According to a new report published by Allied Market Research, titled, โNon-alcoholic Drinks Market,” The non-alcoholic drinks market size was valued at $1.3 trillion in 2023, and is estimated to reach $2.9 trillion by 2035, growing at a CAGR of 6.9% from 2024 to 2035.
The global non-alcoholic drinks market is experiencing robust growth due to increasing consumer preference for healthier lifestyles and alternatives to alcoholic beverages. This market comprises a wide variety of beverages such as carbonated soft drinks, bottled water, fruit juices, tea, coffee, energy drinks, and plant-based beverages. As consumers become more health-conscious, demand for beverages with functional ingredients, reduced sugar content, and organic certification has surged.
Rise in urbanization, increased disposable income in developing countries, and surge in prevalence of diseases due to unhealthy lifestyle have boosted the growth of the global non-alcoholic drinks market. However, stringent government regulations associated with sugary drinks, preservatives, and additives hinder the market growth. On the contrary, surge in awareness of health and wellness among millennials and consumers would open new opportunities in the future.
By product type, the soft drinks segment held the largest share in 2020, accounting for nearly two-fifths of the global non-alcoholic drinks market, due to its wide market penetration, rise in socialization among the consumers, and innovations in the category. However, the juice segment is expected to manifest the highest CAGR of 8.1% during the forecast period, due to rise in demand for nutritional diet and drinks among consumers.
๐๐๐ซ๐ค๐๐ญ ๐๐ฏ๐๐ซ๐ฏ๐ข๐๐ฐ
The global non-alcoholic drinks market was valued at approximately $923.4 billion in 2023 and is expected to witness significant growth over the next decade, with a CAGR of around 5.3% between 2024 and 2032. North America and Europe are the leading regions in terms of market share, driven by well-established consumer bases and high disposable incomes. However, emerging economies in the Asia-Pacific region are expected to register the highest growth, propelled by rising urbanization, increasing health awareness, and growing middle-class populations.
๐๐๐ฒ ๐๐ซ๐ข๐ฏ๐๐ซ๐ฌ
One of the primary drivers of the non-alcoholic drinks market is the growing awareness about the negative health impacts of alcohol and sugary beverages. Consumers are actively seeking beverages that support hydration, offer nutritional benefits, and have low-calorie content. Additionally, the rise in veganism and plant-based diets has led to a surge in demand for plant-based beverages such as almond milk, oat milk, and coconut water. Furthermore, innovations in packaging and the increasing popularity of on-the-go drinks are enhancing convenience for consumers, further fueling market growth.
๐๐ซ๐๐ง๐๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐๐๐ซ๐ค๐๐ญ
The non-alcoholic drinks market is witnessing several notable trends. Functional beverages, which include drinks enriched with vitamins, minerals, probiotics, and other health-enhancing ingredients, are becoming a key segment. The growing interest in mental wellness and physical health has also increased demand for drinks that offer specific benefits such as energy boosts, relaxation, or improved digestion. In addition, clean-label trends are gaining momentum, with consumers preferring transparency in ingredients and production processes.
๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐๐ฌ
Despite the growth prospects, the non-alcoholic drinks market faces challenges. The industry is highly competitive, with major players like Coca-Cola, PepsiCo, and Nestlรฉ dominating the market. Smaller brands struggle to differentiate themselves and gain market share in a crowded space. Additionally, regulatory scrutiny over health claims and the use of artificial additives in beverages could hinder market expansion. Moreover, rising raw material costs, particularly for organic and plant-based ingredients, could impact profitability.
๐๐ก๐ ๐จ๐ง๐ฅ๐ข๐ง๐ ๐ซ๐๐ญ๐๐ข๐ฅ๐ฌ ๐ฌ๐๐ ๐ฆ๐๐ง๐ญ ๐ญ๐จ ๐ฆ๐๐ง๐ข๐๐๐ฌ๐ญ ๐ญ๐ก๐ ๐ก๐ข๐ ๐ก๐๐ฌ๐ญ ๐๐๐๐ ๐ญ๐ก๐ซ๐จ๐ฎ๐ ๐ก ๐๐๐๐
By distribution channel, the online retails segment is projected to register the highest CAGR of 7.5% during the forecast period, due to rise in production penetration and increase in mobile users. However, the supermarket/hypermarkets segment held the largest share in 2020, contributing to nearly two-fifths of the global non-alcoholic drinks market, owing to advent of modern trades, bulk buying tendency, and rise in consumer interest over one-stop shopping places.
๐๐ฌ๐ข๐-๐๐๐๐ข๐๐ข๐, ๐๐จ๐ฅ๐ฅ๐จ๐ฐ๐๐ ๐๐ฒ ๐๐จ๐ซ๐ญ๐ก ๐๐ฆ๐๐ซ๐ข๐๐, ๐ก๐๐ฅ๐ ๐ญ๐ก๐ ๐ฅ๐๐ซ๐ ๐๐ฌ๐ญ ๐ฌ๐ก๐๐ซ๐
By region, the global non-alcoholic drinks market across Asia-Pacific, followed by North America, held the largest share in 2020, accounting for nearly one-third of the market. Moreover, the region is expected to showcase the highest CAGR of 8.0% during the forecast period, owing to rise in demand from millennials from developing countries including Thailand, India, and Indonesia.
๐๐๐ ๐ข๐จ๐ง๐๐ฅ ๐๐ง๐ฌ๐ข๐ ๐ก๐ญ๐ฌ
In North America, the demand for premium non-alcoholic beverages such as cold-brew coffee, kombucha, and flavored sparkling water is on the rise. The region’s market is driven by a strong focus on health and wellness trends. In Europe, sustainability concerns are influencing consumer behavior, with a growing preference for beverages in eco-friendly packaging. Meanwhile, the Asia-Pacific region is witnessing significant growth due to increasing disposable incomes and a shift in dietary patterns towards healthier options. Countries like China, India, and Japan are leading the charge in this region.
๐๐จ๐ง๐ฌ๐ฎ๐ฆ๐๐ซ ๐๐๐ก๐๐ฏ๐ข๐จ๐ซ
Consumers are becoming increasingly conscious of the ingredients in their beverages, and as a result, there has been a shift towards products that are perceived to be healthier and more natural. Younger consumers, particularly millennials and Gen Z, are driving demand for beverages that align with their values of sustainability, health, and wellness. Additionally, the rise of social media has amplified the popularity of certain non-alcoholic drink trends, with influencers playing a key role in promoting products.
๐๐จ๐ฆ๐ฉ๐๐ญ๐ข๐ญ๐ข๐ฏ๐ ๐๐๐ง๐๐ฌ๐๐๐ฉ๐
The non-alcoholic drinks market is highly fragmented, with both global giants and local players competing for market share. Major companies like PepsiCo, Coca-Cola, Red Bull, and Danone are investing heavily in new product development, partnerships, and marketing strategies to stay ahead of the competition. At the same time, smaller companies and startups are gaining traction by offering niche products that cater to specific health needs or sustainability goals. The market is expected to see further consolidation as larger companies acquire smaller, innovative brands to expand their portfolios.
๐ ๐ฎ๐ญ๐ฎ๐ซ๐ ๐๐ฎ๐ญ๐ฅ๐จ๐จ๐ค
The non-alcoholic drinks market is poised for continued growth, with opportunities for innovation and expansion across different segments. As consumer preferences evolve, companies will need to adapt by offering healthier, more sustainable, and functional beverages. The rise of e-commerce and direct-to-consumer models is expected to play a significant role in shaping the future of the market, enabling companies to reach new audiences and personalize their offerings.
In conclusion, the global non-alcoholic drinks market is on a strong growth trajectory, driven by changing consumer preferences, health trends, and innovation. While challenges remain, the opportunities for companies to differentiate themselves and meet the growing demand for healthier alternatives are immense.
SOURCE: EINPresswire / Allied Analytics LLP (Press Release)
PHOTO CREDIT: Allied Analytics LLP