Non-alcoholic Beverages Market, By Product (Carbonated Soft Drinks (CSDs), Bottled Water, Tea and Coffee, Fruit Beverages, and Others (Dairy drinks, Sport drinks)), By Distribution Channel (Hypermarkets/Supermarkets, Gas Stations/Convenience Stores, Vending Machines, and Others), and By Region - Trends, Analysis, and Forecast till 2034

Non-alcoholic Beverages Market Size was valued at US$ 1250 Billion in 2024 and is projected to grow at a CAGR of 7.5% to reach US$ 2467.8 Billion by 2034.

Non-alcoholic beverages, often known as a temperance drink, is a variant of an alcoholic drink that contains no alcohol or has the alcohol eliminated or reduced to virtually zero. These can take the shape of a non-alcoholic mixed drink or non-alcoholic beer, and they are commonly accessible anywhere alcoholic beverages are sold. A non-alcoholic beverage is a drink that does not include alcohol. In the United States, a drink with less than 0.5% alcohol by volume is known as a non-alcoholic drink, such as low-alcohol beer or apple cider.

Non-alcoholic beverages include water, fruit juices (like orange, apple, or grapefruit juice), herbal teas (like chamomile or green tea), coffee, soft drinks (like cola or lemon-lime soda), mocktails (non-alcoholic cocktails), smoothies (blended fruit and yogurt drinks).

Key Drivers of Target Market:

Rising Health and Wellness Concerns:

• Customers are increasingly selecting for healthier choices, resulting in an increase in demand for functional beverages, bottled water, and other low-calorie drinks.

Expansion of Alcohol-Free and Low-Alcohol Categories:

• The increased acceptability of no- and low-alcohol beverages is driving market innovation, with manufacturers introducing new varieties and tastes to meet this demand.

Changing Demographics and Drinking Habits:

• Younger generations, such as millennials and Generation Z, are adopting more moderate and balanced drinking habits, resulting in rising demand for non-alcoholic beverages.

Restrains:

Environmental Concerns and laws:

• Environmental concerns and laws about packaging, waste management, and carbon footprint can impose large expenses on producers, hence negatively impacting the market.

Intense Competition:

• The non-alcoholic beverage business is extremely competitive, with multiple firms contending for market dominance. This competition can result in price wars, marketing fights, and other methods that reduce profitability.

Changing Consumer Preferences:

• Changing consumer preferences and trends, such as the shift toward healthier and more sustainable solutions, can be difficult for manufacturers to adjust to, perhaps leading to lower demand for particular items.

The market is segmented based on Product, Distribution Channel and Region.

Product Insight:

• Carbonated Soft Drinks: Carbonated soft fizzy drinks, such as sodas, come in various flavors and forms, containing carbonated water, sweeteners, and natural or artificial flavors, making them popular for quenching thirst or mixing drinks.
• Bottles water: Bottled water is packaged drinking water in plastic or glass bottles, influenced by convenience, taste, safety, and quality. Its environmental impact has led to calls for sustainable practices, including the production and disposal of plastic bottles.
• Tea and Coffee: Coffee beans can be roasted and brewed in various ways to provide diverse flavors in the end product. Tea is a beverage made from steeping tea leaves or other aromatic and tasty plants in hot water.
• Fruit Beverages: Fruit drinks are nonalcoholic beverages made by exposing various types of fruit to specific processes that adhere to a set of strict standards in order to prevent food fraud or the sale of counterfeit foods.
• Others: Dairy-based drinks are ready-to-drink flavored milk-based fluids like hot chocolate, chocolate malt, strawberry-flavored yogurt, and lassi. Sports drinks are water-based flavored beverages designed to prevent dehydration and contain electrolytes like sodium, calcium, potassium, and magnesium.

Distribution channel Insights

• Hypermarket/Supermarket: A hypermarket is significantly larger than a supermarket. Hypermarkets stock a greater amount of FMCG products than supermarkets. A supermarket has a welcoming, cheerful appearance that draws people, but a hypermarket typically resembles a warehouse.

• Gas stations/Convenience stores: A retail station that services motor vehicles, primarily with gasoline and oil. Also known as a service station. It is named a convenience store because it is open in a convenient location near consumers, eliminating the need for them to drive or make a special journey to shop for necessities.
• Vending machines: An automated machine designed to supply people with a wide variety of things, including snacks, beverages, pizzas, cupcakes, newspapers, tickets, and more. A vending machine provides a product based on the quantity of money inserted and the product selected.
• Others: Tasting rooms, taprooms, and internet platforms allow businesses to communicate directly with customers, eliminating traditional middlemen. This technique not only strengthens client relationships, but it also allows breweries to increase their revenue share.

Regional Insights

• North America: While water is the most popular beverage in the country, with 66% of Americans drinking it every day, coffee is a close second, with 63% of Americans enjoying a mug of coffee every morning.
• Asia Pacific: Chilled iced tea is popular throughout Asia, including Japan, China, and India. It is now available in bottles for convenient consumption on the go. It is available in a variety of flavors, including popular Chinese and Japanese teas, green tea, jasmine tea, black lemon tea, and oolong.
• Europe: Becherovka, an herbal liquor with a 40% alcohol content, is a great way to settle a stomach after a heavy meal. Tea in England is a cultural tradition, with black tea and Earl Grey being popular varieties. Apfelwein, Germany's version of apple cider, is a refreshing drink. Champagne, originating in France, is a unique and sweet beverage. Ouzo, Greece's famous drink, is enjoyed at any time of the day. Limoncello, Italy's light and refreshing drink, is a must-try after-dinner treat. Black Balsam, Latvia's national drink, is a strong and unique drink.
• Latin America: Aguas Frescas are arguably the most ubiquitous non-alcoholic Mexican beverage available in Mexico and some portions of the United States. It is also available from street sellers in the most, if not all, of Mexican states. Aguas Frescas, like Licuados, are natural beverages produced from either sweet or sour fruits.
• Middle East & Africa: The Refreshing Yogurt Elixir and Amasi are traditional Middle Eastern and South African beverages, each with unique benefits and flavors, such as refreshing yogurt and fermented milk.

Non-alcoholic Beverages Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Product, Distribution Channels and Region:

Segmentation:

By Product:

• Carbonated Soft Drinks
• Bottled Water
• Tea & Coffee
• Fruit Beverages
• Others (Dairy drinks and Sport drinks)

By Distribution Channels:

• Hypermarket/Supermarket
• Gas stations / Convenience store
• Vending machines
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The Key players in the non-alcoholic beverages market includes, A.G. BARR p.l.c., Dr Pepper Snapple Group, Inc, Dydo Drinco INC, Attitude Drinks Incorporated, Danone SA, Nestle S.A., PepsiCo, Inc., Coca-Cola Company, The Unilever Group, and Kraft Foods Group, Inc.

• In April 2024, From non-alcoholic beer to ‘functional’ drinks, the booze-free revolution is brewing. As the low- and no-alcohol sector gains ground, companies are mixing drinks that are meant to be the anti-alcohol. Instead of making you feel worse.
• In January 2024, Masala Chai ranks second in the Best Non-Alcoholic Drinks in the World list. Popular food guide TasteAtlas has ranked Masala Chai second in the World's Best Non-Alcoholic Beverage list.
• In December 2023, Coca-Cola India forays into the alcohol segment. Coca-Cola India has made its first move into the alcohol segment, starting with Lemon-Dou, its global alcoholic ready-to-drink beverage, which the company has started to pilot test in Goa and parts of Maharashtra.

• A.G. BARR p.l.c.*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Dr Pepper Snapple Group, Inc.
• Dydo Drinco INC
• Attitude Drinks Incorporated
• Danone SA
• Nestle S.A.
• PepsiCo, Inc.
• Coca-Cola Company
• The Unilever Group
• Kraft Foods Group, Inc

“*” marked represents similar segmentation in other categories in the respective section