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The Australia carbonated beverages market attained a value of USD 7.45 Billion in 2025 and is projected to expand at a CAGR of 3.50% through 2035. The market is further expected to achieve USD 10.51 Billion by 2035. Increased consumer preference for low sugar formulations is motivating companies to focus on optimizing the use of sweeteners, maintaining flavors, and developing their formulas. Retailers prefer differentiated formulations as they enhance sales and profitability.
There are two main driving factors contributing to the growth in the Australia carbonated beverages market. Brand extension through the incorporation of functional ingredients in an energy-type formula, thereby creating new sources of income without sacrificing brands' identity. In addition, the use of automation in the production of cans and the local manufacturing process makes it easier for suppliers to meet varying needs such as seasonal launches, retailer-specific volume, and packaging preferences.
The Australia carbonated beverages market is going through significant changes, which are due to the manufacturers’ decisions to change the strategy from traditional cola innovations to developing new low sugar products, functional products, and increased production capacity on a local level. For instance, In June 2025, Asahi Beverages introduced its Solo brand to functional products by extending Solo into Solo Energy with guarana, caffeine and B vitamins combined with traditional Solo lemon flavor. This decision aims to attract both consumers and retailers seeking the crossover between the carbonated beverages and energy drinks.
Another critical issue that is becoming important in portfolio planning is sugar reduction. In a 2026 study of non-alcoholic beverage sales in Australia, it was revealed that low/no sugar water-based beverages raised their share from 30% in 1997 to 65% in 2024, while sugar-sweetened beverages lowered from 70% to 35%. Following such trends in the Australia carbonated beverages market, in August 2026, Hard Rated launched a national campaign promoting its new Orange Passionfruit Zero Sugar flavour across the country.
Compound Annual Growth Rate
3.5%
Value in USD Billion
2026-2035
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All the plastic soft drink bottles produced by Asahi Beverages in Australia were made using 100% recycled plastic, including brands such as Schweppes, Solo, and Pepsi. Producers can create their brands by investing in sustainable packaging, circular supply chain, and sustainability-based branding, leveraging such trends in the Australia carbonated beverages market.
In response to the increasing demand for innovation through flavors in functional beverages, Celsius launched its Sparkling Orange in Australia. Brands can create unique fruit-flavored drinks with health benefits for Australian carbonated beverages consumers.
Corona released a 330 ml pack along with reduced recommended prices in response to the changing consumer needs and cost-of-living situation. Manufacturers can adopt small pack sizes as well as value-based pricing to overcome affordability concerns and enhance occasions for consumption.
Remedy Drinks introduced zero sugar Sodaly flavored drinks in the Tropic, Strawberry, and Grapefruit variants in response to the demand for functional beverages throughout the country. Manufacturers can consider the introduction of zero sugar and natural functional beverages in different fruit tastes, accelerating growth in the Australia carbonated beverages market.
Reduction in sugar content is becoming an essential product development concern in the industry where manufacturers focus on optimizing sweetener levels as opposed to creating conventional diet products. In its Partnership Reformulation Program, the Australian Government set a 10% sugar reduction target for carbonated soft drinks and energy drinks which contain more than 10g sugar per 100mL, by June 2025. This development in the Australia carbonated beverages market is making suppliers come up with ways to reduce sugar content in their beverages without sacrificing taste and mouth feel. From a commercial perspective, there is more emphasis on healthy beverages from the government which presents an opportunity for ingredient suppliers to offer innovative sweeteners, flavors, and formulation solutions. For example, in June 2026, Sanpellegrino launched CIAO! sparkling waters in Australia, featuring Lime, Blood Orange and Peach flavors with no added sugar.
Manufacturers are expanding their range of beverages into functional and energy adjacent segments in order to create consumption opportunities as well as strengthen their brands, thereby broadening the Australia carbonated beverages market scope. For instance, in July 2026, Remedy Drinks expanded Sodaly with Tropic, Strawberry, and Grapefruit flavors, targeting demand for healthier, no-sugar soft drinks. This allows carbonated soft drinks companies to attract consumers who are looking for energy and functional value without having to transform their core brand lineups. The government is also labeling sugar-sweetened carbonated soft drinks and energy drinks as discretionary beverages.
The recyclability of packaging is emerging as an increasingly strategic factor in product development trends in the Australia carbonated beverages market, considering the increasing pressure on manufacturers to offer recyclable containers and resource recovery initiatives. For example, in November 2025, Famous Soda Co launched its Kids Protein Shake in sustainable Tetra Pak cartons, combining nutrition, convenience, and environmental responsibility. NSW exemplifies how such initiatives contribute towards investments in recyclable aluminum cans, PET systems, and recoverable package designs. In December 2025, NSW's Return and Earn scheme saw a 73% reduction in density and a 71% reduction in volume of litter of eligible beverage containers together with a rise in the recycling rate from 33% to as high as 68%.
The investments being made in Australia's capacity for manufacturing beverages are opening up possibilities for rapid commercialization, larger manufacturing quantities, and increased flexibility of product lines. In July 2026, the Australian Government established the Food Manufacturing Innovation Hub in NSW Central Coast having allocated AUD 17 million to Central Coast Industry Connect. The facility offers commercial-scale production facilities along with technical assistance in developing new products. The facility is especially valuable for startups that seek to commercialize small batch formulae and manufacture their carbonated beverages at a retail scale. Aligning with such trends in the Australia carbonated beverages market, in July 2025, Suntory Oceania launched its USD 3 billion Australian beverage business, expanding local production and multi-beverage portfolio capabilities.
Health-based labeling is becoming increasingly important as companies design, package, and market their products to retail outlets and consumers, sustaining demand in the Australia carbonated beverages market. From a business perspective, there is increased importance placed on the sugar content of beverages and nutritional content of products by the government. Companies are formulating lower sugar and nutritional products to increase competitive advantage. For example, in October 2025, Jim launched Australia’s first functional soda, combining protein, prebiotics, BCAAs, and L-glutamine without added sugar or caffeine.
The Expert Market Research's report titled “Australia Carbonated Beverages Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product
Key Insight: In terms of products, carbonated soft drinks continue to lead the Australia carbonated beverages market growth owing to brand equity, widespread availability, and familiar flavorings, but carbonated water is becoming more important on account of demands for refreshing drinks and lower sugar content. Carbonated sports and energy drinks are being led by function and convenience. In August 2026, McDonald’s introduced colorful Red Bull beverages, sparking concerns over energy drinks’ appeal to children and teenagers in Australia. Companies are treating these categories as complementary portfolios, with different packaging sizes and formulations catering to different drinking occasions.
Market Breakup by Type
Key Insight: According to the Australia carbonated beverages market report, regular drinks have the advantage of taste, brand equity, and wide distribution in various retail outlets and foodservice channels and therefore make up an essential volume product for producers. Diet drinks get their support from shifting tastes, nutritional values, and reformulation trends, especially those related to sugar reduction and sweeteners. Modern producers increasingly view the two drink types as complementary rather than competing products, with regular drinks serving mainstream consumers while diet variants cater to the growing niche of consumers seeking low-sugar alternatives.
Market Breakup by Distribution Channel
Key Insight: Supermarkets and hypermarkets continue to be significant channels for carbonated drinks due to the ability to support diverse product lines, packaging, promotions, and large quantities of inventory. Convenience stores are motivated by immediacy of use, cooling, and impulse purchases, which makes them ideal for single serve products such as cans and bottles. Specialty stores open up opportunities for premium, functional, imported, and specialty drinks that need specialized marketing efforts, thereby accelerating the Australia carbonated beverages market expansion. Online channels continue to be embraced via home deliveries and digital promotions as well as larger assortments, whereas others such as food service and institutional are facilitated by meals.
Market Breakup by Region
Key Insight: The Australia carbonated beverages market is well served by strong retail infrastructures, well-known brands of multinationals and the availability of the products. New South Wales and Victoria excel due to the large number of people in the urban centers, premiumization trends and advanced retail infrastructures. Queensland enjoys better climatic conditions, tourism activities and demand for refreshments. Western Australia leverages increasing incomes and modern retail infrastructures, while South Australia gets support from the existing beverage manufacturing industries. Tasmania has the potential for premium products, and the Northern Territory has climate-based demand.
By product, carbonated soft drinks dominate the market due to established brands and broad retail availability
Carbonated soft drinks dominate the Australia carbonated beverages market as a result of the established consumer loyalty, extensive flavor range, and existing business relationships with the key retailers. Firms like Coca-Cola Europacific Partners, Asahi Beverages, and PepsiCo maintain their position through core cola, lemon, citrus, and flavored variations of soft drinks with low sugar content. Moreover, carbonated soft drinks are backed up by their relevance to the supermarket, convenience store, foodservice and eating situations. In May 2025, Sidel launched EvoFILL Can Compact, enabling flexible, efficient filling of carbonated beverages with reduced footprint and faster changeovers.
Carbonated sports and energy drinks are proving themselves to be the fastest-growing product sub-segment in response to the demand for energy, hydration, and functional aspects from consumers. Beverage companies add caffeine, electrolyte, vitamins, botanicals and alternative sweeteners to differentiate their products. An example of such a strategy is the extension of Asahi’s Solo into an energy-style drink. In addition, carbonated sports and energy drinks gain popularity due to the opportunity of convenient purchase and smaller size of cans.
Standard carbonated beverages account for largest share of the market due to strong taste familiarity and brand loyalty
Carbonated drinks in standard form a significant share of the Australia carbonated beverages market. Established producers keep standard types as the core elements of the portfolio, especially for colas, citrus, and fruits, while using packaging and promotion strategies to keep awareness. Standard drinks can also be consumed during different occasions such as meals, parties, and spontaneous purchases. In May 2026, What’s Poppin opened Australia’s first permanent dirty soda shop in Fortitude Valley, offering customizable, flavor-led carbonated drinks.
The development of the diet carbonated beverages market in Australia continues as producers increasingly respond to consumers' growing preference of products with reduced or zero sugar content. Producers are making significant investments in developing sweeteners, balanced flavors, and re-formulate recipes to provide familiar taste with significantly decreased sugar content. Such a tendency is becoming especially relevant given the statistics by Australian Bureau of Statistics that states that the percentage of Australians drinking sweetened drinks decreased from 49.2% in 1995 to 28.9% in 2023.
Supermarkets and hypermarkets dominate the industry due to extensive assortment, promotional activity, and high consumer traffic
Supermarkets and hypermarkets continue to be the predominant channel of distribution that are contributing to the consistent Australia carbonated beverages market revenue since they provide beverage companies with large shelf spaces and geographical coverage, as well as opportunities for multi-packaging and promotion. Supermarkets and hypermarkets allow beverage companies to launch innovative formulas, deal with different packaging, and provide placement on cold and warm shelves. In addition, retailers provide beverage companies with performance comparisons between various brands and flavors, as well as different pack sizes based on sales statistics.
Another developing channel is the online one, which provides an opportunity for beverage companies and retailers to make more purchases through online retailing, while making better deliveries and direct-to-consumer sales. Such channels allow carbonated beverages companies to develop niche flavors, multi-packs, limited releases, and unique formulations, accelerating the Australia carbonated beverages market value. Online retailing is the source of purchasing data that will allow for making targeted promotions and recommendations. This retailing mode is becoming increasingly significant for consumers who want convenient purchasing, especially multipack purchasing. In October 2025, Papa Salt and Fever-Tree launched a Blood Orange Spritz in Australia, combining gin with citrus-forward Fever-Tree soda.
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New South Wales dominates the market due to mature beverage portfolios and strong multinational brand presence
New South Wales commands a significant share of the Australia carbonated beverages market revenue since multinational beverage companies have well-established distribution channels, significant manufacturing capacities, and long-standing carbonated product lines. The region also creates a vibrant innovation space for zero-sugar beverages, functional carbonates, energy drinks, and premium flavor extensions. Major players utilize the region as an innovative base for testing new packaging designs, formulation innovations, and brand extensions that can later be adopted for other markets. In December 2025, Vok Beverages refreshed UDL’s packaging and streamlined its range, introducing bolder designs, clearer flavor communication, and competitive pricing.
Victoria is gaining significant momentum as beverage manufacturers seek opportunities in growing urban populations, evolving consumption patterns and emerging functional and low sugar beverages. Major companies in the Australia carbonated beverages market focus on developing localized flavors, more convenient packaging, premium sparkling beverages and energy-focused carbonates in response to varied consumption occasions. This region also presents major players with an opportunity to combine their global brands with localized flavors and packaging.
The market is intensely competitive, as companies concentrate on portfolio innovations, sugar reductions, functional drinks, packaging efficiency, and new sales channels. Leading Australia carbonated beverages market players are enhancing their business strategies via diversified product ranges, production growth, and innovations within products. Manufacturers are currently prioritizing low or zero sugar-based variants, functional carbonated beverages, energy variants, smaller packages, and flavors due to the evolving consumer tastes and preferences.
The use of e-commerce might provide more convenience in terms of product availability and differentiation through SKUs. Australia carbonated beverage companies can find opportunities in the increasing demand for sophisticated sweetening systems, recyclable packaging, bottling machinery, local flavors, and contract manufacturing.
Founded in 1892 and based in Atlanta, Georgia, United States, The Coca-Cola Company targets the carbonated beverages market in Australia with Coca-Cola, Fanta, Sprite, and their sugar-free alternatives. Utilizing its extensive bottling and distribution capabilities, The Coca-Cola Company is able to supply its products nationally and relies on portfolio reformulation, packaging modifications, and flavor innovations to cope with the emerging Australian trend for low-sugar carbonated beverages.
Founded in 1965 and operating out of Purchase, New York, United States, PepsiCo caters to the Australian market with Pepsi and Mountain Dew. PepsiCo is concentrating on innovation in products and portfolio efficiency, digital interaction, and sustainability in addition to leveraging its global scale to innovate according to the evolving consumption and nutritional needs.
Founded in 1999 and based in Rotterdam, the Netherlands, Refresco serves Australia by providing contract manufacturing services for beverages. Formulation, procurement, production, packaging, logistics and distribution are among the wide range of services provided by Refresco for beverage manufacturing in Australia.
Founded in 1899 and located in Osaka, Japan, Suntory Holdings is enhancing its beverage portfolio in Australia through the use of Suntory Oceania, and a diversified product line of carbonated beverages, energy drinks and functional beverages. Large manufacturing investments in Australia made by Suntory are allowing the company to enhance production capabilities in the country and develop new beverages.
Other key players in the market include Asahi Group Holdings, among others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Unlock the latest insights with our Australia carbonated beverages market trends 2026 report. Discover regional growth patterns, consumer preferences, and key industry players. Stay ahead of competition with trusted data and expert analysis. Download your free sample report today and drive informed decisions in the market.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
In 2025, the market reached an approximate value of USD 7.45 Billion.
The market is projected to grow at a CAGR of 3.50% between 2026 and 2035.
The revenue generated from the carbonated beverages market is expected to reach USD 10.51 Billion in 2035.
The carbonated beverages market is categorised according to type, which includes standard and diet.
The key players in the market include The CocaCola Company, PepsiCo, Inc., Refresco Group, Suntory Holdings Limited, and Asahi Group Holdings, among others.
Based on the distribution channel, the market is divided into supermarkets and hypermarkets, convenience stores, online and others.
The market is broken down into New South Wales, Victoria, Queensland, Australian Capital Territory, Western Australia, and others.
Companies are facing persistent sugar-reduction pressure, rising ingredient and packaging costs, strict environmental expectations, intense retailer competition, changing consumer preferences, supply-chain complexity, and the challenge of preserving taste during reformulation.
Stakeholders are investing in reformulation technologies, expanding functional portfolios, strengthening recyclable packaging, improving manufacturing flexibility, developing localized flavors, and using digital channels for targeted product commercialization.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Product |
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| Breakup by Type |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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