Craft Soda Market Estimated to Reach US$ 11,887 Mn by 2032 - Persistence Market Research

The global craft soda market is set to expand at a CAGR of 5.3% from 2025 to 2032, increasing from a value of US$ 8,301.7 Mn in 2025 to US$ 11,887.0 Mn by the end of 2032.

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Market Overview
Craft soda, a flavored carbonated beverage, is crafted using natural ingredients like fruit extracts and sweeteners. The demand for healthier, low-sugar beverage alternatives is propelling market growth, as consumers shift toward artisanal and organic products.
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Key Growth Drivers
• Growing Consumer Preference for Natural Drinks: The increasing inclination of young consumers toward natural, health-focused beverages is a key driver of market growth. Craft sodas, made from organic and locally sourced ingredients, align with this demand.
• Health-Conscious Consumption Trends: With rising awareness of sugar-related health risks, consumers are shifting away from traditional sodas toward craft sodas with reduced or alternative sweeteners.
• Expansion of Unique Flavors: The industry is witnessing a surge in demand for innovative flavors, including tropical fruits and exotic blends, catering to evolving consumer tastes.
• Premiumization of Beverages: Craft sodas are gaining popularity in premium dining and retail sectors, positioning themselves as high-quality, gourmet alternatives to traditional soft drinks.
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Market Restraints
• Concerns Over Sugar Content: Despite efforts to reduce sugar levels, some craft sodas still contain higher-than-recommended sugar amounts, leading to health concerns and limiting sales growth.
• Higher Cost of Craft Sodas: The premium pricing of craft sodas compared to mass-produced soft drinks remains a challenge for widespread adoption.
• Competition from Functional Beverages: The growing trend of functional and plant-based beverages presents significant competition, shifting consumer preferences away from carbonated drinks.
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Opportunities in the Market
• Growing Popularity of Low-Sugar Drinks: The trend of low-calorie and low-sugar beverages is creating new opportunities for craft soda brands to expand their portfolios with healthier alternatives.
• Innovations in Packaging: Companies are leveraging sustainable packaging solutions like glass bottles and aluminum cans to enhance appeal and align with eco-conscious consumer preferences.
• E-commerce Expansion: The rising penetration of online retail channels is providing craft soda brands with new avenues for global distribution and direct-to-consumer sales.
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Regional Insights
• North America Leads Market Growth: With high consumer demand for organic and natural beverages, North America dominates the craft soda market. The presence of key market players and increasing investments in innovative products further bolster regional expansion.
• South Asia & Oceania Emerging as Key Markets: The rising adoption of low-sugar beverages and increasing disposable incomes in countries like India, China, and Australia present lucrative growth opportunities in the region.
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Competitive Landscape
Leading companies in the craft soda market, including Jones Soda Co., PepsiCo, Inc., The Coca-Cola Company, and Boylan Bottling Co., are focusing on product innovation, mergers, and acquisitions to expand their market presence. New product launches featuring exotic flavors and health-conscious ingredients are shaping the competitive landscape.
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Recent Industry Developments
• January 2023: PepsiCo introduced a caffeine-free lemon-lime drink in both regular and zero-sugar variants, targeting health-conscious consumers seeking soda alternatives.
• October 2022: Utmost Brands, Inc. launched a new Mango Peach craft soda, catering to the increasing demand for fruit-flavored beverages with natural ingredients.
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Market Segmentation
By Flavor:
• Cola
• Tropical Fruits
• Berries
• Others
By Packaging:
• Glass
• Cans
• Plastic
• Others
By Distribution Channel:
• On-Trade
• Off-Trade
By Region:
• North America
• Europe
• East Asia
• South Asia & Oceania
• Latin America
• Middle East & Africa

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