Non-Alcoholic Beverage Market

Non-Alcoholic Beverage Market Overview

The global non-alcoholic beverage market is estimated to account for a revenue value of US$ 986 billion in 2023 and reach a size of US$ 1,885.5 billion by the end of 2032, with the market expanding at a 6.9% CAGR over the forecasted period (2024 to 2032).

Non-Alcoholic Beverage Market Trends

The emergence of Nutritious Beverages will Trigger the Market Growth

The increasing consumer inclination towards nutritious beverages with added nutrients has compelled manufacturers to introduce a variety of healthy products in the market. Particularly, millennials are becoming more adventurous and open to trying new and healthier alternatives to traditional soft drinks. This growing demand is pushing manufacturers to reassess their product formulations and has influenced the emerging trends in manufacturing by emphasizing the changing preferences of millennial consumers and their children worldwide. According to the 2019 report by Key National Health and Nutrition Organizations, the consumption of healthy beverages during early childhood is crucial for meeting the nutritional requirements of millennials and young children, supporting their overall development. Therefore, the introduction of new beverages in the global market will contribute to the market's expansion in the forecast period.

Non-Alcoholic Beverage Market

Size, by Product, - (USD Billion)

Carbonated

Non-Carbonated

RTD Beverages

Hot Drinks

Other Products

The Market will Grow

At the CAGR of:

6.9%

The Forecast Market

Size for in USD:

$1,885.5 Billion

Non-Alcoholic Beverage Market Dynamics

Drivers

Adoption of Innovative Beverages to Support Human Hydration Will Augment Growth

Non-alcoholic beverages serve not only as a source of basic refreshment but also as mood enhancers, fortified drinks, and a way to satisfy sweet cravings in the busy daily routines of consumers. Regular consumption of these beverages aids in keeping the body hydrated and is particularly favored by individuals leading hectic lifestyles. Convenient options like canned CSD, and Ready-to-drink (RTD) coffee / tea have gained popularity as a mainstream trend, providing a quick and easy option for consumers on-the-go. The Food Export Association reported a significant 24% growth rate in the sales of RTD tea and coffee in 2019 compared to the previous four years. As a result, the increasing reliance of consumers on soft drinks and other innovative beverage options is expected to drive market growth in the future.

Evolution of e-Commerce Platforms to Attract Higher Revenues

The beverages sector is anticipated to undergo significant changes due to technological advancements and the growing popularity of virtual shopping. Consumers are increasingly relying on the internet and e-commerce, as highlighted by the global E-commerce Foundation 2018 report which shows a steady increase in internet penetration. In 2018, around 30% of global groceries revenue came from e-commerce, a figure expected to rise in the coming years. Consequently, soft drink manufacturers are placing a strong emphasis on creating new online stores to enhance market growth in the foreseeable future.

Restraints

Fluctuations in Availability and Price of Natural Resources to Dampen the Supply Chain

The industry's heavy reliance on natural resources like energy and water leads to various social and environmental impacts. Indirect greenhouse gas emissions, declining water supplies, and rising pollution contribute to disruptions in natural resource availability, potentially hindering production capacities in the market. Nevertheless, manufacturers have acknowledged the opportunities and risks linked to sustainability concerns, forging partnerships with the alcoholic beverages sector to establish the Beverage Industry Environmental Roundtable (BIER). BIER serves as a technical alliance of major companies including The Coca-Cola Company, Pepsi Co., and others, aiming to advance sustainability within the beverage industry.

Opportunities

Expanding market potential

The market for non-alcoholic beverages is poised for long-term growth, fueled by evolving consumer preferences and lifestyle changes. An example of this is the growing desire for healthier drink choices, leading to the creation of functional beverages enriched with essential nutrients, minerals, and plant-based extracts. Companies such as OLIPOP and Recess are leveraging this trend by introducing innovative drinks that support digestive health and relaxation.

Moreover, the increasing acceptance of alcohol substitutes, as seen with brands like Seedlip and Athletic Brewing Company, highlights the opportunity for non-alcoholic drinks to gain market traction over traditional alcoholic beverages. This shift caters to the expanding demographic of individuals adopting a more mindful approach to drinking and embracing sobriety.

Diversification and Innovation

Non-alcoholic beverages present numerous opportunities for diversification and innovation, enabling companies to distinguish themselves in a competitive market. For instance, the rise of premium non-alcoholic cocktails, also known as mocktails, has opened up a new realm of creativity and sophistication in beverage offerings. Leading the way in this category are brands like Curious Elixirs and Kin Euphorics, who are pioneering the use of artisanal blends of herbs, spices, and adaptogens. These brands offer consumers upscale alternatives to traditional cocktails, providing them with a unique and refined drinking experience. By continuously pushing the boundaries of flavor and formulation, companies can take advantage of evolving consumer preferences and stay ahead of market trends in the ever-changing landscape of non-alcoholic beverages.

Challenges

Non-alcoholic beverages come with distinct requirements that are easily understandable. Numerous beverage manufacturers are still in the process of navigating these requirements, but most will have to address the subsequent challenges: Flavor, Production Expenses.

1. Flavor: Imitating the taste and essence of alcohol can pose a significant challenge, particularly when it comes to substitutes for wine. Discovering blends that replicate those intricate flavors can entail a lengthy period of trial and error.

2. Production expenses: Although non-alcoholic beverages generally have similar production costs to alcoholic ones, their development expenses can be higher. It may require numerous attempts to find a recipe that allows you to replicate the flavor and texture of an alcoholic drink before it is ready for the market.

Non-Alcoholic Beverage Market

Share, by end user, (USD Billion)

986 Billion%

Convenience Stores

E-Commerce

Hypermarket and Supermarket

Others

Other End-Users

1,885.5 Billion

Total Market Size

USD (Billion),

6.9%

CAGR

-

Market Segments

• by Type

1. Carbonated
2. Non-Carbonated
3. RTD Beverages
4. Hot Drinks
5. Sports & Energy Drinks
6. Specialty Drinks

• by Application

1. Convenience Stores
2. E-commerce
3. Hypermarket and Supermarket
4. Others

• by Sources

1. Fruits
2. Vegetables
3. Cereals
4. Tea
5. Coffee
6. Milk
7. Cocoa/Chocolate
8. Nuts
9. Plant Extracts/Herbal Extracts
10. Water
11. Floral Extracts
12. Others

• by Packaging

1. Bottles
2. Metal Cans
3. Liquid Cartons
4. Pouches
5. Tetra Packs
6. Sachets
7. Takeaway Cups & Tumblers
8. Plastic Containers
9. Others

Non-Alcoholic Beverage Market Key Players

• PepsiCo, Inc.
• The Coca-Cola Company
• Suntory Beverage & Food
• Reed’s, Inc.
• Dr. Pepper Snapple Group, Inc.
• Arca Continental
• ITO EN Ltd
• Nestle S.A
• Uni-President China Holdings
• Monster Beverage Corp
• Embotelladora Andina
• The Kraft Heinz Company
• Refresco Group
• Britvic
• Appalachain Brewing Co.
• Red Bull
• Lotte Chilsung Beverage
• Kagome
• DyDo Group
• Lassonde Industries
• Arca Contenental SAB de CV
• Tata Global Beverages
• Massimo Zanetti Beverage Group
• Unilever
• Keurig Dr Pepper Inc.
• Fraser & Neave Holdings

Non-Alcoholic Beverage Market Recent Development

In January 2024, Svami unveiled two new non-alcoholic beverages. 2 Cal Cola offers a sugar-free, keto-friendly option, while Svami Salted Lemonade provides a refreshing twist with low sugar and natural lemons.

In September 2023, Red Bull introduced its inaugural limited Red Bull Winter Edition Spiced Pear in the UK, featuring a complete range that comprises 250ml, 250ml PMP (Price Marked Pack), and 355ml Sugar-free variants. The product features a combination of pear infused with a hint of cinnamon.

In January 2023, AB InBev Brands reported double-digit growth in their no-alcohol beverage range, targeting diverse consumer needs. Fusion, an energy drink, seamlessly integrates into lifestyles, offering refreshment, energy, and hydration.

Non-Alcoholic Beverage Market

Share, by end user, (USD Billion)

986 Billion%

Convenience Stores

E-Commerce

Hypermarket and Supermarket

Others

Other End-Users

1,885.5 Billion

Total Market Size

USD (Billion),

6.9%

CAGR

-

Conclusion

The global non-alcoholic beverage market is poised for substantial growth, driven by increasing consumer demand for nutritious and innovative drinks that support health and hydration. Technological advancements and the rise of e-commerce are transforming the industry, enabling greater market penetration and consumer engagement. However, challenges such as resource availability and production costs persist. Nevertheless, opportunities for diversification and innovation, such as premium non-alcoholic cocktails and functional beverages, present significant potential for market expansion. As consumers increasingly seek healthier and more convenient beverage options, the industry is set to flourish, adapting to evolving preferences and lifestyles.

FAQs

How big is the market of the non-alcoholic beverages market ?

Ans: The global non-alcoholic beverages market was estimated at USD 986 billion in 2023 and is expected to reach USD 1,885.5 billion in 2032.

At what CAGR is the Non-alcoholic Beverages market projected to grow in the forecast period (2024-2032)?

ANS: Growing at a CAGR of 6.9%, the market will exhibit steady growth during the forecast period (2024-2032)

Which segment accounted for the largest non-alcoholic beverages market share?

Ans: Asia Pacific dominated the non-alcoholic beverages market with a share of around 32.9% in 2023. This is owing to the Changes in consumer preferences and rapid urbanization coupled with the growing middle-class population are acting as primary drivers for this market

How the company profile has been selected?

Ans: The company profile has been selected on the basis of revenue, product offerings, and market penetration.

What is the leading segment in the market?

Ans: Carbonated soft drinks segment is expected to be the leading segment in this market during the forecast period.

Non-Alcoholic Beverage Market TO (USD BN)

CAGR OF

6.9%

Non-Alcoholic Beverage Market

1,885.5 Billion%