Non-alcoholic Beverages Market Size, Share, Growth, and Industry Analysis, By Type (Carbonated, Non-Carbonated, RTD Beverages, Hot Drinks, Sports & Energy Drinks and Specialty Drinks), By Application (Convenience Stores, E-commerce, Hypermarket and Supermarket, and Others) and Regional Forecast to 2032

Updated On: 10 September 2024

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NON-ALCOHOLIC BEVERAGES MARKET REPORT OVERVIEW

The Non-alcoholic Beverages Market size was USD 1.27 billion in 2023, and the market is projected to touch USD 2.03 billion by 2031, exhibiting a CAGR of 4.8% during the forecast period.

Due to changing customer tastes towards healthier and more varied choices, non-alcoholic drinks have witnessed an upsurge in their market size. Essentially, these drinks include soft drinks, fresh juices, packaged water as well as tea and coffee which have formed part of daily diets around the world. Various factors have been driving this industry’s growth such as increased consumer awareness on health and well-being that has led to an increase in demands for soups containing little sugar, natural components or even functional beverages. Currently we observe a clear trend where there is a growth in plant-based products such as organic fruit juices or drinks fortified with vitamins like minerals utilizing probiotics for additional benefit; hence some producers are also trying to come up with ways of creating other items that would serve additional intent while still promoting body physiology since certain market segment prefers them more than other varieties that contain high quantities of glycine including soft drinks.

The rapidly increasing globalization and urbanization are having a good impact on the market, leading to a middle class that is continually growing up and consuming more convenient ready-to-drink beverages. In addition, this trend is accelerated by the creation of e-commerce platforms that improve customer access to a wide range of non-alcoholic drinks all over the world.

Furthermore, this specific market is affected by sustainability challenges because these days people seek eco-friendly and ethically sourced packaging at an increasing rate. As a result, companies have invested in environmentally friendly technologies that improve their reputation in the eyes of eco-friendly customers.

COVID-19 Impact: Market Growth During Pandemic due to the increased demand for functional beverages that boost immunity

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

COVID-19 had a more positive than negative effect on the non-alcoholic beverage market. Because of lockdowns and social distancing measures, the people’s behaviour changed since they chose to remain indoors. Therefore, there was an increased demand for non-alcoholic drinks especially those that are considered health-conscious like fruit juices, flavoured water as well as functional drinks that enhance immunity. Consumer awareness of health had risen during this pandemic period hence they preferred what they considered to be healthier options. Besides, since bars and restaurants closed, many people started taking non-alcoholic drinks at home prompting a further increase in sales.

The role that e-commerce played in this period was vital; e-commerce outlets for non-alcoholic drinks saw huge spikes in sales while consumers kept far away from physical shops. Fast thinking brands expanded their virtual presence and venturing into sale-of-goods-at-home services to reduce the adverse effects of COVID-19 on the brick-and-mortar settings. Thus, market for these beverages experienced a voluntary upturn spurred by shifting tastes, rising concern for health as well as fast development of internet selling networks.

LATEST TRENDS

"Increasing consumer demand for health-oriented drinks to drive market growth "

In the Non-alcoholic Beverages market growth, this rising consumer demand for health-oriented drinks such as functional beverages enriched with vitamins, probiotics and other natural ingredients has become one of the major trends. In fact, it has come about because of increased inclination towards wellness and immunity in people who desire products that provide additional health benefits apart from mere hydration. Resultantly, companies are managing to diversify their portfolios by offering various options comprising low sugar foods, organic options and fortified drinks all signifying this transformation towards healthier lifestyles.

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NON-ALCOHOLIC BEVERAGES MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Carbonated, Non-Carbonated, RTD Beverages, Hot Drinks, Sports & Energy Drinks and Specialty Drinks.

• Carbonated

The non-alcoholic beverages market is still mainly driven by carbonated drinks such as sodas and sparkling waters in terms of popularity. These beverages provide refreshment and come in many different tastes. Nevertheless, there has been a trend for healthier products with lower sugar because of an increase in health problems facing people today.

• Non-Carbonated

As the health-conscious consumers have demanded for non-carbonated drinks these juices and flavoured water are some drinks that are frequently consumed rather than sodas which have a lot of sugar in them. These drinks do not have carbonation but provide hydration and nutrients. In this category of drinks, we find a lot of new exciting inventions that brands are making to satisfy their clients’ need for health-oriented products.

• RTD Beverages

RTD (Ready-to-drink) beverages are very convenient, and they have been prepared ahead of time and most of the people prefer them due to their busy schedules. For instance, bottled iced tea, coffee and smoothies belong to this category since they support an active movement. Convenience in these drinks, coupled with a rise in demand for healthier choices made from top quality ingredients are some factors fuelling the growth of RTD drinks.

• Hot Drinks

Non-alcoholic drinks continue to depend on hot beverages such as coffee, tea and hot chocolate especially in cold climates and during winter months. Similarly, single origin coffees and herbal teas have increasingly embraced specialized alternatives that are unique to the market sector. Additionally, the rise of ‘wellness’ consumers has led to increased demand for healthful drinks that need to be taken warm like green tea or turmeric lattes.

• Sports & Energy Drinks

Hydration, energy, sport and performance boosters are centred towards people who are physically active. Electrolytes, vitamins and caffeine are what characterizes these drinks, meant for athletes or individuals with very busy schedules. Though this industry has faced the health challenge regarding sugar levels and stimulants, it continues to thrive especially among youths.

• Specialty Drinks

Specialty drinks consist of a wide range of beverages including non-alcoholic cocktails, craft sodas, and plant-based milk replacements among others. They often target niche markets with unique tastes and premium components. This section of the specialty drinks market is mainly influenced by the buyer’s search for newness, health benefits, plus alternatives to regular drinks.

By Application

Based on application the global market can be categorized into Convenience Stores, E-commerce, Hypermarket and Supermarket, and Others.

• Convenience Stores

Convenience stores represent a main distribution avenue for non-alcohol beverages aimed at clients who want to quickly access drinks. Usually, these shops contain different types of drinks such as prepared for drinking options, fizzy drinks, and energy drinks which attract spontaneous purchasers and commuters. The convenience and high customer traffic in convenience stores render them an important category of beverage brands.

• E-commerce

In the no-alcohol drinks market, e-commerce has really taken off with more convenience and ease of ordering and home delivery service. At their doorsteps, shoppers can see varieties of drinks including specialty ones and those in bulk. Furthermore, this is very crucial for brands in that it broadens their clientele base, enabling them to make tailored recommendations for consumers.

• Hypermarket and Supermarket

The hypermarkets and supermarkets continue to be the prominent medium for selling non-alcoholic drinks with various merchandise under one roof. These big retail centres give clients a possibility to find both the most common and high-end drink companies at often very affordable prices. Many buyers like hypermarkets and supermarkets because they can compare items and benefit from sales promotions.

DRIVING FACTORS

"Health Consciousness to Boost Market Growth"

An increase in health consciousness has contributed to an expansion of the market for non-alcoholic drinks. In addition, many customers prefer the drink that is low in sugar or organic instead of alcoholic drinks; therefore, this has led to rising demand on products which meet their personal life style choices. Drink producers have been forced by this pattern of behaviour to be creative and diversify into healthier beverages.

Growing Urbanization to Drive Market Growth

Urbanization has accelerated the demand for non-alcoholic beverages. More people moving into towns, wealthier families and busy lives all contribute towards higher consumption of ready-to-drink and on-the-go drinks. This modification has caused beverage firms to zero in on comfort and diversity as a way of meeting urban consumers’ demands.

RESTRAINING FACTORS

"High Competition and Saturation to Hinder Market Growth"

The non-alcoholic beverage industry is hindered quite heavily by brutal competition and saturation in the market. Numerous companies offer almost identical products, so most companies have difficulty differentiating themselves from their rivals and earning customer loyalty. Similarly, fierce competition results into lower prices which in turn impact negatively on profit margins thus hindering growth of a market.

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NON-ALCOHOLIC BEVERAGES MARKET REGIONAL INSIGHTS

The market is primarily segregated into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

"North America dominates the market due to its strong consumer base and high demand for diverse beverage options"

The for non-alcoholic drinks market share is overseen by North America. This is because there is a large number of consumers, and they require many varieties of drinks including those with health benefits. The strong retail network in North America and the heavy investment in marketing by leading brands have also enhanced its position. Furthermore, North America is still growing due to its fascination with functional and premium beverages.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Continuous Innovation and Diversification of Product Portfolios"

Key industry players in the market of non-alcoholic beverages are generating development by constant creativity while diversifying their product mixes in line with changing tastes of consumers. Thus, they put more money into advert campaigns even if it means going digital so that they can be seen by potential customers. Furthermore, these businesses are concentrating on the production of healthy and sustainable products to respond to higher demand for health and environmentally friendly alternatives. Bigger steps towards market domination and making sure products can be accessed worldwide include growing through mergers, partnerships and acquisition.

List of Market Players Profiled

• PepsiCo (U.S.)
• The Coca-Cola (U.S.)
• Suntory Beverage & Food (Japan)
• Dr Pepper Snapple Group (U.S.)
• Arca Continental (Mexico)
• Ito En (Japan)
• Uni-President China Holdings (China)
• Monster Beverage (U.S.)
• Embotelladora Andina (Chile)
• Refresco Group (Netherlands)
• Britvic (U.K.)
• Lotte Chilsung Beverage (South Korea)
• Kagome (Japan)
• DyDo Group (Japan)
• Lassonde Industries (Canada)
• Tata Global Beverages (India)
• Massimo Zanetti Beverage Group (Italy)
• Fraser & Neave Holdings (Singapore)

INDUSTRIAL DEVELOPMENT

June 2024: The development in the Non-alcoholic Beverages Market was announced by The Coca-Cola Company. They unveiled a fresh range of functional drinks named "Coca-Cola Vitality." This line consists of beverages packed with vitamins, antioxidants and natural energy boosters meant for health-conscious buyers. The launch signifies Coca-Cola’s strategy to achieve diversification by responding to demand for wellness-oriented drinks. For instance, it can be said that the development represents an ongoing change in beverage manufacture towards healthier alternatives which are useful in non-alcoholic sector.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.