Key Findings

Affordability pressure reshapes consumer priorities, as cost-of-living challenges continue

Rising prices in global soft drinks have reshaped consumer behaviour, with affordability emerging as a critical (but far from the only) component of the current value equation. Global soft drinks brand owners face mounting challenges to balance the need for accessible pricing strategies with profitability. Consumers demand budget-friendly formats, driving private label and local B-brands.

Health, wellness and functionality are areas of consumer investment

Consumers prioritise health, wellness, nutrition and productivity - driving demand for functional, and lo/no sugar drinks. Hydration powders, energy, ORS, gut-health drinks and adaptogen-based adult soft drinks have been success stories in an otherwise challenging growth environment. Bringing these products to mass channels and mid-/low-income consumers remains a challenge.

Emerging Africa, Middle East and APAC lead soft drinks volume outlook

The volume outlook over 2025-2029 hinges on the pace of commercial beverage adoption in rising consumer markets, finding a path for affordable (yet profitable) branded options in a fragmented, largely informal retail environments. Localised brand strategies, improved infrastructure and regional brand partnerships will be key to unlocking the vast potential of these beverage markets.

Demographic shifts further complicate consumer behaviour and beverage demand

Ageing populations in developed markets, smaller household sizes, declining birth rates and urbanisation are all influencing the longer-term notion of what “affordability” means in the drinks industry. Over the next decade, this may shape new demand in areas such as nutrient-dense drinks, more space-efficient packaging units and more convenient, localised distribution.

The soft drinks channel landscape only becomes more fragmented

The surge of value-driven retail channels (particularly club, grocery discounters and vending) seems unlikely to abate in the short term. Local/Regional foodservice banners gain share in key areas such as on-trade RTD coffee and tea. Tailored, local flavours, ingredients and menu items become key as multinational producers face a heightened threat from rising local stars.