Soft drink consumption in Australia - Data and Analysis (1994-2034)

IBISWorld forecasts soft drink consumption to shrink by 0.3% during 2026-27 to 76.5 litres per capita. The pinch consumers feel due to the cost-of-living crisis has curbed discretionary purchases. This has worked in tandem alongside the rising popularity of substitutes like sparkling water, kombucha and flavoured milk, contributing to the downturn in soft drink consumption throughout the year. While soft drink consumption benefits from consumers opting to move away from expensive alcoholic beverages, an increasing proportion of demand has been leaking through to substitute product categories as health consciousness and changing food consumption habits remain everpresent drivers of soft drink consumption dynamics. Meanwhile, soft drink sales at fast-food establishments continue to drive demand, with combo meals remaining a popular option 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 aged 14 or older still consuming a Coca-Cola-branded beverage at least once a week.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 over the years to 2025. Overall, IBISWorld forecasts soft drink consumption to decrease at a compound annual rate of 1.4% over the five years through 2026-27.