Non-Alcoholic RTD Beverages Market Size, Share & COVID-19 Impact Analysis, By Product Type (Fermented Beverages [Dairy-based Beverages and Others], Non-Fermented Beverages [Fruit and Vegetable Juices, Dairy Beverages, Sports and Energy Drinks, Functional Water, Carbonated Soft Drinks, and Others]), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Retail, and Others), and Regional Forecast, 2023-2030

The global non-alcoholic RTD beverages market size was valued at USD 702.89 billion in 2022 and is projected to grow from USD 732.49 billion in 2023 to USD 1,076.94 billion by 2030, exhibiting a CAGR of 5.66% during the forecast period.

Non-alcoholic RTD beverages encompass a wide range of refreshments and functional beverages such as fruit juices, sports, and energy drinks, carbonated soft drinks, and others. The market growth is attributed to consumers' shift from alcoholic beverages to healthy alternatives, the rising health-conscious population, and the increasing demand for convenience. Moreover, leading key players in the market are focusing on business expansion strategies and expanding their product portfolio, which will further propel market proliferation.

LATEST TRENDS OF NON-ALCOHOLIC RTD BEVERAGES MARKET

Rising Interests of Health-Driven Youth Toward RTD Tea to Aid Market Augmentation

The rising awareness about the health benefits associated with RTD tea is expected to fuel the demand for ready-to-drink tea in the market. These teas are pre-made, bottled, and served chilled to meet growing consumers’ demand for convenience. Prominent players are also trying to expand their product bases by targeting health-driven youth. For instance, in March 2021, Suntory PepsiCo Beverages launched a ready-to-drink (RTD) oolong tea in Thailand, Suntory TEA+. The new range targets health-conscious Thai youth (aged 25-35) who seek a flavorful, low-sugar or no-sugar refreshment.

DRIVING FACTORS

Capitalizing on Health Trends with Functional Water to Propel Market Growth

Consumers today are becoming more experimental to try food & beverages, which are healthy and fortified with nutrients. The consumer's focus has shifted to proper nutritional intake, and most consumers have switched toward healthier beverage options, including nutrients such as vitamin- and mineral-infused functional waters. According to the International Food Information Council Foundation on Food and Health Research 2021, around 47% of total consumers preferred food with additional nutrients. Furthermore, beverage manufacturing companies have been introducing new and innovative types of functional bottled waters that have propelled non-alcoholic RTD beverages market growth. For instance, in March 2022, a U.S.-based beverage company launched the functional beverage Nirvana HMB + Vitamin D3 water.

Consumer's Growing Inclination Toward Active Lifestyles Augments Market Growth

Rising consumer preference toward physical and health-related fitness activities is a major factor surging the demand for sports and energy drinks in the market. Consumers opt for energy drinks due to their claims of improving endurance, performance, and alertness. Therefore, several companies operating in the market focus on providing zero-calorie and low-sugar functional energy drinks to meet the increasing demand. For instance, in January 2023, Prime Hydration, LLC, a company offering sports drinks, drink mixes, and energy drinks launched a new energy drink named Prime Energy, which contains 200mg of caffeine and zero sugar.

RESTRAINING FACTORS 

High Sugar Content in Fruit Juices, Energy Drinks, and Other Non-alcoholic RTD Beverages to Impede Market Growth

Non-alcoholic drinks, such as sports and energy drinks, fruit juices, and carbonated soft drinks, contain high amounts of sugar. According to the U.S. Department of Agriculture (USDA), carbonated drinks contain about 11g of sugar per 100 gms. Therefore, more concentrated sugar and calories in fruit juices and carbonated drinks can lead to obesity and inappropriate weight gain. Furthermore, the American Diabetes Association recommends people with diabetes avoid high-sugar beverages to help keep their blood sugar level down, and thus refrain from consuming such drinks impeding the non-alcoholic RTD beverages market growth.

NON-ALCOHOLIC RTD BEVERAGES MARKET SEGMENTATION

By Product Type Analysis

Rising Popularity of Non-fermented Drinks among Consumers to Propel the Demand for the Product

Based on product type, the market is segmented into fermented beverages (dairy-based beverages and others) and non-fermented beverages (fruit and vegetable juices, dairy beverages, sports and energy drinks, functional water, carbonated soft drinks, and others).

The non-fermented beverage segment holds the dominant share of the global market. The non-fermented beverage segment comprises sub-segments such as fruit and vegetable juices, non-fermented dairy beverages, carbonated soft drinks, and others. The carbonated soft drinks segment is expected to hold a significant share of the non-fermented beverages segment. The growing urbanization and aggressive beverage marketing propel consumers' consumption of carbonated drinks. Furthermore, the availability of various flavors in these drinks also favors market growth. Cola-flavored carbonated drinks are the most popular among millennials. Major players are constantly innovating and creating different flavors owing to the rising popularity of the drinks. For instance, in February 2022, PepsiCo Inc. launched nitrogen-infused cola drinks for consumers in the U.S.

The sports and energy drinks segment is expected to grow at a high CAGR in the forecast period. The rising number of health-conscious consumers and increasing awareness regarding active lifestyles have propelled the demand for energy drinks in the market.

Furthermore, non-alcoholic RTD beverages such as fruit juices, functional waters, and non-fermented dairy beverages are also expected to have rapid growth in the forecast period. Consumers' inclination toward healthier beverage options, innovative product launches, and rising convenience of consumption are the major factors propelling the demand for such RTD drinks.

By Distribution Channel Analysis

Supermarkets/Hypermarkets Dominate the Market Owing to Convenience and Availability of a Wide Variety

Based on distribution channels, the market is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online retail, and others.

The supermarkets/hypermarkets segment is expected to hold the largest share of the global market, owing to easy accessibility to a wide range of products and beverage brands under one roof. Such channels adopt several strategies, such as investments and capitalization, to increase buyers' comfort by offering them an easy shopping experience.

The online distribution channel is expected to grow at a high CAGR in the forecast period. New entrants in the market are launching new products and services through e-commerce platforms, such as Amazon, Walmart, and others, thereby boosting the global market.

The convenience stores segment is also expected to exhibit a high CAGR in the forecast period, as these serve as a one-stop shop for consumers. These stores offer popular beverage options to consumers who usually travel to and from work and on long-distance drives.

COVID-19 IMPACT

Trade Restrictions and Changing Consumption Patterns Amid the Pandemic Hindered Market Proliferation

The COVID-19 pandemic negatively affected the global market of non-alcoholic ready-to-drink beverages. Non-alcoholic RTD beverages faced an abrupt downfall in sales and consumption owing to the COVID-19 pandemic. Trade restrictions and a decline in consumption patterns acted as a massive restraint for the market. Furthermore, significant supply chain disruptions created an immediate challenge for beverage manufacturers. The manufacturers had to halt production due to a lack of raw materials, negatively impacting the business.

REGIONAL INSIGHTS OF NON-ALCOHOLIC RTD BEVERAGES MARKET

The market is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific holds the largest market share of non-alcoholic RTD beverages. Asia Pacific is known to be the fastest-growing economic powerhouse in the world, encompassing over half of the global population. Rapid changes in economic development, population growth, and urbanization have propelled market growth in the region. The region is further witnessing increasing demand for health and wellness drinks. Consumers in the region are demanding functional beverages and foods, owing to their huge interest in holistic well-being.

Moreover, COVID-19 also led consumers to reinforce their attitudes toward everyday nutrition, health, and hygiene. Manufacturers in the market are effectively developing their products to live up to consumers’ expectations and are delivering the functionality demanded by them. For instance, in March 2022, QminC, a Tera Food & Beverage Co., Ltd. brand, launched two new RTD herbal-based functional drinks. The two new drinks are made available in ready-to-drink bottles in Thailand and are offered in two flavors, QminC ginger with honey and QminC finger root with honey. These new products help meet the rising demand for immunity-boosting, healthy, functional beverages.

North America is expected to hold a significant share of the global market. Carbonated soft drinks have emerged as a popular beverage among consumers as the rate of alcohol consumption in the region is declining. Alcohol consumption is associated with various short and long-term health risks. Therefore, to reduce the risk of alcohol-related risks, the 2020-2025 Dietary Guidelines for Americans recommended that adults of legal drinking age avoid drinks or drink in moderation by limiting intake to two drinks or less in a day. Furthermore, the rising demand for no-sugar and low-calorie carbonated beverages led manufacturers to innovate and create different flavors for zero-calorie drinks to attract more consumers. For instance, in October 2022, PepsiCo Inc. relaunched Pepsi-Cola Soda Shop with a new limited-edition flavor, zero sugar cream soda cola.

Europe is also expected to grow at a significant CAGR in the forecast period. The popularity of vegan diet and increasing incidences of lactose intolerance drive consumers’ demand for plant-based food and beverages in this region. According to the National Library of Medicine, cases of lactose intolerance are widespread in Northern European countries, such as Sweden and Finland, with tolerance levels of 74% and 82%. Therefore, prominent regional players are introducing innovative beverage options to cater to the growing consumer demands for plant-based options. For instance, in April 2020, Starbucks expanded their vegan ready-to-drink coffee range in the U.K. The new range includes two flavors, coconut cocoa cappuccino and oat vanilla macchiato.

South America and the Middle Eastern markets are expected to grow at a slower pace in the forecast period. The market penetration of such products is less in these regions compared to others. Therefore, various regional and international players consistently work on business expansion by expanding their market reach in untapped regions.

INDUSTRY KEY PLAYERS

Key Market Players are Adopting Advanced Strategies to Take Competitive Advantage

Various regional and international players are consistently adopting advanced strategies to gain a competitive advantage against non-alcoholic RTD beverage players. Many companies are engaging in mergers & acquisitions, partnerships, and collaboration strategies to enter new markets.For instance, in February 2022, PepsiCo Inc., an American multinational food, snack, and beverage corporation, partnered with Starbucks, an American global chain of coffeehouses, to enter the energy drinks market by launching non-alcoholic RTD beverages Baya Energy, a carbonated beverage. The joint venture helped both companies to identify new and exciting ways to expand their RTD portfolio.

LIST OF KEY COMPANIES PROFILED:

• PepsiCo Inc. (U.S.)


• The Coca-Cola Company (U.S.)


• Nestle S.A. (Switzerland)


• Danone S.A. (France)


• Red Bull GmbH (Austria)


• Suntory Holdings Limited (Japan)


• Keurig Dr Pepper Inc. (U.S.)


• Asahi Group Holdings Ltd. (Japan)


• Reed’s, Inc. (U.S.)


• Monster Beverage Corp (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2022: Del Monte Foods, Inc., an American food producer, launched a range of energy drinks in collaboration with Old Tom Gin, a Scotland-based beverage manufacturer. The new range contains 20% real fruit juice, with no added sugar, and is available in flavors such as pineapple, mango, passion fruit and lime, pomegranate raspberry, blood orange spritz, pineapple, lime and mint, pineapple, grapefruit, lime and lemon ginger.


• September 2022: Nestle S.A., a Swiss multinational food and drink processing company, announced plans to launch an RTD beverage that contains cultivated whey. The product is a sustainably sourced dairy alternative option for consumers.


• September 2022: Gatorade, an American sports-themed beverage and food company, entered the energy drink segment with the launch of Fast Twitch. The new product contains 200 milligrams of caffeine, electrolytes, B vitamins, and other nutrients.


• March 2022: Red Bull, a brand owned by the Austrian company Red Bull GmbH, launched a new Red Bull summer edition strawberry apricot drink. The new beverages are available in 8.4 fl oz and 12 fl oz orange-colored matte cans and are sold at retailers nationwide.


• May 2021: Biotiful Dairy, a U.K. market leader in Kefir, launched a new Kefir and Coffee line in the U.K. The company combined cultured milk kefir with cold-brewed Arabica coffee and introduced a new line of barista-style beverages. The new product range consists of mocha and latte flavors.

NON-ALCOHOLIC RTD BEVERAGES MARKET REPORT COVERAGE

The market research report includes quantitative and qualitative insights into the market. This market intelligence report also offers a detailed regional analysis of the market statistics, market share, and growth rate for all possible market segments. This market analysis report provides various key insights on the market, an overview of related markets, the competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

NON-ALCOHOLIC RTD BEVERAGES MARKET REPORT SCOPE & SEGMENTATION