Non-Alcoholic Beverage Market

Non-Alcoholic Beverage Market Size, Growth (2023-2028)

The Global Non-Alcoholic Beverage Market size was worth US$ 967.3 billion in 2022, and it is estimated to reach a valuation of US$ 1.60 trillion by the end of 2028, expanding at an annual rate of about 6% between 2023 and 2028. Several foreign and domestic regulatory agencies govern these non-alcoholic beverages.

Market Overview:

Non-alcoholic beverages are a kind of alcoholic drink in the non-alcoholic version. They include beverages that contain less than 0.5% alcohol. These drinks are popular in countries that enforce alcohol prohibition laws like Kuwait, Saudi Arabia, and Iran. Non-alcoholic beverages have grown significantly in recent years under the influence of drunken driving laws. People are now aware of their moral, social and legal responsibilities and prefer not to drink and drive. Some people have a health condition where they cannot drink, and others want to lead a healthy life. These factors are expected to drive growth in the non-alcoholic drinks market during the forecast period.

Recent Developments in Non-Alcoholic Beverage Industry:

• In October 2018, United Breweries Ltd. launched a lemon drink under the 'Kingfisher Radler' brand and entered the non-alcoholic beverages sector. This strategic move is supposed to ensure a significant demand for products during the projection period.
• Indian Food, 100% FDI Food and One Belt One Road Initiative are attracting new participants to establish production and distribution facilities in the Asia Pacific region.
• Coca-Cola introduced special sparking cocktails in 2019, named as Bar None in the United States. This brand is available at Bellini Spritz, Sangria, Ginger Mule and Dry-Aged Cider.

REPORT COVERAGE:

Non-Alcoholic Beverage Market Growth:

The growing demand for functional beverages to complement health without changing taste is driving the global Non-Alcoholic Beverages market.

Drivers:

Changes in consumer tastes and preferences and the propensity to consume convenience foods and beverages have led to increased demand for non-alcoholic drinks in recent years. Manufacturers are focusing on developing new products to meet the changing tastes and preferences of consumers. Ethanol distillation is the notable process used to separate non-alcoholic beverages from alcoholic beverages. As concerns about obesity and health awareness grow, the growth of the functional beverage and bottled water products sector will be promoted. In contrast, at the same time, demand for carbonated beverages is expected to be limited. The global Non-Alcoholic Beverage market has witnessed rapid changes due to factors such as increased purchasing power, improved living standards at the population level, and rapid urbanization.

The global Non-Alcoholic Beverage market is also driven by factors such as lifestyle changes and increased consumer awareness of adequate health and wellness. Also, as the popularity of convenience foods and beverages increases, the global market demand for non-alcoholic beverages increases. Additionally, continued product innovation among major players, such as the introduction of zero-calorie or low-calorie drinks, is assumed to create opportunities in the global Non-Alcoholic Beverage market during the outlook period. As interest in obesity and other health problems increases, the Non-Alcoholic Beverage industry worldwide is reorganizing. The demand for relaxing drinks, energy drinks and functional drinks ready for coffee and tea is gaining popularity due to its low-calorie content. In addition to changing the pattern of the diet to consume nutrient-dense products, shifting the customer's focus toward a healthy lifestyle is expected to be one of the industry's primary drivers.

Additionally, the utility of alternative beverages, including functional soft drinks, is assumed to increase as concerns about the ill effects associated with drinking alcoholic beverages. The adult consumer group is presumed to remain the top buyer during the forecast period. The increasing workforce, athletes and athletes encourages the demand for nutritional drinks to improve performance and increase energy levels throughout the day. This is supposed to boost the demand for non-alcoholic drinks like functional beverages, energy drinks and juices in the foreseen years. Additionally, consumers are switching to more delicious, healthy, and nutritious natural and organic foods. This consumer trend is gaining popularity among young people around the world.

Restraints:

Consumers' perceptions of the health effects, such as diabetes, created by the consumption of soft drinks are a deterrent to the global Non-Alcoholic Beverage market. In addition, strict government rules and regulations on the use of ingredients used in non-alcoholic beverages limit the global market for non-alcoholic drinks.

Non-Alcoholic Beverage Market Segmentation Analysis:

By Product Type:

• Soft Drinks             
• Bottled Water       
• Tea and Coffee    
• Juice         
• Dairy Drinks

By Distribution Channel:

• Speciality Stores  
• Online Store          
• Super Markets/ Hyper Markets    
• Convenience Stores            
• Departmental Stores         
• Others   

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

North America non-alcoholic beverages market had the largest share of 35% in 2018, with key players in the region adopting marketing strategies, including innovative product launches and mergers and acquisitions, to meet the growing demand for low-sugar, natural beverages and low in calories. North America occupied the largest market for this industry due to the presence of developed countries and the early adoption of soda products. Rising obesity problems in the United States and Mexico and government-imposed taxes on sugar products are pushing the limits of CSD and low-calorie non-nutritive sweetener products.

Asia Pacific non-alcoholic beverages market is likely to expand to 6.0% with the fastest annual growth rate (CAGR) of 6.0% from 2020 to 2025. Asia-Pacific has become the fastest-growing region in the Non-Alcoholic Beverage industry due to a variety of unexplored markets, populations, and increased disposable income. There is a growing awareness of the market in the region as an awareness of the health benefits associated with non-alcoholic beverages, such as improved cholesterol and the level of saturated fat in the body. Major manufacturers are launching new products to meet the growing demands of their customers. The need for these drinks is increasing due to various strict government policies and regulations for alcohol. Powered by emerging economies such as China, India, Thailand and Malaysia, the region has a competitive advantage over other parts due to low-cost labor and the availability of raw materials. As the demand for various non-alcoholic beverages increases in these regions, the global market for non-alcoholic drinks is likely to expand.

Leading Company:

The main players in the market are PepsiCo and The Coca-Cola Company, which are promoted by e-commerce channels through the development of technology and the adoption of smartphones. Direct selling and e-commerce channels are estimated to bring more stability to the business by providing an alternative way to market its products.

Key Players in the Market:

Major Key Players in the Global Non-Alcoholic Beverage Market are

• The Coco-Cola Company                      
• PepsiCo, Inc.                             
• Nestle S.A.                 
• Danone                       
• Calcol, Inc.                  
• Livewire Energy                       
• Attitude Drinks, Co.               
• Dydo Drinco                              
• Dr. Pepper Snapple Group                  
• A.G. Barr