SYDNEY — Australians are drinking fewer sugar-sweetened sodas and other sweetened beverages than a decade ago, with consumption dropping sharply among children, but overall soft drink intake per capita hovers around 82 liters annually as zero-sugar and diet options gain ground, according to the latest government and industry data released in 2025 and early 2026.

Diet Coke

The Australian Bureau of Statistics reported in September 2025 that just 28.9% of people consumed sweetened beverages on a given day in 2023, down from 42.2% in 2011–12 and 49.2% in 1995. Among children aged 2 to 17, the figure plummeted from nearly three in four in 1995 to one in four in 2023.

Despite the decline in sugary options, apparent per capita consumption of soft drinks stood at about 164.8 milliliters daily in the 2024 financial year, or roughly 60 liters annually, with industry forecasts projecting a slight rise to 81.7–82 liters per person in 2025–26.

Health experts and public health groups continue to highlight links between even moderate soda consumption and risks of obesity, type 2 diabetes and dental problems, while the industry points to voluntary sugar reductions and a surge in low- and no-sugar varieties now accounting for more than half of sales.

Declining Sugary Drink Consumption Masks Shifts in Preferences

The National Nutrition and Physical Activity Survey data showed broad declines across age groups under 50 for soft drinks and flavored mineral waters, which fell from 29.1% of people in 2011–12 to 23.8% in 2023. Cordial consumption dropped even more dramatically, from 16.2% to 3.4%.

Apparent consumption figures from the ABS, tracking sales and supply, revealed soft drinks contributing 169 grams per person daily in 2023–24, up 2.2% from the prior year but part of a mixed picture within the broader non-alcoholic beverages market that reached 4.17 billion liters in Q3 2024.

Low- and no-sugar options drove much of the recent stability or modest growth. The Australian Beverages Council's sugar reduction pledge, launched in 2018 by major players including Coca-Cola Europacific Partners, Asahi and PepsiCo, targeted a 20% cut by 2025 from 2015 levels and was later upgraded to 25%. By 2023, low- and no-sugar varieties represented 55.5% of sales volumes, up from previous years, with sugar content per 100ml falling to 4.94 grams.

IBISWorld analysts noted a 1.1% rise in soft drink consumption projected for 2025–26, fueled by sugar-free purchases as consumers opt for cheaper non-alcoholic alternatives amid cost-of-living pressures and "mindful drinking" trends. Fast-food combo meals also boosted volumes.

Diet soft drinks specifically showed steady market growth, with revenue projected to reach US$368.9 million by 2025 at a 3.3% compound annual growth rate.

Socioeconomic and Geographic Disparities Persist

Consumption patterns vary significantly by location and disadvantage. New ABS data released in March 2026 showed shoppers in the most socioeconomically disadvantaged 20% of areas purchased 26% more sugar-sweetened drinks than the national average, while those in the least disadvantaged areas bought 29% less.

In very remote areas, soft drink consumption ran 54% higher than in major cities, and bottled water was 74% higher, reflecting differences in access and preferences.

Men, younger adults and those in lower socioeconomic groups remain higher consumers of sugar-sweetened beverages, raising equity concerns for public health interventions.

Health Risks Drive Calls for Stronger Action

Public health organizations link excessive soda consumption to Australia's obesity rates — about 32% of adults and 8.1% of children classified as obese — and rising chronic disease burdens. Sweetened beverages contribute about one-quarter of free sugars in the diet, with discretionary foods and drinks accounting for 31% of daily energy intake in 2023, down slightly from 35.4% in 2011–12.

A 2025 Monash University-led study following more than 36,000 adults found that drinking one can of artificially sweetened soft drink daily was associated with a 38% higher risk of type 2 diabetes, compared to 23% for sugar-sweetened versions, though the sugar-sweetened link weakened after adjusting for obesity measures.

Globally, sugar-sweetened beverages contribute to millions of new diabetes and cardiovascular cases annually, with Australia's patterns aligning with broader Western trends of declining but still significant intake.

The Australian Medical Association and Public Health Association of Australia have renewed calls for a health levy on sugar-sweetened beverages, modeled on international examples. A proposed 50 cents per 100 grams of added sugar could add about 20 cents to a standard can. Polling showed 56% public support for such a tax, with even higher backing for better labeling (83%) and marketing restrictions to children (73%).

The federal government has so far resisted a sugar tax, favoring education and industry self-regulation instead. A 2024 parliamentary inquiry into diabetes recommended considering a graduated levy, but no legislation has advanced.

Industry Responds With Reformulation and Innovation

Major manufacturers emphasize progress on the voluntary pledge and innovation in functional and zero-sugar drinks. Coca-Cola Europacific Partners holds about 50% of the Australian soft drink market, with the sector generating billions in revenue and employing thousands.

Carbonated beverages alone were valued at AUD 11.43 billion in 2025, projected to grow at 3.52% annually through 2035. The broader non-alcoholic beverages market is expected to nearly double to USD 47.81 billion by 2033.

Zero-sugar sodas are overtaking full-sugar options in many segments as consumers seek better-for-you choices without sacrificing flavor. Electrolyte and energy drinks showed the fastest growth in recent apparent consumption data.

Critics argue voluntary measures fall short and note the industry's historical opposition to taxes, including lobbying and policy substitution through pledges.

Outlook: Balancing Taste, Health and Policy

As Australia grapples with high rates of overweight and obesity, soda consumption trends reflect a population increasingly aware of health impacts yet still reaching for convenient, affordable beverages. The shift toward intense-sweetened (artificial) options — 43.1% of soft drink volume in 2023–24 — raises new questions about long-term metabolic effects.

Experts recommend comprehensive strategies: clearer front-of-pack labeling, restrictions on marketing to children, promotion of water as the default, and consideration of fiscal measures proven effective elsewhere.

With the sugar reduction pledge target year of 2025 now passed, stakeholders will watch whether further reformulation occurs or if consumption rebounds with economic pressures.

For now, the data suggests progress in reducing traditional sugary soda intake, particularly among the young, but persistent disparities and emerging risks from alternatives mean the conversation on Australia's beverage habits is far from over.

Public health advocates stress that even small population-level reductions in free sugars from beverages could yield significant gains against chronic disease.