Quick Summary:
In the rapidly shifting landscape of the non-alcoholic beverages market, staying ahead of the curve is key. Trends indicate a distinct pivot towards healthier options and unique flavors, driven primarily by the growing number of health-conscious consumers, especially among the younger demographics. The rising interest in fitness and wellbeing has also led to a surge in demand for functional beverages, with the sports drink segment emerging as the fastest-growing subset of this market.
Not only does the demand for non-alcoholic beverages span across a wide variety of consumer types, from athletes to gym-goers, to everyday health enthusiasts, it also stretches across different regions. Particularly, there is a noticeable trend in Asia-Pacific, a region experiencing swift growth in the food and beverage industry. The burgeoning demand for cleaner, minimalistic beverages, an escalating preference for plant-based drinks, and increased participation in sports and fitness activities contribute to the upswing in this market's growth.
Having access to our in-depth market research report will provide unparalleled insights into this vibrant and ever-evolving market, arming you with the requisite knowledge to make strategic business decisions and stay ahead of the competition.
Demand for healthy beverages and consumer preference for unique and different flavors is expected to drive the market for non-alcoholic beverages across regions. The young population is increasingly becoming health-conscious, driving the demand for zero-calorie beverages or those with fewer calories. The demand is also fuelled by growth in the functional beverages category, including sports drinks, due to higher average participation in physical activities. With increasing health awareness and growing demand from millennials, the sports drink segment of the market is identified as the fastest-growing sub-segment.
Non-alcoholic Beverages Market Trends
Strong Demand from Fitness Conscious Consumers
Athletes typically consume sports and energy drinks during high-intensity exercise to replenish fluids and electrolytes and provide instant energy. Therefore, it is mainly consumed by sportspersons, gym-goers, and fitness enthusiasts to speed rehydration, provide instant energy, and promote overall recovery after exercise. For instance, in February 2022, Applied Nutrition launched its new L-Carnitine sports drink. This new drink contains zero sugar, zero calories, 1,500 mg of L-Carnitine, and vitamins B3, B6, and B12.Increasing consumption of energy drinks is observed in regions such as North America, where there is an existing coffee culture. Companies offer innovative products, ingredients, and flavors for energy drinks in the United States, where the average caffeine consumption stood at 135 mg per capita.
Asia-Pacific Holds a Significant Share in the Market
The Asian-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 is witnessing a demand for cleaner and more minimalistic beverage products, which is depicted by the rising consumer awareness, as they seek more from products that claim to be ‘organic’ or ‘free from.’ Consumer awareness of allergies, hormones, and unethical animal husbandry practices utilized in the food and beverage industry has increased the popularity of veganism. Therefore, the demand for plant-based drinks is constantly increasing. Thus, companies started to launch plant-based beverages. For instance, in July 2022, GO MATE launched a product line of natural energy drinks. The company has made a set of flavors that use all-natural ingredients.In developing countries like China, India, etc., consumers’ inclination and participation in fitness activities and sports have rapidly increased to attain a healthy lifestyle. This, in turn, increases the demand for healthy or functional beverages. For instance, in March 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 250 ml and 350 ml cans.
Non-alcoholic Beverages Market Competitor Analysis
The non-alcoholic beverages market is highly competitive due to the large number of companies that manufacture functional beverages. Some major players in the market, such as PepsiCo Inc., the Coca-Cola Company, Danone SA, Red Bull GmbH, and Nestlé SA, offer consumers a wide range of carbonated and functional beverages.Expansions and new agreements/partnership strategies remain the most popular among key global players in the non-alcoholic drinks industry. Due to high market potential, companies are expanding their presence and increasing their production capacity.
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Table of Contents
Companies Mentioned
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
Methodology
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