Soft drink consumption

IBISWorld forecasts soft drink consumption to rise by 1.1% during 2025-26 to 81.7 litres per capita. A surge in sugar free purchases and consumer behavioural shifts across the beverage market more broadly have supported this year's growing consumption. Rising health consciousness and a shift in food consumption habits have been everpresent drivers of soft drink consumption dynamics, with major companies pivoting to capitalise on new market conditions. Consumers are looking to save money as inflationary pressures hit their hip pockets, opting for soft drinks over purchasing expensive alcoholic beverages. Mindful drinking behaviour is becoming more common, with Australian's now more likely to go for cheaper soft drinks during their outings. Additionally, soft drink sales at fast food establishments have lifted, with combo meals becoming more popular among time-poor consumers.

Soft drinks are known to contain large amounts of sugar, which can contribute to obesity, diabetes, dental and other health problems. Furthermore, soft drinks are often considered a discretionary beverage or a beverage to consume at parties. Nevertheless, fewer people are looking towards soft drinks despite a rising level of obesity across the population. The ABS Household Impacts of COVID-19 Survey, 24-29 June 2020, found a 19% drop in the consumption of soft drinks, cordials or energy drinks during pandemic lockdowns. This drop is from a high benchmark, with over 30% of Australians over 14 still consuming a Coca Cola-branded beverage once a week of more.

Climbing health consciousness has been a noticeable factor contributing to the long-term drop of soft drink consumption. Due to the rising awareness of health issues, consumers are switching to other healthier alternatives with fewer negative health effects, like flavoured sparkling water, soda water and Kombucha. In June 2018, the Australian Beverages Council Limited announced a sugar reduction pledge. This led to a 20% reduction in sugar for non-alcoholic beverages in over the years to 2025. Overall, IBISWorld forecasts soft drink consumption to decrease at a compound annual rate of 0.5% over the five years through 2025-26.