This paper investigates the distribution characteristics of earth pressure on circular caisson foundations in soft soil areas based on practical engineering considerations. Utilizing a three-dimensional numerical analysis model and a displacement-based method for earth pressure calculation, the lateral earth pressure on the retaining structure is examined. Adjustments are made to the distribution pattern of earth pressure on circular caisson foundations in soft soil areas. The study demonstrates that the radius of the caisson significantly influences the spatial distribution of soil pressure. Additionally, empirical formulas for the depth and radius of the reduction in soil pressure around circular caisson foundations are obtained through the research. Comparative analysis reveals that the modified earth pressure planar foundation beam method, which accounts for the arching effect, is simpler, features more mature parameter selection, and is more cost-effective than the three-dimensional finite element method. In comparison to the standard planar elastic foundation beam method for earth pressure, it aligns more closely with the actual direction of displacement.