Diet Soda Market

Diet Soda Market Size and Share Forecast Outlook 2025 to 2035

The global diet soda market is forecast to reach USD 47.1 billion by 2035, up from USD 21.8 billion in 2025. During the forecast period, the industry is projected to register at a CAGR of 8.0%. Healthy consumers want low-calorie options. Government efforts to reduce sugar and concerns about obesity influence the diet soda market.

Trends include natural sweeteners, clean-label products, and premium functional varieties. Expanding into new markets, boosting e-commerce sales, and creating new products will support growth in this category.

Quick Stats of Diet Soda Market

• Diet Soda Market Size (2025): USD 21.8 billion
• Projected Diet Soda Market Size (2035): USD 47.1 billion
• Forecast CAGR of Diet Soda Market (2025 to 2035): 8.0%
• Leading End-Users Type Segment of Diet Soda Market: Young Adults
• Leading Sales Channel Segment of Diet Soda Market: Conventional Retail
• Key Growth Regions of Diet Soda Market: United Kingdom, China, Japan
• Prominent Players in the Diet Soda Market: PepsiCo, The Coca-Cola Company, Crooked Beverage, Boylan Bottling, Wild Poppy Company, Jones Soda, SIPP eco beverage, Others

Metric	Value
Industry Size (2025E)	USD 21.8 billion
Industry Size (2035F)	USD 47.1 billion
CAGR (2025-2035)	8.0%

What are the Drivers of Diet Soda Market?

The demand for diet sodas is mainly driven by growing health awareness among consumers who are working to cut down on their sugar intake. As lifestyle-related illnesses become more common, many people are choosing low-calorie or sugar-free drinks instead of regular sodas. This trend is especially noticeable in urban areas, where fitness and wellness trends significantly influence buying habits.

The rise in obesity rates drives demand for dietary cool beverages, especially among weight management, diabetes, and metabolic health consumers who want lower- and zero-calorie options. Worldwide obesity has doubled since 1980, pushing people toward low-sugar options like diet soda, according to WHO.

Empirical studies also show a positive relationship between obesity and soft drink consumption, indicating that obese areas demand more low-calorie carbonated drinks. In 2022, 1 in 8 people worldwide were obese, according to WHO data. 2.5 billion adults (18+) were overweight in 2022. Of these, 890 million were obese. Adults 18 and older were 43% overweight and 16% obese in 2022. In 2024, 35 million under-5s were overweight. Over 390 million 5-19-year-olds were overweight in 2022, with 160 million obese.

Shifts in consumer preferences toward healthier options are important. Younger groups, especially millennials and Gen Z, care more about calories and ingredients. This has led to greater interest in diet sodas that use alternative sweeteners like stevia or sucralose. These sweeteners offer sweetness without high sugar levels. The popularity of these drinks is also supported by a rising demand for functional beverages that provide low calories along with extra vitamins or minerals.

Government actions and new food regulations are advancing the market as well. Many countries have started to impose sugar taxes and stricter labeling rules, prompting beverage companies to reformulate and promote lower-sugar or zero-sugar options. These steps have increased the visibility and acceptance of diet sodas as everyday choices.

Improvements in marketing and distribution also support this growth. Online platforms and direct-to-consumer models have made these products more accessible, enabling targeted campaigns, especially in areas where online beverage sales are rising. With endorsements, collaborations, and promotions on social media, diet sodas continue to attract more consumers. This combination of health awareness, regulation, and convenience strengthens the long-term growth of the diet soda market.

What are the Regional Trends of Diet Soda Market?

North America is a leading market due to high consumer awareness and a strong preference for low-calorie beverages. The United States leads this trend, with health-conscious consumers and innovative products holding a large market share. Canada is also helping this growth by increasing demand for healthier drink options.

In Europe, the diet soda market shows a growing interest in wellness and fitness. This trend is particularly noticeable in the United Kingdom and Germany, where consumers are choosing sugar-free options more often. Government regulations and health campaigns boost the market's growth. The region's variety of products and focus on natural ingredients attract different consumers.

Asia-Pacific presents a growing opportunity for the diet soda market, fueled by urbanization and a rising middle class. In countries like China and India, consumers are changing their diets to include healthier options. The market outlook is improving as Western eating habits spread and disposable incomes increase. The untapped potential in this region makes it a key area for future growth.

Sales of diet soda are slowly increasing in Latin America, the Middle East, and Africa. In Latin America, Brazil and Mexico lead consumption by enhancing health awareness and expanding retail networks.

In the Middle East and Africa, urbanization and greater health consciousness are driving market growth. These regions have potential for more expansion as consumer preferences evolve.

What are the Challenges and Restraining Factors of Diet Soda Market?

The diet soda market faces ongoing challenges because consumers are skeptical of artificial sweeteners. Even though these sweeteners are marketed as healthier choices, ingredients like aspartame and sucralose often lead to debate. Some studies raise concerns about their long-term health effects. This perception causes some health-minded groups to completely avoid diet sodas, despite their low-calorie appeal.

Another issue is the trend toward natural and functional drinks. For instance, flavored sparkling water and low-sugar kombucha have become more popular in recent years, taking market share from diet sodas. In the U.S., sparkling water sales have grown by double digits each year, while diet soda sales have grown at a slower pace. This shift shows that consumer loyalty is shifting toward options that are perceived as cleaner or more natural.

Regulatory pressures also pose challenges. Sugar taxes have indirectly helped diet sodas by lowering demand for regular soft drinks. However, stricter rules on labeling and artificial additives have raised compliance costs. In some cases, laws emphasizing artificial ingredients have turned consumers away. This makes it difficult for manufacturers to maintain consumer trust.

Market saturation in developed countries worsens the situation. Diet sodas have been on the market for decades in the United States and parts of Europe, leaving little room for significant expansion. Simultaneously, price competition from private-label brands reduces profit margins. This makes it more difficult for existing businesses to expand profitably.

Country-Wise Outlook

Countries	CAGR (2025 to 2035)
United Kingdom	6.2%
China	8.9%
Japan	7.3%

United Kingdom Dominates the Global Diet Soda Market

The United Kingdom dominates the global diet soda market, owing to rising consumer demand for healthier beverage options. A key factor in the country is the growing emphasis on reducing sugar consumption. Public health campaigns and awareness campaigns encourage people to choose low-calorie, sugar-free options.

Trends in the UK market show that younger consumers, particularly millennials and Generation Z, are driving demand for diet sodas. These groups are heavily influenced by their lifestyle choices and fitness goals, so they prefer drinks that adhere to their calorie-conscious habits. Furthermore, premium-flavored diet sodas and products containing natural sweeteners are becoming increasingly popular.

Regulations have changed the UK diet soda market significantly. The Soft Drinks Industry Levy, or the "sugar tax," started in 2018. This led manufacturers to modify their products to include less sugar. As a result, diet and zero-calorie sodas have gained market share.

China witnesses Rapid Market Growth Backed by Increased Health Awareness and Lifestyle Changes

China is quickly becoming a growing market for diet sodas due to increased health awareness and lifestyle changes among its urban residents. The expanding middle class is paying more attention to sugar intake. Concerns about obesity and diabetes are driving consumers toward low-calorie and sugar-free drink options.

One main trend in China is the demand for functional beverages. Diet sodas must compete on taste while also offering benefits like zero sugar, natural flavors, and added vitamins. Younger people, especially Gen Z and millennials, are leading this movement. Many people view diet sodas as modern lifestyle products that offer healthier options compared to traditional soft drinks.

Regulations play a role in the market as well. Although China has not introduced a sugar tax similar to those in Europe, government health campaigns encourage people to cut back on sugar. This motivates beverage companies to broaden their product offerings and develop more “zero-sugar” or “low-calorie” versions of popular soda brands.

There are chances to tap into China’s booming e-commerce and digital retail environment. Online platforms like JD.com and Tmall, along with social apps like Douyin (TikTok), make it easier for shoppers to find a wide range of diet soda products. Unique flavors and collaborations promoted online also create excitement and engage consumers with different brands.

Japan Emerging as a Growing Market for Diet Sodas

Japan is a unique and fast-growing market for diet sodas. This is because of its health-conscious population and a long tradition of functional, low-calorie drinks. Consumers in Japan closely examine nutritional labels. This focus has increased the demand for diet sodas as substitutes for sugary carbonated drinks.

Japan has strict food and beverage labeling laws that require full disclosure of calorie and sugar content. These regulations increase transparency and consumer trust, encouraging companies to innovate in sugar-reduction technologies while maintaining taste quality.

Convenience stores and vending machines, which account for the majority of beverage sales in Japan, present significant opportunities. Because of the country's dense retail network and consumer preference for on-the-go consumption, diet sodas are widely available. Growing demand in urban centers like Tokyo and Osaka strengthens the segment even more, as busy professionals and younger demographics seek healthier but still enjoyable drink options.

Category-wise Analysis

Young Adult Segment Driving Growth in the Diet Soda Market

The young adult segment leads the market. This group is becoming more health-focused and actively looks for products that match their fitness and wellness goals. Diet soft drinks provide a healthier option compared to regular soft drinks and satisfy the desire for refreshing beverages.

The wellness and fitness industry encourages healthy living, which boosts the demand for diet soft drinks. Furthermore, this segment values convenience and portability, making ready-to-drink diet soft drinks a popular choice.

The teenager segment is expected to have the highest growth rate during the forecast period. This growth results from several key factors. Rising obesity rates and health problems among teenagers have raised awareness about calorie intake and created a preference for low-calorie options.

Teenagers are also influenced by social media trends and celebrity endorsements, which drives up the consumption of diet soft drinks that highlight health and fitness benefits. Furthermore, teenagers prefer products that appear trendy and modern, such as diet soft drinks.

Conventional Retail Store Segment Dominating the Diet Soda Market

The conventional retail store segment dominates the market. These stores have a diverse selection of products, making it easy for customers to choose their favorites. Diet soft drinks are becoming increasingly popular on store shelves, thanks to an expanding retail industry and frequent promotions by major brands.

Furthermore, the convenience of finding everything in one location, as well as the ability to physically inspect items, has made supermarkets and general merchandise stores popular with consumers looking for diet drinks.

The online segment is expected to grow the fastest during the forecast period. More people are using e-commerce platforms and prefer convenient, contactless shopping. Increased internet access and the growing number of smartphone users have made online shopping easier for many.

Additionally, the wide range of products, competitive prices, and personalized recommendations on online platforms have fueled this growth. As consumer habits change, the online segment of the diet soft drink market is likely to expand.

Competitive Analysis

The diet soda market is mature and very competitive. Rivalry stems from brand loyalty, distribution size, and strong marketing efforts. Established companies depend on long-term consumer relationships and a broad retail presence to secure shelf space and promotional support. This sets high barriers for new entrants. These companies often rely on pricing, promotional bundles, and seasonal marketing campaigns to protect their market share.

Product differentiation now focuses more on flavor innovation and functionality instead of just calorie content. Companies release limited-edition flavors, region-specific options, and flavor-mix varieties to encourage both new trials and repeat purchases. They also use different packaging types, such as mini-cans, multipacks, and single-serve PET bottles, along with zero-sugar versions, to meet diverse consumption needs, whether for on-the-go or meal pairing.

Health perceptions continue to influence competition. Even though diet sodas are marketed as low-calorie choices, discussions about artificial sweeteners and a shift toward “clean label” ingredients have led some brands to offer options sweetened with stevia or monk fruit. Marketing strategies often combine taste claims with messages that promote sweetener safety and transparency.

Key Players in the Market

• PepsiCo.
• The Coca-Cola Company
• Crooked Beverage
• Boylan Bottling
• Wild Poppy Company
• Jones Soda
• SIPP eco beverage

Recent Developments

• In May 2024, Coca-Cola Co. launched Coca-Cola Lens, an insights platform designed for food service and retail operators to make informed, data-driven decisions.
• In March 2024, PepsiCo took over iconic landmarks worldwide to showcase its new look, the redesigned and refreshed Pepsi globe logo. This marks its first visual rebrand in 14 years across 120 countries.
• In January 2023, Pepsi introduced an updated version of its Zero Sugar beverage, claiming that Zero has never tasted better. To encourage customers, the brand offered up to 10 million free Pepsi Zero Sugars starting with the NFL Playoffs and running through the Super Bowl. This initiative shows consumers that Zero has never tasted so delicious through taste and trial.
• In March 2023, Jack Daniel's, a brand of Brown-Forman Corp. in Louisville, Ky., and The Coca-Cola Co. launched the classic Jack Daniel's & Coca-Cola cocktail as a pre-mixed, ready-to-drink option in the U.S. for the first time.

Segmentation of Diet Soda Market

• By End-Users :

  • Teenagers
  • Young adults
  • Middle-aged adults

• By Sales Channel :

  • Conventional retail stores
  • Specialty stores
  • Online retail stores

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa