Australia Carbonated Beverages Market Size, Growth & Trends (2025–2034)

The Australian carbonated beverages market is a key segment of the non-alcoholic beverage industry. It includes a wide range of drinks such as sodas, sparkling water, and energy drinks, all characterized by the infusion of carbon dioxide gas to create a fizzy effect. Traditionally dominated by major global players like Coca-Cola and PepsiCo, the market has seen an evolution in recent years with increasing health consciousness among consumers and a rising demand for innovative, low-sugar, and flavored carbonated drinks.

While traditional soft drinks continue to maintain their presence, there has been a noticeable shift towards healthier alternatives, including sparkling water, zero-calorie sodas, and drinks with functional ingredients like vitamins and minerals. The market is also being driven by evolving consumer preferences toward more diverse, premium, and exotic flavors.

Australia Carbonated Beverages Market Size

In 2024, the Australian carbonated beverages market was valued at USD 7.20 billion. This market is expected to grow at a steady CAGR of 3.50% from 2025 to 2034, with projections indicating a market value of approximately USD 10.16 billion by 2034. The growth can be attributed to a combination of factors, including the increasing preference for carbonated drinks, innovative marketing strategies, and the expanding availability of healthier beverage options that align with the growing consumer demand for wellness.

The market size expansion is also driven by greater availability of premium and niche products, particularly those targeted at more health-conscious consumers who are looking for alternatives to traditional sugary sodas. The expansion of e-commerce platforms has also made it easier for brands to reach a broader audience.

Australia Carbonated Beverages Market Trends

• Health-Conscious Choices: As Australian consumers become more health-conscious, the demand for low-sugar, sugar-free, and functional carbonated beverages is on the rise. Products such as sparkling water, kombucha, and other lightly flavored carbonated drinks are gaining popularity. Many consumers are also looking for beverages that offer additional benefits, such as added vitamins, electrolytes, or probiotics.

• Premiumization and Innovative Flavors: There is a growing trend toward premium carbonated beverages that offer unique flavors and high-quality ingredients. Brands are introducing exotic and bold flavors such as tropical fruits, herbs, and spices, appealing to consumers looking for new experiences. Additionally, the demand for organic and sustainably sourced ingredients is pushing companies to innovate their product offerings.

• Environmental Sustainability: With increased awareness of environmental issues, many consumers are favoring brands that prioritize sustainability. In response, companies are investing in environmentally friendly packaging, including recyclable bottles and cans. There is also a noticeable shift toward using natural ingredients in products, including organic and fair-trade components.

• Sparkling Water Popularity: Sparkling water has witnessed a surge in popularity as more consumers opt for healthy, calorie-free alternatives to sodas. Brands like San Pellegrino and Schweppes are seeing rising demand as they introduce innovative sparkling water options infused with fruits or herbs, offering refreshing and healthier alternatives to traditional carbonated soft drinks.

• Energy and Functional Beverages: The rise of energy drinks and functional beverages is another trend within the Australian carbonated beverages market. These drinks, which provide an energy boost or other health benefits, are becoming increasingly popular, particularly among younger, active consumers. Functional carbonated beverages with added nutrients such as vitamins and minerals are gaining traction in the market.

Australia Carbonated Beverages Market Growth

The growth of the Australian carbonated beverages market is driven by several key factors:

• Increased Consumption of Carbonated Drinks: Carbonated beverages continue to be a popular choice in Australia, particularly in the summer months. The refreshing nature of these drinks and their variety of flavors cater to a wide audience, from children to adults. The demand for carbonated drinks is also being fueled by the increasing popularity of flavored sparkling waters and health-conscious sodas.

• Growing Focus on Health and Wellness: As more Australian consumers become health-conscious, they are increasingly looking for healthier, low-sugar alternatives. This has led to a rise in demand for functional carbonated beverages, including those with probiotics, electrolytes, and vitamins. As brands continue to innovate in response to these consumer preferences, the market is expected to witness continued growth.

• The Rise of E-Commerce: The increasing use of online shopping has made it easier for consumers to purchase their favorite carbonated drinks, particularly specialty products and premium beverages. E-commerce platforms provide a convenient shopping experience, expanding the reach of brands in the Australian market.

• Brand Diversification and New Product Launches: Companies are continuously innovating and diversifying their product portfolios to cater to changing consumer preferences. The launch of new carbonated drink variants, including plant-based options, kombucha, and sparkling juices, is driving the market’s growth by offering consumers more variety.

Australia Carbonated Beverages Market Segmentation

Breakup by Product

• Carbonated Soft Drinks

• Carbonated Water

• Carbonated Sports and Energy Drinks

• Others

Breakup by Type

• Standard

• Diet

Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Specialty Stores

• Online

• Others

Australia Carbonated Beverages Market Forecast

The Australian carbonated beverages market is expected to grow at a CAGR of 3.50%, reaching USD 10.16 billion by 2034. This growth will be fueled by ongoing innovations in product offerings, such as healthier, low-calorie options and premium, functional beverages. Furthermore, the rise of sustainability-conscious consumers and the growing demand for e-commerce platforms will continue to propel the market forward.

As consumer preferences shift toward healthier, more sustainable beverage choices, brands will need to adapt by offering more eco-friendly packaging, natural ingredients, and functional benefits. This evolution in consumer behavior will shape the future of the market, ensuring its long-term growth.

Competitive Analysis

The Australian carbonated beverages market is highly competitive, with a mix of global and local players offering a wide range of products. Key players include:

The Coca-Cola Company: As one of the largest global producers of carbonated beverages, Coca-Cola dominates the Australian market with its flagship products, such as Coca-Cola, Sprite, and Fanta. The company continues to innovate by introducing new, healthier alternatives like Coca-Cola Zero Sugar and a variety of flavored waters.

PepsiCo, Inc.: PepsiCo remains a major player in the Australian carbonated beverage market, with popular products like Pepsi, Mountain Dew, and 7UP. The company is also focusing on introducing healthier drink options, including low-calorie sodas and flavored waters, to cater to the growing health-conscious market segment.

Refresco Group: A global leader in the production of fruit juices and carbonated beverages, Refresco has a strong presence in the Australian market. The company provides a wide range of drinks, including soda, sparkling water, and fruit-flavored carbonated beverages.

Suntory Holdings Limited: Suntory is known for its premium carbonated drinks, such as Schweppes. The company offers a wide selection of sparkling waters, sodas, and soft drinks in Australia, with a focus on natural ingredients and health-conscious offerings.

Asahi Group Holdings: Asahi offers a range of carbonated drinks in Australia, including popular brands like Schweppes and Suntory. The company continues to innovate by offering healthier, low-sugar alternatives to traditional sodas.

Others : In addition to these major players, several smaller and niche brands are emerging in the Australian carbonated beverages market. These companies are catering to specific consumer needs, such as eco-friendly packaging, natural ingredients, and premium, craft-style carbonated beverages.