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The non-alcoholic beverages market size is forecast to increase by USD 281.3 billion, at a CAGR of 5.43% between 2023 and 2028. The market is witnessing significant growth due to several key trends and factors. Companies in this market are increasingly focusing on launching new products to cater to evolving consumer preferences. Sustainable packaging is another major trend gaining traction, as consumers become more environmentally conscious. However, competition from alcoholic beverages remains a significant challenge for market growth. Despite this, the market is expected to continue expanding, driven by increasing health awareness and the growing preference for low or no-sugar beverages. Overall, the market is poised for growth, with companies leveraging innovation and sustainability to meet the evolving needs of consumers.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The non-carbonated segment is estimated to witness significant growth during the forecast period. The market has witnessed substantial growth in recent years, with a particular focus on refreshment drinks that offer health benefits. The segment of non-carbonated beverages, including bottled water, fruit juices, and herbal teas, has gained significant traction due to consumers' increasing health consciousness and preference for natural, nutritious alternatives to sugary sodas and alcoholic drinks. This trend is driven by heightened awareness of the health implications of sugar consumption and the desire for more transparent, ethically sourced, and eco-friendly drink options. Innovative beverages, such as functional and plant-based drinks, have emerged as attractive choices, catering to diverse consumer preferences and dietary requirements.
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The non-carbonated was the largest segment and was valued at USD 437.60 billion in 2018. These beverages often align with food safety regulations and offer functional benefits, making them popular alternatives in various social settings. Convenience and e-commerce platforms have further facilitated the accessibility of these beverages, enabling consumers to make informed choices and enjoy their preferred drinks at their convenience. The market continues to evolve, with new product launches, flavors, and eco-conscious packaging driving growth. Low-calorie, natural ingredient-based beverages, including near beer, virgin drinks, and mocktails, have also gained popularity as healthier alternatives to alcoholic drinks. The beverage industry's focus on providing consumers with a wide range of hydrating, refreshing, and nutritious options continues to shape the non-alcoholic beverage landscape.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market encompasses a wide range of beverage categories, including Juices, Soft drinks, Coffee and tea, Probiotics, Sugary sodas, Plant-based milk, and Cold-pressed juices. Innovative ingredients such as Superfoods, Adaptogens, and Botanical extracts are increasingly being incorporated to cater to evolving consumer preferences. Health-conscious consumers, particularly those who are lactose-intolerant or vegan, are driving the demand for Non-dairy milk alternatives. Digestive health and Immunity are key focus areas, leading to the popularity of Probiotics and functional beverages. Antioxidant protection is another crucial factor influencing consumer choices. Marketing and advertising strategies are evolving to reach consumers through E-commerce expansion and Direct-to-consumer (DTC) channels. Online retail platforms are becoming increasingly important, offering convenience and a wider selection of options. These trends are shaping the future of the market.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABC Fruits - The company offers non-alcoholic beverages such as fruit pulp, puree, IQF, and concentrate.
Technavio provides the ranking index for the top 20 companies along with insights on the market positioning of:
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Market structure |
Fragmented |
YoY growth 2023-2024 |
5.02 |
The market is a significant segment of the beverage industry, encompassing refreshment drinks, nutritious beverages, innovative beverages, and hydration solutions. Consumers' shifting drinking habits towards healthier alternatives have fueled the demand for non-alcoholic beverages, including bottled water, juices, soft drinks, coffee, and tea. Tariff barriers and e-commerce platforms have influenced the market dynamics, making non-alcoholic beverages more accessible to consumers. Health benefits, convenience, and eco-conscious choices are key drivers for the market's growth. Innovative offerings such as low-alcohol content drinks, like virgin drinks, mocktails, near beer, and non-alcoholic cocktails, have gained popularity. Functional beverages, plant-based beverages, and energy drinks are also gaining traction due to their health benefits. Food safety regulations play a crucial role in the market, ensuring the production and distribution of safe and high-quality non-alcoholic beverages. Natural resources are a critical consideration for the industry, with a focus on sustainable practices and reducing the environmental impact of production and packaging. Overall, the market is expected to continue its growth trajectory, driven by evolving consumer preferences and a focus on health and convenience. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Frequent product launches by companies is notably driving market growth. The beverage industry continues to witness significant growth in the Non-alcoholic beverages segment, as consumers seek refreshing, nutritious, and innovative alternatives to traditional drinks. Tariff barriers and changing drinking habits have driven the demand for alcohol-free options, including beverages with health benefits and natural ingredients. Companies in this market are responding by launching new products that cater to these preferences. Companies are focusing on functional beverages, such as herbal teas, kombucha, and low-calorie options, to meet the growing demand for eco-conscious choices and healthier hydration.
Additionally, companies are expanding their product portfolios with flavored bottled water, near beer, virgin drinks, mocktails, and low-ABV cocktails, among others. E-commerce platforms are also playing a crucial role in making these non-alcoholic beverages more accessible to consumers, allowing them to shop for convenience drinks, energy drinks, and dietary supplements from the comfort of their homes. Food safety regulations continue to be a priority, ensuring that these beverages meet the highest standards of quality and safety. Overall, the market is poised for continued growth, driven by evolving consumer preferences, innovative product offerings, and a focus on health and nutrition. Thus, such factors are driving the growth of the market during the forecast period.
Increased focus on sustainable packaging is the key trend in the market. The beverage industry is witnessing a notable increase in the demand for non-alcoholic beverages, with refreshment drinks, nutritious beverages, and convenience drinks leading the charge. Consumers are increasingly seeking healthy alternatives to alcohol, driven by health and nutrition concerns and changing drinking habits. Innovative beverages, such as low-ABV cocktails, functional beverages, plant-based beverages, and herbal teas, are gaining popularity. Hydration is a key consideration, with bottled water, flavored bottled water, and energy drinks catering to this need.
Tariff barriers and food safety regulations continue to impact the market, with e-commerce platforms providing new opportunities for beverage manufacturers to reach consumers. Natural resources, such as fruits and herbs, are used to create natural and organic options. Sustainability is a major concern, with eco-conscious choices, such as reusable bottles and biodegradable packaging, becoming increasingly important. Low-calorie and dietary beverages, as well as virgin drinks and mocktails, are also popular options in the market. Thus, such trends will shape the growth of the market during the forecast period.
Competition from alcoholic beverages is the major challenge that affects the growth of the market. The beverage industry continues to witness a significant shift towards non-alcoholic beverages, with refreshment drinks gaining popularity as healthier and more convenient alternatives to alcoholic options. Tariff barriers and increasing health consciousness are driving the demand for nutritious beverages, as consumers seek innovative and eco-conscious choices. Non-alcoholic beverages, including bottled water, fruit juices, and functional beverages, offer health benefits and cater to various dietary requirements. Convenience drinks, such as energy drinks and low-calorie options, are also popular among consumers due to their portability and ease of consumption. E-commerce platforms have facilitated the accessibility of these beverages, enabling consumers to purchase a wide range of non-alcoholic drinks from the comfort of their homes. Natural resources, such as herbal teas, kombucha, and flavored bottled water, are increasingly being preferred due to their natural ingredients and perceived health benefits.
Beverage manufacturers are responding to this trend by introducing low-ABV cocktails, virgin drinks, and mocktails, as well as plant-based beverages, to cater to the evolving drinking habits of consumers. Despite the growth in non-alcoholic beverages, alcoholic drinks continue to maintain their appeal due to deeply ingrained cultural traditions and social rituals. However, the industry is adapting to changing consumer preferences by offering healthier options, such as low-alcohol content drinks and natural ingredients, to cater to the growing health consciousness of consumers. Food safety regulations and eco-friendly production methods are also becoming essential considerations for beverage manufacturers to meet the evolving demands of consumers. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
The market is a significant segment of the beverage industry, encompassing refreshment drinks, nutritious beverages, and innovative beverages. With increasing health and nutrition consciousness among consumers, there is a growing demand for healthy alternatives to traditional beverages. Non-alcoholic beverages offer hydration and refreshment without the alcohol content, making them popular choices for various occasions. Convenience is another driving factor for the market, with e-commerce platforms enabling easy access to a wide range of non-alcoholic beverages. Natural resources, such as natural spring water and fresh fruits, are essential ingredients in many non-alcoholic beverages. Bottled water, fruit juices, and herbal teas are popular categories within this market.
Further, tariff barriers and food safety regulations can impact the market, especially for imported beverages. However, the trend towards eco-conscious choices and sustainable production methods is gaining momentum, with many beverage manufacturers focusing on low-calorie, natural ingredient-based beverages. Functional beverages, such as energy drinks, plant-based beverages, and low-abv cocktails, offer additional health benefits, further expanding the market. Drinking habits and consumer preferences are continually evolving, with a shift towards healthier, more natural, and convenient beverage options. The market is expected to grow significantly in the coming years, offering numerous opportunities for beverage manufacturers and retailers.
Market Scope |
|
Report Coverage |
Details |
Page number |
200 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.43% |
Market growth 2024-2028 |
USD 281.3 billion |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Germany, UK, Japan, India, The Netherlands, France, Mexico, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABC Fruits, Asahi Group Holdings Ltd., Dabur India Ltd., Foxtrot Beverages Pvt. Ltd, Frucor Suntory Australia Pty Ltd, Ghousia Food Products Pvt. Ltd., iStore Direct Trading Pvt Ltd, Keurig Dr Pepper Inc., Manna Beverages and Ventures, National Beverage Corp., Nongfu Spring Co. Ltd., Ocean Spray Cranberries Inc., Parle Agro Pvt Ltd., PepsiCo Inc., Rachels Orchard, Refresco Group, Sajeeb Corp, SOURCE DU PAYS S.A, SUN IMPEX INTERNATIONAL FOODS LLC, and The Coca Cola Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Distribution Channel
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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