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Tuesday, 6 December 2016

Non-alcoholic Drinks Market: Manufacturers Focus on Developing Healthier Beverages

The global non-alcoholic drinks market is fragmented with players such as Danone, Nestlé S.A., The Coca-Cola Company, Calcol, Inc., PepsiCo Inc., Attitude Drinks, Inc., LiveWire Ergogenics, Inc., Dydo Drinco, Inc., Dr Pepper Snapple Group, Inc., and A.G.Barr, p.l.c. Players in the market are focusing on innovation and experimenting with newer flavors and ingredients, states a new report by Transparency Market Research (TMR). Companies are also participating in mergers, partnerships, and collaboration activities so as to enhance their product portfolio and also increase their market share. Partnering and collaborating with other companies are also helping companies to combine their expertise and serve customers in a better way. Players are concentrating on understanding the changing dynamics of customer demands. Packaging is another area, on which players are stressing. Aggressive marketing strategies and price competitiveness are a part of the industry.


According to the report, the global non-alcoholic drinks market is expected to reach US$1,937.73 bn by 2020. By volume, the consumption of non-alcoholic drinks is likely to reach 1,289.03 bn liters by 2020. On the basis of product type, the market is segmented into soft drinks, tea and coffee, bottled water, juice, and dairy drinks. Of these, the soft drinks market is expected to witness a high growth. The demand for soft drinks will especially escalate in emerging nations. However, the tea and coffee segment will expand at a significant CAGR in the coming years. By geography, the non-alcoholic drinks market is expected to be led by North America. However, Asia Pacific is expected to expand at the maximum pace.
Rise in Disposable Income and Changing Lifestyle to Fuel Demand for Non-Alcoholic Drinks

Non-alcoholic drinks are highly in demand, especially from the young consumer base from developing nations such as India and China. The growing disposable income is another important factor leading to an increased consumption of non-alcoholic drinks. “The changing lifestyle, growing population, and rising temperature owing to global warming are some of the other factors behind the high demand for non-alcoholic drinks,” says a TMR analyst. Also, the long shelf life of these beverages are driving the growth of the market. Many of the health conscious consumers are opting for juices and this is expected to drive the market. Marketing strategies adopted by companies and increased penetration of hypermarkets, supermarkets, and retailers are fueling the sales of non-alcoholic drinks across the globe.

Health Concerns to Dampen Demand for Non-Alcoholic Drinks

Some of the factors inhibiting the growth of the global non-alcoholic drinks market are rising concerns with regards to health effects of artificially sweetened beverages and increasing awareness regarding obesity. Incidences of diabetes are also growing and many consumers are avoiding artificially sweetened drinks. Tooth decay is another factor that is refraining consumers from purchasing soda and carbonated drinks. Growing prevalence of osteoporosis is another reason hindering the demand for non-alcoholic drinks. Consumers are demanding zero-sugar drinks and diet beverages. Changing customer demands thus, become a challenge for players. Market players are therefore, focusing on introducing new healthier variants with lower calories as per customer needs. Additionally, new product launches are expected to create growth opportunities in the market. Manufacturers are now ensuring that their package contain nutrition information, such as calories and sugar.

This information is based on the findings of a report published by Transparency Market Research titled “Non-Alcoholic Drinks Market (Product - Soft Drinks, Bottled Water, Tea and Coffee, Juice, Dairy Drinks) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020.”

The global non-alcoholic drinks market is segmented as follows:

Non-Alcoholic Drinks Market, by Product

  • Soft Drinks
  • Bottled Water
  • Tea and Coffee
  • Juice
  • Dairy Drinks
  • Others

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