The non-alcoholic beverages market is expected to grow at a CAGR of 5.30% during the period 2025-2034. North America, Europe and Asia are likely to be key markets.
Categories of non-alcoholic beverages include tea, coffee, milk-based drinks, chocolate, mocktails, milkshakes, aerated drinks, non-alcoholic beers like root beer, squashes, juices, etc. While several of these beverage’s hydrate, some may offer important nutrients and vitamins to the body. Other beverages energize, offer needed sugar and calories.
Changing consumer preferences towards healthier lifestyles, increasing urbanisation, and rising disposable incomes are significant drivers influencing non-alcoholic beverages market development. Additionally, the expansion of retail channels and the growing demand for functional beverages, natural juices, and herbal teas are contributing to the market growth. Furthermore, the increasing consumption of refreshment drinks in social occasions is also influencing the market.
Another trend in the market is rising demand for non-carbonated beverages as younger consumers are looking for alternatives to carbonated drinks offered by companies, such as Coca Cola and Pepsi Co. Manufacturers, in turn, are looking to offer products that appeal to such consumers. Companies like Naturedge Beverages Pvt. Ltd. have taken drinks to the next level by adding antioxidants and vitamins to them. Such developments are expected to drive the market’s expansion even further.
On the other hand, in non-carbonated beverage segment, the fruit and vegetable category is particularly significant, driven by consumers' increasing demand for healthy and natural beverages. The functional drinks segment is also growing rapidly, as consumers seek beverages that offer additional health benefits beyond hydration, such as immune support, energy boosting, and weight management.
As per non-alcoholic beverages market analysis, ready-to-drink tea and coffee segments are also gaining traction as it provides a convenient and portable option for consumers on-the-go. Bottled water is another significant segment, driven by growing concerns about hydration and the convenience of bottled water.
Convenience stores represent another significant distribution channel, catering to the demand for quick and accessible beverage options. These small-format stores, known for their extended operating hours and strategic locations, have carved out a considerable non-alcoholic beverages market share. Convenience stores excel in providing on-the-go solutions, particularly for impulse purchases and immediate consumption. For example, 7-Eleven, a global convenience store chain, offers a wide range of non-alcoholic beverages, including popular brands like Coca-Cola and Pepsi, as well as its own private-label products.
Other key players in the global non-alcoholic beverages market include H.J. Heinz Company Brands LLC and Reed’s, Inc., among others.
North American market is growing due to an increasing demand for functional beverages with health benefits and the rising popularity of plant-based beverages. Moreover, the region's strong presence of established brands and widespread distribution networks contribute to its market leadership. Coca-Cola has launched a new line of functional beverages, including a line of energy drinks and a line of beverages with plant-based ingredients, to cater to the growing demand for health-conscious beverages. Additionally, PepsiCo has acquired Keurig Dr Pepper, a leading manufacturer of coffee and tea beverages, to expand its presence in the non-alcoholic beverages market.
The Asia-Pacific non-alcoholic beverages market, on the other hand, is growing due to changing consumer preferences towards healthier drink options and innovative product offerings by manufacturers. Additionally, the growing disposable incomes in the region are leading to increased spending on non-alcoholic beverages, particularly in countries like China and India. Moreover, leading beverage companies in APAC are constantly developing innovative health drinks to meet the demand for healthier options. For instance, the Coca-Cola Company launched ethnic energy drink Jaljeera in India to cater to the demand for energy drinks in the country.
Non-alcoholic Beverages Market Growth
Non-alcoholic beverages refer to drinks that either have no alcohol or below 0.5 percent alcohol by volume (abv). Such beverages may include a range of hot and cold simple and exotic drinks. Almost every sector of the food service industry offers one or several types of non-alcoholic drinks.Categories of non-alcoholic beverages include tea, coffee, milk-based drinks, chocolate, mocktails, milkshakes, aerated drinks, non-alcoholic beers like root beer, squashes, juices, etc. While several of these beverage’s hydrate, some may offer important nutrients and vitamins to the body. Other beverages energize, offer needed sugar and calories.
Changing consumer preferences towards healthier lifestyles, increasing urbanisation, and rising disposable incomes are significant drivers influencing non-alcoholic beverages market development. Additionally, the expansion of retail channels and the growing demand for functional beverages, natural juices, and herbal teas are contributing to the market growth. Furthermore, the increasing consumption of refreshment drinks in social occasions is also influencing the market.
Key Trends and Developments
Changing consumer preferences, innovations in flavour and packaging, and development of functional drinks are factors boosting the non-alcoholic beverages market expansionJune 2024
Pronghorn, Diageo's spirits incubator, invested in Mocktail Club, a Black woman owned non-alcoholic RTD cocktails brand. The investment aims to help Mocktail Club scale up and diversify the spirits industry.June 2024
Lyre's, the world's best-selling and top trending non-alcoholic brand, has partnered with Dry July NZ Trust to provide non-alcoholic cocktail and ready-to-drink options at venues across New Zealand during Dry July.June 2024
Daybreaker, a global sober morning dance party pioneer, has partnered with PARCH, a local mocktail company, to launch the PARCH x Daybreaker Revitalising Tea Elixir. This new drink is inspired by ancient Yaupon tea rituals and can enhance energy, focus, and overall well-being.June 2024
Founders Brewing Co. is rolling out its non-alcoholic hop water across the United States. The product is designed to capture the hop flavours and aromas without the alcohol content, offering a unique beverage option for those who want to enjoy the taste of beer without the intoxication.June 2024
Bodvár Rosé, a pioneer in the rosé wine industry, has launched Bodvár No 0, its first premium non-alcoholic rosé. The product, expected to be available by Q3 2024, is crafted using a vacuum distillation method to preserve the refined flavour of traditional rosé.Rising popularity of functional drinks
One of the key trends driving the non-alcoholic beverages market growth is the rising demand for beverages with functional benefits, such as antioxidants, vitamins, and minerals. Examples of functional drinks include sports drink, probiotic kombucha, or tea-infused carbonated drinks.Rising demand for low-calorie beverages
The shift towards healthier lifestyle choices and the growing awareness of the adverse health effects associated with high sugar and calorie intake are driving the demand for low-calorie and naturally flavoured carbonated beverages.Development of eco-friendly packaging
Another key trend providing a favourable non-alcoholic beverages market outlook is the shift towards sustainable and innovative packaging, such as eco-friendly bottles and cans, to appeal to environmentally conscious consumers.Growing demand for sugarless beverages
The high sugar content in many beverages is a major concern for health-conscious consumers. This is driving the demand for sugar-free non-alcoholic beverages, where either no sugar or artificial sweeteners, such as stevia, xanthan gum, and aspartame are used.Non-alcoholic Beverages Market Trends
The increased availability of non-alcoholic drinks is likely to lead to higher consumption rates, as consumers tend to opt for non-alcoholic beverages when they are more readily available than their alcoholic counterparts. Moreover, excessive alcohol consumption is a significant global health risk, resulting in over 95,000 deaths annually, or approximately 261 deaths per day. Similarly, 9 million men and 5.5 million women had an alcohol use disorder (AUD) in the past year, highlighting the importance of quitting alcohol. These statistics demonstrates the need for healthier beverages and hence, can drive non-alcoholic beverages market growth in the forecast period.Another trend in the market is rising demand for non-carbonated beverages as younger consumers are looking for alternatives to carbonated drinks offered by companies, such as Coca Cola and Pepsi Co. Manufacturers, in turn, are looking to offer products that appeal to such consumers. Companies like Naturedge Beverages Pvt. Ltd. have taken drinks to the next level by adding antioxidants and vitamins to them. Such developments are expected to drive the market’s expansion even further.
Non-alcoholic Beverages Source Industry Segmentation
The report titled “Non-alcoholic Beverages Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:Market Breakup by Type
- Carbonated
- Non-Carbonated
Market Breakup by Distribution Channels
- Supermarkets/Hypermarkets
- Convenience Stores
- Specialty Stores
- Online
- Others
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Non-alcoholic Beverages Market Share
Non-carbonated beverage segment is driven by the growing demand for healthy and natural beverages
The carbonated beverage segment includes a wide range of products such as cola, lemon-lime soda, and ginger ale, which are often sweetened and flavoured to provide a refreshing and effervescent experience. These beverages are commonly consumed on their own or used as mixers in cocktails, offering versatility in both casual and social settings.On the other hand, in non-carbonated beverage segment, the fruit and vegetable category is particularly significant, driven by consumers' increasing demand for healthy and natural beverages. The functional drinks segment is also growing rapidly, as consumers seek beverages that offer additional health benefits beyond hydration, such as immune support, energy boosting, and weight management.
As per non-alcoholic beverages market analysis, ready-to-drink tea and coffee segments are also gaining traction as it provides a convenient and portable option for consumers on-the-go. Bottled water is another significant segment, driven by growing concerns about hydration and the convenience of bottled water.
Based on distribution channels, supermarkets and hypermarkets dominate the market share
Supermarkets and hypermarkets dominate the distribution landscape as these large-format retail outlets offer consumers a one-stop-shop experience, providing a wide selection of non-alcoholic beverages ranging from carbonated sodas and fruit juices to functional drinks and bottled water. For instance, Walmart, a leading retailer, offers a vast array of non-alcoholic beverages under its Great Value and Sam's Choice brands. The convenience of bulk purchasing, competitive pricing, and promotional offers have made supermarkets and hypermarkets the preferred destination for many consumers when it comes to stocking up on non-alcoholic beverages.Convenience stores represent another significant distribution channel, catering to the demand for quick and accessible beverage options. These small-format stores, known for their extended operating hours and strategic locations, have carved out a considerable non-alcoholic beverages market share. Convenience stores excel in providing on-the-go solutions, particularly for impulse purchases and immediate consumption. For example, 7-Eleven, a global convenience store chain, offers a wide range of non-alcoholic beverages, including popular brands like Coca-Cola and Pepsi, as well as its own private-label products.
Leading Companies in the Non-alcoholic Beverages Market
Market players are focused on development of functional beverages, low-sugar drinks, and eco-friendly packaging to cater to changing consumer preferencesPepsiCo, Inc.
PepsiCo, Inc. is a multinational food and beverage corporation that offers soft drinks, juices, and snacks. Headquartered in New York, United States, PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. The company's portfolio includes popular brands such as Pepsi, Gatorade, Tropicana, and Lay's potato chips.The Coca-Cola Company
The Coca-Cola Company is a multinational beverage corporation that is best known for its flagship product, Coca-Cola, a carbonated soft drink. It also produces other beverages, such as Fanta, Sprite, and Minute Maid. With its headquarters in Georgia, United States, the company was founded in 1886. The company has expanded its portfolio by launching Diet Coke, Coke Zero, and Vitamin water.Nestle S.A.
Nestle S.A. is a Swiss multinational food and beverage company that produces a diverse range of products, including coffee, chocolate, and infant nutrition. It also has a significant presence in the beverage market. Headquartered in Vevey, Switzerland, it was founded in 1866. The company's beverage portfolio includes brands such as Nescafe, Gerber, and PowerBar.Monster Energy Company
Monster Energy Company is a leading energy drink brand that is known for its high-caffeine content and association with extreme sports. It is partially owned by The Coca-Cola Company. Headquartered in California, United States, it was founded in 2002. It has expanded its product line by launching beverages like Monster Java and Muscle Monster.Other key players in the global non-alcoholic beverages market include H.J. Heinz Company Brands LLC and Reed’s, Inc., among others.
Non-alcoholic Beverages Market Analysis by Region
North America leads the market due to the rising cases of AUD and increasing demand for healthier drinksNorth American market is growing due to an increasing demand for functional beverages with health benefits and the rising popularity of plant-based beverages. Moreover, the region's strong presence of established brands and widespread distribution networks contribute to its market leadership. Coca-Cola has launched a new line of functional beverages, including a line of energy drinks and a line of beverages with plant-based ingredients, to cater to the growing demand for health-conscious beverages. Additionally, PepsiCo has acquired Keurig Dr Pepper, a leading manufacturer of coffee and tea beverages, to expand its presence in the non-alcoholic beverages market.
The Asia-Pacific non-alcoholic beverages market, on the other hand, is growing due to changing consumer preferences towards healthier drink options and innovative product offerings by manufacturers. Additionally, the growing disposable incomes in the region are leading to increased spending on non-alcoholic beverages, particularly in countries like China and India. Moreover, leading beverage companies in APAC are constantly developing innovative health drinks to meet the demand for healthier options. For instance, the Coca-Cola Company launched ethnic energy drink Jaljeera in India to cater to the demand for energy drinks in the country.
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Non-alcoholic Beverages Market Analysis
6 North America Non-alcoholic Beverages Market Analysis
7 Europe Non-alcoholic Beverages Market Analysis
8 Asia Pacific Non-alcoholic Beverages Market Analysis
9 Latin America Non-alcoholic Beverages Market Analysis
10 Middle East and Africa Non-alcoholic Beverages Market Analysis
11 Market Dynamics
13 Trade Data Analysis (HS Code - 22210, 220290, 220299)
14 Competitive Landscape
Companies Mentioned
- PepsiCo, Inc.
- The Coca-Cola Company
- Nestle S.A.
- Monster Energy Company
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 158 |
| Published | July 2025 |
| Regions Covered | Global |
| No. of Companies Mentioned | 4 |
