Non-alcoholic Beverages Market (By Product: Carbonated Soft Drink, Bottled Water; By Distribution Channel: Food Service, Retail) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global non-alcoholic beverages market size was estimated at around USD 1.27 trillion in 2023 and it is projected to hit around USD 2.6 trillion by 2033, growing at a CAGR of 7.44% from 2024 to 2033. The non-alcoholic beverages market is driven by the rising demand for non-alcoholic beer and wine, increasing awareness of health risks, and innovation in product offerings.

Key Pointers

• Asia Pacific region dominated the market with the largest market share of 34% in 2023.
• North America is predicted to grow at the remarkable CAGR during the forecast period.
• By Product, the carbonated soft drinks (CSDs) segment held the largest revenue share of 29% in 2023.
• By Product, the functional beverages segment is predicted to grow at the remarkable CAGR in the forecast period
• By Distribution channel, the retail segment held the largest revenue share of 73% and is expected to expand at the highest CAGR from 2024 to 2033.

Non-alcoholic Beverages Market Overview

The non-alcoholic beverages market has witnessed significant growth and evolution in recent years, driven by changing consumer preferences, health-conscious trends, and innovative product offerings. This overview delves into key aspects of the non-alcoholic beverages market, highlighting its current landscape and future prospects.

Non-alcoholic Beverages Market Growth

The non-alcoholic beverages market is experiencing robust growth, driven by several key factors. A fundamental driver is the shifting consumer preferences towards healthier lifestyle choices. As awareness of the health risks associated with excessive alcohol consumption increases, there is a corresponding surge in demand for non-alcoholic alternatives. Moreover, the industry's commitment to innovation plays a pivotal role in this growth, with manufacturers introducing a diverse range of products that cater to evolving consumer tastes. From functional beverages to unique flavor profiles, the continuous exploration of novel offerings contributes significantly to market expansion. The rise of health and wellness trends is another influential factor, propelling the demand for beverages that offer nutritional benefits. As consumers seek alternatives that align with their well-being goals, the non-alcoholic beverages market is well-positioned for sustained growth in the foreseeable future.

Report Scope of the Non-alcoholic Beverages Market

Non-alcoholic Beverages Market Trends

• Rise of Functional Beverages: The non-alcoholic beverages market is witnessing a surge in the popularity of functional beverages, including energy drinks, sports drinks, and wellness beverages. Consumers are increasingly drawn to beverages that offer specific health benefits beyond mere hydration.
• Expanding Non-Alcoholic Beer and Wine Segment: There is a notable trend towards the growth of the non-alcoholic beer and wine segment. Consumers, seeking alternatives to traditional alcoholic beverages, are embracing high-quality, non-alcoholic options that mimic the taste and experience of beer and wine without the alcohol content.
• Zero-Sugar and Natural Sweeteners: The market is experiencing a shift towards healthier sweetening options, with a rising demand for zero-sugar and beverages sweetened with natural alternatives. This trend aligns with the broader consumer focus on reducing sugar intake and opting for more natural and organic ingredients.
• Premiumization of Non-Alcoholic Offerings: Premiumization is a discernible trend in the non-alcoholic beverages market, with manufacturers introducing high-quality, sophisticated options. This shift caters to a growing consumer segment that values premium and upscale experiences even in the non-alcoholic beverage category.
• Innovative Flavors and Ingredients: Innovation in flavors and ingredients remains a key trend in the market. Consumers are seeking unique and diverse taste experiences, prompting manufacturers to experiment with novel flavor combinations and incorporate exotic, natural ingredients into their non-alcoholic beverage offerings.

Product Insights

In 2023, the carbonated soft drinks (CSDs) segment claimed the largest revenue share at 29%. Renowned for their effervescence and an extensive range of flavors catering to diverse taste preferences, CSDs have gained popularity. Their convenience and availability in various packaging sizes make them a preferred choice for consumers seeking a quick and satisfying thirst-quencher.

The functional beverages segment is predicted to grow at the remarkable CAGR in the forecast period. This surge is attributed to the increasing awareness and emphasis on health and wellness. As consumers become more health-conscious, there is a rising demand for beverages that provide not only refreshment but also functional benefits. Functional beverages, encompassing products enriched with vitamins, minerals, antioxidants, and other health-promoting ingredients, align with the contemporary focus on preventive healthcare and overall well-being

​Distribution Channel Insights

In 2023, the retail segment held the largest revenue share of 73% and is expected to continue expanding at the fastest CAGR throughout the forecast period. The retail channel encompasses supermarkets, hypermarkets, internet retailers, and other outlets. Among these, supermarkets and hypermarkets within this segment hold the largest market share due to the availability of a wide variety of brands and products under one roof. Notable players in this subcategory include Whole Foods, Target, Aldi, and Walmart, with several supermarkets expanding their offerings in the alcohol-free market.

The foodservice segment is anticipated to experience rapid growth in the forecast period, serving as a primary distribution channel for non-alcoholic beverages. The global trend of busy schedules and increased disposable income often prompts consumers to dine out. This has led to the emergence of new eateries catering to diverse tastes and beverage preferences. The growth in full-service restaurants adopting all-inclusive dining practices, wherein they analyze local dietary trends and innovate their offerings accordingly, has been a significant driver. This approach not only enhances the consumer experience but also increases the frequency of visits to these establishments.

Regional Insights

In 2023, Asia Pacific region dominated the market with the largest market share of 34%. The region, fueled by increasing demand for alcohol-free beverages in developing countries such as China, India, Thailand, and Malaysia, is anticipated to drive market growth. Government initiatives aimed at boosting the manufacturing sector through tax cuts, subsidies, and elevated Foreign Direct Investment (FDI) limits have attracted key global players to expand their operations and distribution facilities in the region. Shifting beverage consumption patterns, with consumers preferring functional and flavored bottled water over high-sugar content carbonated drinks, further contribute to this trend.

China, as the leader in the Asia Pacific market in 2023, played a pivotal role, accounting for the largest share. The surge in health consciousness among Chinese consumers, driven by increased awareness of the health impacts of lifestyle choices, has led many to opt for non-alcoholic beverages as a healthier alternative to traditional sugary and alcoholic drinks. This trend is particularly prominent among the younger generation, actively seeking beverages that align with their desire for a balanced and nutritious diet.

North America is poised for significant growth during the forecast period. The U.S., home to many globally renowned beverage manufacturers, faces challenges such as the rising prevalence of obesity and government-imposed taxes on sugar products in both the U.S. and Mexico. These factors restrain the demand for Carbonated Soft Drinks (CSDs), a subset of non-alcoholic beverages, leading to an increased preference for low-calorie beverages containing non-nutritive sweeteners.

Key Companies

• Nestlé
• PepsiCo
• Unilever
• Keurig Dr. Pepper Inc.
• The Coca-Cola Company
• Jones Soda Co.
• Danone S.A
• Suntory Beverage & Food Ltd
• Asahi Group Holdings, Ltd.
• Red Bull

Non-alcoholic Beverages Market Segmentations:

By Product

• Carbonated Soft Drinks
• Bottled Water
• RTD Tea & Coffee
• Functional Beverages
• Juices
• Dairy-based Beverages
• Others

By Distribution channel

• Food Service
• Retail

By Region

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa