Non-Carbonated Soft Drinks Market Size, Share & Trends Analysis Report By Product (RTD, Sparkling & Flavored Water), Distribution Channel, By Region, and Segment Forecasts, 2022 - 2028

Report Overview

The global non-carbonated soft drinks market size was valued at USD 130.76 billion in 2021 and is expected to expand at a CAGR of 6.9% from 2022 to 2028. Availability of a variety of non-carbonated drinks, increasing per capita income, and a growing consumer base are expected to promote the non-carbonated soft drinks market growth. Additionally, changing lifestyle encourages the citizens to consume Ready to Drink (RTD) which replaces solid food and satisfies the need of nutritious need of the body. Moreover, multiple key vendors are investing in R&D for improving the production of the food and beverages industry. In addition to this, the increasing consumers' inclination toward drinking healthy beverages and changing dietary pattern are propelling the market growth over the last few years. 

The lockdown announced during the COVID 19 pandemic by governments of various countries had restricted or citizens prefer to stay at home as a precautionary measure. Various exhibitions, sports events, and other public events were canceled across the globe by measures arising from COVID-19 restrictions. Moreover, the market experienced a shortfall in the sales of non-carbonated soft drinks products owing to disturbed supply chains, restricted production, and reduced demand across the globe. Though, citizens are more health-conscious and focused on improving their immune system to maintain fitness, this will create opportunities for the industry players. Thus, the market is expected to witness a healthy market growth rate in the forecast period. Beverages are liquid food that can be consumed for hydration or as a source of energy. Different types of non-carbonated drinks are available in the market that satisfies the consumer’s demand. Non-carbonated soft drinks are broadly categorized as tea, coffee, and sparkling & flavored water. In addition to this, the continuous development of innovative products and attractive packaging increases the demand for non-carbonated soft drinks in emerging economies. Moreover, the rising demand for low-sugar soft drinks from consumers is accelerating the market growth. Additionally, the rising investment by the key market players in advertising campaigns, social media marketing, and promotional activity are accelerating the market growth in the forecast period.

The increasing demand for natural and chemical-free soft drinks across the globe is fueling the growth of the market. Moreover, the rising consumer health awareness is bringing down the demand and consumption for carbonated, and high sugar drinks, the effects of which can be seen across the distribution channels. Furthermore, the increasing accessibility of non-carbonated soft drinks across the globe is one of the major key factors rising the consumption of these products among consumers. Additionally, the growing demand for nutrition-oriented beverages products is expected to accelerate the market growth in the forecast period.

Moreover, leading manufacturers of soft drinks are incorporating various quality checks, safety standards, and measurements, in an attempt to boost customers’ trust and confidence in their products across the globe. Moreover, companies are constantly establishing customer engaging techniques to attract consumer attention toward beverages products. However, government guidelines in countries such as the U.S., Germany, U.K., France, and India are expected to maintain the quality of these products. The published federal guidelines and rules ensure the quality of products should be up to the hygienic standards for consumption.

Distribution Channel Insights

Hypermarkets and supermarkets’ distribution channel contributed the largest market share of 40% in 2021 and is estimated to grow by 5.6% from 2022 to 2028. Supermarkets and hypermarkets are a type of organized channel which are more customer-oriented by selling a variety of consumer goods products directly to the customers. Moreover, easy access and searching for various soft drink products through stores is likely to drive the segment growth. Additionally, supermarkets, convenience stores, and malls are gaining popularity in recent years owing to the availability of a wide range of consumer goods like beverages under a single roof.

Online distribution channel is forecast to grow with a higher CAGR of 8.8% from 2022 to 2028. Several manufacturers of these products are offering products on their websites as well as on the e-commerce platforms and have projected the market growth in the forecast period. Moreover, the growing internet penetration rate has observed lucrative growth in the last few years, this has led to the significant growth of the e-commerce sector across the globe, thereby propelling the market growth of this segment.

Product Insights

RTD segment contributed to the largest revenue share of over 80.0% in 2021 and is forecast to grow with a CAGR of 6.2% from 2022 to 2028. RTD includes tea and coffee which contributes most to the market revenue as it is considered as a replacement for carbonated drinks. Many vendors launched new innovative flavors of RTD thus this segment is expected to contribute more during the forecast period. Moreover, easy accessibility of RTD soft drinks across the globe is one of the major key factor that has driven the consumption patterns of the consumers. 

Sparkling & flavored water segment is forecast to expand at a higher CAGR of 9.7% from 2022 to 2028. Increasing demand for low carbohydrates and low sugar drinks will drive consumers to prefer sparkling & flavored water over any other drinks. Innovative flavors such as cocoa, citrus, and many other fruits are increasing popularity among consumers. Thus, this segment is expected to grow during forecast period. Moreover, growing awareness among the citizens regarding the environment is playing an important role in the market growth rate.

Regional Insights

Asia Pacific contributed to the largest market share of over 30% in 2021 and is forecast to expand at a CAGR of 6.0% from 2022 to 2028. Countries such as China, and India are positively contributing to the market revenue. The favorable environmental conditions are good for planting tea and coffee in this region. Additionally, factors such as huge production of tea and coffee, an increasing number of food processing units, and huge consumption by a growing population, are expected to contribute to market revenue. Furthermore, manufacturers are developing innovative products ranges targeting young consumers, and working population which in turn in supporting the market growth.

Middle East & Africa is forecast to grow with the highest CAGR of 7.9% from 2022 to 2028. Rising higher consumption of the product by the consumers and luxurious services provided by the restaurants and hotels will drive the regional demand. Additionally, continuously changing consumers' lifestyles and drinking habits is accelerating the market growth in the forecast period. Furthermore, the increasing demand for high-quality and low-sugar beverages products from the Middle East & African countries is accelerating the market growth.

Key Companies & Market Share Insights

The non-carbonated soft drinks market consists of various established players such as Nestlé, Mars, Pepsico, Inc., The Coca-Cola Company, Keurig Dr Pepper Inc (KDP) coupled with local manufacturers as well. In July 2020, Diageo launched a sugar-free RTD which contains less than 100 calories. These launched products focus more on health and wellness. The products are available in natural fruit flavors such as orange mango, cranberry lime, and watermelon. Such initiatives are expected to boost the adoption rate of the products among consumers. The non-carbonated soft drinks extractors are aggressively following the organic as well as inorganic strategies to expand their footprints across the geography. Some of the prominent players in the Non-carbonated Soft Drinks market include:

• Nestlé

• Pepsico, Inc.

• The Coca-Cola Company

• Keurig Dr Pepper Inc (KDP)

• Red Bull GmbH

• Unilever PLC

• Monster Energy Company

• AriZona Beverages USA LLC

• Hint Inc.

• Spindrift Beverage Co., Inc. 

Non-carbonated Soft Drinks 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 in each of the sub-segment from 2017 to 2028. For this study, Grand View Research has segmented the global non-carbonated soft drinks market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • RTD

  • Sparkling & Flavored Water

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

  • Hypermarkets and Supermarkets

  • Convenience Store

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa