Sales in the carbonated beverage market have either remained flat or have declined in the past five years, primarily due to increasing health concerns. Furthermore, the aging U.S. population is likely to cut down on carbonated beverages. As a result, the market has received tough competition from non-carbonated beverages, particularly from the bottled water category.

Diet carbonated beverages experienced more than 10% growth between 2003 and 2004, indicating the consumers might be switching to diet segment from the regular segment. The category is expected to receive utmost attention from the three leading beverage companies (Coca-Cola, PepsiCo and Cadbury Schweppes) who together accounted for more than 89% of total dollar sales at FDM level in the U.S. The companies are launching functional beverages such as 7 Up PLUS, Diet Coke with Lime and Coke Zero. The companies have also pledged increased advertising budget for the diet brands.

A thorough analysis of carbonated beverages market includes an evaluation of top concerns and priorities when choosing products, a breakdown of preferences by demographic characteristics, and statistics of purchasing location and frequency. A five-year market forecast estimates the future of the market, with a statistical forecast of market performance until 2009 and an outline of demographic and product trends.

For this report, carbonated soft drinks include all beverages that have added carbonation. They may have no other additives (seltzer) or include a range of flavors, sweeteners, and coloring. This report divides the market into three segments: regular (non-diet), diet, and seltzer/tonic water/club soda. Regular and diet soft drinks include both colas and non-colas. Sales figures include only soft drinks sold through food stores, drug stores, and mass merchandisers (excluding Wal-Mart). Where available, sales data from the National Association of Convenience Stores is also included.

Excluded from this report are carbonated isotonics such as Red Bull or SoBe. Also excluded from the report are sales of carbonated beverages through fountains and vending machines. These have been included in U. S. Functional Beverages, September 2004.