Overview of the sports and energy drinks market
Technavio’s research analyst predicts the global sports and energy drinks market to grow steadily at a CAGR of 11% during the forecast period. The use of natural ingredients is one of the primary drivers for the growth of this market. The growing health concerns related to the continuous consumption of energy and sports drinks on a regular basis have led vendors to launch products energy drinks with extracts from organic guarana and organic raw green coffee beans. For instance, Scheckter launched an organic energy drink called Organic Energy which contains extracts from organic Brazilian guarana, organic raw Brazilian coffee seed, organic pomegranate juice, organic ginseng, organic elderberry, and organic lemon juice.
The false claims made by certain vendors is expected to deter the market growth during the forecast period. There have been many instances of the sports and energy drinks vendors being sued for their false claims about their products. For instance, during 2014, Red Bull was sued for wrongly claiming in their advertisement that drinking it would give wings to the customers and had to pay a settlement of nearly USD 13 million.
Product segmentation and analysis of the sports and energy drinks market
- Energy drinks
- Sports drinks
Energy drinks dominated the market during 2014, with a market share of 71%. The report predicts this segment to retain its leadership until the end of 2019. The report predicts this segment to grow at a rate of 13% during the forecast period. The rising popularity of energy drinks among young people, the increase in the launch of new varieties and types of energy drinks, and the constant innovation in the taste of these drinks are some of the drivers for the growth of this segment.
Overview of the global soft drinks market
Technavio’s research analyst predicts the global soft drinks market to grow steadily at a rate of 7% during the forecast period. The increase in the sale of premium-priced products such as RTD tea and coffee and functional drinks are the primary drivers of the growth of this market. The innovative marketing strategies being introduced by vendors is also driving the market growth. For instance, during April 2015, PepsiCo entered into a marketing partnership with NBA, making it the official partner of the NBA, Women’s National Basketball Association, NBA Development League, and USA Basketball.
The stringent government regulations regarding the production and sale of soft drinks are expected to pose challenges to the market growth during the forecast period. For instance, during 2014, Mexico imposed additional taxes on the sale of soft drinks, to reduce its consumption within the country.
Segmentation by distribution channel and analysis of the soft drinks market
- Hypermarkets and supermarkets
- Convenience stores
The hypermarket and supermarket distribution channel dominated the soft drinks market during 2014 with a market share of around 45%. The emergence of strong retail networks globally has contributed to the growth of this distribution channel.
Segmentation by category and analysis of the global soft drinks market
- Carbonated soft drinks
- Bottled water
- RTD tea and coffee
- Functional drinks
Carbonated soft drinks dominated the
Overview of the global RTD tea and coffee market
Technavio’s research analyst predicts the global ready-to-drink (RTD) tea and coffee market to grow steadily at a rate of 5% during the forecast period. The increasing health concerns among the consumers is driving the demand for RTD tea and coffee. According to the WHO, more than 1.9 billion adults around the world are overweight and of these 660 million were obese. RTD tea is preferred by health-conscious consumers due to its anti-oxidant property whereas RTD coffee is preferred by consumers looking for instant energy.
The rising café culture among the urban youth population has also been contributing to the growth of the RTD tea and coffee market. Leading café chains such as Starbucks, Costa Coffee, and Barista are expanding in the emerging economies and boosting the sales of RTD tea and coffee products. For instance, Costa Coffee opened 76 new outlets in Britain during 2014 and registered around 7% increase in its sales by the end of the year.
Segmentation by type and analysis of the global RTD tea and coffee market
- RTD tea
- RTD coffee
RTD tea dominated the market with a market share of 76% during 2014. This research report predicts the RTD tea segment to retain its leadership during the forecast period. RTD tea is more preferred by the health-conscious consumers due to its anti-oxidant properties and low-calorie content.
Geographical segmentation and analysis of the global RTD tea and coffee market
Technavio’s analysts expect APAC to dominate the global RTD tea and coffee market with a growth rate of 6
Market outlook of dairy alternative drinks
Technavio’s market research analyst predicts the global dairy alternative drinks market to grow steadily at a CAGR of approximately 15% between 2015 and 2019. The nutritional benefits of dairy alternative drinks are the key growth drivers of this market. Dairy alternative drinks are plant-based milk made from cereals, nuts, and seeds. Health issues such as lactose intolerance, milk allergy, and the genetic disorder such as Phenylketonuria can be resolved by taking dairy alternative beverages as these are plant based milk and are free from animal proteins. Moreover, they have low-fat and low-cholesterol levels, making them a popular choice for health-conscious consumers and vegans.
The growing demand for almond milk is expected to aid the market growth during the forecast period Almond milk is a good source of unsaturated fats, is rich in proteins and omega fatty acids, and is derived from natural almond oils. It helps in improving vision, strengthens the bone, maintains cardiovascular health, building strong muscles, aids in controlling the blood pressure, and can also be used as a substitute for breast milk.
Product segmentation and analysis of the dairy alternative drinks market
- Almond milk
- Rice milk
- Soy milk
- Others (coconut milk, hazelnut milk, hemp milk, and oat milk)
The almond milk segment dominated the market during 2014, accounting for a market share of around 38%. Almond milk aids in improving the immune function and helps in reducing the risk of osteoporosis. Moreover, it contains no hormones and is prescribed by dermatologists to patients with acne.
Geographical segmentation and analysis of the dairy alternative drinks market
Overview of the global carbonated drinks market
Technavio’s research analyst predicts the global carbonated drinks market to grow steadily and reach a revenue of around USD 259 billion by the end of the forecast period. The increase in disposable income levels and lifestyle changes such as eating out especially in the emerging markets is driving the market growth. For instance, regions such as Africa, Asia, and Eastern Europe have fueled the growth of companies like Coca-Cola by a 10% increase in volume between 2012 and 2014.
However, the rising health concerns among consumers is expected to pose a challenge to the market during the forecast period. The rise in the number of diabetics and increased rate of obesity have adversely affected the sales of carbonated soft drinks. According to the global burden of disease Study 2013, nearly 62% of the world's obese population lives in emerging countries, which are potential markets for the consumption of carbonated soft drinks. Many countries such as Britain, France and the US have also banned consumption of carbonated soft drinks in schools due to their high sugar content.
Product based segmentation and analysis of the carbonated drinks market
- Diet cola
- Fruit-flavored carbonates
- Standard cola
This market research report anticipates the standard cola segment to account for the largest market share during the forecast period. Some of the flavoring ingredients added to these drinks are acidic flavor, citrus oils, cinnamon, sugar, and vanilla.
Segmentation by off-trade channel and analysis of the carbonated drinks market
- Hypermarkets and supermarkets
Market outlook of the coconut water market
Technavio’s market research analyst projects the global coconut water market to grow at a CAGR of around 25%, in terms of revenue, during the forecast period. The increasing health consciousness among the consumers is driving the sales of coconut water. Coconut water contains important electrolytes essential for the body such as potassium and sodium. In many tropical countries such as India, Indonesia, Philippines, and Sri Lanka coconut water is consumed fresh. Packaged coconut water is, however, popular in western countries such as the US, UK, and Brazil.
The on-trade consumption of coconut water is expected to increase as many restaurants and eateries in the US, and other countries have started offering coconut water as a mainstream drink in their menu. For instance, Kero Coco, a product of PepsiCo, has been slated as the most selling beverage in McDonalds and Pizza Hut outlets in Brazil. The market research report anticipates coconut water to replace soda drinks in numerous foodservice locations across North America during the forecast period.
Competitive landscape and key vendors
The global coconut water market is signified by the presence of a small number of suppliers. Vita-Coco, a leading provider, dominates the market in terms of revenue. The low capital cost involved in setting up the bottling plant for coconut water is anticipated to attract small-scale industries to this market.
The key vendors in the market are –
- Vita Coco
Other vendors in the market include Amy & Brian Naturals, Bai, Blue Monkey Waters, Bush Farm Trading, C-Coconut Water, C20 Pure Coconut
Non-alcoholic drinks refer to beverages that have less than 0.5% alcoholic content by volume. This includes soft drinks, juices, ready-to-drink tea and coffee, bottled water, energy drinks, and non-alcoholic beer and wine. Rapidly changing lifestyles and increasing disposable income are two of the major factors fueling the demand for non-alcoholic drinks globally.
Technavio’s consumer data and market analysis advances your knowledge of the industry and its competitive environment and provides strategic insights on non-alcoholic beverages, non-alcoholic beer, non-alcoholic wine, non-alcoholic cocktails, and non-alcoholic malt beverages.