Sparkling Coffee Market Size, Share, Analysis, Trends, Growth, 2032

Sparkling Coffee Industry Prospective:

The global sparkling coffee market size was worth around USD 1,653 million in 2023 and is predicted to grow to around USD 4,773 million by 2032 with a compound annual growth rate (CAGR) of roughly 12.5% between 2024 and 2032.

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Sparkling Coffee Market: Overview

The combination of coffee with carbonated water produces sparkling coffee, a delicious and bubbly beverage. Sparkling water's lightness and sparkle are combined with the robust, deep flavors of coffee in this design. This mixture is commonly consumed over ice and can be served cold. If you want to improve the flavor, one can also add different syrups, fruits, or herbs. The conventional iced coffee drink is given a distinctive twist by sparkling coffee, which is often low in calories. The sparkling coffee market is being driven by several factors including increasing health & wellness trends, rising demand for RTD beverages, growing popularity of cold brew coffee, innovation in coffee products, and many others.

Key Insights

• As per the analysis shared by our research analyst, the global sparkling coffee market is estimated to grow annually at a CAGR of around 12.5% over the forecast period (2024-2032).
• In terms of revenue, the global sparkling coffee market size was valued at around USD 1,653 million in 2023 and is projected to reach USD 4,773 million by 2032.
• The growing product launch is expected to drive the sparkling coffee market growth over the forecast period.
• Based on the product, the caffeinated segment is expected to dominate the market over the forecast period.
• Based on the distribution channel, the online segment is expected to hold a prominent market share over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

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Sparkling Coffee Market: Growth Drivers

Increasing consumer preference for healthier beverages drives market growth

An important element propelling the growth of the sparkling coffee market is the increasing consumer inclination for ready-to-drink, healthy alternatives to typical sugary sodas and energy drinks. Cold brew coffee and other innovative RTD options have proven popular, especially with millennials, thus contributing to the market's expansion. Due to the pandemic, consumer behavior has also shifted, with a rise in demand for at-home consumption. It is expected that the launch of new products and flavors, together with continuous innovation in the RTD category, will propel the industry even further in the coming years.

Sparkling Coffee Market: Restraints

Competition from other alternatives hinders market growth

The rivalry between sparkling coffee and other ready-to-drink beverages, like energy drinks and carbonated soft drinks, is a significant constraint for the sparkling coffee industry’s growth. There is a sizable market and customer base for these items, and some consumers might even prefer them over sparkling coffee. Furthermore, price-conscious consumers may be less likely to accept sparkling coffee beverages due to their significantly greater cost when compared to conventional coffee. The presence of substitutes and rivalry from well-known brands could potentially impede the expansion of the industry.

Sparkling Coffee Market: Opportunities

Rising product launch offers a lucrative opportunity for market growth

The growing product launch is expected to offer a lucrative opportunity for sparkling coffee market growth during the forecast period. For instance, in June 2024, a new and refreshing benefit was introduced for travelers by illy and United Airlines. As of July 1, United is the only major U.S. airline that offers premium cold brew coffee on most of its flights. This is because most flights over 300 miles will include Illy's canned, ready-to-drink Cold Brew. 100% Arabica beans from the best coffee-growing locations in the world are combined to create the company's special mix for illy's Cold Brew. A rich and well-balanced flavor profile is achieved by cold brewing the coffee for a whole 12-hour period. The airline's buy onboard menu will include it, and it will be free in United's first-class cabins and available for purchase in United Economy®.

Sparkling Coffee Market: Challenges

Environmental concern poses a major challenge to market expansion

The can and bottle packaging of sparkling coffee creates environmental issues about recycling and waste management. Packaging choices may turn off environmentally conscious customers. Glass bottles have a global warming potential (GWP) of 0.39 to 1.05 kg CO2e, PET/plastic bottles have a GWP of 0.11 to 0.65 kg CO2e, and aluminum beverage cans have a GWP of 0.11 to 0.51 kg CO2e per liter of packaged beverage, according to data released by the Aluminum Association. It is anticipated that the aforementioned statistics will hinder the sparkling coffee market's expansion.

Sparkling Coffee Market: Segmentation

The global sparkling coffee industry is segmented based on product, distribution channel, and region.

Based on the product, the global sparkling coffee market is bifurcated into caffeinated and decaffeinated. The caffeinated segment is expected to dominate the market over the forecast period. Companies are starting to offer a variety of delightful flavors of flavored effervescent coffee, which is increasing in popularity. To meet the growing demand from customers, major players are introducing new items to the market. As an example, DEK Berlin's wholly-owned subsidiary Cafeahaus AG recently introduced a new sparkling cold brew coffee line in Germany. There are two varieties of these new coffee products: grapefruit & lemon and ginger & lemon. For the packaging of its canned coffees, Cafeahaus AG collaborated with Ardagh Group S.A., a top manufacturer of glass and metal containers. Throughout the projected period, it is expected that these endeavors by major industry participants will drive market expansion. Besides, the decaffeinated segment is expected to grow at the highest CAGR during the forecast period. The market for decaffeinated sparkling coffee is rather small and is still in its infancy. Several brands, like Manhattan Special and Union Coffee, provide a decaf version of the beverage. The growing customer preference for decaf drinks, because they help prevent aging and cancer, is predicted to drive growth in the decaffeinated market in the future years.

Based on the distribution channel, the global sparkling coffee industry is bifurcated into hypermarkets & supermarkets, convenience stores, online, and others. The online segment is expected to hold a prominent market share over the projected period. Direct-to-consumer marketing is becoming more popular as a result of consumers' growing preference for internet platforms. To reach a wider audience, DrinkVIVIC, for example, distributes their sparkling coffee through D2C as well as other channels.

Sparkling Coffee Market: Report Scope

Sparkling Coffee Market: Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the global sparkling coffee market during the forecast period. The market is predicted to be driven by consumers' growing preference for the drink over typical caffeinated beverages because it helps to increase energy and concentration. Furthermore, it is projected that the existence of numerous manufacturers in this area, such as Manhattan Special and Spindrift, will further accelerate the expansion of the regional market.

Besides, Europe will also capture a significant sparkling coffee industry share over the projected period as there is a growing need among consumers for quick, portable, and caffeinated beverages. Furthermore, there is a noticeable growth rate in quick-service restaurant expansion across Europe. To expand their reach in a more competitive market, they have been launching several new drinks and food products that are influenced by both domestic and foreign cuisines. This is expected to be positive for the market going forward.

Sparkling Coffee Market: Competitive Analysis

The global sparkling coffee market is dominated by players like:

• Coca-Cola Company
• Starbucks Corporation
• Nestle SA
• PepsiCo Inc.
• UCC Ueshima Coffee Co. Ltd.
• AJinomoto General Foods Inc.
• JAB Holding Company
• Lavazza Group
• Illycaffè S.p.A.
• Royal Cup Coffee & Tea
• Tata Global Beverages Limited
• The J.M. Smucker Company
• Keurig Dr Pepper Inc.
• Strauss Group Ltd.
• Asahi Group Holdings Ltd.
• Pernod Ricard SA
• The Coca-Cola Bottling Co. Consolidated
• Illycaffè North America Inc.
• Coffee Roasting Company Inc.
• East Japan Railway Company

The global sparkling coffee market is segmented as follows:

By Product

• Caffeinated
• Decaffeinated

By Distribution Channel

• Hypermarket & Supermarket
• Convenience Stores
• Online
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa