Non-Alcoholic Beverages Market Research Report and Outlook by 2028

The market for non-alcoholic beverages is projected to expand from US$ 1,327.11 billion in 2022 to US$ 1,902.85 billion by 2028, reflecting a compound annual growth rate (CAGR) of 6.2% during this period.

Non-alcoholic beverages encompass a wide range of products, including carbonated soft drinks, juices and nectars, bottled water, dairy and alternative dairy drinks, ready-to-drink (RTD) tea and coffee, smoothies, non-alcoholic beers, RTD malt beverages, premixes, as well as energy and sports drinks. In recent years, there has been a notable increase in health and nutrition awareness among consumers. The fast-paced nature of modern life often prevents individuals from focusing on their health and fitness, leading to various health complications such as diabetes, obesity, skin disorders, vision issues, cardiovascular diseases, and even cancer. As a result, consumers are increasingly investing in nutrient-rich foods and beverages to enhance their health and mitigate the risk of chronic illnesses. This shift has significantly boosted the demand for functional food and beverages. Functional beverages are typically enriched with one or more nutrients, including proteins, vitamins, minerals, beneficial carbohydrates, probiotics, and other health-promoting ingredients that cater to specific consumer health concerns. These beverages not only improve overall physical well-being but also help in reducing the likelihood of disease progression. Additionally, they play a crucial role in maintaining hydration and bolstering immune health. Furthermore, functional beverages are tailored to support personalized health objectives, such as weight management, gut and immune health enhancement, and improvements in skin and hair condition. This growing interest in functional beverages has made them increasingly popular among consumers across various age demographics. Consequently, the rising demand for these products is propelling the non-alcoholic beverages market forward.

The global non-alcoholic beverages market is categorized by distribution channels, which include supermarkets and hypermarkets, convenience stores, online retail, and other outlets. In 2021, supermarkets and hypermarkets dominated the market share, while the online retail segment is anticipated to experience the highest growth rate from 2022 to 2028. Supermarkets and hypermarkets are large retail spaces that offer a wide array of products, including personal care items, groceries, and household goods. These establishments provide a variety of brands at competitive prices, making it easier for consumers to find their desired products. Additionally, they often feature attractive discounts, multiple payment options, and a pleasant shopping experience. Non-alcoholic beverage manufacturers typically prefer to distribute their products through these large retail channels due to the significant customer traffic they attract. Many leading brands, such as Walmart, Aldi, and Tesco, are favored by manufacturers for their extensive customer reach and distribution networks, further driving the segment's growth.

In 2021, the Asia Pacific region accounted for the largest share of revenue in the global non-alcoholic beverages market. Countries within this region are experiencing a rise in health-conscious consumers, which is fueling demand for non-alcoholic options, including energy drinks and fortified juices. The increasing awareness of the importance of an active lifestyle, coupled with the growing incidence of lifestyle-related diseases, is motivating health-oriented consumers to choose healthier, sugar-free alternatives. This trend is significantly contributing to the expansion of the non-alcoholic beverages market in the Asia Pacific. Additionally, the high prevalence of lactose intolerance in countries like Japan and South Korea is driving the demand for alternative dairy products. The popularity of non-alcoholic beers and wines is also on the rise in nations such as Indonesia, Japan, China, and Malaysia, reflecting a growing trend towards alcohol-free drinking. This shift is further supporting the growth of the non-alcoholic beverages market in the region.

Prominent players in the global non-alcoholic beverages market include The Coca-Cola Company, PepsiCo, Nestle, Red Bull, Suntory Holdings Limited, Danone S.A., Califia Farms LLC, Keurig Dr. Pepper Inc., Asahi Group Holdings Limited, and Bolthouse Farms Inc. These manufacturers are making substantial investments to develop innovative products that align with evolving consumer preferences. For example, in March 2019, The Coca-Cola Company introduced a sparkling juice featuring 25% Kashmiri apple juice under its Minute Maid brand. Such innovations are expected to further stimulate growth in the non-alcoholic beverages market throughout the forecast period.

The overall size of the global non-alcoholic beverages market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the non-alcoholic beverages sector.