Craft Soda Market to Surpass USD 1.25 Billion by 2035, Driven by Health-Conscious Consumer Demand and Innovative Flavors

The Craft Soda Market is witnessing steady growth driven by consumer demand for unique flavors and natural ingredients.

NEWARK, DE, UNITED STATES, June 2, 2025 /EINPresswire.com/ -- The global craft soda market is poised for steady expansion, with projected revenues reaching USD 779.2 million in 2025. The market is anticipated to grow at a CAGR of 5.2% during the forecast period, ultimately hitting a valuation of USD 1,259.7 million by 2035. This growth trajectory is underpinned by rising consumer interest in artisanal and small-batch beverages that provide an alternative to traditional soft drinks.

Craft soda is rapidly gaining popularity as a premium beverage option, favored for its use of natural ingredients, unique flavor profiles, and reduced sugar content. These sodas are increasingly positioned as healthier alternatives to conventional carbonated beverages, attracting consumers who prioritize clean-label products and wellness-oriented choices. As health awareness continues to influence beverage purchases, craft soda is expected to maintain strong momentum over the coming decade.

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Changing Consumption Patterns Among Millennials and Gen Z

One of the primary drivers of the craft soda consumption patterns among millennials is their preference for transparency, cleaner labels, and locally sourced ingredients. These demographic groups seek beverages that not only satisfy taste buds but also align with ethical values and health-conscious lifestyles.

The emergence of millennial beverage preferences is reshaping the beverage sector. This consumer base favors premium carbonated drinks with functional benefits, such as the use of natural sweeteners in soft drinks like stevia, agave, or monk fruit, instead of high-fructose corn syrup or refined sugar.

Innovation in Flavor Profiles and Packaging

Craft soda brands are rapidly expanding their product lines to include bespoke soda blends, exotic fruit infusions, and botanicals. From lavender lemonade to mango chili, flavor innovation is at the core of what sets craft sodas apart from mass-market alternatives.

Another critical trend is the adoption of sustainable beverage packaging. With consumers increasingly aware of environmental concerns, many brands are moving toward eco-friendly drink products, such as aluminum cans and recyclable glass bottles, to reduce plastic waste.

Growing Retail and Distribution Channels for Small-Batch Sodas

The increasing availability of small batch craft soda across retail and foodservice outlets is fueling market expansion. These products are now widely stocked in organic food stores, specialty beverage shops, cafes, and online platforms. Private label craft soda market opportunities are also growing as retailers tap into the rising demand by developing their own artisanal soda lines.

Additionally, microbrewery-produced craft soda distribution channels are gaining popularity. Many craft beer producers are diversifying into non-alcoholic segments by launching exclusive soda recipes under sub-brands, allowing them to appeal to sober-curious and underage consumers.

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𝐑𝐞𝐠𝐢𝐨𝐧-𝐰𝐢𝐬𝐞 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬

• UK: With a projected CAGR of 5%, the UK market is seeing growth driven by premiumization and consumer preference for gourmet beverages.
• Germany: Growing at 4.5% CAGR, German consumers are gravitating toward organic and sustainably packaged craft sodas.
• USA: Expected to grow at 4.2% CAGR, the U.S. remains a mature market where flavor experimentation and wellness attributes are major growth levers.
• India: At 5.1% CAGR, India offers strong growth potential thanks to its expanding middle class and increasing awareness of natural beverages.
• China: Projected to grow at a 4.7% CAGR, China is witnessing rising demand for Western-style artisan beverages, especially among younger consumers.

𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 𝐎𝐮𝐭𝐥𝐨𝐨𝐤

The craft soda market features a mix of established beverage giants and emerging artisanal brands. While large corporations are acquiring niche players to broaden their presence, smaller companies are capitalizing on authenticity, regional flavors, and direct community engagement. Differentiation through flavor innovation and storytelling remains a key competitive strategy.

Key Market Players

• Jones Soda Co.
• Appalachian Brewing Co.
• Reed’s Inc.
• PepsiCo, Inc.
• The Original Company
• The Coca-Cola Company
• Crooked Beverage Co.
• SIPP Eco Beverage Co. Inc.
• Boylan Bottling Co.
• Wild Poppy Company

Explore Beverages Industry Analysis: https://www.futuremarketinsights.com/industry-analysis/beverages

Top Segments Studied in the Craft Soda Market Report
By Flavor:
• Cola
• Tropical Fruits
• Berries
• Others

By Packaging:
• Glass
• Cans
• Plastic
• Others

By Distribution Channel:
• On-Trade
• Off-Trade

By Region:
• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• Middle East and Africa

Explore FMI’s related ongoing Coverage in Food and Beverage Domain:

Baking Soda Substitute Market: https://www.futuremarketinsights.com/reports/baking-soda-substitute-market

Prebiotic Soda Market: https://www.futuremarketinsights.com/reports/prebiotic-soda-market

Low- and No-calorie Soda Market: https://www.futuremarketinsights.com/reports/low-and-no-calorie-soda-market

About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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