The Non-alcoholic Beverages Market is segmented by Type (Carbonated Beverage and Non-carbonated Beverage), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Stores, Specialty Stores, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecasts in value (USD billion) for the above segments.
HomeIndustryReportsNon-alcoholic Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts ...
|Study Period:||2016 -2027|
|Fastest Growing Market:||Asia Pacific|
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The non-alcoholic beverages market is projected to register a CAGR of 4.7% during the forecast period (2022-2027).
The non-alcoholic beverages market is facing the impact brought about by the COVID-19 pandemic, and as a result, leading players are incorporating various safety standards, measurements, and quality checks in an attempt to boost consumers’ trust and confidence in their products. Such efforts have increased the sales of beverages that provide functional benefits, such as boosting immunity, which is likely to impact the market positively. This booming demand for functional beverages that supplement health without altering the taste is propelling the non-alcoholic beverage market.
On the other hand, rising consumer awareness is bringing down the demand for high-sugar, carbonated drinks, the effects of which can be seen in both off-trade and on-trade channels.
The pandemic also reshaped the packaging size landscape in 2020, with consumers choosing to opt for larger pack sizes and multipacks, as they are cost-effective and reduce the necessity to make frequent trips to the store.
Scope of the Report
An alcohol-free or non-alcoholic beverage, also known as a temperance drink, is a version of an alcoholic drink made without alcohol or with the alcohol removed or reduced to almost zero. The non-alcoholic beverages market offers consumers a wide range of products in the form of carbonated and non-carbonated beverages. The non-carbonated beverages are further segmented into fruit and vegetable juices, functional drinks, RTD tea and coffee, bottled water, and others. The market is majorly operated by supermarkets/hypermarkets, convenience stores, online sales channels, and others. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).
|Other Distribution Channels|
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Key Market Trends
Rising Demand for Healthy, On-the-go Beverages
Globally, consumer education has been the key factor behind the rising demand for healthy hydration drinks. The trend of healthy hydration owes its success to the growing awareness of fermented drinks with natural ingredients and the increasing acceptance of consuming probiotics. According to the International Diabetes Federation, India was home to 77 million diabetes patients in 2019, the second-largest in the world. By 2030, the number is predicted to reach 101 million. Due to the high prevalence of diabetes in the country, consumers are becoming more aware of the importance of healthy diets and active lifestyles. A similar approach was followed by energy drink companies, like Red Bull, which expanded its product portfolio in 2018 by launching Red Bull Sugar-Free to cater to the demands of health-conscious consumers.
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Asia-Pacific Holds a Significant Share in the Market
The Asia-Pacific food and beverage industry is growing at the highest possible rates, surpassing that of developed regions like Western Europe and North America. The region has a large and continuously growing middle-class consumer society, indicating potential growth, specifically in the iced/RTD coffee drinks segment. Although the market is growing in all countries of Asia-Pacific, the high growth rate for this area is driven by the rapid development of the Chinese and Indian markets. Carbonated drinks are poised to increase due to the largest segment in the non-alcoholic drinks segment. However, the consumption of these carbonated beverages and soft drinks is expected to decline due to the preference for less sugar content and healthier alternatives, such as 100% natural juices.
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The non-alcoholic beverages market is highly competitive due to the presence of a large number of companies that manufacture functional beverages. Some of the major players in the market, such as PepsiCo Inc., The Coca-Cola Company, Danone SA, and Nestlé SA, offer consumers a wide range of carbonated and functional beverages. Expansions and new agreements/partnership strategies remain the most popular strategies among key players in the non-alcoholic drinks industry globally. Leading players are also forming new agreements and partnerships with local players in a bid to increase their footprint in the local market and release new products that cater to consumers’ changing preferences.
- In 2022, Red Bull launched its limited-edition strawberry and apricot-flavored extension. Red Bull Summer Edition Strawberry Apricot was made available on Walmart’s shelves in the United States from April 4, 2022, and will be sold in single cans in both 8.4oz (25cl) and 12oz (35cl) formats.
- In 2021, Red Bull released the summer edition dragon fruit flavored drink. This Summer 2021 Edition was inspired by the Asian native and exotic fruit called dragonfruit or pitaya, depending on the location. This is available in 8.4 fl oz and 12 fl oz cans.
- In 2020, PepsiCo announced the launch of a joint venture with Suntory in Thailand. The new venture was called Suntory PepsiCo Beverage (Thailand) Company Limited, and it has served as the operator and distributor of PepsiCo beverage brands in Thailand, namely Pepsi-Cola, Mirinda, 7UP soft drinks, ready-to-drink Lipton teas, Gatorade sports drink, and Aquafina hydration drinks.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Carbonated Beverage
5.1.2 Non-carbonated Beverage
18.104.22.168 Fruit and Vegetable Juice
22.214.171.124 Functional Drinks
126.96.36.199 RTD Tea and Coffee
188.8.131.52 Bottled Water
184.108.40.206 Other Types
5.2 Distribution Channel
5.2.1 Supermarkets/Hypermarkets(Video) Why Coca-Cola Still Dominates The Beverage Market
5.2.2 Convenience Stores
5.2.3 Speciality Stores
5.2.4 Online Stores
5.2.5 Other Distribution Channels
5.3.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle-East and Africa
220.127.116.11 Saudi Arabia
18.104.22.168 South Africa
22.214.171.124 Rest of Middle-East and Africa(Video) 2022 CDE Conference | How To Scale-up Your Beverage Brand | Bradley Mora
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 PepsiCo Inc.
6.4.2 The Coca-Cola Company
6.4.3 Danone SA
6.4.4 Nestle SA
6.4.5 Red Bull GmbH
6.4.6 Keurig Dr Pepper Inc.
6.4.7 Parle Agro
6.4.8 Monster Beverage Corporation
6.4.9 AriZona Beverages USA
6.4.10 IBS Partners Ltd
*List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
**Subject to Availability
Frequently Asked Questions
What is the study period of this market?
The Non-alcoholic Beverages Market market is studied from 2016 - 2027.
What is the growth rate of Non-alcoholic Beverages Market?
The Non-alcoholic Beverages Market is growing at a CAGR of 4.7% over the next 5 years.
Which region has highest growth rate in Non-alcoholic Beverages Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Non-alcoholic Beverages Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Non-alcoholic Beverages Market?
PepsiCo, Inc., The Coca-Cola Company, Danone S.A., Nestlé S.A., Red Bull GmbH are the major companies operating in Non-alcoholic Beverages Market.
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KEY MARKET INSIGHTS
The global non-alcoholic beverages market size was valued at USD 919.13 billion in 2019 and is projected to reach USD 1,257.77 billion by 2027, exhibiting a CAGR of 8.20% during the forecast period.
The 2019-2024 Global Non-Alcoholic Beer Market Report suggests that the global alcohol-free market could grow to an impressive $7050 million. For comparison, the same report states the value is around $4520 million so that is a large growth in just a few years.
Adult soft drinks, premium juices, and a growing range of high-quality non-alcoholic beers are all targeted at this demographic, in addition to older consumers who simply want to moderate their alcohol consumption.
The World's Largest Nonalcoholic Beverage Company
The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories. Our company's purpose is to refresh the world and make a difference.
Revenue in the Non-Alcoholic Drinks market amounts to US$425.20bn in 2022. The market is expected to grow annually by 6.04% (CAGR 2022-2026). The market's largest segment is the segment Soft Drinks with a market volume of US$318.50bn in 2022.
The market is driven by rising GDP, per capita income and the surge in sales through e-commerce. "In India, the non-alcoholic beverage market is mainly driven by increasing demand for non-fizzy drinks, rising GDP and per capita income, the surge in sales through e-commerce, etc.
The global beverage industry is valued at USD 1813 billion for 2022 and the industry is growing at a CAGR of 4%. It's value estimations are USD 1885 billion in the year 2023. The beverage industry will further expand and be valued at USD 1961.24 billion in 2024.
The U.S. Non–Alcoholic Beverage Industry Database contains approximately 3,738 companies covering all areas of the non–alcoholic beverage industry.
How big is the beverage industry in the U.S.? In the United States, the beverage industry is valued at $225 billion. The U.S. drink industry includes both alcoholic and non-alcoholic beverage production and distribution.
Non-alcoholic Drinks Market Statistics: 2031. Non-alcoholic drinks market was valued at $820.0 billion in 2020, and is estimated to reach $2,134.6 billion by 2031, registering a CAGR of 6.8% from 2022 to 2031.
Children, adolescents, and young adults in particular are an exciting target group for the beverage industry. Beverage brands benefit from establishing a bond early on, since preferences are developed at a young age and often preserved into adulthood, where they become consumption habits.
While just 5% of Dry January participants drank non-alcoholic beers in 2019, that number jumped to 29% in 2022. In the fall of 2019, just 12% of beer drinkers were interested in no- and low-alcohol beer. By the fall of 2021, this number had grown to 16%.
The fastest-growing segment of the beverage industry is bottled water. Between 2021 and 2026, the bottled water segment is expected to grow at a 7.4% annual growth rate.
Coca-Cola Sales Statistics:
Coca-Cola has a 42.8% market share of the US carbonated beverages market.
Latest food and beverage market forecasts: The global food and beverage market size is expected to grow from $5.8 trillion in 2021 to $6.4 trillion in 2022 at a growth rate of 9.7%. The food and beverage market size is expected to grow to $8.9 trillion in 2026 at a compound annual growth rate of 8.7%.
In 2015–2018, water accounted for more than one-half of total nonalcoholic beverage consumption (51.2%) among U.S. adults. Compared with women, men consumed more coffee, sweetened beverages, and fruit beverages as a percentage of total beverage consumption, and less water and tea.
Non-Alcoholic Brands We Carry:
Labatt Blue NA. Heineken 0.0. Genny NA. Budweiser Zero.
|Market size value in 2021||USD 237.0 billion|
|Revenue forecast in 2028||USD 320.1 billion|
|Growth Rate||CAGR of 4.7% from 2021 to 2028|
Also called "zero proof" drinks, the non-alcoholic drink dates back to the earliest days of the cocktail age, appearing as 'Temperance drinks' in the first American cocktail books, including Jerry Thomas's Bar-Tenders Guide (1862). Merriam-Webster cites the first mention of 'mocktail' as appearing in 1916.
India's non-alcoholic beverages market is expected to grow to Rs 1.47 trillion by 2030 at a compound annual growth rate (CAGR) of 8.7%, from around Rs 67,100 crore in 2019, the Indian Council for Research on International Economic Relations (Icrier) said in a detailed analysis.
The beverage industry is highly competitive. The principal areas of competition are pricing, packaging, development of new products and flavors and marketing campaigns.
Revenue in the Alcoholic Drinks market amounts to US$261.10bn in 2022. The market is expected to grow annually by 10.51% (CAGR 2022-2025). The market's largest segment is the segment Beer with a market volume of US$111.50bn in 2022.
- Start small, then scale up. It's important to start small so that you don't take on more than you're prepared to handle. ...
- Build a solid field team. ...
- Have a retail execution plan. ...
- Design great packaging. ...
- Advertise. ...
- Keep changing.
The U.S. Beverage Manufacturing & Filling Locations Database contains approximately 2,445 beverage manufacturers encompassing both the alcoholic and non–alcoholic sides of the beverage industry.
The global alcoholic beverages market was valued at $1,439 billion in 2017, and is expected to reach $1,684 billion by 2025, registering a CAGR of 2.0% from 2018 to 2025.
NARTD. Non-alcoholic ready-to-drink. Non-carbonated soft drinks; non-CSDs. Non-alcoholic beverages without carbonation including, but not limited to, waters and flavoured waters, juices and juice drinks, sports and energy drinks, teas and coffee.
Economic importance of beverage market
To be more specific, the beverage market includes alcoholic and non-alcoholic drinks, generating an annual revenue reach of billions of dollars and helping several millions of people escape from unemployment.
Beverages not only provide essential hydration but can also be a source of other nutrients. As well as energy some beverages can be a source of vitamins and minerals, protein, fats and other carbohydrates.
The beverage industry is a global grouping of those who supply any and all types of beverages. This is a complex grouping of suppliers, as it includes both non-alcoholic and alcoholic beverages under the umbrella of the beverage industry.
Mocktails are making a splash in the F&B world. Thanks in part to movements such as Dry January, many consumers are opting for low-to-no-alcoholic beverages. According to an October 2021 report from Nielsen IQ, non-alcoholic beverage sales rose 33%, accounting for a whopping $331 million in sales.
While soft drinks are cost effective and cheaper than most alcoholic drinks, it's understandable to be envious of the novelty of an alcoholic drink. It's also why mocktails have become increasingly more popular, offering consumers the experience of drinking without any of the actual alcohol content.
The data also found that 1 out of 10 people is interested in seeing mocktails in more bars and eateries. Options aren't limited to near beer and sparkling grape juice. The Shirley Temple has grown up. Bartenders who normal sling booze are creating recipes with fun names, like Abstinence on the Beach and Nojito.
The type of market that represents the beverage market (e.g., total competition, over-control, etc.) are: Monopolistic competition, quite the opposite, where there are many different products because the market is easy to enter.
A target customer is an individual that's most likely to buy your product. And it's a subset of the broader target market. For example, if your target market is female athletes between the ages of 13 to 25, a target customer could be female athletes in the specific age range of 13 to 16.
Your target market is the group of consumers – in this case, diners – whom you will aim to attract. They are people who are most likely to buy what you're selling. The target customer of your restaurant is a specific segment of the larger dining market.
|Non-Alcoholic Beer Market Size (2022E)||US$ 20.4 Bn|
|Non-Alcoholic Beer Market Value-based CAGR (2022-2032)||7.8%|
Europe is home to the largest nonalcoholic beer market
While Spain is known for vermouth and Russia is known for vodka, the inclusion of Germany is surprising because the country is the home of the legendary Oktoberfest.
More people are “Sober Curious”
Many millennials are taking this to heart, 22% even say they are drinking less. More people are becoming conscious of their physical and mental health and cutting out alcohol can have great effects on both.
The beverage market in the US is expected to grow 5.21% by 2025, with 6% growth globally in the same timeframe. According to Euromonitor, in 2020 there were 1.23 billion total units sold, most in Asia Pacific (39.5%), North America (20.7%), and Western Europe (15.9%).
The global soft drinks market is expected to grow at a compound annual growth rate of 5.2% from 2022 to 2028 to reach USD 592.86 billion by 2028.
1. Water. Water is the most popular drink in the world.
Leading beverage companies worldwide in 2020, based on sales (in million U.S. dollars) The Coca-Cola Co. PepsiCo Inc. Heineken N.V.
Always Coca-Cola: Coca-Cola tops soft drinks brand rankings
Coca-Cola remains the world's most valuable soft drink brand, although Red Bull and Dr Pepper are the fastest growers, according to rankings from Brand Finance.
Coke is sold in more than 200 countries and territories worldwide. This diverse representation helps the company in steady growth. Coke also has one of the world's largest distribution networks and derives more than 40% of sales from developing and emerging economy with the growing middle class.
This timeline shows the market share of leading carbonated soft drink (CSD) companies in the United States from 2004 to 2020. Throughout this entire period, the Coca-Cola Company was the leading CSD company. In 2020, Coca-Cola's carbonated soft drink market share amounted to nearly 45 percent.
1. Coca-Cola. Coca-Cola has been the most popular soda brand in the U.S. and around the world for decades, and it continued its dominance last year.
How Big Is the Food & Beverage Industry? Already a $435.3 billion combined market in 2021, worldwide revenue is expected to increase from $506.3 billion this year to $856.9 billion by 2025.
The global food and beverages market size is expected to grow from $5,817.4 billion in 2021 to $6,383.49 billion in 2022 at a compound annual growth rate (CAGR) of 9.7%. The food and beverage market size is expected to grow to $8,905.5 billion in 2026 at a CAGR of 8.7%.
The outlook for the U.S Food & Beverage industry remains positive. The sector was valued at $996.56 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 4.1% from 2021 to 2028.
In 2020, the foodservice and food retailing industries supplied about $1.81 trillion worth of food. Of this total, $922.2 billion was supplied by foodservice facilities.