Non-Alcoholic Beverage Market Size Worth $1.60 Trillion By 2025

October 2017 | Report Format: Electronic (PDF)

The global non-alcoholic beverage market size is expected to reach USD 1.60 trillion by 2025, expanding at a CAGR of 5.8%, according to a new report by Grand View Research, Inc. Rising societal awareness toward serious health problems is acting as the biggest driver for market. The industry is reshaping itself by changing the orientation from carbonated soft drinks to non-nutritive low-calorie beverages.

Various studies and research have proved that obesity is linked to higher consumption of CSDs. This has led to the development of calorie-free or low-calorie drinks, such as functional beverages, bottled water, and fruit beverages. Childhood obesity rate for the age groups of 2-5 and 12-19, has doubled in past 30 years in the U.S. The government is also trying to reduce the sales and consumption of drinks made from nutritive sweeteners by imposing sugar taxes.

Stringent government regulations for labeling, listing the ingredients used, etc. in developed countries are expected to restrain the market growth. On the other hand, initiatives to attract the global players by increasing foreign investments, trade promotion, and economic subsidies in the developing economies are expected to foster the industry growth.

New product launches, as a result of the product line extension, have enabled customers to select application-specific offerings from a wide variety of options. The widening distribution channels have led to easy product availability, which has been a key industry driver in the past. Marketing and advertising plays the most important role in organizational sales and sustainability. Trade promotion, advertising, sales promotion, and public relations are the main promotional activities employed by the key players.

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Further Key Findings from The Report Suggest:

  • The global non-alcoholic beverage market was valued at USD 967.3 billion in 2016. The market is projected to grow at an estimated CAGR of 5.8% over the forecast period.

  • Carbonated soft drinks occupied the highest market share in 2016 owing to its high market penetration

  • North America accounted for the largest market for non-alcoholic beverage industry in 2016 owing to the presence of developed economy and high standard of living

  • Functional beverages are expected to emerge as the fastest growing product segment in the market on account of high demand for ready to drink coffee and tea, relaxation drinks, and energy drinks 

  • The key players include PepsiCo, Inc., The Kraft Heinz Company, Dr. Pepper Snapple Group, Inc., The Coca-Cola Company, and Nestle S.A.

Grand View Research has segmented the global non-alcoholic beverage market on the basis of product, distribution channel, and region:

Non-Alcoholic Beverage Product Outlook (Volume, Billion Liters; Revenue, USD Billion; 2014 - 2025)

  • Carbonated Soft Drinks (CSDs)

  • Fruit Beverages

  • Bottled Waters

  • Functional Beverages

  • Sports Drinks

  • Other

Non-Alcoholic Beverage Distribution Channel Outlook (Volume, Billion Liters; Revenue, USD Billion; 2014 - 2025)

  • Supermarkets and general merchandisers

  • Food Service and Drinking places

  • Gas Stations and Convenience Stores 

  • Vending Machine Operations

  • Other

Non-Alcoholic Beverage Regional Outlook (Volume, Billion Liters; Revenue, USD Billion; 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

  • Middle East & Africa

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