Non-alcoholic Beverage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Non-alcoholic Beverage Market is segmented by Type (Carbonated Beverage and Non-carbonated Beverage), Distribution Channel (Supermarkets/Hypermarkets, Convenience Store, Online, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Non-Alcoholic Beverage Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 4.7 %

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Market Overview

The non-alcoholic beverage market is projected to register a CAGR of 4.7% during the forecast period (2021-2026).

The global non-alcoholic beverage market is witnessing the serious impact of COVID-19, and it is incorporating various safety standards, measurements, and quality checks, with an aim to boost consumers’ trust. Such efforts have increased the sales of products that provide functional benefits, such as immune health, which are likely to impact the market positively; demand for high sugar carbonated drinks has plummeted in both off-trade and on-trade channels.

This pandemic reshaped the packaging size landscape in 2020, as consumers chose larger pack sizes and multipacks, as they are cost-effective and reduced the necessity for more frequent trips to the store.

The booming demand for functional beverages to supplement health without altering the taste propels the non-alcoholic beverage market.

An increase in accessibility and regulations of non-alcoholic drinks globally is one of the key factors increasing the product preference leading to increased consumption. Whereas, the increasing health awareness and demand for nutrition-oriented products have affected the carbonated drinks market majorly.

Scope of the Report

An alcohol-free or non-alcoholic drink, also known as a temperance drink, is a version of an alcoholic drink made without alcohol or with the alcohol removed or reduced to almost zero. The non-alcoholic beverage market offers a wide range of products among carbonated and non-carbonated beverages. The non-carbonated beverages are further segmented into fruit and vegetable juice, functional drinks, RTD tea and coffee, bottled water, and others. The market is majorly operated by supermarket/ hypermarket, convenience store, online sales channels, and others. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).

By Type
Carbonated Beverage
Non-carbonated Beverage
Fruit and Vegetable Juice
Functional Drinks
RTD Tea and Coffee
Bottled Water
Other Types
By Distribution Channel
Convenience Stores
Speciality Stores
Online Stores
Other Distribution Channels
By Geography
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Online Sales Supplementing the Market Growth

With the rising number of consumers with hectic schedules and lifestyles, online shopping is becoming a convenient medium of shopping or buying non-alcoholic beverages and other food items. The trend of online shopping is gaining momentum, as it is convenient for consumers to buy non-alcoholic beverages online and save travel time, avoiding the rush at the stores. The online store platform has established itself as a convenient marketplace, offering a wide range of non-alcoholic beverages. The robust growth of e-commerce has offered unique opportunities to these manufacturers. Few popular online sales channels, such as Amazon, have allegedly witnessed a surge in the sales of functional beverages due to attractive offers and discounts offered by these sales channels coupled with the efficient delivery systems in place.

Non-Alcoholic Beverage Market Growth

Increasing Consumption of Non-Alcoholic Beverages in Asia-Pacific

The Asia-Pacific food and beverage industry is growing with the highest possible rates, surpassing that of developed regions like Western Europe and North America. The region has a large and continuously growing middle-class consumer society, indicating potential growth, specifically in the iced/RTD coffee drinks segment. Although the market is growing in all countries of Asia-Pacific, the high growth rate for this area is driven by the rapid development of the Chinese and Indian markets. Carbonated drinks are poised to increase due to the largest segment in the non-alcoholic drinks segment. However, the consumption of these carbonated beverages and soft drinks is expected to decline over sugar content, and preference for healthier alternatives, such as 100% natural juice in the region studied.

Non-Alcoholic Beverage Market Size By Region

Competitive Landscape

The market is highly competitive due to a large number of companies involved in the manufacturing of functional beverages. Some of the major players in the market are PepsiCo Inc., the Coca-Cola Company, Danone S.A., and Nestlé S.A., offering a range of carbonated and functional beverages. Expansions and new agreement/ partnership strategies are some of the most preferred strategies for the non-alcoholic drinks industry globally. The key players also form new agreements and partnerships with local players to increase their footprint in the local market and release new products according to the consumers’ changing preferences.

Recent Developments

In 2020, PepsiCo announced the launch of a beverage joint venture in Thailand with Suntory. This new venture is called Suntory PepsiCo Beverage (Thailand) Company Limited. This joint venture has served as the operator and distributor of PepsiCo beverage brands, namely Pepsi-Cola, Mirinda, 7UP soft drinks, ready-to-drink Lipton teas, Gatorade sports drink, and Aquafina hydration drinks.

In 2019, Monster Energy formed a strategic partnership with Coca-Cola India to debut its brands in the country. With this strategic partnership, Monster Energy launched all over the country; this can be considered as companies response to capture a rapidly growing market in India.

In 2018, Suntory Beverages and Foods had launched Suntory Okudaisen Blueberry Yogurina & Tennensui as the newest member of its Yogurina brand. The product is very popular with consumers as a unique drink that is clear in appearance but features the delicious flavor of yogurt.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Type

      1. 5.1.1 Carbonated Beverage

      2. 5.1.2 Non-carbonated Beverage

        1. Fruit and Vegetable Juice

        2. Functional Drinks

        3. RTD Tea and Coffee

        4. Bottled Water

        5. Other Types

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Speciality Stores

      4. 5.2.4 Online Stores

      5. 5.2.5 Other Distribution Channels

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Spain

        2. United Kingdom

        3. Germany

        4. France

        5. Italy

        6. Russia

        7. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Most Active Companies

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 PepsiCo Inc.

      2. 6.4.2 The Coca-Cola Company

      3. 6.4.3 Danone SA

      4. 6.4.4 Nestle SA

      5. 6.4.5 Red Bull Gmbh

      6. 6.4.6 Keurig Dr Pepper Inc.

      7. 6.4.7 Parle Agro

      8. 6.4.8 Monster Beverage Corporation

      9. 6.4.9 AriZona Beverages USA

      10. 6.4.10 IBS Partners Ltd

    5. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Non-alcoholic Beverages Market market is studied from 2016 - 2026.

The Non-alcoholic Beverages Market is growing at a CAGR of 4.7% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

PepsiCo, Inc., The Coca-Cola Company, Danone S.A., Nestlé S.A., AriZona Beverages USA are the major companies operating in Non-alcoholic Beverages Market.

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