According to a new report available from Grand View Research, with the increasing acceptance of non-alcoholic and low-alcohol category by consumers, manufacturers in the market are adapting to new trends and have innovated in the current product portfolio. , which is likely to bode well for future growth.
soft drinks market Insight
The global Soft Drinks Market size was valued at USD 833.1 Billion in 2021 and is projected to reach USD 1,363.1 Billion by 2030, growing at a CAGR of 5.6% from 2022 to 2030.
According to the Bacardi Cocktail Trends Report, in January 2022, in partnership with The Future Laboratory, approximately 58% of consumers worldwide are switching to non-alcoholic and low-alcohol cocktails and beverages. With the growing acceptance of non-alcoholic and low-alcohol category by consumers, manufacturers in the market are adapting to new trends and have innovated in the current product portfolio, which bodes well for future growth. . Restrictions related to the COVID-19 pandemic have caused the incubation of new soft drink trends in the market. With the increase in health concerns due to the virus, consumers are turning to healthy drinks for the usual days and even occasionally. Big brands are launching with mass offerings in categories like bottled water, low-carb drinks, crafts, and flavored mocktail options. These factors are likely to support the growth of the market.
Gather more insights into the market drivers, restraints, and growth of the Global soft drinks market
The ripple effect of consumers switching to soft drinks and beverages has led to innovation for an entirely new segment of complex-tasting, premium soft drinks aimed at adult palates. According to a Waitrose Food and Drink Report, October 2021 said searches for non-alcoholic drinks continue to increase by 22% each year. Brands have kept pace with new trends by launching or expanding existing product lines. For example, in May 2020, US-based tea brand Good Earth expanded its product offering in the UK. The portfolio includes a range of fruit and herbal teas, green and dark, and original and flavored kombucha, each blended with natural ingredients.
Additionally, growing concern over the COVID-19 pandemic and heightened awareness of health issues are shifting consumer preferences towards healthier beverages and non-alcoholic beverages. Consumers aim to improve their physical health by giving up non-alcoholic beverages. According to Goliath Consulting Group’s 2021 Beverage Trend Report, non-alcoholic spirits, mocktails, low-calorie and low-carb drinks are recently preferred by consumers in countries like the United States. USA and UK. These trends have opened the door to new opportunities for beverage manufacturers. For example, in October 2021, Ritual Zero Proof announced the launch of its alcohol substitute by rolling out its gin, whiskey, and tequila alternatives to Whole Foods Market stores in the United States and also available on Amazon.
Major retailers in the alcoholic and non-alcoholic beverage market have seen an increase in demand for such palettes with new flavors and premium ingredients. According to Instacart (US retail/grocery store company) trend expert and Well+Good Wellness Trends advisors, sales of non-alcoholic beverages such as soft drinks and mocktails on Instacart are on the rise. up 37% in 2021 compared to 2020. Similarly, Whole Foods also saw an increase in such requests in 2020. Supermarkets are likely to expand the existing section for these beverages, thereby expanding the brand portfolio. For example, in May 2020, Aldi is launching non-alcoholic, vegan, and sugar-free spirits, priced at $11.12 a bottle. Along with product portfolio expansion, many key players are acquiring alcohol-free brands to expand their brand portfolio. For example, in January 2020, Diageo acquired a minority stake in Ritual Zero Proof, a non-alcoholic spirits brand. The acquisition would help the company expand its brand portfolio and launch new products in the future. These growth trends bode well for the future growth of the market.
Segmentation of the soft drinks market
Based on product information, the market is segmented into carbonated soft drinks, bottled water, tea & coffee, fruit juices and others.
- The bottled water segment held the largest market share in 2021 and is expected to maintain its dominance over the forecast period.
- The juice segment is expected to register the second fastest growth from 2022 to 2030. The rising importance of a healthy lifestyle is expected to drive the demand for the products.
Based on the distribution channel information, the market is segmented into catering, retail, hypermarkets & supermarkets, online and others.
- The online distribution channel is expected to grow at a higher CAGR during the forecast period. New market entrants are launching products through e-commerce platforms such as Amazon, Walmart, etc., due to the ease of barriers to entry on this platform.
- The retail distribution channel made a larger contribution to the global market in 2021.
Based on the regional information of soft drinks, the market is segmented into North America, Europe, Asia-Pacific, Central & South America, Middle East & Africa (MEA)
- Asia-Pacific has emerged as the fastest growing market region, owing to the presence of various untapped markets, huge population, and increasing disposable income.
- North America was the second largest market for this industry in 2021, owing to the presence of developed economies and early adoption of soda products.
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Market share overview:
- January 2022: Katy Perry launches soft drink brand De Soi with her business partner, Morgan McLachlan. The product line of three non-alcoholic sparkling aperitifs in three flavors, such as Golden Hour, Mushroom Dreams and Purple Moon.
- October 2021: DrinksDeli launches an online soft drinks platform in India. The company plans to sell cocktail mixers and packaged coffee.
Profile of key companies:
The industry is very competitive, due to many small and large players. Product differentiation is a crucial factor in this industry, driving research and innovation activities. Rapid changes in technology coupled with demanding customers lead to pressure for product augmentation and new product development.
Some prominent players in the global soft drinks market include
- Keurig Dr Pepper Inc.
- The Coca-Cola Company
- Cott Company
- Danone S.A.
- SUNTORY BEVERAGE & FOOD LIMITED
- Asahi Group Holdings, Ltd.
- Red Bull
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