Soft Drink Manufacturing in European Union: Market Size, Businesses & Forecast 2026

The soft drink manufacturing industry in the European Union comprises the production of non-alcoholic flavored, sweetened, and carbonated beverages, as well as bottled waters, under a unified regional market. According to recent trade figures from the Union of European Soft Drinks Associations (UNESDA) published in 2025, the broader soft drinks value chain generates over 1.8 million jobs and is valued at approximately EUR 242 billion across Europe. Production is firmly rooted within the bloc, with the industry operating more than 500 manufacturing plants to serve local consumer demand while navigating stringent regulatory frameworks focused on sugar reduction and packaging circularity.

Industry snapshot

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What does the Soft Drink Manufacturing in European Union industry cover?

The industry comprises the manufacturing of non-alcoholic beverages, focusing primarily on flavored, sweetened, or carbonated waters such as lemonades, colas, orangeades, tonic waters, energy drinks, and iced teas. It excludes the processing of pure fruit and vegetable juices, as well as non-alcoholic beer or wine, which are classified under separate processing standards. The industrial scope covers the full processing cycle from the mixing of concentrates and syrups to carbonation, bottling, and final commercial packaging.

• •Classified strictly under NACE Rev. 2 code 11.07, capturing soft drinks and bottled mineral water production.
• •Sourcing and processing are highly localized, with UNESDA reporting in 2025 that over 85% of drink ingredients are sourced directly from European farmers.
• •Operational activities exclude pure vegetable or fruit juice extraction, which falls under NACE code 10.32.

Who operates in the industry and how is it structured?

The European soft drink manufacturing sector features a dual structure composed of large multinational brand owners alongside a dense network of local bottling plants and small-to-medium enterprises (SMEs). Production facilities are distributed throughout EU member states to minimize transport costs and maintain proximity to major distribution networks. The supply chain relies heavily on close alignment between global concentrate manufacturers and regional anchor bottlers who handle local production and logistics.

• •The sector maintains more than 500 active production facilities situated across the European continent as of 2025.
• •Every direct job in soft drinks production creates an estimated seven additional indirect jobs across the wider value chain, spanning agriculture, logistics, and retail.
• •The market accommodates diverse operational models, ranging from centennial family-owned regional factories to large corporate bottling groups.

What drives demand in the industry?

Consumer choices in the EU soft drink market are increasingly shaped by health consciousness and a growing demand for low-calorie alternatives. This shift has triggered a structural transition from traditional high-sugar sodas toward reformulated options, functional beverages, and zero-sugar variations. Demographic factors, retail promotional strategies, and changing consumption habits in the food service sector further influence overall volume sales.

• •According to EU consumption survey data reviewed in 2023, the proportion of low- and no-calorie soft drink sales in the EU grew from 23% in 2016 to 30% by 2021.
• •Conversely, sales of traditional regular soft drinks (not reduced in sugar) fell from 77% to 70% over the same 2016-2021 period.
• •Public health campaigns and the roll-out of nutritional labelling systems across member states heavily influence purchasing decisions.

Who are the notable companies in the industry?

Competition in the EU soft drink manufacturing landscape is intense, led by major publicly traded corporations and highly consolidated bottling networks. These firms invest heavily in cold-chain logistics, regional marketing, and production technology to protect market share. Industry operators face continuous pressure to reformulate products, optimize supply chains, and secure prime shelf space across both off-trade retail channels and on-trade hospitality venues.

• •Coca-Cola Europacific Partners PLC operates as one of the largest anchor bottlers in Europe, managing expansive production and distribution networks across multiple EU nations.
• •PepsiCo Inc. maintains a significant manufacturing footprint in the EU, distributing global beverage brands alongside local agricultural contracting.
• •Sumol Compal SA stands as a leading Iberian non-alcoholic beverage manufacturer, reporting an annual turnover of approximately EUR 380 million.
• •Olvi Oyj, a publicly listed Finnish beverage company, actively competes within the Northern European and Baltic soft drink and functional beverage markets.

What are the recent trends and outlook?

The industry's strategic direction is defined by proactive sugar reduction initiatives and significant investments in sustainable manufacturing lines. Manufacturers are shifting production toward advanced packaging lines capable of handling recycled PET (rPET) and aluminum cans to fulfill corporate sustainability goals. Amid evolving consumer preferences, companies continue to expand into functional categories such as energy drinks, fortified waters, and plant-based refreshments.

• •UNESDA tracking indicated in 2025 that the European soft drinks sector achieved a 35.1% reduction in average added sugars since the year 2000.
• •The sector successfully responded to EU calls for healthier portfolios by hitting a 14.6% reduction in average added sugars between 2015 and 2019 alone.
• •Industrial capital expenditure is increasingly funneled into modernizing lines, exemplified by recent multi-million-euro investments in high-efficiency PET and canning setups across Central and Eastern Europe.

How is the industry regulated?

EU soft drink manufacturers operate under stringent European Commission regulations governing food safety, front-of-pack nutritional labeling, and packaging waste. Compliance frameworks force manufacturers to adjust recipe formulations to avoid specific national thresholds and to adapt packaging designs for circularity. Additionally, companies face evolving legislative requirements regarding single-use plastics and the integration of recycled materials.

• •Operators navigate diverse front-of-pack schemes, including the Nutri-Score algorithm, which applies specific beverage criteria for rankings from A to E.
• •The industry must align with the EU Nutrition and Health Claims Regulation, ensuring all low-sugar and functional marketing messages match strict legal guidelines.
• •Compliance mandates require strict adherence to evolving EU circular economy targets, including mandated collection rates for bottles and minimum recycled plastic content rules.

Government, statistical and trade sources used for this Claight analysis.

• UNESDA Socio Economic Data 2025 ·
• Eurostat NACE Rev. 2 Classification Database ·
• European Union Nationally Representative Food Consumption Surveys Review 2023