According to a study report recently published by Market Research Future (MRFR), the market for non-alcoholic beverages has been increasing steadily, mainly due to the changing consumption patterns and the growing demand for drinks infused with health beneficial ingredients and flavors. MRFR, also asserts that the global non-alcoholic beverages market has increased its market growth in recent years and is expected to touch ascended heights by 2023, with a striking CAGR during the anticipated period (2017 – 2023). 

Considering the steady decline in the global consumption of alcohol over the past five years, several beverages companies are venturing into diversifying their offerings to cater to the new consumer base who want to enjoy their drinks without becoming intoxicated. For instance; in June 2018, O. Vine, an Israeli beverages company launched two flavored sparkling waters infused with the spirit of wine, which derive their color and ingredients from red or white wine grape waste. Similarly, in May 2018, Suntory, Japanese drinks giant announced plans to introduce a clear, non-alcoholic beer, packaged in a plastic bottle which is expected to be particularly popular with office workers.

Company’s strategies inclined to launch of new non-alcoholic beverage products is also encouraging the growth of the market. Prevailing trends observed during the analysis include innovations in food and beverage processing techniques and technology advancements and consumer’s preference towards healthy drinks.

Despite demonstrating the huge growth potential, the non-alcoholic beverages segment, as a category faces a lot of challenges.  The predominant one is the stomach-churning combination of a high level of caffeine and a load of sugar in one handy can, Energy drinks are said to have encouraging obesity and aggressive behavior. Besides, some non-alcoholic drinks like Coke or Pepsi, loaded with huge amounts of pesticides are addictive.

The emphasis on traditions and innovation in non-alcoholic beverages are the key driving forces encouraging the sales across the segments in the market supporting the market growth. Sixty-two percent of Millennials also avoid specific products over concerns regarding environmental impact. Boomers, on the other hand, choose based on value and price.

Millennials look for value, but they also rate health factors such as low carb, calories, vitamin-fortified and organic as very important. The market has recently shifted to accommodate the trend towards non-alcoholic beverages, with some major beer brands offering non-alcoholic alternatives.

Global Non-Alcoholic Beverages Market – Segments

The MRFR Non-Alcoholic Beverages Market Report analysis is segmented into four key dynamics for the convenience of understanding.

By Type: Probiotic Drinks, Alcohol-Free Drinks, Energy Drinks, RTD, Juice, Herbal Fruit Teas, Fortified water, and Dairy Non- Dairy Beverages among others.

By Packaging: Bottle, Tetra Pack, Sachet, and Tin Can among others.

By Distribution Channel: Store-Based and Non-Store Based among others.

By Region:  North America, Europe, APAC and the Rest-of-the-World.

Non-Alcoholic Beverages Market – Regional Analysis

Globally, Europe region dominates the Non-Alcoholic Beverages Market Research with the largest market share followed by North-America and APAC. Changing consumption pattern, rising weight loss diet trend the markets for non-alcoholic beverages are growing in the region. Besides factors such as high disposal income increasing health eccentric populace coupled with the influence of media provide impetus to the regional market growth.

North America is another lucrative market for non-alcoholic beverages. This growth attributes to America’s largest market backed by the high per capita income and the presence of large innovative players operating in the country’s non-alcoholic beverages market.

The Asia Pacific region accounts for one of the promising markets for non-alcoholic beverages, globally. Attributing to the presence of major markets in some of the APAC countries, such as China, Sri Lanka, India, and Indonesia, the APAC market is expected to grow with a phenomenal CAGR during the assessment period.

Additionally, increasing consumption of non-alcoholic beverages in countries like China and India where large consumer base is available and where improving economic conditions are improving the quality of life of people are some of the key driving forces propelling the market growth in the region.

Global Non-Alcoholic Beverages Market –   Competitive Analysis

The market is highly fragmented and competitive mainly due to the constantly changing consumer demands and preferences alongside the presence of numerous players who are constantly responding to the changing consumers’ needs.

This further encourages players operating in the non-alcoholic beverages market, to compete based on quality, price, innovation, reputation, and distribution.  Numerous brands have outlined plans to widen the penetration by including various types of drinks to their product portfolio.

Key Players:

Prominent players in the market include Fuze Beverage (US), PepsiCo (US), Coca-Cola (US), Kraft Foods (US), Nestlé (Switzerland), Kraft Foods (US), Campbell Soup Company (US), and Ocean Spray (US).

Industry/Innovation/Related News:

August 21, 2018 – Post the launching of its first “IPA inspired” non-alcoholic beverage under the Lagunitas brand THC-infused sparkling water, called Hi-Fi Hops in January 2018, Heineken International, a Dutch brewing company has launched its another non-alcoholic sparkling water inspired by its eponymous, flagship IPA beer - Hop Water.

Heineken’s venture into non-alcoholic beverages is in response to the new trends of falling consumption of alcohol worldwide.