Non-alcoholic Beverages Market Size, Share & COVID-19 Impact Analysis, By Type (Carbonated Soft Drinks, RTD Coffee & Tea, Bottled Water, and Fruit Beverages), Distribution Channel (Supermarket/ Hypermarket, Food Services Sector, Convenience Stores, Specialty Stores, and Online Retails), and Regional Forecast, 2020-2032

The global non-alcoholic beverages market size was valued at USD 919.13 billion in 2019 and is projected to reach USD 1601.87 billion by 2032, exhibiting a CAGR of 6.84% during the forecast period based on our analysis in the existing report. The United States non-alcoholic beverages market is projected to grow significantly, reaching an estimated value of US$ 225.62 Billion by 2030.

The global beverage industry is benefitting from a wave of fundamental transformation and continuously evolving with the increasing associations with social and cultural roles in the market. The market for non-alcoholic beverages holds more than 50% share in the global beverage market with a growing trend for the past several years. The market offers a holistic view to the investors within the sector, owing to the rising popularity of refreshment drinks and increasing civilization among human societies. The relaxed trade duties and tariff barriers in the overseas market have encouraged the manufacturers to reinforce the production capabilities worldwide. The emerging markets, coupled with shifting consumer’s demand with the advent of innovative products offer multiple growth opportunities to develop markets over the coming years.

NON ALCOHOLIC BEVERAGES MARKET TRENDS

The emergence of Nutritious Beverages will Trigger the Market Growth

The rising consumer preferences towards healthy beverages enriched with nutrients have necessitated manufacturers to introduce several nutritious products in the market. Consumers, especially millennials are becoming more experimental and willing to try new and healthier alternatives to traditional soft drinks. The demand is prompting the manufacturers to re-examine their product formulation and has impacted the emerging concepts in manufacturing by highlighting the evolving taste of millennial consumers and their kids across the world. According to the Key National Health and Nutrition Organizations 2019, adequate intake of healthy beverages in early childhood is an important factor required to meet the nutritional needs of millennials and young children to support their healthy development. Thus, such introduction of new beverages in the global market place will aid in the expansion of the market during the forecast period.

COVID-19 Pandemic Impacted the Consumption Pattern of Beverage Products

The global non-alcoholic beverages market is facing an abrupt downfall in the sales and consumption of soft drinks due to the outbreak of COVID-19 pandemic worldwide. According to the World Trade Organization, the overall trade scenario across the world will get impacted by approx. 15-30% for a certain period. The impact will result in supply disruptions in the market. Furthermore, cancellation of major sports events, such as the Cricket World Cup 2020, Indian Premier League (IPL) 2020, Summer Olympics, and others will further impede the market growth in the current year.

DRIVING FACTORS

Adoption of Innovative Beverages to Support Human Hydration will Augment Growth

Non-alcoholic beverages not only offer the basic refreshment function but are also used as mood enhancements, fortified drinks, and satisfaction of sweet indulgences in the daily hectic schedule of consumers. The regular intake of these products helps the human body to stay hydrated and are more popular among consumers with a busy lifestyle. Convenience drinks such as canned CSD, and Ready-to-drink (RTD) coffee / tea have become a mainstream trend that offers the ‘grab-and-go’ convenience and entices consumers to buy them from the market. According to the Food Export Association 2019, an approximate of 24% growth rate was witnessed in the sales of RTD tea and coffee in 2019 over the past four years. Thus, the rising consumer dependency on soft drinks and other innovative products will augment the growth of the market in the coming years.

Evolution of e-Commerce Platforms to Attract Higher Revenues

Technological developments and virtual shopping trends are expected to have a huge impact on the beverages sector, owing to the rise in dependency of consumers on the internet and e-commerce. According to the global E-commerce Foundation 2018, internet penetration continues to increase steadily every year. An approximate of 30% revenue in global groceries was achieved through e-commerce in 2018 which is further expected to rise in the near future. Thus, soft drink manufacturers are intensively focusing on developing new online stores that will help to boost the market during the forecast years.

RESTRAINING FACTORS

Fluctuations in Availability and Price of Natural Resources to Dampen the Supply Chain

The fact that this industry is highly reliable on natural resources such as energy and water, creates several social as well as environmental externalities. Indirect greenhouse gas emission, reduced water availabilities, and increasing pollution promotes the disruptions in the availability of natural resources, which is expected to hamper the production capabilities in the market. However, manufacturers have recognized the opportunities and risks associated with sustainability issues, and entered into partnerships with the alcoholic beverages industry to form the Beverage Industry Environmental Roundtable (BIER). BIER is a technical coalition of leading companies such as The Coca-Cola Company, Pepsi Co., and others to promote the sustainability in the beverages sector.

SEGMENTATION

By Type Analysis

Carbonated Soft Drinks (CSD) Holds the Major Non-alcoholic Beverages Market Share Owing to its Easy Availability and Low Price

On the basis of product type, the market is segmented into CSD, bottled water, RTD tea & coffee, fruit juices, and others. The consumers are buying new and flavored CSDs in the market as a thirst quencher owing to its refreshing properties. Furthermore, reinforced efforts by the consumers to strengthen their distribution channel at low cost is driving the demand for the product. The developing markets such as India and China contribute major shares to this segment due to the improving economic conditions of the consumers.

On the other hand, RTD drinks, juices, and sports drinks are expected to grow at a faster pace due to the increasing shift of consumers towards healthy drinks all across the world.

By Distribution Channel Analysis

Mass Merchandisers Dominate Distribution Channels owing to Wider Product Availability

The supermarket/ hypermarket industry is continuously changing and investors are capitalizing on buyer’s comforts to offer an easy shopping experience. The adoption of technological advancements and equipment on the floor help retailers provide adequate quality of beverages to the consumers. According to the Food Industry Association 2018, about 43% of the total grocery in 2017 were sold through supermarket/ hypermarket, which represents a major share of non-alcoholic beverages sales every year.  Supermarkets are also emphasizing on meeting new regulatory requirements such as refrigerant leaks, quality assurance to avoid penalties through the Environmental Protection Agency (EPA), and to offer quality products to its consumers.

REGIONAL INSIGHTS

Asia Pacific emerged dominant in the market competition and will continue so in the forecast period owing to a steady improvement in disposable income status and the living standard of consumers. The growing adoption of westernization and growing modernization among consumers has led to increased expenditure over beverage products in the market. According to the International Wines and Spirits Record (IWSR), non-alcoholic brands will showcase significant growth in such markets as the consumers are exploring ways to reduce their alcohol intake.

The North America and Europe markets are expected to grow at a significant CAGR owing to the increased demand for RTD beverages and sports drinks among people. The rate of alcohol consumption in the respective regions is declining and consumers are focusing on ‘better-for-you’ products that promote healthy soft drinks in the market. The Middle East & Africa and South America markets accounted for lower share in the market owing to the sub-optimal product penetration in underdeveloped markets of the regions. North America dominated the non-alcoholic beverages market with a market share of 21.71% in 2019.

KEY INDUSTRY PLAYERS

The Coco-Cola Company is Constantly Developing Innovative Health Drinks to Meet the Demand

The nature of non-alcoholic beverages market is highly consolidated on account of the presence of a handful of companies holding significant positions. The companies are constantly focusing to meet the evolving consumer preferences and ongoing trends in the market.

The major beverage brand in the world- The Coco-Cola Company is emphasizing on meeting the ongoing trends by releasing additions to VitaminWater range, fermented drinks, probiotic drinks, RTD beverages, and others. For instance, in March 2019, the company has launched ethnic energy drink viz. carbonated beverage called Jaljeera drink in India to cater to the demand for energy drinks in the country. The strong dominance of the key players and their reinforced production and distribution capabilities in the market are factors helping this company emerge dominant.

LIST OF KEY COMPANIES PROFILED:

• PepsiCo, Inc. (New York, U.S.)


• The Coca-Cola Company (Georgia, U.S.)


• Nestle S.A. (Vevey, Switzerland)


• The Kraft Heinz Company (Chicago, U.S.)


• Dr. Pepper Snapple Group, Inc. (Texas, U.S.)


• Reed’s, Inc. (Norwalk, U.S.)


• Appalachian Brewing Co. (Harrisburg, U.S.)


• Arca Continental SAB de CV (Monterrey, Mexico)


• ITO EN Ltd (Tokyo, Japan)


• Monster Beverage Corp (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2019 – PepsiCo, Inc. has launched a greenhouse accelerator 2020 program in North America for start-ups which are at the forefront of transformative trends.


• February 2019 – The Coco-Cola Company grape-juice based sparkling drinks “Colour” in India to expand its fruit-based beverage ranges in the country.

REPORT COVERAGE

The non alcoholic beverages market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading distribution channel of the product. Besides this, the scope of the report offers insights into the market, current trends, and highlights the key industry developments.

Report Scope & Segmentation