Non Alcoholic Beverages Market Size to be valued over USD 906 Billion in 2018, and is forecast to register 5.7% CAGR during the forecast period.

The industry has registered large volume of sales in 2017 and is continuing the positive trend in 2018. Rise in middle class population, rapid rate of urbanization and availability of cost effective products has led to boost in sales of nonalcoholic beverages worldwide. Consumers nowadays are highly health conscious. They need products that are healthier and nutritious. As such, midsize and leading companies are highly focused on creating value enriched products for end-use consumers.

Nonalcoholic beverage industry was once highly fragmented with presence of large number of regional players, is now shifting towards consolidation with changing business dynamics and mode of distribution. There has been substantial decline in unorganized players by 1.5% since 2010. The trend is likely to continue with major players adopting mergers and acquisitions to strengthen their platform.

Distribution platform is another key focus of nonalcoholic beverages market players. The retail landscape has evolved rapidly in last 10 years. Sales value of retail sector has increased considerably surpassing unorganized and general sector. As the industry is rapidly witnessing transition, it is utmost priority for company to emphasize on product innovation to ensure long term market sustainability.

Global Non Alcoholic Beverages Market Analysis, By Product Type

By product type, the industry revenue is analyzed across carbonated soft drinks, fruit beverages, bottled water, sports drink, functional beverages among others. Sales of carbonated soft drinks accounted for over 35% of global share. Sales is prominent in tropical areas with market dominated by Coca Cola and PepsiCo worldwide. While the industry registered slowdown in demand in 2016 and 2017, it showed positive sign in the first quarter of 2018 and is expected to maintain the momentum throughout the year. Carbonated soft drinks market registered over 4% growth in first quarter of 2018. Increase in demand is primarily attributed to rising diet soda sales worldwide.

Bottled water registered fastest growth in 2016 and 2017 and is likely to continue the momentum till 2020 and will surpass carbonated drinks by 2022. As a matter of fact, per capita consumption of bottled water has almost tripled in last ten years. Currently, the revenue from bottled water is nearly 2X lower than that of carbonated drinks. Over 45% of bottled water revenue is generated from U.S. Europe comes next to North America in total sales.

Unlike bottled water, sports drink market is consolidated across worldwide. Very few companies offer sports drink products. Taste preference and ingredients play a key role in overall sales. While the segment is close to fragmentation in Asia Pacific, it is highly consolidated in North America. Isotonic based soft drinks will continue to dominate the segment throughout the forecast period.

Global Non Alcoholic Beverages Market Analysis, By Distribution Channel

By distribution channel, supermarkets, hypermarkets and convenience stores will account for 23% of global share.

Retail landscape has evolved in past few years. New channels are emerging. Online sales mode is the prominent mode of sales and is expected to capture major chunk of the market by 2022. Many leading companies have started using e-commerce platform as a direct way to reach end-use consumers. Moreover, the ecommerce platform not only helps in lowering the operational cost by cutting but also helps in understanding consumers taste preference in real time scenario. Marketing platform is another key factor leading to companies investing in ecommerce platform.  User enriched ads are created and are rightly targeted to consumers through ecommerce based advertisement platform. Few companies are also building their own ecommerce platform.

Global Non Alcoholic Beverages Market Size and Forecast: Regional Analysis

Globally, North America was valued over US$ 270 billion in 2017 and will continue to register upward trajectory growth in last few years. While carbonated drinks accounted for highest share in the region, bottled water registered fastest growth in 2017.

Asia Pacific is set to create high incremental opportunity for industry players. As per the estimates, China and India accounted for over 57% of regional share in 2017. China non alcoholic beverages market was valued over US$ 69 billion in 2017. Much of the growth in the country is attributed to higher sales of bottled water. Various new entrants emerged in the country post 2006. However, in just a span of 10 years, the market has reached to maturity peak. Companies are focusing on product innovation to sustain hypercompetitive environment.

India nonalcoholic beverages market is another promising country for industry players in Asia Pacific. 73% of the industry is unorganized. As such, there exists huge market potential for leading companies to capitalize the market through inorganic growth strategy. Local flavored is high priority for companies based in India. Carbonated drinks continues to dominate the country sales. As per the estimates, Coca Cola and Pepsi accounted for 67% of total segment sales in 2017. Dabur, Parle and Bisleri are other major vendors in the segment.

Global Non Alcoholic Beverages Market Size and Forecast: Competition Landscape

Some of the key global market vendors include Reed’s, Inc., Appalachian Brewing Co., Dr. Pepper Snapple Group, PepsiCo, Inc., The Coca-Cola Company, Nestle S.A., The Kraft Heinz Company, Molson Coors Brewing Company, Jones Soda Co.