Craft Soda Market Synopsis

Craft Soda Market Size Was Valued at USD 698.72 Million in 2023, and is Projected to Reach USD 1231.54 Million by 2032, Growing at a CAGR of 6.5% From 2024-2032.

Craft soda is a soft drink that is produced in small quantities from natural ingredients. Craft soda is in most cases made with sweeteners other than sucrose (sugar) or high-fructose corn syrup and contains sparing amounts of preservatives. Craft soda is often innovative in terms of raw materials and flavours.

• Some of the literature adds that craft soda producers need to be authentic and small, or even local market only, and independent of major soft drink companies. Still, those big companies are trying to capitalize on the popularity of these types of drinks with craft soda-like products. Craft soda has become increasingly popular among consumers. Local manufacturers have opportunities to use a variety of strategies to differentiate their products from nationally recognized brands, including the use of real or natural ingredients, premium ingredients, and locally sourced ingredients, handmade and small batches, and creative taste.
• Loyal consumers of craft sodas often live within the proximity of the production location, and the manufacturers are normally small with a limited distribution area. From the local manufacturer's standpoint, it is important to segment the market based on the closeness to their distribution territory when studying the market demand, or at least to recognize if such locational preferences exist with a view toward identifying market expansion strategies.
• The rise in popularity of soda-infused soft drinks among youth and millennials is driving growth in the segment. The flavour of cola provides a distinct taste that matches consumer desires for unique and creative drinks. This trend has resulted in the creation of different artisanal sodas with unique tastes. Businesses are also meeting customer requests for healthier choices with the use of organic sweeteners, increasing the popularity of soda with cola flavouring.

Craft Soda Market Trend Analysis

Increasing Demand for Healthy Hydration Products

• Consumers are more and more concerned about the impact on health from the high sugar, additives, and preservatives found in traditional sodas, causing them to look for healthier substitutes such as craft sodas. Handcrafted sodas usually utilize natural sweeteners and steer clear of artificial flavours, which fascinates health-conscious consumers. Craft soda brands are nowadays prioritizing the use of genuine fruit juices, herbs, and spices in reply to the increased demand for transparency and authenticity driven by the growing preference for natural and organic beverages. This change is in line with the complete movement towards transparent labelling and steering clear of artificial ingredients in food and beverages.
• Popular functional craft sodas are favoured for their health benefits, which come from probiotics, adaptogens, and vitamins. Craft producers are developing creative drinks to help customers achieve their health objectives by including ingredients that enhance digestive health, reduce stress, and improve overall health. Consumers are seeking beverages with lower sugar content because of health worries. Craft soda companies are developing beverages with reduced sugar or different sweeteners in order to satisfy this trend, while also preserving flavour. Craft soda brands use social media, influencer collaborations, and focused advertising to highlight their health advantages and differentiate themselves. Open and honest communication regarding ingredients helps establish trust with customers.
• Craft soda companies are innovatively coming up with distinctive and unusual flavours in order to appeal to daring consumers centred on wellness, these items provide new and flavourful opportunities, attracting individuals interested in healthier drinks. Consumers see importance in sustainability and ethical practices. Craft soda companies place a high importance on environmentally friendly practices such as using recyclable packaging, sourcing ingredients responsibly, and supporting local farmers, which appeals to environmentally conscious consumers. A growing desire for healthier drinks has caused the craft soda market to grow. These sodas can now be found in a wider range of stores, catering to consumer needs and driving market expansion.

Opportunity

Innovations of New Flavour in Market

• Craft soda brands develop original flavours that cater to specific regional preferences and seasonal variations by utilizing ingredients sourced from the local area. Limited-time offers are influenced by seasonal tastes like pumpkin spice in autumn and berry mixes in summer, which also help strengthen the bond between consumers. Millennials and Gen Z consumers are interested in trying new flavours and seeking out products that offer a departure from the usual, in order to have unique taste experiences. Craft soda producers are responding to this trend by developing unique flavours such as rare fruits, herbs, and flowers, appealing to a younger, adventurous consumer base and growing the industry.
• Craft soda brands need to differentiate themselves in the competitive beverage industry in order to succeed. Distinctive tastes distinguish them from others, establishing a specific market and strengthening brand recognition. This tactic draws in customers, enables charging higher prices, and enhances market placement. Craft soda companies can benefit from health and wellness trends by incorporating functional ingredients such as ginger, turmeric, and lavender into their flavours. This attracts health-conscious individuals looking for more than just refreshment in their beverages.
• Brands can expand their status and attract eco-friendly consumers by incorporating sustainably sourced ingredients to develop distinct flavours. Brands can use sustainability as a marketing advantage. Consumers share their memorable experiences on social media due to the unique flavours found in craft sodas. Companies can utilize social media to showcase these tastes and motivate customers to generate natural excitement. Including tastes from around the world can attract customers looking for a taste of different cultures. Incorporating unusual tastes and customary drinks from various societies such as lychee, hibiscus, or yuzu can add a distinctive touch to items.

Craft Soda Market Segment Analysis:

Craft Soda Market is segmented on the basis of Flavour, Category, Packaging, Distribution Channel, and Region.

By Type, Cola Segment Is Expected to Dominate the Market During the Forecast Period

• Craft soda makers are meeting the tastes of adventurous young consumers by providing different cola flavours. This corresponds with their liking for unique, creative beverages, resulting in a variety of choices to suit various preferences. Other health-enhancing beverages such as those containing probiotics and antioxidants are becoming more popular. Craft sodas now provide extra nutrients for customers looking for more than just a quenching drink.
• Craft soda brands thrive through creativity and variety, providing distinctive flavours other than traditional cola such as ginger ale, root beer, cream soda, and fruit-infused varieties. Discerning customers value their ingenuity and look for unique flavours. To keep consumers interested and attracted to the product, manufacturers are enhancing cola flavour by incorporating botanical extracts, spices, or fruit flavours such as cherry or citrus. Craft soda businesses introduce special and seasonal flavours to maintain consumer interest and boost sales, encouraging them to regularly experiment with new products.
• Craft soda brands target niche markets that cater to specific consumer preferences, attracting health-conscious people, flavour aficionados, and those looking for high-quality choices. They provide a variety of flavours that go beyond the usual colas. Craft soda brands differentiate themselves by incorporating creativity, high-quality components, and distinct tastes. Although cola is popular among many people, craft producers stand out by offering unique flavours to distinguish themselves. Innovation motivates consumers to experiment with new taste sensations.

By Application, Glass Packaging Segment Held the Largest Share In 2023

• Glass effectively holds the taste and flavour of artisanal sodas by serving as a shield against moisture, air, and light. It keeps the drink fresh and improves the overall drinking experience for customers without adding any undesirable tastes. Craft soda labels prioritize traditional methods, high-quality elements, and limited-scale manufacturing. The use of glass packaging helps to enhance the storytelling experience and create a stronger connection with consumers by effectively conveying a nostalgic, artisanal image.
• Consumers believe that glass packaging is luxurious and better than materials such as plastic or aluminium, causing them to be willing to spend extra on glass-packaged products for their perceived excellence. Glass can be recycled endlessly without any degradation in quality. Eco-friendly consumers prefer sustainable craft soda brands that opt for glass packaging. Craft soda companies can differentiate themselves on retail shelves by utilizing glass bottles with distinct shapes, embossing, labelling, and closures to establish their own brand identities.
• Consumers opt for glass packaging for beverages because they believe it offers purity, enhances taste, and is eco-friendly. Craft soda brands are opting for glass packaging in order to satisfy consumer demand and stay competitive in the market. Glass packaging is the primary choice in the craft soda market because it helps preserve freshness, maintain premium quality, support brand storytelling, align with sustainability efforts, and appeal to consumers looking for both taste and eco-friendly options.

Craft Soda Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• North America, particularly the United States, boasts a diverse soda tradition with well-known brands influencing consumer tastes. This cultural heritage has resulted in the emergence of artisanal sodas because consumers are familiar with and enjoy carbonated beverages. The American soda industry is famous for its creativity and diversity, transitioning from soda fountains to providing a plethora of flavours and options. This custom continues with artisanal soda by constantly creating new and distinctive flavours.
• Health-conscious consumers in North America prefer artisanal sodas made with natural ingredients, reduced sugar, and non-nutritive sweeteners. They are looking for natural, non-GMO, and additive-free choices that support their health objectives. There is a strong desire from consumers in North America for one-of-a-kind, handmade sodas, resulting in a booming market for specialized brands offering unique flavours and premium ingredients. North America's beverage sector is highly developed, with well-established production and distribution systems that allow for efficient craft soda manufacturing and widespread consumer access.
• North American entrepreneurial culture nurtures craft soda businesses through incubators, accelerators, and venture capital funding, encouraging innovation and expansion. Craft soda brands in North America use tactics such as storytelling, social media, and influencer collaborations to enhance brand loyalty, attracting more customers and gaining greater exposure. North American regulations prioritize food and beverage safety, promoting innovation while ensuring consumer confidence and market expansion via quality assurance. Factors such as increasing health awareness, rising disposable incomes, and the ongoing trend towards premium and natural products contribute to this growth.
• The graph shows the upward trend in the sales volume of carbonated soft drinks in the U.S. over the four-year period from 2020 to 2023. Starting at 7.45 billion litters in 2020, sales increased consistently each year, reaching 7.89 billion litters by 2023. This steady growth reflects the continued demand for carbonated beverages which also makes the growth of craft soda in the market.

Craft Soda Market Active Players

• Reed’s Inc. (USA)
• Boylan Bottling Co. (USA)
• Jones Soda Co. (USA)
• Maine Root Handcrafted Beverages (USA)
• Sprecher Brewing Co. (USA)
• Fizzy Fox (USA)
• Virgil's Soda (USA)
• Fentimans (UK)
• Bundaberg Brewed Drinks (Australia)
• Thomas Henry (Germany)
• Galvanina (Italy)
• Aqua Monaco (Germany)
• Cawston Press (UK)
• Luscombe Drinks (UK)
• Marquis Beverages (USA)
• Asahi Group Holdings (Japan)
• Bundaberg Brewed Drinks (Australia)
• Jiva Kombucha (Indonesia)
• Ugly Drinks (UK)
• Kombucha Wonder Drink (USA)
• Búho Soda (Mexico)