Growth of the carbonated beverage market over the years with CAGR calculation.

1. Insert Cover Image using Slide Master View
Do not change the aspect ratio or distort the image.
Proprietary and Confidential, Copyright © 2019, Netscribes, Inc. All Rights Reserved
The content of this document is confidential and meant for the review of the recipient.
Disclaimer: The names or logos of other companies and products mentioned herein are the trademarks of their respective owners
Global Carbonated Beverage Market
(2017-2022)

2. 2
Key Questions Answered in This Report
 What is the global market revenue of carbonated beverage market?
 What are the different segments of the carbonated beverage market?
 What is the future of carbonated beverage market?
 What are the drivers, challenges and trends in the market?
 What is the competitive scenario of the global carbonated beverage market?
 What is the market share of the key companies in the market?
 What are the key players in the market?
 What are the initiatives and strategies of the key companies?
 What are the strengths, weakness, opportunities and threats of the key market players?
 What are the regions with maximum opportunity for the growth of carbonated beverage market? Which
are the countries in those regions with maximum opportunities?
 How does the future look for the carbonated beverage market?

3. 3
Executive Summary
320
330
340
350
360
370
380
390
400
410
2017 2020 2022
349.51
379.7
401.26
Global Market Size ($Bn) Overview
 The global carbonated beverage market is
predicted to expand at a compound annual
growth rate (CAGR) of 2.8% during the forecast
period (2017 – 2022).
 The market is segmented based on products,
distribution channels, regions and flavours.
 Asia-Pacific, Latin America, Africa and Middle
Eastern markets have shown a higher growth in
this sector with a meteoritical rise of hyper
markets and eCommerce chains.
Trends
 Rising concern for high intake of sugar from
consumption of standard carbonates resulted in rising
sales of zero or low sugar-based drinks
 Packaging varieties has also resulted in an increased
sales volume, as consumers prefer to tone down the
sugar consumption rate and smaller packages
benefited that choice significantly
 Introduction of fusion drinks or combination of exotic
flavours that subdues the market for traditional
standard carbonates
Drivers
 With dynamic taste profiles consumers, the soft
drinks manufacturing companies have been
innovating their products to meet the needs of
the consumers.
 Carbonated drinks are set to be in a cheaper price
range among all non-alcoholic beverage market
 Smaller packages of drinks have seen increasing
demand due to consumer interest
Challenges
 Markets for carbonated drinks in developed regions has
seen a steady decline of sales volume in comparison to
the growing sales volume in the developing regions.
 The governments in the developed regions have levied a
surcharge on carbonated drinks due to huge increase of
carbonate consumptions
 Consumers all over the world have started to decrease
the consumption of sugar due to the negative effects of
sugar consumption or high calorie intake

4. 4
Market Definition and Segmentation
Carbonated beverages are drinks with added pressurized carbon dioxide to provide effervescence or fizz. Soda water or carbonated water are used as a base to create these
beverages and contain sweeteners, flavours and water. Carbonic acid is created by addition of water and carbon dioxide that gives a tingling feeling after consumption. These
are also called soft drinks or fizzy drinks and spans across sparkling drinks, smoothies, juices, ready-to-drink tea and coffee, concentrates and functional drinks.
Product
Standard
Diet
Flavoured
Others
Sales Channel
Hyper & Super markets
Restaurants
Vending Machines
Independent Retailers
Convenience Stores
Flavour
Cola
Orange
Lime
Strawberry
Geography
North America
Europe
Asia-Pacific
Middle Ease and Africa
MarketSegmentation

5. 5
320
330
340
350
360
370
380
390
400
410
2017 2018 2019 2020 2021 2022
349.51
359.3
369.36
379.7
390.34
401.26
Global Carbonated Beverage Market (Revenue in USD Bn)
Global- Market Overview
• The Global carbonated beverage market was valued at USD 349.51 bn in
2017 and it is expected to increase to USD 401.26 bn by 2022 at 2.8%
CAGR.
• To face the growing market challenges, companies are bringing new flavors
keeping in mind the health and wellness concerns of consumers. While the
industry comprises low margins as compared to other processed foods,
market leader Coca-Cola maintains product sustainability approach for
continued brand loyalty.
• The hypermarkets, supermarkets and convenience stores segment is the
most common sales channel for the carbonated beverage market, with a
share of 40% in 2018. However, these segments are expected to lose some
ground to other channels like food service and drinking establishments such
as restaurants and food joints as well as online grocery shopping portals.
• Europe grabs the largest market share with approximately 34% of the global
carbonated drinks sold in this region, followed by North America with a
28% share.
• In the North American and European regions, the sale of carbonated
beverages is experiencing slower-than-expected growth, owing to an
increase in health-consciousness among consumers. Soft drink
manufacturers are introducing innovative drinks like low-calorie variants to
achieve higher growth of sales.
• Asia Pacific is also one of the key markets where demand is growing at a
high rate. The popularity of carbonated and energy drinks of various
flavours in India and China is a market driver.

6. 6
Market Share Overview
I. Revenue wise: Key players (2018)
0
10
20
30
40
50
60
70
31.86
64.66
7.44
0.481 0.975 2.02 0.6
Revenue (USD Bn)
II. Region wise: Global
28%
34%
20%
11%
7%
North America
Europe
APAC
Latam
Middle East & Africa

7. 7
Key Market Trends
• With dynamic taste profiles of consumers, the soft drink manufacturing companies have been innovating their products to meet the
needs of the consumers
• Soft drink manufacturing companies have been very receptive of change in consumer taste profiles and have been innovating their
products to accommodate the same
• Carbonated drinks are set to be in a cheaper price range among all non-alcoholic beverage market in respect of packaging
• The sales value have increased globally due to availability of smaller packaging options for almost all soft drink variants
• The reason for the success of smaller packs across the globe is helping the people to consume low calorie in the way of intaking harmful
sugary drinks
• The matured markets have seen a steady decline in the sales volume for the standard variants of soft drinks and carbonated beverages
due to adverse effects on health for amount of sugar intake.
• Consumers are demanding more healthier drink or energy drinks that have low or no sugar content.

8. 8
Key Market Drivers
Price
Attractiveness
Unlike the consumer of the developed countries, the people of developing countries have a low economic profile which forces
them to buy more carbonated drinks rather than the expensive health drinks. The soft drinks have a high demand and high
sales average in these countries rather than the other countries globally.
Packaging
Sizes
Many soft drink companies have started focusing on their packaging sizes as per the needs of the consumers. Smaller packaging
have seen a rise in demand among the consumers as it helps them to carry it conveniently and intake less amount of sugar
contained drinks. Companies have also started creating packages made out of natural raw materials in order to protect the
environment from plastic and non-biodegradable wastes.
Product
Innovation
It has been seen as a new market trend, especially in developed and matured markets, that the consumer are demanding new
variants or exotic flavours of the existing drinks to be available in the market. Along with the existing carbonated drinks that are
there in the market there is also a demand for healthier drinks which has low or no sugar contain. Apart from this, drinks with
functional additives are also garnering major demand

9. 9
Key Market Challenges
 Markets for carbonated drinks in developed
regions has seen a steady decline of sales
volume in comparison to the growing sales
volume in the developing regions. This is
because of the low economic condition of
people in those regions.
 The governments in the developed regions have
levied a surcharge on carbonated drinks due to
huge increase of carbonate consumptions. This
tax discourages the consumption of these drinks
as it makes the drinks costlier. Maturity of
markets in developed countries have made the
manufacturers look towards the developing
countries to become the object of their focus for
growth strategy.
 Consumers have started to decrease the
consumption of carbonated beverages or soft
drinks due to the negative effects of sugar or
high calorie intake. There has been a huge
demand in the market, of drinks that have low
or now sugar so that it does not have any
adverse effect on anyone’s health.
Ex: Diet Coke, Coca-Cola Zero, Diet Pepsi etc.
Matured Markets
Health Concerns
Soda/ Sugar Taxation

10. 10
Company Overview- The Coca-Cola Company
Company Snapshot
Year of Establishment: 1919
Headquarters: Atlanta, Georgia, United States,
Key People: James Quincey (CEO and President)
Traded as: NYSE: KO
Employee Strength: 61,447 (present)
Total Revenue: USD 31.85 BN (2018)
Industry: Beverage
Website: www.coca-cola.com
The Coca-Cola Company is a manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups globally. The company is best known for its
flagship product Coca-Cola. It supplies over 500 brands in more than 200 countries and territories.
Products
• Coca-cola
• Fanta
• Diet Coke
• Mello Yello
• Sprite
• Powerade
• Kinley
• Maaza
• Thums Up
• Nestea
• Lift
• Gold Spot
Global Presence
Recent Initiatives
• The Coca-Cola India Foundation has set up over 130 water
replenishment structures with a potential of replenishing 12
billion litres of water. More than 700,000 lives changed for the
better in more than 500 villages.
• Innovations in packaging materials like natural raw materials that
substitute the petrochemical feed stocks are economically viable
and deliver multiple opportunities. It also offers improved
ecosystem impacts and carbon footprint reductions.
• The company announces acquisition of Costa Limited, one of the
major coffee brands globally.
Growth Strategy
• Health Awareness: Consumers are adopting healthier diet and
lifestyles, which include consuming less sugar, thus creating
demand for sugar-less products and introducing new drinks with
natural plant based protein.
• Product Innovation: To make many of their beverages tastier and
more nutritious by providing vitamins, minerals and electrolytes.
It also introduces more dairy and plant based beverages to meet
an increasing demand and range of consumer choices.
• Reducing Sugar and Calories: To meet the changing needs of the
consumer, the company has updated their approach to more
effectively measure their sugar and calorie reduction efforts.
20.70%
11.20%
24.40%
13.50%
EMEA LATAM North America APAC
Geographic Share of Revenue

11. 11
Coca-Cola: SWOT Analysis
Weakness
• Significant focus on carbonated drinks
• No clear diversification
• Many brands with insignificant amount of
revenues
• High debt levels
Strenghts
• Leader in beverage market
• Successful marketing campaigns
• Brand reputation and customer loyalty
• Extensive distribution channels
• Bargaining power over supplier
• Effective CSR
Opportunities Threats
• Leader in beverage market
• Successful marketing campaigns
• Brand reputation and customer loyalty
• Extensive distribution channels
• Bargaining power over supplier
• Effective CSR
• Leader in beverage market
• Successful marketing campaigns
• Brand reputation and customer loyalty
• Extensive distribution channels
• Bargaining power over supplier
• Effective CSR

12. 12
Company Overview- PepsiCo
Year of Establishment: 1898
Headquarters: Harrison, New York, United States
Key People: Ramon Laguarta (CEO)
Traded as: NASDAQ: PEP
Employee Strength: 128,507 (present)
Total Revenue: USD 64.66 BN (2018)
Industry: Beverages and Food processing
Website: www.pepsico.com
Products
• Pepsi
• Mountain Dew
• Gatorade
• Diet Pepsi
• Tropicana
• 7 UP
• Lipton Tea
• Mirinda
• Pepsi Max
• Mist Twist
Company Snapshot
PepsiCo is an American multinational food, snack and beverage corporation which manufactures, markets, distributes and sells non-alcoholic beverages and other food
products. It has a product portfolio including 22 brands that generate more than $1 billion each in annual retail sales. Some of the company’s brands include Pepsi-
Cola, Frito-Lay, Gatorade, Quaker and Tropicana etc.
Global Presence
 Improving the nutritional quality of their products will help
provide consumers with more choices to fit into their overall
diet. It will also help them to adapt to consumer preferences
over the long term, thus positioning them to continue to
deliver strong business results
 2025 Goal for Added Sugars: They will try to achieve at least
2/3 of their global beverage portfolio volume will have 100
Calories or fewer from added sugars per 12-ounce serving.
 Aim to minimize our environmental impact while growing
our business and helping meet the food, beverage and natural
resource needs of both our business and our changing world
 To operate as a global corporate citizen, and as a positive
force in the community, they need to conduct business fairly
in the global economy, advancing economic well-being and
human rights across their supply chain
Geographic Share of Revenue
58%
42%
United States
Other
countries
Recent Initiatives & Growth Strategies

13. 13
PepsiCo: SWOT Analysis
Weakness
• Heavy reliance on carbonated drinks
• Lack of product diversification
• Product perceived as unhealthy
• Competition from other companies
• Failed products
Strenghts
• Brand equity
• Loyal customer base
• Global presence
• Strong product portfolio
• Strong supply and distribution network
Opportunities Threats
• Increasing demand for healthy products
• Market expansion through acquisition and
partnerships.
• Effective CSR
• Innovative drinks through research and
development
• Reducing customer demand for
carbonated drinks
• Heavy competition from local and global
markets
• Weak product portfolio of non-carbonated
drinks

14. 14
Company Overview- Asahi Soft Drinks
Company Snapshot
Asahi Soft Drinks is a soft drink company in Japan, that operates as a subsidiary of Asahi Breweries. It produces non-alcoholic beverages and distributes it globally. Some of its
products include soda drink, coffee, milk, water, sports health drinks, fruit and vegetable drinks.
Products
• Bireley’s
• Cafeo
• Dodekamin
• Fauchon
• Fiber 7500
• Ichigeki
• Kuchidoke Cocoa
• Kuromugicha
• Mitsuya Cider
• Wilkinson
• Wonda
Global Presence
Recent Initiatives Growth Strategy
• The company is focusing towards creating high value added
products to its brand portfolio to increase growth in an already
matured soft drinks market.
• Development and management of corporate values in the soft
drinks segment of the firm, according to the corporate philosophy
of the parent company.
• The company has focused on utilization of its research and
development capabilities to bring out a wide range of soft drink
products with added health value.
60.16%
27.89%
8.92%
2.79%
0.241546
Europe
Oceania
Southeast Asia
China
Rest of the World
Geographic Share of Revenue
• In 2016, carbonated drinks made up around 23% of the
total sales by Asahi Soft Drinks Co Ltd. The company is
taking initiatives to reinforce its brand strength in its core
products.
Year of Establishment: 1982
Headquarters: Tokyo, Japan,
Key People: Mr. Kazuo Motoyama
(President and CEO)
Parent: Asahi Breweries
Employee Strength: 3300 (present)
Total Revenue: USD 0.481 billion (2018)
Industry: Beverage
Website: www.asahiinryo.co.jp

15. 15
Asahi Soft Drinks: SWOT Analysis
Weakness
• Low profitability ratio
• Non-compatible organization structure-
limited expansion plans
• Lack of new products- as per demand
• Limited success outside core business
Strengths
• Reliable supply chain
• Strong dealer community
• Reliable suppliers
• Goods return on capital expenditure
• Product innovation
• Skilled workforce
Opportunities Threats
• Lower inflation rates
• New environmental policies
• Opening up of new markets because of
government agreement
• Stable free cash flow provides opportunities to
invest in adjacent product segments
• Shortage of skilled workforce
• New environment regulations under Paris
agreement (2016) could be a threat to
existing products
• No regular supply of innovative products
• Currency fluctuations- as it operates
globally in different countries

16. 16
Future Outlook
Growth in the sales volume of carbonated drinks segment is declining and might fall drastically in near future due to the existing varieties of
standard carbonated drinks. The soft drink manufacturers need to innovate and develop their products and production processes so that the
market does not come to an end.
As carbonated drinks have seen a decline in demand due to the adverse effects it have on consumers’ health. The companies need to bring in
innovation in the ingredients of these drinks and also develop the production processes so that health of consumers are not effected by high
calories and sugar intake.
The volume sales of carbonated drinks have seen a decline in the developed regions, but there has been an increase in the sales volume mainly
due to smaller package sizes doing well in the global market.
An increased demand for premium products in all categories across soft drinks have influenced beverage manufacturers to introduce premium
sparkling water, ginger ale and other carbonated categories.
The carbonated soft drinks segment is also challenged to fight with the Sugary Drinks Tax levied in many countries by their governments to curb
the population’s sugar consumption. It is a challenge for the soft drink companies to generate revenues and stay profitable even after the
increasing prices in such competitive market.
Carbonated beverages has enjoyed the maximum share in the total soft drink pie but has been losing its share continuously to its healthier
substitutes. Though the growth of such matured market is very difficult in many regions, emerging market economies like LATAM and APAC may
provide the consumers necessary for its relevance.

17. 17
Reference Links:
 https://www.reuters.com/article/us-health-sodas-tax/sugary-drink-tax-tied-to-drop-in-soda-
consumption-idUSKCN1QI5J9
 https://www.businessinsider.in/People-are-drinking-less-Pepsi-and-Coke-than-ever-and-it-reveals-
the-power-of-the-biggest-marketing-trick-of-the-century/articleshow/64070940.cms
 https://www.hsph.harvard.edu/nutritionsource/healthy-drinks/beverages-public-health-concerns/
 https://www.trendingpackaging.com/innovative-packaging-design-of-coke-cans/
 https://www.drinks-insight-network.com/features/featurekey-innovation-trends-in-soft-drinks-
5886875/
 https://www.coca-
colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2019/Coca-Cola-Business-
and-Sustainability-Report.pdf
 https://www.pepsico.com/about/about-the-company
 https://www.asahigroup-holdings.com/en/business/soft_drink/
 https://www.prnewswire.com/news-releases/global-carbonated-beverage-market-to-be-worth-usd-
412-5-bn-by-2023--300801982.html
 https://www.suredividend.com/coca-colas-growth-potential/
 https://marketingbeverage.weebly.com/soft-drink-market-share.html
 https://blog.euromonitor.com/voice-of-the-industry-soft-drinks/

18. 18
Appendix:
Table 1: Global Carbonated Drinks Market (USD Bn) (2017-2022)
Industry 2017 2018 2019 2020 2021 2022 CAGR (2017-2022)
Global Carbonated Beverage
Market
349.51 359.30 369.36 379.70 390.34 401.26 2.80%