Non-Alcoholic Drinks Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Non-Alcoholic Drinks Market is projected to experience significant growth, rising from USD 1.27 trillion in 2025 to USD 1.98 trillion by 2031, representing a Compound Annual Growth Rate (CAGR) of 7.69%. This sector is defined by beverages containing zero or negligible alcohol, encompassing soft drinks, bottled water, functional juices, and dealcoholized versions of beer, wine, and spirits.

The primary force driving this expansion is a fundamental shift in consumer priorities toward long-term health and wellness, creating a demand for products that deliver hydration and functional benefits without the negative effects of alcohol. This trend is further supported by the increasing adoption of moderation as a permanent lifestyle choice rather than a fleeting dietary fad. According to the Brewers Association, sales of non-alcoholic beer grew by over 30 percent year-over-year in 2024, highlighting the substantial scale of demand within this category.

However, a major challenge potentially hindering market expansion is the absence of harmonized regulatory standards across international jurisdictions. Inconsistent definitions regarding the permissible alcohol by volume (ABV) limits for labeling products as "non-alcoholic" or "alcohol-free" create significant compliance difficulties for manufacturers attempting to export their goods. These regulatory discrepancies complicate global supply chains and increase operational costs, which risks stifling the speed of product distribution in emerging markets.

Market Drivers

The market is being fundamentally reshaped by the evolving consumption habits of Millennial and Gen Z demographics, who are increasingly prioritizing moderation and "sober-curious" lifestyles over traditional alcohol consumption. These younger consumers are driving the normalization of non-alcoholic beverages in social settings, motivated by a desire for control, mental clarity, and the avoidance of adverse physical effects. This generational shift represents a sustained lifestyle change rather than a temporary pause, influencing product innovation toward premium, complex flavors that offer the sophistication of adult drinks without intoxication. According to the 'ANBA Industry Statistics' report published by the Adult Non-Alcoholic Beverage Association in February 2025, 30% of Gen Z consumers reported drinking less alcohol compared to the previous year, underscoring the permanence of this behavioral transition.

Concurrently, rising consumer health consciousness and wellness trends are extending the category's reach beyond younger demographics to a broader audience seeking functional benefits and reduced calorie intake. This driver is demonstrated by the growing phenomenon of consumers alternating between alcoholic and non-alcoholic drinks to maintain moderation without sacrificing the social experience.

Retailers have responded by significantly expanding shelf space for functional wines and dealcoholized beers that align with these wellness goals. According to an article by Ocado Retail in January 2025 titled 'Supermarket data shows strong year-round sales for no and low alcohol beverages,' sales of no and low alcohol beer increased by 46% in January compared to the same period the prior year. Reflecting this robust momentum, Diageo reported in 2025 that its non-alcoholic portfolio grew by approximately 56%, highlighting the commercial viability of health-oriented product lines.

Market Challenges

The absence of harmonized regulatory standards across international jurisdictions constitutes a critical impediment to the Global Non-Alcoholic Drinks Market. Countries enforce divergent definitions regarding permissible alcohol by volume (ABV) thresholds, often requiring a single product to carry different classifications, such as "alcohol-free" or "low-alcohol," depending on the destination market. This fragmentation forces manufacturers to navigate complex compliance requirements, necessitating region-specific formulations and packaging. Such regulatory disparity fractures global supply chains and escalates production costs, effectively stalling the speed at which brands can scale operations or enter emerging territories.

These administrative hurdles translate directly into reduced trade fluidity and contracted market volumes, as inconsistent cross-border protocols deter exporters from expanding their reach. The friction caused by these barriers is evident in recent trade data; according to the Food and Drink Federation, export volumes for the food and non-alcoholic drinks sector declined by 16.3 percent during the first three quarters of 2024, a downturn attributed in part to persistent trade barriers and administrative friction. This contraction highlights how regulatory inconsistency functions not merely as an operational nuance but as a tangible constraint on the market’s economic performance.

Market Trends

The infusion of mood-enhancing adaptogens and nootropics is creating a distinct high-growth sub-sector that moves beyond simple hydration to offer tangible mental state alterations such as relaxation or focus. This trend represents a sophisticated evolution where consumers utilize bio-active ingredients like magnesium, CBD, and functional mushrooms to actively manage stress and cognitive performance, effectively creating a new "functional buzz" category. Brands are capitalizing on this demand by positioning these products as high-efficacy lifestyle tools rather than mere flavor alternatives, validating the commercial scalability of mood-centric formulations. According to an article in The Grocer from November 2025 titled 'Trip valued at $300m as it secures $40m for US push,' the functional drinks brand Trip expected revenues to exceed $100 million in the current financial year, highlighting the massive adoption of these stress-relief beverages.

Simultaneously, the sector is experiencing the rapid emergence of authentic zero-proof agave and dark spirit alternatives designed to replicate the complex organoleptic profiles of tequila, whiskey, and rum. Manufacturers are employing advanced extraction techniques to capture the heat, mouthfeel, and botanical depth of traditional spirits, allowing these products to serve as direct replacements in premium mixology rather than just fruit-based mocktails. This innovation expands consumption occasions for non-alcoholic options into late-night social settings and upscale dining environments where adult flavor complexity is paramount. According to The Spirits Business in August 2025, in the article 'Waitrose low-and-no spirits sales up 85%,' sales of non-alcoholic spirits at the retailer rose by 85% year-on-year, significantly outpacing growth in other low-alcohol categories.

Key Players Profiled in the Non-Alcoholic Drinks Market

• The Coca-Cola Company
• PepsiCo, Inc.
• Suntory Beverage & Food Ltd.
• Keurig Dr Pepper Inc.
• Nestle S.A
• Danone S.A
• Red Bull
• Monster Energy
• Refresco Group
• Asahi Group Holdings, Ltd.

Report Scope

In this report, the Global Non-Alcoholic Drinks Market has been segmented into the following categories:

Non-Alcoholic Drinks Market, by Product Type:

• Carbonated Soft drinks
• Functional/Energy & Sports Drinks
• Fruit Juices & Flavored Drinks
• Bottled Water
• Others (Dairy-based Drinks
• Tea & Coffee
• Sodas
• etc.)

Non-Alcoholic Drinks Market, by Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Departmental Store
• online
• Others (Grocery Stores
• Independence store
• etc.)

Non-Alcoholic Drinks Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Non-Alcoholic Drinks Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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