Non-alcoholic Drinks Market Size, Share, and Growth Forecast for 2024 - 2031

Non-alcoholic Drinks Market Size and Share Analysis

The global non-alcoholic drinks market is estimated to reach a size of US$ 0.9 Bn in 2024. It is predicted to rise at a CAGR of 6.8% through the assessment period to attain a value of US$ 1.5 Bn by 2031.

A shift in consumer tastes toward nutrient-rich, healthier alternatives and an increasing focus on wellness are driving significant growth in the worldwide non-alcoholic beverage industry. The industry is likely to reach a volume of 909.6 Bn liters in 2024, with an average revenue per capita of US$127.20, according to research.

Demand for flavored water, herbal teas, and natural fruit juices is rising as consumers look for beverages, which are lower in calories, sugar, and artificial components. Countries are enacting laws that restrict sales of alcohol, increase taxes and costs, and restrain alcohol advertising to reduce public use as well as increase demand for non-alcoholic beverages.

Functional drinks that provide health advantages like energy, immunity, and stress reduction are becoming immensely popular. The rise of e-commerce platforms has made non-alcoholic beverages highly accessible to a broad consumer base.

Key Highlights of the Market

• Demand for healthier beverage options with less sugar and natural ingredients is rising as consumers become more health conscious.
• Trend of functional beverages that provide health benefits such as immunity boost, energy enhancement, and digestive health push the market.
• Market players are concentrating on improving high-end and artisanal non-alcoholic beverages, such as sophisticated mocktails and spirits without alcohol.

• Brands are extending their range of plant-based and organic beverages to cater to environmentally conscious and health-conscious consumers.
• In 2024, B2C distribution channels are estimated to attain a market share of 81% due to easy availability.
• Based on type, the carbonated soft drinks segment is projected to account for a market share of 27.5% in 2024 owing to rising consumer base.
• North America is estimated to attain a market share of 34.5% in 2024 due to increasing carbonated soft drinks consumption. 
• Asia Pacific is anticipated to hold a market share of 28.7% in 2024 with a rise in health-conscious consumers.

Market Attributes	Key Insights
Non-alcoholic Drinks Market Size (2024E)	US$ 0.9 Bn
Projected Market Value (2031F)	US$ 1.5 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	6.8%
Historical Market Growth Rate (CAGR 2019 to 2023)	7.9%

Surging Demand for Carbonated Soft Drinks in North America Presents Novel Prospects

North America's non-alcoholic beverages market is anticipated to hold 34.5% of share in 2024, with a CAGR of 5.8% from 2024 to 2031. It is set to be driven by a shift toward healthier alternatives despite the steady consumption of traditional carbonated soft drinks.

Consumers are increasingly choosing flavored water, herbal teas, and natural fruit juices, influenced by a wellness trend. The rise of low and no-alcohol beverages, including non-alcoholic beers and spirits, is diversifying the market. Key beverage companies are also extending into this segment to cater to health-conscious Gen Z consumers, highlighting a significant shift in beverage preferences in North America.

Rising Health Consciousness in Asia Pacific to Boost Functional Drink Consumption

In 2024, the non-alcoholic drink industry in Asia Pacific is projected to account for 28.7% of the share. Countries like China and India are at the forefront of the trend of urbanizing the industry, driven by their large, youthful populations and booming middle class.

• According to a report published in June 2024, India’s functional beverages segment alone is set to report a CAGR of 8.9% from 2024 to 2031, reflecting a shift toward wellness-oriented products.

Growth of urban areas in Southeast Asia is boosting demand for health-conscious drink options like herbal teas, plant-based milk, and fortified juices. Companies are hence utilizing cultural diversity in the region to create localized flavors, such as matcha-infused drinks in Japan and pandan-flavored beverages in Southeast Asia, thereby increasing market penetration. 

Manufacturers Opt for B2C Distribution Due to its Superior Scalability

In 2024, the B2C distribution channel dominated the non-alcoholic drinks market, accounting for 81% of global share. This was due to their convenience, attractive promotional offers, and changing consumer behavior.

Supermarkets and hypermarkets, which account for more than 56% of B2C sales, remain important shopping destinations. It is attributed to their diverse product offerings and in-store promotional programs. Internet merchants are extending quickly, particularly in cities. For example,

• In 2024, e-commerce revenues will likely rise 18.4% year over year due to improvements in same-day delivery and subscription services.

Online platforms in Asia Pacific and North America are becoming prominent due to the penetration of mobile apps and digital payment methods. Consumer tastes are projected to move toward convenient shopping experiences and tailored product suggestions. For instance,

• During their summer promotional campaigns in 2024, Amazon and Walmart claimed record sales of non-alcoholic beverages, underscoring the rising importance of business-to-consumer (B2C) in influencing global market trends.

Demand for Carbonated Soft Drinks to Surge due to Successful Branding

In 2024, Carbonated Soft Drinks (CSDs) accounted for 27.5% of the global non-alcoholic drinks market share, despite a rising preference for healthy alternatives. The enduring appeal of CSDs is ascribed to their strong customer base, successful branding, and the launch of novel tastes and low-calorie substitutes. For instance,

• Coca-Cola and PepsiCo have introduced low-sugar and zero-sugar beverages catering to health-conscious consumers while maintaining the appeal of traditional carbonated beverages.

CSD consumption in emerging markets like India and Southeast Asia is on the rise, with retail sales experiencing double-digit growth in 2024 due to urbanization and rising disposable incomes. CSDs continue to dominate the soft drink category in the U.S. despite a decrease in per capita consumption due to successful marketing and product variety.

Market Introduction and Trend Analysis

Growing health consciousness and a global trend toward functional and alcohol-free beverages are driving demand for non-alcoholic drinks. As more people became aware of the hydration and health advantages of functional beverages, such as improved water and sports drinks, their demand skyrocketed in 2024. The global market for sports drinks grew by 8% year-on-year, reflecting a rise in consumer interest in fitness and health. For example,

• Premium and packaged drinks now account for over 20% of sales in emerging nations like Brazil and India, where rising disposable incomes have stimulated consumption.

Key market players are extending their plant-based and organic beverage offerings, such as oat milk and kombucha. They aim to cater to environmentally conscious consumers, influenced by trends like Veganuary. For instance,

• In 2024, the popularity of ready-to-drink (RTD) products, particularly tea and coffee, is set to rise by 12%, according to a few studies.

The industry is enhancing its focus on eco-friendly and high-quality products through innovations in sustainable packaging and unique formulations.

Historical Growth and Course Ahead

The global non-alcoholic beverages market recorded a CAGR of 7.9% in the historical period from 2019 to 2023. Over the past years, the popularity of non-alcoholic beverages, such as mocktails, near beer, and virgin drinks, has increased by 22% annually. Consumer tastes are now causing several changes in the beverage business. For instance,

• Based on a few studies, around US$ 395 Mn was spent on non-alcoholic beverages in the U.S. between 2021 and 2022, representing a 20% rise in total dollar sales.
• Red Bull's limited-edition strawberry and apricot flavor extension, which comes in single cans, was launched in March 2022.
• PerfectTed launched a range of matcha green tea-powered natural energy beverages in cans in March 2022. The varieties include pineapple yuzu, apple raspberry, and pear ginger.

Demand for non-alcoholic juices is estimated to record a considerable CAGR of 6.8% during the forecast period between 2024 and 2031.

Market Growth Drivers

Popularity of Functional Drinks with Several Health Benefits to Skyrocket

Demand for non-alcoholic brews in the market has led to a rise in the popularity of functional beverages, which provide health advantages such as immunity, energy, and digestive health. The COVID-19 pandemic has accelerated demand for immunity-boosting drinks, such as those containing vitamins C and D or probiotics. For example,

• In June 2024, PepsiCo extended its KeVita line to include kombucha infused with adaptogens, targeting gut health and stress relief.

Energy drinks with natural caffeine and plant-based nutrients are gaining popularity among health-conscious younger consumers. These highlight the importance of innovation and health benefits in the beverage industry.

Plant-based and Organic Beverages to Cater to Health-focused Consumers

The global plant-based beverage market is set to surge in 2024, driven by rising veganism and an increasing preference for sustainable options. Companies are capitalizing on this trend by introducing innovative products. For instance,

• In July 2024, Oatly, a Sweden-based oat milk brand, launched a line of organic oat milk drinks, emphasizing sustainable sourcing and minimal carbon footprint.

In keeping with wellness trends, health-conscious customers are increasingly looking for beverages devoid of dairy, GMOs, and other ingredients. As environmental and health concerns become more important in today's consumer lives, developments in taste creation and vitamin fortification are making plant-based beverages more appealing.

Market Restraining Factors

Variability in Raw Material Availability Hinders the Market  

Non-alcoholic drink production poses significant social and environmental challenges due to its high dependency on natural resources. It often results in reduced water availability, pollution, and greenhouse gas emissions. For instance,

• The beverage industry is estimated to consume around 20% of global industrial water usage annually. Recognizing these concerns, leading corporations are adopting sustainable practices.
• In 2024, Coca-Cola and PepsiCo reaffirmed their commitment through the Beverage Industry Environmental Roundtable (BIER), focusing on improving water efficiency, reducing carbon emissions, and enhancing resource sustainability.
• Coca-Cola aims to achieve net-zero carbon emissions by 2050, while PepsiCo has targeted a 25% reduction in greenhouse gas emissions by 2030.

Implementing such measures is crucial for minimizing the environmental impact of beverage production and ensuring long-term sustainability in a resource-conscious global market.

Key Market Opportunities

Sports Drinks Industry Caters to Innovative Ideas with Flavors

Growing hydration awareness and wellness trends are driving demand for sports drinks and improved water in the non-alcoholic beverage industry. Enhanced waters, rich in electrolytes, vitamins, and natural flavors, offer functional hydration alternatives to traditional bottled water.

Sports drinks containing electrolytes, amino acids, and carbohydrates are becoming increasingly essential for active individuals and athletes focusing on performance and recovery.

• In April 2024, Coca-Cola extended its Smartwater+ line with variants targeting mental focus and relaxation, addressing diverse consumer needs.

Growing popularity of sports drinks in emerging regions is being driven by urbanization and exercise culture. It is further underscoring the industry's congruence with customer demands that are centered on health and hydration.

Celebrities and Influencers to Drive Non-alcoholic Drink Sales Effectively

In an effort to increase sales of non-alcoholic drinks, celebrities and social media influencers are being carefully used to target younger, health-conscious customers. For instance,

• In March 2024, Coca-Cola partnered with global superstar BTS for its limited-edition sparkling water launch, driving a 15% spike in sales within the first week.

Pepsi's partnership with fitness influencers has also significantly boosted its sugar-free products, with online campaigns generating millions of views. The rise of platforms like Instagram, TikTok, and YouTube has amplified campaign visibility, enabling targeted advertising and direct consumer interaction. The goal of influencer marketing is likely to change the non-alcoholic drink industry in 2024 by promoting plant-based or functional beverages, sustainability, and brand loyalty.

Competitive Landscape for the Non-alcoholic Drinks Market

The global non-alcoholic drinks market is rising rapidly and is very competitive, with key competitors such as PepsiCo, Dr Pepper Snapple Group, Nestlé, Coca-Cola, and Monster Energy. Coca-Cola is a world leader in soft drinks and ready-to-drink coffee, while Nestlé is renowned for its wide variety of beverages.

Market leaders are implementing strategies to maintain and enhance their positions in the competitive landscape. Innovation is a crucial factor, as companies continuously develop new flavors, health-oriented options, and functional beverages. Several brands are collaborating with celebrities and social media influencers to promote and extend the product ranges.

In order to access a large consumer base and improve their supply chain and logistics operations, businesses are giving priority to efficient distribution channels and global growth. It is especially evident in emerging areas where there is a high demand for non-alcoholic beverages.

Recent Industry Developments

• In December 2024, England-based Belvoir Farm introduced non-alcoholic cocktails and sugar-free cordial ranges for Dry January, celebrating its 40th anniversary and focusing on wild eco-system commitment.
• In December 2024, The Boston Beer Company launched Emerald Hour, a line of non-alcoholic ‘Cali Sober’ cannabis cocktails. These premium rosin-infused beverages are now available at licensed cannabis retailers in Ontario.
• In December 2024, Origami Sake, an Arkansas-based brewery, introduced its first non-alcoholic sake, Zero, using locally sourced ingredients and water from the Ouachita Mountains aquifer in Hot Springs, making it the first sake brewery in Arkansas.
• In December 2024, Michelin star sommelier Majken Bech-Bailey introduced BÆK, a non-alcoholic wine line inspired by Aimsir restaurant, featuring Mellow and Intricate, with oak and Bordeaux notes.
• In October 2024, popular actor Tom Holland launched Bero, a premium non-alcoholic beer line featuring Kingston Golden Pils, Edge Hill Hazy IPA, and Noon Wheat, offering a high-quality, accessible alternative to traditional alcoholic beverages.
• In August 2024, Amsterdam-based Heineken introduced a limited-edition tennis-themed packaging for its non-alcoholic beer, Heineken 0.0, during the U.S. Open, promoting moderation and responsible drinking.
• In July 2024, Tilray Brands Inc., based in New York, introduced Runner's High Brewing Co., a premium non-alcoholic beverage brand, targeting beer lovers without the buzz of alcoholic drinks. The first three beers will debut at the Peachtree Road Race in Atlanta.
• In June 2024, Lionel Messi planned to launch Mas+, a low-sugar sports drink, in partnership with White Claw. The drink, containing vitamins, electrolytes, and electrolytes, is set to compete with big brands in the US$ 33 Bn energy drink market.
• In February 2024, Dr. Dre and Snoop Dogg launched the ‘Gin & Juice By Dre and Snoop’ ready-to-drink product in four flavors, celebrating the 30th anniversary of Doggystyle album, distributed nationally through Southern Glazer's Wine and Spirits.

Non-alcoholic Drinks Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania Middle East and Africa Latin America
Key Market Segments Covered	Type Distribution Channel Region
Key Companies Profiled in the Report	The Coca-Cola Company Danone S.A. Nestle S.A. Red Bull GmbH PepsiCo Inc. Keurig Dr Pepper Inc.  Parle Agro Monster Beverage Corporation AriZona Beverages USA Suntory Beverage & Food Ltd. Asahi Group Holdings, Ltd. Unilever National Beverage Corp. Celsius Holdings, Inc. Others
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Non-alcoholic Drinks Market Segmentation

By Type   

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

By Distribution Channel

• B2B
• B2C
  • Supermarkets/Hypermarkets 
  • Specialty Stores 
  • Convenience Stores 
  • Online Retail 
  • Others 

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• Middle East and Africa

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