Non-Alcoholic Drinks Market

Non-Alcoholic Drinks Market Size (2024 to 2029)

The Non-Alcoholic Drinks Market size is anticipated to reach to an extent of USD 1.65 billion by 2024 and USD 2.09 billion by the end of the assessment period, recording a CAGR of 4.4%. 

Shifting customer focus to a healthy lifestyle, coupled with changes in eating habits for consuming nutrient-dense products, should be an important factor for the Non-Alcoholic Drinks Market. The global Non-Alcoholic Drinks Market has undergone rapid change due to factors such as increased purchasing power, better living standards, and rapid urbanization. The growing health awareness has fuelled the demand for drinks made with natural ingredients. As a result, beverage manufacturers are launching carbonated beverages and other innovative low-calorie natural beverages to meet the growing demand from health-conscious consumers. Asia-Pacific non-alcoholic drinks market is projected to grow at the fastest CAGR of 6.0% from 2020 to 2025.

Non-alcoholic beverages comprise beverages that cover less than 0.6% alcohol. Changes in consumer tastes and preferences and their tendency to consume prepared foods and beverages have led to an increase in demand for soft drinks in recent years. Soft drinks are considered the non-alcoholic version of alcoholic beverages. The ethanol distillation method is used to separate soft drinks from alcoholic beverages.

MARKET DRIVERS AND RESTRAINTS:

Shifting customer focus to a healthy lifestyle, coupled with changes in eating habits for consuming nutrient-dense products, should be an important factor for the industry. Also, growing concerns about the adverse health consequences associated with drinking alcoholic beverages are expected to increase the utility of alternative beverages, including functional drinks and soft drinks. Adult consumer groups are expected to remain key buyers during the forecast period. The growing population of workers, athletes, and other demographics is expected to drive the demand for nutritious drinks, which will boost their performance and keep their energy levels high throughout the day. This should support the growth of non-alcoholic beverages such as energy drinks, juices, and functional drinks in the coming years. Additionally, consumers are moving towards natural, organic food products that are tastier, healthier, and more nutritious. This consumer trend is gaining popularity among the young adult population worldwide.

The growing health awareness has fuelled the demand for drinks made with natural ingredients. As a result, beverage manufacturers are launching carbonated beverages and other innovative low-calorie natural beverages to meet the growing demand from health-conscious consumers. Governments around the world are taking initiatives to regulate and limit the consumption of alcoholic beverages, as well as to promote healthy juices and beverages. In recent years, consumer food preferences have gradually shifted to fresh fruit drinks. However, the sugar level in soft drinks is acting as a major threat to business expansion among health-conscious consumers across the world.

REPORT COVERAGE: 

SEGMENTAL ANALYSIS

Global Non-Alcoholic Drinks Market Analysis By Distribution Channel:

By product, soft drinks had a substantial share of 24.3% in 2018. The main manufacturers launch new products with less sugar and without preservatives or artificial colors since they are the cause of chronic diseases, such as diabetes and cardiovascular diseases around the world. Functional beverages are expected to rise to the fastest CAGR by 6.0% from 2020 to 2025 due to the hectic lifestyle of the global workforce. This segment is expected to experience significant growth in the coming years due to its growing popularity as a nutritional product, ensuring the bioavailability of nutritional ingredients for the human body.

The offline channel was the largest distribution channel, representing an 81.2% share in 2018. The offline channel includes supermarkets, points of sale, convenience stores, and grocery stores. Major players like Walmart, Amazon, and 7-Eleven are investing significantly in developing countries like India, Thailand, and Taiwan, to meet the growing consumer demand in the region.

REGIONAL ANALYSIS:

The Global Non-Alcoholic Drinks Market has been studied in regions of North America, Asia Pacific, Europe, Latin America, and the Middle East, and Africa.

North America accounted for the leading portion of 34.5% in 2018. The region's main players have adopted marketing strategies, in particular, the launch of innovative products and mergers and acquisitions to meet growing demand. Natural drinks, less in sweet and low in calories, are launched as the best alternative to alcoholic beverages at parties. The Asia-Pacific non-alcoholic drinks market is projected to grow at the fastest CAGR of 6.0% from 2020 to 2025. Increased awareness of the health benefits associated with non-alcoholic beverages, such as improved levels of cholesterol and saturated fat in the body, is termed as a market driver in the region. Major manufacturers are launching new products to meet growing customer demand for healthy beverages.

KEY PLAYERS IN NON-ALCOHOLIC DRINKS MARKET

Key Players In Non-Alcoholic Drinks Market are Parle Agro, PepsiCo, Nestle S.A, Danone S.A, The Coca-Cola Company.

RECENT HAPPENINGS IN THE MARKET:

• In October 2018, United Breweries Ltd. extended its wings into non-alcoholic beverages with the recent introduction of lemon-based beverages under its brand of "Kingfisher Radler". These strategic moves are expected to support a significant demand for products during the forecast period.
• In March 2019, the Gujarat Milk Cooperative Marketing Federation Limited (GCMMF) announced the launch of fruit juices under its renowned "Amul" brand in four Flavors: orange, apple, mango, and lychee.
• In January 2019, The Coca-Cola Company introduced its new sparkling cocktails that are branded under the ``Bar None'' in the USA. The available Flavors in this cocktail are Bellini Spritz, Ginger Mule, Sangria, and Dry-Aged Cider. Additionally, the company introduced these drinks as the best alternative to alcoholic beverages at parties.
• Flipkart, an online giant in India, part of Walmart, launches discount offers from time to time to drive sales. This, in turn, promotes the online sale of foods such as soft drinks, flavored milk, bottled water, and coconut water.
• In February 2019, 7-Eleven, one of the world's largest convenience store chains, signed an agreement with Future Group to launch its first store in India, which should be one of the fastest-growing retail markets.
• In March 2019, according to a report published by the Wall Street Journal, Amazon launched a new brand for supermarkets in the main cities of the United States to obtain the largest market share.
• In April 2018, Coca-Cola India, one of the country's leading beverage companies, announced the launch of Thums-Up Charged No Sugar, the company's first homemade drink to be offered in a sugar-free variant with the same strong flavour and the extra thunder.

DETAILED SEGMENTATION OF GLOBAL NON-ALCOHOLIC DRINKS MARKET INCLUDED IN THIS REPORT    

This research report on the Global Non-Alcoholic Drinks Market has been segmented and sub-segmented based on Product Type, Distribution Channel & region.         

By Product Type:

• Carbonated
• Non-Carbonated Beverages

By Distribution Channel:

• Hypermarket
• Supermarket
• Convenience Store
• Departmental Stores
• Specialty Store
• Online Purchase

By Region:

• North America
• Europe
• The Asia Pacific
• Latin America
• Middle East and Africa