FEATURED COMPANIES
- AriZona Beverages USA
- Danone SA
- IBS Partners Ltd
- Keurig Dr Pepper Inc.
- Nestle SA
- Parle Agro
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.
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.
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.
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.
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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.
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.
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.
Competitive Landscape
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.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Note: Product cover images may vary from those shown
FEATURED COMPANIES
- AriZona Beverages USA
- Danone SA
- IBS Partners Ltd
- Keurig Dr Pepper Inc.
- Nestle SA
- Parle Agro
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
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A selection of companies mentioned in this report includes:
- PepsiCo Inc.The Coca-Cola Company
Danone SA
Nestle SA
Red Bull GmbH
Keurig Dr Pepper Inc.
Parle Agro
Monster Beverage Corporation
AriZona Beverages USA
IBS Partners Ltd
Note: Product cover images may vary from those shown
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