The global soft drinks concentrates market is projected to grow from USD 40.04 billion in 2026 to USD 69.91 billion by 2036, expanding at a CAGR of 5.7%, according to Future Market Insights (FMI). The industry’s expansion is structurally supported by sugar reformulation mandates, the rise of functional beverage concentrates, and rapid growth of quick-service restaurant (QSR) and fountain distribution networks in emerging economies.
Growth is no longer volume-led alone. It is increasingly innovation-driven, as manufacturers pivot from commodity syrup supply to differentiated concentrate platforms integrating zero-sugar systems, natural flavors, and functional ingredients.
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The World Health Organization’s 2024 global nutrition guidelines reaffirm the recommendation to limit free sugar intake to below 10% of total daily energy. This continues to intensify regulatory scrutiny, particularly in markets implementing sugar taxes and front-of-pack labeling. For concentrate producers, this has accelerated investment in alternative sweeteners such as stevia blends, monk fruit extracts, and advanced flavor masking technologies to preserve taste under reduced-sugar formulations.
Structural Industry Transformation Underway
FMI analysis indicates that concentrate manufacturers are undergoing strategic restructuring to sharpen focus on high-growth categories.
Tim Cofer, CEO of Keurig Dr Pepper, recently stated: “Today’s announcement marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies.” FMI interprets this as part of a broader industry shift where leading beverage companies are restructuring operations to separate legacy carbonated beverage portfolios from faster-growing coffee, energy, and functional concentrate segments.
Recent industry moves highlight this transition:
- PepsiCo invested USD 100 million to modernize its Colonia, Uruguay concentrate plant, now exporting to 23 countries and operating on 100% renewable energy.
- Keurig Dr Pepper announced the acquisition of JDE Peet’s and subsequent corporate restructuring to streamline coffee and refreshment beverage concentrate operations.
- Coca-Cola expanded its global zero-sugar portfolio, with zero-sugar variants accounting for a rising share of total concentrate shipments in 2025.
These strategic developments confirm that competitive advantage is shifting toward innovation capacity, sustainability integration, and brand-exclusive concentrate formulations.
Market Value and Growth Outlook
FMI projects steady long-term expansion driven by QSR outlet growth and per capita soft drink consumption correlations. The market is expected to increase by nearly USD 30 billion over the forecast period.
Key Metrics:
- Industry Size (2026): USD 40.04 Billion
- Industry Value (2036): USD 69.91 Billion
- Forecast CAGR (2026–2036): 5.7%
Between 2021 and 2025, the market expanded at a CAGR of 3.3%. The acceleration to 5.7% reflects reformulation investments, premiumization, and functional integration trends.
Carbonated Concentrates Maintain Leadership
By product type, carbonated concentrates dominate the market, accounting for 67% value share in 2026. Despite rising demand for non-carbonated and wellness beverages, carbonated drinks remain deeply embedded in global consumption patterns, particularly in QSR fountain channels.
The segment’s resilience is supported by:
- Established brand equity of global cola and sparkling beverage portfolios
- High compatibility with fountain dispensing systems
- Ongoing zero-sugar variant expansion
However, differentiation increasingly depends on flavor customization and reduced-sugar reformulation rather than traditional syrup volume.
Bottled Packaging Leads Distribution
By packaging, bottles account for 36% of the market in 2026. Bottles remain the preferred format due to ease of handling, labeling flexibility, and compatibility with foodservice distribution systems.
Concentrates provide significant logistical advantages to foodservice operators:
- Reduced storage requirements compared to ready-to-drink beverages
- Lower transportation costs
- On-demand mixing capability for customization
This cost efficiency continues to drive adoption across cafes, restaurants, and global fast-food chains.
Organic and Functional Beverages Reshape Demand
The organic and clean-label movement is influencing concentrate development strategies. Growing consumer awareness of ingredient sourcing, calorie intake, and caffeine levels is prompting beverage companies to launch concentrates made from:
- Organic fruit and vegetable extracts
- Natural sweeteners
- Functional ingredients such as vitamins, electrolytes, and plant-based bioactives
The USDA has observed rising demand for organic beverage products, reinforcing the shift toward clean-label positioning.
Simultaneously, functional beverage concentrates—particularly energy and wellness-focused variants—are gaining prominence as consumers seek beverages delivering both hydration and performance benefits.
Country-Level Growth Trends
The United States holds the largest market share by value, supported by the world’s most extensive QSR and fountain network infrastructure.
Forecast CAGR (2026–2036):
- United States: 6.5%
- Germany: 5.3%
- China: 6.7%
China is emerging as one of the fastest-growing markets, driven by urbanization, rising disposable income, and increasing consumer preference for functional beverages formulated with natural ingredients.
Germany’s steady growth reflects strong retail diversity and premium beverage culture, while the U.S. market continues to lead innovation in zero-sugar and energy-focused concentrate development.
Competitive Landscape
The market remains moderately consolidated:
- Tier 1 players hold approximately 70% share, characterized by global reach, high production capacity, and strong brand portfolios.
- Tier 2 companies account for 20%, with strong regional influence and regulatory compliance capabilities.
- Tier 3 players represent 10%, primarily serving niche and local markets.
Competition from ready-to-drink teas, infused waters, protein beverages, and bottled functional drinks remains intense. Health-conscious consumers increasingly explore alternatives perceived as natural or low-calorie, challenging traditional concentrate demand.
Information Source: https://www.futuremarketinsights.com/reports/soft-drinks-concentrate-market
