Like the bubbles in their products, sparkling beverage companies rose to the top this year. Despite the ongoing economic struggles of 2022, one bright spot in the stock market was the performance of carbonated beverage stocks. While most portfolios took a hit, functional energy drinks saw a surge in popularity, with Celsius Holdings leading the way with an impressive 40% increase in value. But it wasn’t just smaller companies that saw growth; even industry giants like Coke, Pepsi and Monster experienced gains in a year when the market overall was struggling.


No Bubble for Bubble Stocks

Carbonated beverages: cans on a conveyor belt

The popularity of sparkling beverages has been on the rise for the past few years, and this trend is expected to continue through the 2020s. A recent study projected that the global market for sparkling water will be worth over $57 billion by 2028, which represents an impressive 9% growth rate from 2022 to 2028.

One of the main drivers of this growth is the increasing awareness of the importance of clean and mineral-rich water among consumers. As people become more health-conscious, they’re looking for alternative drinks to sugary sodas and other unhealthy options. Sparkling water, with its natural mineral content, is seen as a healthier option that still provides the carbonation and refreshment that many people crave.

Functional energy drinks in particular saw a massive spike in popularity. These are a type of carbonated beverage that contain ingredients that claim to enhance physical or mental performance, without the negative side effects of traditional energy drinks. Celsius Holdings, for example, makes the claim that their functional energy drinks help their consumers burn calories. This claim has paid off, and Celsius saw an exceptional 40% increase in stock value in the past year. PepsiCo, one of the world’s largest beverage companies, made a strategic $550 million investment in Celsius over the summer, which could have a significant impact on the company’s growth in the coming years. The move signals the beverage industry’s larger recognition of the consumer market’s growing demand for functional energy drinks.

Alongside its investment in the rising star of Celsius, PepsiCo saw an 8% increase in its stock. The other industry giant, Coca-Cola, did even better, with an 11% increase in its value — not bad for either of these companies when the majority of businesses this year watched their stocks head in the other direction. Monster Beverage, a prominent player in the industry, also saw a significant increase in their stock value, rising by 6%. Additionally, the company experienced a growth in net sales by 20% in the first three quarters of the year. National Beverage Corp, the parent company of LaCroix, a popular brand known for its flavored carbonated soft drinks, also experienced growth.


Keeping the Industry Carbonated

CO2 containers used for carbonated beverages

As the popularity of carbonated beverages continues to rise, so does the demand for the gases that give them their bubbles. CO2 and other custom food-grade carbonation gases are essential for creating the perfect fizz and taste in carbonated drinks.

With our commitment to quality, safety and customer service, CalOx is the go-to supplier for the carbonated beverage industry, and is well positioned to meet the growing demand for CO2 and other custom food-grade carbonation gases.