Beverage Market Size
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 3.49 Trillion |
| Market Size (2028) | USD 4.39 Trillion |
| CAGR (2023 - 2028) | 4.67 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Beverage Market Analysis
The Beverages Market size is expected to grow from USD 3.49 trillion in 2023 to USD 4.39 trillion by 2028, at a CAGR of 4.67% during the forecast period (2023-2028).
Post Covid-19, with the changing consumption habits, consumers are now ready to experiment with new products, especially healthy and safer ones, which has prompted companies to look at interesting and affordable products. Keeping this in view and the growth in demand during the pandemic, beverages manufacturers have started diversifying their product portfolio with new ranges that include reduced sugar and offer functional benefits.
Rising health-consciousness, increasing awareness regarding the need for an active lifestyle, and the growing rates of lifestyle diseases inspired health-oriented consumers to opt for healthy drinks. The beverages market is also projected to grow due to an increase in the promotional and advertisement strategies by various manufacturers operating in the market. Furthermore, market is witnessing an upsurge in the demand for low alcohol by volume beverages, specifically among the millennial and the baby boomer generations. The sales of low-alcohol beverages have been rising, with consumers' growing interest in health-consciousness and availability of a wider product portfolio with improved taste, aiding consumer to easily select product as per their preference.
Beverage Market Trends
This section covers the major market trends shaping the Beverages Market according to our research experts:
Consumer Inclination Towards Sugar/Sugar-Free Drinks
Due to the high prevalence of diabetes in the world, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle. Owing to the rising health concerns and the increasing measures to prevent the occurrence of lifestyle diseases, consumers are opting for low-calorie, low sugar, or sugar-free dietary patterns in foods and beverages. Consumers prefer natural sweeteners, such as stevia, in their beverages. Companies like PepsiCo Inc. and Coca-Cola are committed to remove artificial ingredients and reduce the sugar content in their products.
Moreover, changes in consumer preferences for reduced or no-sugar products directed the beverage manufacturers toward product innovation. These manufacturers are developing a range of novel products to meet the accelerating demand for such products, as consumers are actively trying to avoid consuming sugary drinks to prevent the harmful effects of excessive sugar intake.
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North America Holds the Largest Share
Players operating in the region are experimenting with their portfolios to meet the nutritional, taste/flavor, and size requirements of the ever-evolving consumers in the region. Moreover, the key players are rapidly producing innovative product offerings in order to satiate the growing consumer demand. For instance, within three months, till January 2020, AB InBev added four new low- or no-alcohol beers. In line with the athleisure trend, consumers are increasingly seeking various types of healthy beverages to fulfil their nutrition and water requirement. Additionally, a continued shift toward more active lifestyles drives the demand for leisure activities and sports, such as soccer, football, and others, which, in turn, will propel the demand for sports beverages in the region.
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Beverage Industry Overview
The market is highly competitive with the presence of key players operating in the market, such as Nestlé S.A., Pernod Ricard, Diageo PLC, PepsiCo, Inc., The Coca-Cola Company, among others. Various active companies in the market have adopted product innovation as the strategy, due to changing consumer preferences, worldwide. The major focus of the companies is to offer products with different flavors and added functionalities, thereby, catering consumer preferences efficiently. For instance, in May 2020, PepsiCo Inc.’s Gatorade brand introduced a new sports drink, Gatorlyte, which has less sugar and more electrolytes. Gatorlyte was designed for athletes seeking ‘rapid rehydration’ .
Beverage Market Leaders
Nestlé S.A.
PepsiCo, Inc.
Anheuser-Busch InBev
Heineken N.V.
The Coca-Cola Company
*Disclaimer: Major Players sorted in no particular order
Beverage Market News
- In Feb 2022, Starbucks planned to launch a branded energy drink called Baya through its partnership with PepsiCo.
- In Aug 2021, Bacardi rum expanded its Premium portfolio range with the launch of a limited-edition BACARDÍ Reserva Ocho Sherry Cask Finish
- In May 2021, DEFY launched DEFY Water, its debut non-CBD high-performance alkaline water, exclusively available in the Sprouts Farmers Market stores and online worldwide.
Beverage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Alcoholic Beverages
5.1.1.1 Beer
5.1.1.2 Wine
5.1.1.3 Spirits
5.1.2 Non-Alcoholic Beverages
5.1.2.1 Energy & Sports Drink
5.1.2.2 Soft Drinks
5.1.2.3 Bottled Water
5.1.2.4 Packaged Juice
5.1.2.5 RTD Tea and Coffee
5.1.2.6 Others
5.2 By Distribution Channel
5.2.1 On-trade
5.2.2 Off-trade
5.2.2.1 Supermarkets/Hypermarkets
5.2.2.2 Convenience/Grocery Stores
5.2.2.3 Online Retail Stores
5.2.2.4 Others
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Germany
5.3.2.3 Spain
5.3.2.4 France
5.3.2.5 Italy
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East & Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Nestle S.A.
6.3.2 PepsiCo, Inc.
6.3.3 The Coca-Cola Company
6.3.4 Anheuser-Busch InBev
6.3.5 Heineken N.V.
6.3.6 Diageo plc
6.3.7 Suntory Holdings Limited
6.3.8 Constellation Brands, Inc.
6.3.9 Red Bull GmbH
6.3.10 Keurig Dr Pepper
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
9. DISCLAIMER
Beverage Industry Segmentation
Beverages market covers the analysis of alcoholic and non-alcoholic beverages, drinks, and other potable liquids intended for human consumption, including beer, wine, soft drinks, fruit juices, packaged or bottled water, among others.
The Beverages Market is segmented by Product Type, distribution channel, and geography. The product type is segmented as alcoholic beverages and non-alcoholic beverages. The alcoholic beverages are further bifurcated into beer, wine, and spirit. The non-alcoholic beverages are segmented into energy & sports drink, soft drinks, bottled water, packaged juice, RTD tea and coffee, and Others. By Distribution Channel, the market is segmented into On-trade and Off-trade, where in the off-trade channel is further split into Supermarkets/Hypermarkets, Convenience/Grocery Stores, Online Retail Stores, and Others.
It provides an analysis of emerging and established economies across the world, comprising North America, Europe, South America, Asia-Pacific, and Middle East and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
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Beverage Market Research FAQs
How big is the Beverages Market?
The Beverages Market size is expected to reach USD 3,494.17 billion in 2023 and grow at a CAGR of 4.67% to reach USD 4,389.90 billion by 2028.
What is the current Beverages Market size?
In 2023, the Beverages Market size is expected to reach USD 3,494.17 billion.
Who are the key players in Beverages Market?
Nestlé S.A., PepsiCo, Inc., Anheuser-Busch InBev, Heineken N.V. and The Coca-Cola Company are the major companies operating in the Beverages Market.
Which is the fastest growing region in Beverages Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Beverages Market?
In 2023, the North America accounts for the largest market share in the Beverages Market.
Beverage Industry Report
Statistics for the 2023 Beverage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Beverage analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Beverage Market Report Snapshots
