Sugar Free Carbonated Drinks Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Japan - Size and Forecast 2024-2028

Sugar Free Carbonated Drinks Market Size 2024-2028

The sugar free carbonated drinks market size is forecast to increase by USD 10.9 billion at a CAGR of 6.34% between 2023 and 2028.

• The sugar-free carbonated drinks market is experiencing significant growth, driven by several key trends. The increasing influence of online retailing is one such trend, as more consumers turn to e-commerce platforms for convenience and ease of access. Another trend is the rising consumption by millennials, who are increasingly health and wellness conscious and prefer sugar-free options. Additionally, stringent regulations and the need for health claim validations are pushing manufacturers to produce sugar-free carbonated beverages. These factors are expected to drive market growth In the coming years. The market analysis report provides an in-depth examination of these trends and their impact on the market, offering valuable insights for stakeholders.

What will be the Size of the Market During the Forecast Period?

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• The sugar-free carbonated drinks market caters to health-conscious consumers seeking low-calorie and no-calorie alternatives to traditional sugary beverages. With rising concerns over obesity, high blood sugar, and associated health risks, the demand for sugar substitutes in carbonated drinks has moved. Artificial sweeteners such as aspartame, saccharin, sucralose, neotame, and stevia have gained popularity as sugar alternatives In the production of sugar-free carbonated beverages. Consumers, particularly those with diabetes or weight reduction goals, are increasingly opting for zero-calorie drinks as a healthy substitute.
• However, consumer skepticism towards artificial sweeteners and a growing preference for natural ingredients have led some manufacturers to explore stevia and other natural sweeteners. The sugar-free carbonated drinks market is expected to continue growing, driven by increasing health consciousness and the desire for tasty, low-sugar beverage options.

How is this Industry segmented and which is the largest segment?

The industry 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.

• Distribution Channel
  • Off-premise
  • On-premise
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • Japan
  • South America
  • Middle East and Africa

By Distribution Channel Insights

• The off-premise segment is estimated to witness significant growth during the forecast period. The sugar-free carbonated drinks market primarily relies on offline distribution channels, including specialty stores, hypermarkets, supermarkets, convenience stores, and pharmacies. These retail formats contribute significantly to the market's revenue, as they offer a wide selection of products and competitive pricing through discounts and promotions. Hypermarkets, supermarkets, and department stores are key revenue generators due to their extensive product offerings. Sugar-free carbonated beverages, such as diet sodas, zero-calorie drinks, and low-carb options, cater to health-conscious consumers seeking alternatives to sugary drinks due to lifestyle diseases like obesity, high blood sugar, and diabetes. Artificial sweeteners, including aspartame, saccharin, sucralose, neotame, and stevia, are commonly used in sugar-free carbonated drinks.

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The off-premise segment was valued at USD 18.80 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 27% 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 North American market for sugar-free carbonated drinks is projected to expand substantially due to the increasing health consciousness among consumers. Obesity and diabetes, which are linked to high sugar consumption, are prevalent health issues In the region. According to the World Health Organization (WHO), approximately 3.8 million deaths In the US in 2021 were attributed to these conditions.

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Moreover, to mitigate these health risks, consumers are turning to sugar-free carbonated beverages as a healthier alternative. These drinks, which come in various flavors such as cola, lime, orange, lemonade, and carbonated water, are available as low-calorie, no-calorie, and low-carb options. Sweeteners like Aspartame, Saccharin, Sucralose, Neotame, Stevia, and others are used instead of sugar.

Market Dynamics

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.

What are the key market drivers leading to the rise In the adoption of Industry?

• Growing influence of online retailing is the key driver of the market. The sugar-free carbonated drinks market In the US has witnessed notable growth due to the rising health consciousness among consumers. With obesity and high blood sugar levels being major health risks, there is a growing preference for low-calorie and no-calorie beverage options. Aspartame, Saccharin, Sucralose, Neotame, Stevia, and other sugar substitutes are increasingly being used as artificial sweeteners in sugar-free carbonated drinks, including soft drinks, energy drinks, sports drinks, carbonated water, and various flavors like Cola, Lime, Orange, and Lemonade. Health-conscious consumers, particularly those with lifestyle diseases such as diabetes, pre-diabetes, inflammatory digestive conditions, and weight reduction goals, are turning to sugar-free beverages as healthy substitutes.
• The sugar-free beverage market caters to various dietary restrictions and offers low-carb beverages, dairy beverages, organic, lactose-free, and gluten-free options. The shift towards healthier alternatives has led to an increase in store-based and non-store-based distribution channels. Fast food chains and restaurants have started offering sugar-free carbonated drinks, while online sales channels have gained significant traction. E-commerce platforms like Amazon and eBay offer a wide range of sugar-free carbonated drinks, making them easily accessible to consumers. The trend towards health awareness and weight loss has led to an increase in demand for zero-calorie drinks and diet sodas. As consumers become more skeptical about the health risks associated with sugar consumption, the sugar-free carbonated drinks market is expected to continue its growth trajectory.

What are the market trends shaping the Sugar Free Carbonated Drinks Industry?

• Increasing consumption by millennials is the upcoming market trend. The sugar-free carbonated drinks market In the US is witnessing significant growth due to the increasing health consciousness among consumers. With obesity and high blood sugar levels being major health risks, consumers are turning to sugar-free and low-calorie beverage options. Aspartame, Saccharin, Sucralose, Neotame, Stevia, and other sugar substitutes are commonly used in sugar-free carbonated drinks, including soft drinks, energy drinks, sports drinks, carbonated water, and sugar-free pastries like muffins and biscuits. Health-conscious consumers, particularly millennials, are the primary drivers of the sugar-free beverage market. These consumers seek healthy substitutes for sugary drinks and are willing to pay a premium for zero-calorie drinks.
• However, natural ingredients are increasingly being used to address these concerns. Hydration and beverage options that cater to specific health needs continue to be in demand. The sugar-free carbonated drinks market is expected to continue its growth trajectory as consumers prioritize their health and wellness.

What challenges does the Sugar Free Carbonated Drinks Industry face during its growth?

• Stringent regulations and health claim validations is a key challenge affecting the industry growth. Sugar-free carbonated drinks, also known as low-calorie or no-calorie beverages, have gained significant popularity among health-conscious consumers In the US market. These drinks are sweetened with sugar substitutes such as Aspartame, Saccharin, Sucralose, Neotame, Stevia, and others. The rising health consciousness due to lifestyle diseases like obesity, high blood sugar, and diabetes, has fueled the demand for sugar-free beverages. The sugar-free beverage market includes various categories such as soft drinks, energy drinks, sports drinks, carbonated water, and others. Flavors like Cola, Lime, Orange, and Lemonade dominate the market. Online sales channels have also contributed to the growth of this market due to the convenience they offer.
• Health awareness and fast food consumption have led to an increase in at-home consumption of sugar-free carbonated drinks. Consumers are increasingly opting for sugar-free alternatives to reduce weight and manage dietary restrictions. Low-carb beverages, dairy beverages, organic, lactose-free, and gluten-free options are also popular. Regulations for sugar-free carbonated drinks vary from country to country. In the US, the Food and Drug Administration (FDA) regulates these drinks, while In the EU, the European Food Safety Authority (EFSA) is the risk assessment authority. These regulatory bodies ensure the safety and quality of sugar-free carbonated drinks by monitoring the ingredients used In their manufacturing.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AriZona Beverages USA LLC
• Asahi Group Holdings Ltd.
• Bisleri International Pvt Ltd
• Britvic plc
• Fyre Energy Drink Mix
• Hell Energy Hungary Kft.
• Jones Soda Co.
• Keurig Dr Pepper Inc.
• Kofola CeskoSlovensko A.S.
• PepsiCo Inc.
• Red Bull GmbH
• Refresco Group BV
• Rowdy Energy Drink
• Suntory Holdings Ltd.
• The Coca Cola Co.
• The Kraft Heinz Co.
• XL Energy Marketing S.p. z o.o.
• ZOA Energy

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The sugar-free carbonated drinks market represents a significant segment within the broader beverage industry, catering to consumers seeking healthier alternatives to traditional sugary beverages. This market encompasses a diverse range of low-calorie and no-calorie carbonated drinks, including those sweetened with artificial sweeteners such as aspartame, saccharin, sucralose, neotame, and stevia, as well as those naturally sweetened with plant-derived alternatives. The rise of health consciousness among consumers, fueled by increasing awareness of obesity, high blood sugar, and associated health risks, has driven the demand for sugar-free carbonated drinks. This trend is particularly evident In the context of fast food consumption, where sugar-laden beverages have long been a staple.

However, the shift towards sugar-free options extends beyond the realm of fast food chains and into at-home consumption. Soft drinks, energy drinks, sports drinks, carbonated water, and various fruit-flavored beverages, such as cola, lime, orange, and lemonade, are all available in sugar-free versions. These beverages cater to a wide array of consumer preferences and dietary restrictions, including weight reduction, diabetes, pre-diabetes, inflammatory digestive conditions, and low-carb lifestyles. The sugar-free carbonated drinks market is further segmented based on distribution channels, with both store-based and non-store-based options available. Store-based distribution includes traditional retail outlets, supermarkets, and convenience stores, while non-store-based distribution encompasses online sales channels.

In addition, consumer skepticism towards artificial sweeteners and a growing preference for natural ingredients have led to innovation within the sugar-free carbonated drinks market. Many manufacturers are now offering beverages sweetened with natural sweeteners, such as stevia, or those that are organic, lactose-free, or gluten-free. The sugar-free carbonated drinks market is influenced by various market dynamics, including changing consumer preferences, regulatory landscape, and technological advancements. Hydration and beverage options remain key considerations for health-conscious consumers, making sugar-free carbonated drinks a viable alternative to sugary beverages for those seeking to maintain healthy blood sugar levels and adhere to specific dietary patterns.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the Sugar Free Carbonated Drinks industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the market growth of industry companies

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