Craft Soda Market Trends and Forecast
The future of the global craft soda market looks promising with opportunities in the on-trade and off-trade markets. The global craft soda market is expected to grow with a CAGR of 6.5% from 2025 to 2031. The major drivers for this market are the rising consumer preference for healthier alternatives, the growing popularity of unique flavors & artisanal products, and the increasing demand for non-alcoholic beverages.
• Lucintel forecasts that, within the flavor category, cola is expected to witness the highest growth over the forecast period.
• Within the distribution channel category, off-trade is expected to witness higher growth.
• In terms of region, North America is expected to witness the highest growth over the forecast period.
Emerging Trends in the Craft Soda Market
The craft soda industry is changing very quickly, with various emerging trends determining the direction of this industry. These trends capture wider movements of consumers towards healthier, sustainable, and differentiated beverages. Craft soda companies are leveraging these changes by expanding their portfolios and meeting increased consumer demands for innovation and authenticity. Below are five main trends that are transforming the craft soda industry.
• Health-Conscious Consumption: With increasingly health-conscious consumers, craft sodas with fewer calories, less sugar, and more natural ingredients are in greater demand. More low-sugar, organic, and functional sodas are being introduced by brands to serve health-conscious consumers. This trend is evident in the popularity of newer drinks like kombucha and sparkling water-based craft sodas, offering a healthier option compared to soft drinks. Craft soda brands embracing these health-driven trends are earning a competitive advantage in a progressively wellness-oriented marketplace.
• Innovative Flavors and Local Ingredients: One of the most notable trends in the craft soda industry is the incorporation of unusual and local ingredients to provide innovative flavors. Consumers are attracted to craft sodas that have something different compared to mass-produced sodas. This has made way for the launch of flavors drawn from local and cultural tastes, including hibiscus, ginger, yuzu, tamarind, and green tea. Firms that venture into new flavors and ingredients can differentiate themselves in an over-saturated market and draw those consumers looking for a new drinking experience.
• Sustainability and Eco-Friendly Practices: Sustainability of the environment is a top concern among consumers, and craft soda companies are reacting by embracing eco-friendly practices. Brands are switching to recyclable packaging, lessening their carbon footprint, and purchasing organic ingredients. This phenomenon is particularly critical for younger customers who make it a point of choosing products and services that respect the environment. Craft soda firms integrating sustainable aspects in their models not only help cut down their footprint on nature but also target consumers who have concerns about nature, establishing loyalty and differentiation to the brand.
• Premium and Artisanal Positioning: Craft sodas are being positioned as premium, artisanal drinks, as high-end alternatives to mass-produced soft drinks. This movement is fueling the growth of the craft soda market, as consumers are happy to pay a premium for drinks that provide distinctive flavor, premium ingredients, and traditional methods of production. Several craft soda brands emphasize small-batch production, emphasizing their artisanal quality in a bid to appeal to customers seeking a more refined, unique experience in their drinks.
• Evolution Towards Functional Drinks: With consumers still concentrating on wellness, functional craft sodas that provide benefits to health are also becoming increasingly popular. Such craft sodas frequently contain probiotics, adaptogens, and other functional ingredients that ensure digestive health, immunity, and stress management. Functional beverages are extending beyond traditional sodas, with craft soda brands incorporating these ingredients to cater to consumers seeking added health value and benefits in beverages. This trend makes craft soda a complex product that offers both flavor and wellness value.
The new trends in the craft soda industry—health-oriented consumption, creative flavors, sustainability, premiumization, and functional drinks—are transforming the market and fueling growth. As consumer behavior continues to change, craft soda brands that adapt to these trends are more likely to gain market share. By concentrating on differentiated products, sustainability, and health aspects, craft soda brands can create loyal customers and differentiate themselves in a competitive market.
Recent Development in the Craft Soda Market
There have been notable trends in the craft soda industry following the changing demand of consumers towards healthier, more sustainable, and varied beverage products. Trends such as the increased demand for natural ingredients, creative flavors, and green practices are defining the craft soda market. The following are five notable trends driving innovation and growth in the craft soda industry.
• Increase in Product Range: Craft soda companies are expanding their product range by adding new flavors and variants to meet the growing demands of a wider consumer base. With the addition of herbal and floral infusions, exotic fruits, and spices, the range of flavors is growing at an unprecedented pace. This diversification helps craft soda companies to stand out among conventional sodas and attract consumers looking for new and exciting drinking experiences.
• Emphasis on Local Ingredients: Local ingredients are being utilized more and more by craft soda makers to produce unique regional flavor profiles. Through local farm-to-bottle or supplier sourcing, brands can provide high-quality, fresh products while fueling the local economy. The trend is also appealing to those consumers who would like to purchase local and enjoy a sense of place and authenticity in the products.
• Sustainability Initiatives: As sustainability becomes a major concern for consumers, craft soda brands are making investments in environmentally conscious practices. Most companies are using recyclable and biodegradable packaging, minimizing waste in their operations, and sourcing sustainably grown and organic ingredients. Not only do these efforts reduce environmental footprint but also attract environmentally friendly consumers who appreciate sustainable practices.
• Expanded Craft Soda Retail and Online Presence: Craft soda brands are increasing their retail presence by gaining shelf space in big supermarkets and health food stores. Many brands are also using online resources to get closer to their customers. E-commerce and subscription services are creating new channels to distribute craft soda products, allowing them to push into new areas and target consumers who like to shop online for artisanal products.
• Wellness-Focused Products: Wellness-oriented consumers are demanding lower-sugar, organic, and functional craft sodas. Brands are answering back by launching beverages with additional wellness benefits, including probiotics, adaptogens, and natural ingredients that contribute to well-being. This trend makes craft sodas a healthier option compared to conventional sugary soft drinks, and it fits with greater societal trends toward wellness and conscious consumption.
Recent trends in the craft soda industry—product diversification, local flavor, sustainability practices, expanded retail presence, and health-oriented offerings—are defining the future of the category. Through their response to consumer demand for health, sustainability, and different flavors, craft soda brands are creating a niche in a competitive marketplace. These trends are not only driving growth but also placing craft soda in the position of an exciting, dynamic segment of the global beverage market.
Strategic Growth Opportunities in the Craft Soda Market
The craft soda industry is experiencing fast-paced growth due to increasing consumer enthusiasm for healthier, creative, and sustainable drinks. The growth comes with new prospects across the major applications in the market. From e-commerce and retail to health-oriented beverages and creative flavor profiles, businesses are looking to strategic opportunities to engage a diverse consumer base. The following are five major growth opportunities in the craft soda industry that brands can use to increase their presence and impact in this changing market.
• Retail Expansion: Craft soda businesses are increasingly targeting mainstream supermarkets and health food stores to increase their reach. Through retail shelf placement in large chains, craft soda brands can reach more customers, even those who do not usually buy artisanal items. Retail expansion also provides access to new geographic markets as demand for specialty, premium drinks continues to increase. With consumers increasingly looking for healthier and more flavorful options to standard sodas, the availability of craft sodas in retail channels presents high growth opportunities.
• Direct-to-Consumer and E-Commerce Sales: Online retailing keeps expanding, offering craft soda brands a chance to sell directly to consumers via e-commerce and subscription services. This is a way for brands to establish a direct relationship with customers and gain valuable insights about preferences and buying habits. Craft soda brands are able to craft bespoke experiences, provide special products, and even curate subscription boxes with handpicked flavors. As more consumers turn to shopping online, this channel provides a critical path for expansion and brand devotion.
• Wellness-Focused Products: With the growing emphasis on health and well-being, there is a corresponding rise in demand for low-sugar craft sodas, organic products, and functional ingredients. Brands that provide wellness-focused products, including probiotic sodas or beverages containing adaptogens and antioxidants, are capitalizing on the health market. By keeping up with consumer interest in mindful consumption, craft soda brands are able to stand out from mass-produced sodas and appeal to consumers who care about their health. Providing products that have an additional health advantage puts craft soda businesses in line with the greater shift toward healthier lifestyles.
• Sustainability and Eco-Friendly Packaging: Sustainability is an important force behind consumers who want environmentally conscious practices. Craft soda brands that adopt sustainable packaging, such as glass bottles, biodegradable materials, or recyclable cans, are likely to attract environmentally conscious customers. In addition, sourcing ingredients from organic and local suppliers can enhance the sustainability message. Brands that actively promote their eco-friendly initiatives and align with consumer values regarding sustainability can build strong customer loyalty, which is critical in an increasingly competitive market.
• Unique Flavors and Customization: People are attracted to craft sodas that have creative, innovative tastes. Adding sharp and untraditional flavors such as herbal, floral, and unusual fruit infusions enables craft soda brands to be different. Another area of opportunity is customization, where customers can design personalized mixes of sodas or choose among a vast selection of flavors and styles. Flavor innovation-driven brands that provide personalized or seasonal products can cater to the needs of experimental drinkers and establish a loyal customer base that is ready to pay extra for superior flavor profiles.
Strategic growth opportunities within the craft soda market—retail expansion, e-commerce, health-conscious products, sustainability, and innovative flavors—are assisting brands in differentiating themselves within a competitive market. Through leveraging these opportunities, craft soda companies are able to reach new consumers, build brand loyalty, and propel growth within an increasingly dynamic market.
Craft Soda Market Driver and Challenges
The craft soda industry is being influenced by numerous drivers and challenges, from technological changes and shifting consumer tastes to economic conditions and regulatory challenges. With craft soda growing, knowledge of these forces is necessary for companies to thrive in the market. Following are five primary drivers and three principal challenges affecting the craft soda industry, followed by a synthesis of their combined influence on the industry.
The factors responsible for driving the craft soda market include:
1. Health-Conscious Consumer Trends: A key driver of growth in the craft soda market is the increasing focus on health and wellness. Consumers are more aware of the ingredients in their food and beverages, leading to a shift toward lower-sugar, organic, and functional options. Craft sodas, with their natural ingredients and fewer preservatives, appeal to health-conscious consumers who are moving away from traditional sugary sodas. This increasing demand for healthier drinks is a major catalyst for the craft soda industry and will continue to drive its growth.
2. Premium Product Demand: Craft soda is now being positioned as a premium product, targeting consumers who will pay a premium for high-end ingredients and unusual flavors. Consumer demand for handcrafted, small-batch offerings, typically made by traditional techniques and with local ingredients, is propelling consumer interest. Consumers seek more sophisticated drinking experiences, and craft sodas present themselves as a counterpoint to mass-market sodas, which tend to be considered lower in quality. Premiumization, the movement toward premium offerings, is an important driver of market growth.
3. Sustainability Trends: Sustainability has emerged as one of the core concerns for numerous consumers, as there is more and more favor towards brands who follow green business practices. Craft soda businesses are meeting this with recyclable materials, organic resources, and green manufacturing practices. Not only does this resonate with consumer values but also enables the brands to be different in an oversaturated marketplace. With sustainability impacting consumption decisions increasingly, craft soda producers who integrate sustainability values will benefit from gaining popularity among conscious buyers.
4. Flavor Innovation and Variety: With a high-innovation level driven by flavor choice by craft brands, yet another significant impeller is innovation in flavors available among craft soda players. People increasingly desire greater variation and experimental drinks beyond cola, lemon-lime, or root beer types of flavors. Through the use of distinctive and unusual flavor profiles—like hibiscus, ginger, lavender, and fruit-flavored sodas—craft soda brands are able to appeal to a broad variety of tastes and preferences. Emphasis on flavor diversity is what generates consumer interest and creates brand loyalty among consumers looking for new and different beverage experiences.
5. Online Sales and Direct-to-Consumer Channels: E-commerce and online shopping are transforming the craft soda industry. Direct-to-consumer sales on online platforms, such as subscription businesses, allow brands to engage with a broader group of people, gather useful customer information, and establish stronger relationships with consumers. Ease and convenience of shopping online are major drivers of growth, particularly as consumers increasingly shop for specialist and craft products online. Online sales are becoming a vital channel for craft soda brands, allowing them to connect directly with their customer base.
Challenges in the craft soda market are:
1. High Cost of Production: Craft sodas, which are usually made in small batches using premium ingredients, have a higher cost of production than mass-market sodas. The higher cost can restrict the scalability of craft soda brands and hinder price competition with larger, established brands. Since the cost of production is high, craft soda businesses have to balance quality with profitability and still offer competitive prices.
2. Regulatory Challenges: The market for craft soda is challenged by regulatory aspects, including labeling regulations, health and safety regulations, and limits on the sugar content. Varying amounts of regulation exist across different regions, and this can cause issues for brands who want to grow globally. These regulatory challenges can affect product development, distribution, and marketing campaigns because brands need to be compliant with all local and global regulations.
3. Market Saturation: With the craft soda industry expanding, competition between brands intensifies. The rise in number of new craft soda players can result in market saturation, where brands struggle to differentiate themselves. Differentiation is key in a saturated marketplace, and brands have to keep innovating to get consumersÄX%$%X attention. Market saturation also brings more price competition, which can put pressure on profit margins for most craft soda manufacturers.
The drivers of growth in the craft soda industry—healthful trends, premiumization, sustainability, flavor innovation, and internet sales—are transforming the category and opening up new possibilities for brands. Nevertheless, high costs of production, regulatory issues, and market saturation need to be overcome for long-term success. Businesses that are able to navigate the drivers and challenges while still innovating and responding to consumer demand will find success in the competitive craft soda market.
List of Craft Soda Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies craft soda companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the craft soda companies profiled in this report include-
• Jones Soda
• Appalachian Brewing
• Reed’s
• PepsiCo
• The Original Craft Soda Company
• The Coca-Cola Company
• Crooked Beverage
• SIPP eco beverage
• Boylan Bottling
• Wild Poppy Company
Craft Soda Market by Segment
The study includes a forecast for the global craft soda market by flavor, packaging, distribution channel, and region.
Craft Soda Market by Flavor [Value from 2019 to 2031]:
• Cola
• Tropical Fruits
• Berries
• Others
Craft Soda Market by Packaging [Value from 2019 to 2031]:
• Glass
• Cans
• Plastic
• Others
Craft Soda Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Craft Soda Market
Craft soda market is expanding worldwide as consumers are seeking healthier, distinctive, and natural beverages to replace traditional sodas. As consumers become more wellness-oriented, sustainable, and like to explore different flavors, craft soda brands are rising to cater to these changing tastes. This transition is being experienced across regions, with nations like the United States, China, Germany, India, and Japan each developing differently in the craft soda market. Hereafter, we discuss the most recent developments in the craft soda market in these nations.
• United States: The United States has witnessed dramatic growth in the craft soda market due to heightened interest in healthier and natural alternatives. The rise in consumer demand for craft sodas with organic content, lower preservatives, and distinctive taste has led to the need for brands to evolve at a faster pace. Furthermore, craft sodas are increasingly being stocked by mainstream supermarkets, thus increasing penetration. Brands are also riding the wave of low-sugar, gluten-free, and non-GMO product demands. The rising trend of local beverage consumption has further driven the craft soda category, with local regional brands catching consumersÄX%$%X eyes looking for real and artisanal beverages.
• China: In China, the craft soda market is emerging due to rising demand for foreign, premium products and innovative tastes. Chinese buyers are now turning away from sweet, mass-made soft drinks and towards healthier, artisanal drinks. Due to the fast urbanization and a change in lifestyle, craft soda brands are marketing themselves to younger, health-aware consumers who look for more natural, less processed options. Domestic and foreign craft soda manufacturers are riding these trends, launching flavors based on classic Chinese ingredients like green tea, jasmine, and lychee. The market is still in its infancy, but it has huge growth potential.
• Germany: The craft soda market in Germany is dominated by a high demand for natural and organic products. As a trend towards sustainability and health-consciousness gains strength, German consumers are turning towards craft sodas produced from organic ingredients and reduced processing. GermanyÄX%$%Xs history of artisanal production of food and beverages is also favoring the craft soda industry, with local brands becoming popular. Flavor innovations like herbal and botanical sodas are also favoring the industryÄX%$%Xs growth. German craft soda manufacturers are also focusing on sustainability through the use of green packaging and minimizing carbon footprints, appealing to green-conscious consumers.
• India: In India, the Indian craft soda industry is growing steadily, driven by a growing need for healthier drink options and a desire for creative flavors. With a growing middle class and an increasingly health-aware younger population, craft sodas with natural ingredients and low sugar content are taking hold. Indian craft soda companies are emphasizing flavors based on classic Indian drinks like tamarind, ginger, and rose, giving a new spin to the market. With the Indian beverage market moving away from carbonated, sugary drinks, craft sodas are becoming a favorite among consumers, especially in urban areas.
• Japan: JapanÄX%$%Xs craft soda industry has been influenced by the nationÄX%$%Xs rich drink culture, with consumers looking for high-quality, artisanal beverages more and more. Japanese craft sodas tend to include domestic ingredients such as matcha, yuzu, and Ume, appealing to consumers searching for distinct taste. The industry is expanding with younger consumers being increasingly health-oriented and opting for natural, low-sugar, and creative beverages. Japanese craft soda brands also ride on the increasing wellness and sustainability trend by utilizing organic materials and sustainable packaging. The market is quite small at present but is set to expand, with a growing customer base that appreciates good-quality, locally produced drinks.
Features of the Global Craft Soda Market
Market Size Estimates: Craft soda market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Craft soda market size by flavor, packaging, distribution channel, and region in terms of value ($B).
Regional Analysis: Craft soda market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different flavor, packaging, distribution channel, and regions for the craft soda market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the craft soda market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for craft soda market?
Answer: The global craft soda market is expected to grow with a CAGR of 6.5% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the craft soda market?
Answer: The major drivers for this market are the rising consumer preference for healthier alternatives, the growing popularity of unique flavors & artisanal products, and the increasing demand for non-alcoholic beverages.
Q3. What are the major segments for craft soda market?
Answer: The future of the craft soda market looks promising with opportunities in the on-trade and off-trade markets.
Q4. Who are the key craft soda market companies?
Answer: Some of the key craft soda companies are as follows:
• Jones Soda
• Appalachian Brewing
• Reed’s
• PepsiCo
• The Original Craft Soda Company
• The Coca-Cola Company
• Crooked Beverage
• SIPP eco beverage
• Boylan Bottling
• Wild Poppy Company
Q5. Which craft soda market segment will be the largest in future?
Answer: Lucintel forecasts that, within the flavor category, cola is expected to witness the highest growth over the forecast period.
Q6. In craft soda market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, North America is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the craft soda market by flavor (cola, tropical fruits, berries, and others), packaging (glass, cans, plastic, and others), distribution channel (on-trade and off-trade), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Craft Soda Market, Craft Soda Market Size, Craft Soda Market Growth, Craft Soda Market Analysis, Craft Soda Market Report, Craft Soda Market Share, Craft Soda Market Trends, Craft Soda Market Forecast, Craft Soda Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.