, the tropical fruits category is anticipated to grow at a significant rate over the forecast period because customers' desire for fruit-flavored items is growing. In recent years, the global market has experienced notable shifts with regard to the introduction of new products and services. Businesses are bringing in new flavors while taking into account the health and well-being concerns of their clientele in order to adapt to the market's growing challenges and changing consumer preferences.

Which Packaging Will Be Targeted the Most for Installations?

Introduction of New Goods with Innovative Packaging will Boost the Growth of Glass Category

The glass category dominated the craft soda market in 2022. Glass bottles help guarantee that the flavor and quality of craft soda are not compromised by extending the duration of the carbon dioxide concentration preservation process. Customers appreciate and feel more comfortable with glass bottles because they are fairly practical and have appealing packaging. Furthermore, prominent companies in the industry are introducing new goods with creative packaging that combines fresh designs and styles with branding, drawing in new customers for glass-bottled craft soda. Moreover, the cans category will grow at a substantial rate in the forecast period due to the increased emphasis on environmentally friendly packaging and the growth of more independent small-scale brewers. The market for this particular category is also expected to be influenced by the low prices of cans and broad availability in mass merchandisers and supermarket stores. The desire for sustainable packaging solutions has surged along with global beverage consumption, leading to an increase in the use of aluminum cans.

Which Distribution Channel will Contribute to the Most in Market Revenue?

On-trade Category to Dominate Due to Consumer Purchasing Power

The on-trade category dominated the market in 2022. The increasing use of this kind of soda at bars, restaurants, hotels, and nightclubs is fueling the segment's rise. A consumer survey by The British Soft Drinks Association in 2020 found that patrons of eateries and lodging establishments like sipping craft sodas and other carbonated drinks. As consumer purchasing power is the primary driver of such product consumption at bars and cafés, consistent improvements in disposable personal income are anticipated to support the business over the projected period.

Moreover, the off-trade category held a significant share of the market. Supermarkets, discount retailers, grocery stores, e-commerce, hypermarkets, and convenience stores make up the majority of the off-trade channel. Supermarkets such as Carrefour, Walmart, and Safeway are among the prominent stores that sell craft sodas. These outlets are regarded as essential routes of distribution for distributing handmade beverage items to final consumers. Segment growth is probably going to be positively correlated with expanding product offers through various channels.

Top Regional Markets

High Consumer Desire for Natural and Organic Beverages in North America to Fuel Growth Market

In 2022, the North American craft soda market had a dominant position over all other regional markets. The area is a major factor in the growth of the craft soda market because of the growing customer desire for natural and organic beverages. The growing health consciousness of customers and their quest for better soda options has led to an increase in the demand for craft soda in the area. Furthermore, the growing trend of premiumization and unique flavor experiences is another reason why the craft soda industry is growing in North America. This is exemplified by the increase in local small- and medium-sized craft soda makers, who use unique and cutting-edge flavors to entice consumers. In addition, people are spending more money on beverages with lower sugar content as a result of growing health consciousness among consumers in nations like the United States and Canada. To strengthen their positions in the market and increase their footprint, businesses are concentrating on making smart acquisitions. For instance, in October 2021, WIT Beverage firm sold Green River, WBC Craft Sodas, Caruso's Italian Style Sodas, and Oak Creek Barrel Aged Root Beer to Sprecher Brewing Co.-Chicago, a well-known American brand. To gain the lion's share of the American market and expedite supply, distribution, and product development, the corporation would also profit from the acquisition.

What Opportunities Lies in South Asia & Oceania for Manufacturers?

Rising Tendency Toward Low-sugar Drinks in South Asia & Oceania will Boost its Expansion

South Asia & Oceania craft soda market is expected to grow at a significant rate over the forecast period. Growing product penetration in emerging nations like China, Australia, and India is probably good news for regional expansion. To boost sales and expand their clientele, a number of domestic and foreign companies are introducing their goods in developing nations with growing populations. For instance, SHUNYA Indian beverage brands provide a variety of craft soda products in flavors such as Lemon, Lime, and Classic Cola. Moreover, the region may see profitable market growth potential due to the growing tendency toward low-sugar or low-calorie drinks and the constantly growing young population. Additionally, the growing trend of premiumization and unique flavor experiences is driving growth in the region's craft soda market. This is evidenced by the increase of local small- and medium-sized craft soda makers, who attract customers with unique and cutting-edge flavors. Furthermore, the growing popularity of e-commerce platforms in the area is expected to support the growth of the craft soda market, as consumers are turning more and more to online channels for their purchases.

Competitive Intelligence and Business Strategy

Key tactics used by participants such as Jones Soda Co., PepsiCo, Inc., The Coca-Cola Company, The Original Craft Soda Company, Boylan Bottling Co., and others, in the craft soda market include joint ventures, product launches, mergers and acquisitions, and research and development initiatives. In addition to premiumization and new product creation, players also use a variety of tactics to increase their reach. These tactics consist of geographical explorations, mergers, and acquisitions. Furthermore, strong competitors for market share exist among the leading producers, suppliers, and distributors of craft soda in a range of tastes. Both domestically and internationally, these businesses have sizable consumer bases for their goods. These market players can reach a wider range of customers because to their robust and extensive distribution networks.

Key Recent Developments

New Product Launch

January 2023: A caffeine-free lemon-lime flavored drink was introduced by PepsiCo, a US-based firm, in both ordinary and zero-sugar formats in the US. Keurig Dr. Pepper's 7 Up and Sprite from The Coca-Cola Company will rival Starry Lemon & Lime.

Market Impact: PepsiCo's product launch has significantly impacted the growth of the market. PepsiCo is working hard to reclaim the under-25 market, which has been difficult for conventional soda companies to target. Recent research indicates that younger generations view soda and other sugary drinks as harmful and unhealthy and that they prefer functional beverages that are sustainable, clean, and socially responsible. Additionally, PepsiCo is attempting to attract internet-savvy consumers with its tagline, "Starry hits different." Moreover, it is anticipated that shifting consumer tastes away from alcoholic beverages and toward low- or mid-calorie drinks like Starry will accelerate market expansion.

In October 2022: The new Mango Peach flavor from Utmost Brands, Inc., a U.S.-based company that makes GuS - Grown-up Soda, was introduced during the Summer Fancy Food Show in New York City. The product is gluten-free, Kosher, and non-GMO certified. It is made of sweet peach juice, ripe mango puree, and a small amount of cane sugar.

Market Impact: Growing customer preference for fruity-flavored craft beverages is anticipated to present market participants with several profitable prospects and allow them to diversify their product offerings. Due to the ever-changing needs of consumers, major players are changing their marketing approaches and drawing in new clients. Throughout the projection period, this tendency is anticipated to continue to play a significant role in boosting product demand.

Craft Soda Market Report Scope



Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Oceania
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Flavor
  • Packaging
  • Distribution Channel
  • Region

Key Companies Profiled

  • 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

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

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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

- Companies Covered in This Report -

  • 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

- Frequently Asked Questions -

The market is anticipated to grow at a CAGR of 5.3% during the projected period.

The craft soda market was valued at USD 7.5 billion in 2023.

The U.S. held the largest market share in 2023.

The prominent players in the market are Jones Soda Co., PepsiCo, Inc., The Original Craft Soda Company, The Coca-Cola Company, Boylan Bottling Co., and others.

The on-trade segment is expected to grow at the fastest growth during the forecast period.

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