Australia Soft Drinks Market: By Product Type (Carbonated Soft Drinks, Juices and Juice Concentrates, Bottled Water, RTD Tea and Coffee Others) By Packaging Type (PET/Plastic, Metal Can, Tetra Packs, Glass Others) By Distribution Channel (Supermarkets and Hypermarkets, Departmental Stores, Retail Stores, E-commerce Others) and Country  

The Australia Soft Drinks Market size was valued at US$ XX million in 2023 and grew at significant CAGR of XX% from 2024-2030.

The market is a very broad category of non-carbonated beverages, including carbonated drinks, juices, bottled water, ready-to-drink (RTD) tea and coffee, and other functional or flavored beverages. It is a dynamic and competitive market driven by changing consumer preferences, with a strong shift toward healthier, low-sugar, and sustainable options.

The market continues to exhibit steady growth supported by innovative product offerings, sustainability efforts, and premium as well as functional beverages. However, the market continues to feel pressure from health-conscious trends and regulatory pressures like sugar taxes and competition from alternative beverages. Overall, the market remains robust with bottled water and RTD beverages proving to be dominant segments.

Key players

The Australia Soft Drinks market share is inclusive of several companies such as Asahi Beverages, Nestle, Bickfords Australia Pty Ltd, Grove Fruit Juice Pty Ltd, Coca-Cola, Frezco Beverages Ltd, Carabao Energy, Kraft Heinz Company, Berts Soft Drinks and PepsiCo.

Nestlé is a leader in the soft drinks market of Australia, offering health-oriented beverages such as Nescafé RTD coffee and Milo. The company stresses low-sugar products and sustainable practices, including recyclable packaging and carbon-neutral goals. Its innovation, local partnerships, and strong digital marketing enhance its competitive position in the Australian market.

Key Takeaways

• Based on Product Type, the Bottled water segment holds the XX% market share
• Based on Packaging Type, the PET segment holds the XX% market share
• Based on Distribution channel, the supermarket and hypermarket segment hold the XX% market share

Facts & Figures

• NSW is at the top of the soft drinks market, driven by its diverse population and significant tourism sector, with 97.9 million domestic visitors in 2024.
• The Queensland seasonal demand is constant with regard to soft drinks because it is warm throughout the year, especially during the summer season.
• Local Trends of Western Australia Local brands in Western Australia foster community engagement and promote sustainability practices to enhance the sale of soft drinks.
• Health-Conscious Trends: Increasing demand for healthier beverages is changing the preference of consumers for more sophisticated soft drinks, away from the traditional sugary beverages.
• Innovation in Product Offerings: Coca-Cola's new Y3000 soft drink, launched in Australia in September 2023 with futuristic flavors, is the way forward in innovative and experiential products.
• Flavour novelties: the house unveiled a new, Aussie-exclusives limited time watermelon flavor available August 2023 exclusively at retail and online sites nationwide; Fanta for Kids.

Key Developments

• Coca-Cola's Y3000 Launch (September 2023): Coca-Cola introduced a new futuristic flavor, Y3000, as part of its "Creations" line aimed at adventurous consumers.
• Fanta Watermelon Flavor (August 2023): Fanta launched a watermelon flavor in Australia, targeting younger audiences with a refreshing, seasonal option.
• Asahi’s Acquisition of Bickford’s Group (2021): Asahi acquired Bickford’s Group, enhancing its portfolio in the Australian non-alcoholic beverage sector.
• PepsiCo Expands Beverage Portfolio (2020): PepsiCo introduced new products in Australia, adapting to the demand for healthier, functional drinks.
• Monster Energy New Launches (2022): Monster Energy released new variants, expanding its energy drink line in Australia.

Australia Soft Drinks Market Segmentation

By Product Type: Bottled water enjoys the highest market share of the segments in the Australian soft drinks market. The growing interest of consumers in healthier and sugar-free options, combined with the awareness of benefits of hydration, has caused this segment to grow as consumers shift away from sugary beverages and carbonated drinks and towards premium and flavored water options. Bottled water is associated with wellness and is convenient for consumption on the go; hence, it is the most popular by Australian consumers.

By Packaging Type: PET/plastic bottles are the highest market share in the Australian soft drinks market. This is due to their light weight, strength, and low cost. These make them highly convenient for consumers and manufacturers. PET bottles are widely used across beverage categories such as bottled water, carbonated soft drinks, and juices. Other contributing factors to their success, aside from growing environmental concerns, is their recyclability and adaptability to different sizes and designs

By Distribution Channel: In the Australian soft drinks market, supermarkets and hypermarkets command the highest market share in distribution channels. This is so because of their widespread penetration, convenience, and accessibility to a wide variety of products under one roof, often at competitive prices with attractive discounts and promotional offers for a large consumer base. Supermarkets and hypermarkets are favored for soft drinks due to the availability of well-organized beverage sections and the frequent restocking of popular brands.