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United States
July 2026

United States Craft Soda Market Size, Trends, Share & Forecast, 2025–2031

2031

The United States Craft Soda Market worth USD 130.0 million in 2025 is growing at a CAGR of 4.40% to reach USD 168.3 million by 2031. Jones Soda Co., Reed's, Inc., Sprecher Brewing Company, Boylan Bottling Company and Maine Root Beverages are the major companies operating in this market.

Report Details

Base Year

2025

Pages

90

Region

United States

Author

Ken Research

Product Code
KR-RPT-V02-01210

CHAPTER 1 - MARKET SUMMARY

Market Overview

The United States Craft Soda Market operates as a premium niche within the wider carbonated soft drink system, combining small-batch recipes, differentiated sweeteners and higher unit pricing. U.S. carbonated soft drink consumption measured 34.8 gallons per capita in 2024, giving craft producers a large habitual consumption base even though their volume share remains narrow. Commercial success depends on converting mainstream soda occasions into premium purchases.

Supply is fragmented across regional bottlers, brand owners and contract manufacturers, with the West, Northeast and Midwest supporting dense specialty retail and foodservice networks. The broader U.S. soft drink manufacturing industry contained approximately 422 businesses in 2025, while the craft-focused addressable universe is estimated at about 180 active brands and bottlers. This fragmentation creates acquisition, co-packing and route-density opportunities.

Market Value

USD 130.0 million

2025

Dominant Region

West

2025

Dominant Segment

Functional and Reduced-Sugar Soda

fastest growing, 2026-2031

Total Number of Players

180

Future Outlook

The United States Craft Soda Market is projected to increase from USD 130.0 million in 2025 to USD 168.3 million by 2031. The historical market expanded at a 4.07% CAGR during 2020-2025, supported by premium pricing, glass-bottle positioning and wider specialty retail access. The forecast CAGR of 4.40% reflects steady unit growth rather than rapid category penetration. Value expansion will remain stronger than volume growth as brand owners use natural ingredients, flavor complexity and premium packs to defend pricing while mainstream carbonated soft drink volumes remain broadly mature.

Forecast performance depends on three commercial shifts. First, reduced-sugar and botanical formulations should gain mix as consumers compare added sugar declarations. Second, cans and direct-to-consumer variety packs will lower shipping breakage and improve digital economics. Third, restaurants, cafes and bars will use craft soda as a premium standalone beverage and mocktail component. The base case assumes 12-ounce equivalent volume reaches 56.7 million units in 2031, up from 51.0 million in 2025, while weighted average selling price rises from USD 2.55 to USD 2.97 per unit.

4.40%

Forecast CAGR

$168.3 Mn

2031 Projection

Base Year

2025

Historical Period

2020-2025

Forecast Period

2026-2031

Historical CAGR

4.07%

CHAPTER 2 - SCOPE OF REPORT

Scope of the Market

CHAPTER 3 - Key Stakeholders

Key Target Audience

Key stakeholders who can leverage from this market analysis for investment, strategy, and operational planning.

Investors

CAGR, gross margin, velocity, concentration, exit pathways

Corporates

portfolio mix, pricing, distribution, co-packing, innovation

Government

labeling, sugar policy, recycling, manufacturing, compliance

Operators

batch efficiency, freight, shelf turns, quality, forecasting

Financial institutions

working capital, covenants, inventory, cash conversion, risk

What You'll Gain

  • Market sizing and trajectory
  • Policy and compliance mapping
  • Channel economics assessment
  • Segment structure and levers
  • Competitive landscape shortlist
  • CEO-grade risk priorities

80+

Pages of insights

CHAPTER 4 - Market Size & Growth

Market Size, Growth Forecast and Trends

This section evaluates the historical market size, analyzes year-over-year growth dynamics, and presents forecast projections supported by market performance indicators and demand-side drivers.

Historical & Projected Market Size ($ Million)

Year-over-Year Growth Rate (%)

Market Value vs Volume Growth (%)

Historical Market Performance (2020-2025)

Market value increased from USD 106.5 million in 2020 to USD 130.0 million in 2025. Growth peaked at 5.15% in 2023 as foodservice recovery, premium pricing and wider distribution supported demand, while the trough was 3.40% in 2024 as consumers managed beverage budgets. Volume advanced from 49.1 million to 51.0 million 12-ounce equivalents, showing that most historical value creation came from an ASP increase from USD 2.17 to USD 2.55 rather than broad physical consumption growth.

Forecast Market Outlook (2026-2031)

Market value is forecast to reach USD 168.3 million by 2031 at a 4.40% CAGR. Annual growth remains close to 4.4% because reduced-sugar innovation, premium flavor launches and distribution expansion are offset by mature soda consumption and shelf-space pressure. Volume is projected to reach 56.7 million 12-ounce equivalents, while weighted ASP rises to USD 2.97. This mix implies approximately 1.8% annual volume growth and 2.6% annual price and mix growth across the forecast period.

CHAPTER 5 - Market Data

Market Breakdown

The market is expected to grow steadily through 2031, with revenue expansion driven more by pricing, channel mix and premium formulation than by rapid soda volume growth. For CEOs and investors, the key decision variables are repeatable unit velocity, retail-door productivity and gross-margin resilience.

Market Breakdown

Historical Data (2020-2024) • Base Data (2025) • Forecast Data (2026-2031)

Year
Market Size (USD Mn)
YoY Growth (%)
12-oz Equivalent Volume (Mn Units)
Weighted ASP (USD/Unit)
Off-Trade Share (%)
Period
2020$106.5 Mn+-49.12.17
$#%
Forecast
2021$110.2 Mn+3.47%49.42.23
$#%
Forecast
2022$114.6 Mn+3.99%49.72.31
$#%
Forecast
2023$120.5 Mn+5.15%50.22.40
$#%
Forecast
2024$124.6 Mn+3.40%50.62.46
$#%
Forecast
2025$130.0 Mn+4.33%51.02.55
$#%
Forecast
2026$135.7 Mn+4.38%51.82.62
$#%
Forecast
2027$141.7 Mn+4.42%52.72.69
$#%
Forecast
2028$147.9 Mn+4.38%53.62.76
$#%
Forecast
2029$154.4 Mn+4.39%54.62.83
$#%
Forecast
2030$161.2 Mn+4.40%55.62.90
$#%
Forecast
2031$168.3 Mn+4.40%56.72.97
$#%
Forecast

12-oz Equivalent Volume

51.0 million units, 2025, United States. Volume establishes the physical demand base and co-packing requirement. Wider CSD consumption remains substantial at 34.8 gallons per capita in 2024, but craft brands must win a very small premium slice.

Weighted ASP

USD 2.55 per unit, 2025, United States. The premium over mainstream packaged soda finances natural ingredients and small runs. Category dollar sales rose 4.8% in 2024 while volume fell 0.2%, confirming price and mix as the principal value lever.

Off-Trade Share

59.0%, 2025, United States. Grocery, specialty retail and e-commerce provide the largest revenue pool, but require trade spending and reliable fulfillment. Reed's reported access to approximately 32,000 retail doors in its latest investor metrics, illustrating the scale needed for national visibility.

CHAPTER 6 - Segmentation

Market Segmentation Framework

Comprehensive analysis across key dimensions providing insights into market structure, consumer preferences, and distribution patterns.

No of Segments

7

Dominant Segment

Product Type

Fastest Growing Segment

Distribution Channel

Product Type

Cola and Heritage Soda
$%
Root Beer and Cream Soda
$%
Ginger and Botanical Soda
$%
Fruit and Citrus Soda
$%
Functional and Reduced-Sugar Soda
$%

Price Tier

Accessible Craft
$%
Premium Craft
$%
Super-Premium Craft
$%

Customer Type

Gen Z Consumers
$%
Millennial Consumers
$%
Gen X Consumers
$%
Family Households
$%
Foodservice Buyers
$%

Purchase Occasion

Everyday Refreshment
$%
Meal Pairing
$%
Social and Entertainment
$%
Gifting and Discovery
$%
Cocktail and Mocktail Mixing
$%

Distribution Channel

Grocery and Mass Retail
$%
Natural and Specialty Retail
$%
Convenience Stores
$%
Foodservice and Hospitality
$%
Direct-to-Consumer E-Commerce
$%

Packaging Format

Glass Bottles
$%
Aluminum Cans
$%
PET Bottles
$%
Fountain and Keg
$%

Geography

Northeast
$%
Midwest
$%
South
$%
West
$%

Key Segmentation Takeaways

Comprehensive analysis across all extracted segmentation dimensions providing insights into market structure, consumer preferences, and distribution patterns.

Product Type

Product architecture is the dominant decision lens because flavors, ingredients and functional claims determine trial, repeat purchase, pricing and retailer placement. Cola and Heritage Soda remains the largest Level-2 pool, while root beer, ginger, botanical and fruit formulations sustain regional differentiation. Portfolio managers should rationalize low-velocity flavors while protecting distinctive hero products that support premium positioning.

Distribution Channel

Distribution Channel is the fastest-growing strategic dimension because digital discovery, foodservice placement and specialty retail can scale brands without immediate mass-grocery dependence. Direct-to-Consumer E-Commerce is the fastest-growing Level-2 route, supported by variety packs and subscriptions, while Foodservice and Hospitality offers sampling and higher realized prices. Winning brands require channel-specific pack formats and fulfillment economics.

CHAPTER 7 - Regional Analysis

Regional Analysis

The United States ranks first among selected adjacent and economically comparable craft soda markets, reflecting its larger specialty retail base, established regional soda culture and deep foodservice system. Mexico offers faster demand growth, while Canada, the United Kingdom and Australia provide useful premium-beverage benchmarks. Values use the same narrow craft soda scope and 2025 reference year.

Focus Country Ranking

1st

Focus Country Market Size

USD 130.0 Mn (2025)

Focus Country CAGR (2026-2031)

4.40%

Regional Analysis (Current Year)

Regional Analysis Comparison

MetricUnited StatesCanadaMexicoUnited KingdomAustralia
Market SizeUSD 130.0 MnUSD 46.0 MnUSD 40.0 MnUSD 34.0 MnUSD 28.0 Mn
CAGR (%)4.40%4.00%5.20%3.70%5.00%
Per Capita Soda Consumption (Gallons/Year)34.824.543.120.021.0
Sugary Drink Tax CoverageLocal jurisdictionsProvincial measuresNational excise taxNational levyNo national excise tax

Market Position

The United States holds the first position with USD 130.0 million in 2025, nearly three times Canada's modeled craft soda pool, supported by specialty retail, foodservice and an estimated 180 active craft-focused brands.

Growth Advantage

The U.S. forecast CAGR of 4.40% exceeds the United Kingdom's 3.70% and Canada's 4.00%, but trails Mexico's 5.20%, placing the market in the upper-middle growth tier among selected peers.

Competitive Strengths

Structural advantages include 34.8 gallons of annual CSD consumption per capita, approximately 422 soft drink manufacturers and 16.1% e-commerce penetration of total retail sales in 2024, supporting trial and omnichannel distribution.

CHAPTER 8 - INDUSTRY ANALYSIS

Growth Drivers, Market Challenges, Market Opportunities, Regulatory Environment, Supply and Value Chain, Technology and Innovation, Risk Matrix, Case Studies, Reconciliation Summary & Taxonomy Assignment

Comprehensive analysis of key factors shaping the United States Craft Soda Market, including growth catalysts, operational challenges, and emerging opportunities across production, distribution, and consumer segments.

Growth Drivers

Premiumization and Flavor-Led Value Growth

  • U.S. CSD volume declined 0.2% (2024, Beverage Digest/United States), making distinctive flavors and higher realized prices more important than mainstream volume expansion; brands with strong velocity and controlled promotions capture the value pool.
  • Cola represented 49.0% (2025, Grand View Research/Global craft soda) of global craft soda revenue, confirming that familiar flavor platforms can support premium reformulation through cane sugar, botanicals and spices.
  • Jones Soda reported revenue growth of 42% (2025, Jones Soda/Company), showing that licensed products, limited editions and club-channel programs can accelerate sales when novelty is paired with national distribution.

Clean-Label and Reduced-Sugar Reformulation

  • FDA guidance defines 20% Daily Value or more (2026, FDA/United States) as a high source of added sugars, giving lower-sugar craft formulations a measurable point of comparison on shelf and online.
  • Approximately 63% of adults (2010 and 2015 combined, CDC/United States) reported drinking a sugar-sweetened beverage at least once daily, preserving a large behavior base for better-positioned premium alternatives.
  • U.S. organic product sales reached USD 71.6 billion (2024, USDA/United States), indicating sufficient consumer spending around natural and certified ingredients for craft brands that can substantiate claims and manage higher input costs.

Omnichannel and Foodservice Expansion

  • Reed's reports distribution through approximately 32,000 doors (latest investor metrics, Reed's/United States), illustrating the retail scale required to create repeat availability beyond regional specialty outlets.
  • Off-trade channels represented 57.9% (2025, Grand View Research/Global craft soda) of craft soda revenue, favoring multipacks, shelf-ready cases and digital variety packs that improve household trial.
  • The National Restaurant Association identified wellness drinks among the top five non-alcohol beverage trends (2025, NRA/United States), creating menu opportunities for botanical soda, functional carbonation and premium mocktail mixers.

Market Challenges

Small-Batch Cost and Margin Pressure

  • Reed's delivery and handling costs were USD 2.75 per case (2025, Reed's/Company), demonstrating how freight can absorb contribution margin when brands lack dense routes or co-located production.
  • USDA estimated U.S. sugar use at 12.445 million short tons raw value (2024/25, USDA/United States), with policy-managed supply and import exposure affecting cane-sugar procurement and working capital.
  • Glass accounted for 55.9% (2025, Grand View Research/Global craft soda) of craft soda revenue, but its weight and breakage increase outbound freight costs; can conversion can improve logistics but may dilute heritage positioning.

Retail Shelf-Space and Brand Concentration

  • The craft soda base of USD 130.0 million (2025, Ken Research/United States) represents a very small fraction of total CSD spending, limiting buyer attention unless velocity, margins or differentiation are proven.
  • Mainstream CSD brands command extensive fountain and bottler access, while independent suppliers often depend on fewer than 10 core regional distributors (2025, Ken Research estimate/United States), increasing customer concentration and delisting risk.
  • Reed's 2025 net sales declined 10.3% (2025, Reed's/Company), demonstrating that national door count alone does not ensure sustainable velocity when promotions, inventory and recurring-customer volumes weaken.

Regulatory and Packaging Fragmentation

  • Berkeley's tax became effective in 2015 (Healthy Food America/United States), and subsequent city-level ordinances created different product definitions, rates and exemptions that complicate national pricing and pack architecture.
  • Only 43% of aluminum beverage cans (2023, Aluminum Association/United States) were recycled, weakening sustainability claims unless brands use recycled content, collection partnerships and accurate life-cycle messaging.
  • FDA requires added sugars in grams and percentage Daily Value on packaged beverages, anchored to 50 grams per day (2026, FDA/United States); formulation changes therefore require coordinated label, inventory and retailer transitions.

Market Opportunities

Functional and Zero-Sugar Craft Platforms

  • Functional and Reduced-Sugar Soda can expand from 7.0% revenue share (2025, Ken Research estimate/United States) through premium single cans, variety packs and subscription replenishment with higher gross profit per unit.
  • Brand owners, ingredient suppliers and specialty retailers benefit as consumers compare products against the FDA's 50-gram added-sugar Daily Value (2026, FDA/United States) and seek lower-sugar alternatives.
  • Producers need stable flavor systems, validated functional claims and sensory performance, because zero-sugar lines must achieve repeat purchase rather than rely on one-time trial within a market growing 4.40% annually (2026-2031, Ken Research/United States).

Premium Foodservice and Mocktail Programs

  • Fountain syrups, kegs and bar mixers reduce packaging cost and can produce higher per-ounce realization, allowing operators to build premium mocktails above the USD 2.55 weighted packaged ASP (2025, Ken Research/United States).
  • Restaurants, cafes, hotels and craft producers gain from menu differentiation as functional and wellness beverages were identified among the top five trends (2025, NRA/United States).
  • Brands need foodservice-specific concentrates, dispenser support and account training, because the forecast assumes fountain and keg formats rise from 6.0% share (2025, Ken Research estimate/United States) through targeted hospitality adoption.

Regional Co-Manufacturing and Distribution Consolidation

  • Shared procurement, co-packing and route aggregation can reduce freight and changeover costs, addressing Reed's delivery expense of USD 2.75 per case (2025, Reed's/Company).
  • Private-equity investors, regional bottlers and growing brands can combine unused capacity with differentiated portfolios; Sprecher already uses fire-brewed production across a business founded in 1985 (Sprecher/United States).
  • Operators require standardized quality systems, forecast sharing and channel conflict rules to scale beyond regional territories while preserving the local identity supporting the market's 4.40% forecast CAGR (2026-2031, Ken Research/United States).

CHAPTER 9 - Competitive Landscape

Competitive Landscape Overview

The market is fragmented, with the top 10 craft-focused suppliers representing an estimated 39.0% of 2025 revenue. Competition centers on flavor ownership, retail velocity, co-packing access, packaging economics and regional distribution.

Market Share Distribution

Jones Soda Co.
Reed's, Inc.
Sprecher Brewing Company
Boylan Bottling Company

Top 5 Players

1
Jones Soda Co.
!$*
2
Reed's, Inc.
^&
3
Sprecher Brewing Company
#@
4
Boylan Bottling Company
$
5
Maine Root Beverages
&@$
Combined Share$%

Market Dynamics

Local Players70%
Regional/Int'l30%

8 new entrants in the past 5 years, indicating strong market attractiveness and growth potential.

Company Profiles (Top 10 Players)
Company Name
Market Share
Headquarters
Founding Year
Core Market Focus
Jones Soda Co.
8.5%Seattle, Washington1995Flavor-led craft soda, licensed editions and direct-to-consumer packs
Reed's, Inc.
8.0%Norwalk, Connecticut1989Ginger beverages and Virgil's natural craft soda portfolio
Sprecher Brewing Company
5.5%Glendale, Wisconsin1985Fire-brewed root beer, cream soda and regional craft flavors
Boylan Bottling Company
4.5%New York, New York1891Cane-sugar heritage sodas in glass bottles and fountain formats
Maine Root Beverages
3.0%Austin, Texas2005Organic cane-sugar sodas and foodservice fountain programs
Ale-8-One Bottling Company
2.8%Winchester, Kentucky1926Regional ginger-citrus soda and limited flavor extensions
DRY Botanical Bubbly
2.0%Seattle, Washington2005Botanical, lower-sugar sparkling soda for food pairing
Hank's Beverage Company
1.8%Philadelphia, Pennsylvania1995Premium root beer, birch beer and cream soda
Rocky Mountain Soda Company
1.6%Denver, Colorado-Natural craft sodas and private-label beverage production
United Sodas of America
1.3%New York, New York2020Modern low-sugar flavor portfolio in slim cans

Cross Comparison Parameters

The report provides detailed cross-comparison of key players across 10 performance parameters to identify competitive strengths and weaknesses.

1

12-oz Equivalent Case Volume

2

Retail Door Coverage

3

Net Sales Growth

4

Gross Margin

Analysis Covered

Market Share Analysis:

Quantifies branded concentration and fragmented regional revenue pools across channels.

Cross Comparison Matrix:

Benchmarks distribution, volume, growth and margins across leading suppliers.

SWOT Analysis:

Assesses brand equity, operating constraints, opportunities and competitive threats.

Pricing Strategy Analysis:

Compares pack architecture, promotional intensity and realized price positioning.

Company Profiles:

Reviews ownership, footprint, portfolio focus and strategic market relevance.

CHAPTER 10 - REPORT TOC

Table of Contents

90Pages
34Chapters
10Companies Profiled
7Segmentation Types
Phase 1

Market Assessment Phase

11

Supply-side and competitive intelligence covering market sizing, segmentation, competitive dynamics, regulatory landscape, and future forecasts.

Phase 2

Go-To-Market Strategy Phase

15 chapters

Entry strategy evaluation, execution roadmap, partner recommendations, and profitability outlook.

Phase 3

Survey Phase

8 chapters

Demand-side primary research conducted through structured interviews and online surveys with end users across priority metros and Tier 2/3 cities to capture consumption behavior, unmet needs, and purchase drivers.

Complete Report Coverage

201+ detailed sections covering every aspect of the market

143

Assessment Sections

58

Strategy Sections

CHAPTER 11 - Our Approach

Research Methodology

Desk Research

  • Reviewed craft soda brand portfolios
  • Mapped retail and foodservice channels
  • Analyzed beverage consumption and pricing
  • Tracked labeling and sugar policies

Primary Research

  • Interviewed beverage category buyers
  • Consulted craft soda brand founders
  • Engaged bottling operations directors
  • Surveyed restaurant beverage managers

Validation and Triangulation

  • Validated assumptions across 288 respondents
  • Reconciled value and volume estimates
  • Cross-checked channel revenue allocations
  • Tested company-universe completeness

CHAPTER 12 - FAQ

FAQs

Still have questions?

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CHAPTER 13 - Related Research

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Expand your market intelligence with complementary research across regions and adjacent markets.

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500+

Market Research Reports

50+

Countries Covered

15+

Industry Verticals

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