Squash Drinks Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Squash Drinks Market Trends and Insights

Surge in Natural and Sugar-Free Ingredient Demand

Consumer preference for natural, zero-calorie sweeteners is reshaping the beverage industry landscape, as consumers increasingly examine sweetener ingredients in their drinks. The zero-sugar beverage market demonstrates substantial growth compared to traditional sugar-based formulations. In June 2025, Elo Life Sciences developed an innovative solution through mogroside-producing watermelons, which deliver enhanced sweetness compared to sucrose. This advancement reduces reliance on monk fruit and has the potential to decrease natural sweetener production costs by utilizing existing agricultural systems. CO² Sustain's TasteMod² technology effectively addresses taste challenges associated with high-intensity sweeteners through advanced encapsulation methods, enabling manufacturers to expand their natural sweetener alternatives.

Use of Botanicals and Herbal Extracts

The functional beverage market is witnessing increased incorporation of botanical flavors, with elderberry, ginger, and hibiscus emerging as key ingredients that deliver both immune-supporting properties and distinctive taste experiences. In response to regulatory changes in Thailand and South Korea, beverage manufacturers are implementing more rigorous safety assessment protocols for functional products. Manufacturing innovations, particularly ultrasound-assisted extraction methods, are improving the efficiency of polyphenol recovery from berry pomace, effectively transforming production waste into valuable functional ingredients. Beverage companies are strategically launching products that combine botanical ingredients with reduced sugar formulations to meet growing consumer demand for both wellness benefits and appealing taste profiles. Manufacturing facilities in Vietnam and India are expanding their production capabilities to serve the increasing Asia-Pacific market demand for plant-based functional ingredients. Market participants who successfully integrate and validate health claims through scientific documentation are establishing stronger market positions against competitors.

Preference for Clean Label Beverages

The clean label movement continues to shape beverage formulation strategies, as consumers demonstrate a strong preference for products containing clean ingredients in ready-to-drink beverages, particularly in hydration drinks and juices. The concept of clean label has evolved beyond simple ingredient transparency, encompassing environmental sustainability practices and comprehensive supply chain visibility. Beverage manufacturers are responding to this consumer demand by reformulating their products to incorporate easily recognizable ingredients that align with sustainability criteria. Research from the Brazilian Journal of Food Technology highlights the delicate balance manufacturers must maintain between ensuring robust food safety standards and meeting clean label requirements, with particular emphasis on monitoring potential allergenic reactions and implementing precise labeling protocols for plant-based ingredients ^{[2]Source: Brazilian Journal of Food Technology, “Emerging ingredients for clean label products and food safety,” scielo.br}. Natural sweeteners, including stevia and fruit juice concentrates, are experiencing increased adoption in the market due to their natural origins. However, beverage manufacturers continue to face technical hurdles in developing optimal taste profiles while adhering to clean label standards.

Innovation in Flavors and Blends

Mixed berry formulations are establishing a strong presence in premium market segments through the strategic incorporation of bioactive compounds. These compounds, particularly polyphenols and anthocyanins, deliver dual benefits by providing natural color enhancement and substantial health advantages, including improved cardiovascular function and reduced inflammation. Manufacturing companies have implemented sophisticated extraction techniques to utilize berry by-products rich in phenolic compounds, resulting in distinctive flavor profiles while simultaneously addressing environmental sustainability goals through waste reduction. The beverage industry is experiencing significant influence from international culinary trends, particularly in the integration of tropical fruits. Traditional lemonade has undergone a transformation through innovative flavor combinations that resonate with consumers' nostalgic preferences while meeting the demand for refreshing beverage options. The industry's commitment to advancement is evident in the increased patent activities surrounding flavor modification technologies and mogroside biocatalysis methods, reflecting substantial investments in enhancing taste characteristics while effectively reducing the undesirable flavors typically associated with natural extracts.

Seasonality in Raw Material Availability

The global orange juice industry is navigating through a complex landscape of operational challenges and market uncertainties, as Brazil, the world's largest producer, anticipates a substantial decline in production for the upcoming season. The International Fruit and Vegetable Juice Association emphasizes that achieving market stability would require multiple successful consecutive harvests - an objective that remains particularly challenging given the persistent issues of adverse climate conditions and ongoing disease management. The situation in Florida, historically a significant orange juice production hub, has become especially concerning as the region's production capabilities have markedly deteriorated, with citrus greening disease creating supply constraints that extend far beyond typical seasonal variations. In response to these multifaceted challenges, industry participants are implementing comprehensive supply chain diversification strategies while making substantial investments in Agriculture 4.0 technologies and advanced digital solutions, aiming to enhance their operational efficiency and build stronger resilience against climate-related disruptions. In parallel developments, the Canadian fruit industry has demonstrated a complex production landscape in 2024, with government data reporting an overall increase of 5.2% in total fruit production, reaching 930,982 metric tons. This growth has been driven by significant increases in cranberries (29.3%), highbush blueberries (38.8%), field strawberries (17.8%), greenhouse strawberries (10.1%), and apples (7.8%). However, several fruit categories experienced notable declines, including grapes (-20.3%), sweet cherries (-68.7%), peaches (-19.6%), nectarines (-13.9%), sour cherries (-37.1%), apricots (-36%), pears (-5.5%), and lowbush blueberries (-10.4%), reflecting the diverse challenges faced across different fruit segments in the Canadian agricultural sector ^{[3]Source: Government of Canada, “Statistical overview of the Canadian fruit industry,” agriculture.canada.ca}.

Rising Cost of Quality Ingredient Sourcing

The recent US tariffs implemented in April 2025 have significantly impacted fruit juice imports, causing substantial increases in wholesale apple juice concentrate costs. Importers have strategically shifted their supply relationships from Chinese suppliers to Turkish alternatives due to these trade policy changes. The implementation of universal tariffs on aluminum has driven up packaging costs, contributing to projected food inflation and influencing consumer purchasing behavior toward private-label brands. The domestic production landscape presents additional complexities, as the majority of US apples are designated for fresh consumption, limiting processors' capacity to expand juice production. To navigate these market conditions effectively, companies should implement strategic measures including diversification of ingredient sourcing, optimization of product formulations to reduce reliance on tariff-affected materials, and evaluation of production localization opportunities where economically viable.

Segment Analysis

By Flavor: Mixed Berry Innovation Drives Premium Growth

The orange flavor segment continues to hold its dominant position in the market, commanding a substantial 37.22% share in 2024. This leadership stems from deeply rooted consumer preferences and extensive market presence across retail channels. However, the segment faces ongoing challenges from citrus greening disease, which has significantly impacted production capabilities in key growing regions of Brazil and Florida, creating supply chain uncertainties for manufacturers.

Mixed berry flavors have emerged as the most promising growth segment, projected to expand at a compelling 5.54% CAGR from 2025 to 2030. This growth trajectory is supported by manufacturers' strategic focus on incorporating bioactive compounds and positioning these products in premium market segments. The mango and lemon/lime categories maintain consistent market performance by attracting health-conscious consumers who value tropical flavor profiles and vitamin C enrichment. Industry manufacturers are leveraging sophisticated extraction technologies to utilize berry by-products containing high concentrations of polyphenols and anthocyanins, resulting in products that offer both functional health benefits and natural color attributes. Recent developments in mogroside biocatalysis methods, as evidenced by new patent applications, demonstrate significant industry investment in flavor enhancement technology, particularly aimed at addressing the challenges faced by traditional citrus-based products.

Note: Segment shares of all individual segments available upon report purchase

By Sugar Content: No-Added-Sugar Segment Accelerates

The beverage market continues to be dominated by added-sugar formulations, which maintain a substantial 74.43% market share in 2024. This dominance reflects deeply established consumer preferences and manufacturers' reliance on cost-effective production methods. However, the landscape is shifting as no-added-sugar variants demonstrate strong growth at a 5.64% CAGR. This growth is primarily fueled by increasing consumer health consciousness and significant regulatory changes, including the FDA's planned elimination of synthetic food dyes and the potential recommendation of zero added sugar in upcoming Dietary Guidelines.

The zero-sugar beverage segment is now outpacing traditional formulations as consumers become increasingly discerning about their sweetener choices. The industry is responding with innovative solutions, as demonstrated by Elo Life Sciences' breakthrough development of mogroside-producing watermelons, which deliver 200-300 times the sweetness of sucrose and reduce dependence on traditional monk fruit sources. Further advancing this transformation, CO² Sustain's TasteMod² technology employs sophisticated encapsulation methods to effectively address the persistent off-note challenges associated with high-intensity sweeteners, thereby enabling broader market adoption of natural sweetening alternatives.

By Packaging Type: Sustainable Pouches Gain Momentum

The packaging market continues to be dominated by bottles, which command a substantial 73.50% market share in 2024. This dominance stems from three key factors: deep-rooted consumer familiarity with bottle packaging, well-established retail infrastructure supporting bottle distribution, and the format's ability to effectively position products in the premium segment.

In contrast, pouches have emerged as the most dynamic segment in the packaging industry, achieving a remarkable 5.33% CAGR. This growth is primarily fueled by increasing sustainability requirements across global markets and organizations' strategic focus on cost optimization. A significant development in this segment occurred in October 2024 when Accredo Packaging launched their innovative 100% bio-based resin pouches. These pouches, manufactured using materials derived from sugarcane, demonstrate the industry's concrete steps toward environmental responsibility, with each unit capable of sequestering 43 grams of CO2.

By Distribution Channel: Foodservice Recovery Accelerates Growth

Retail channels dominate the market with a substantial 67.32% share in 2024. This distribution network encompasses various formats, including supermarkets, hypermarkets, convenience stores, and online platforms, providing consumers with multiple touchpoints to access beverages. The extensive retail presence enables companies to implement diverse promotional strategies and maintain consistent product visibility across different shopping environments.

The foodservice segment demonstrates robust growth potential with a 5.64% CAGR, primarily attributed to the sustained recovery from pandemic-related disruptions and evolving institutional consumption patterns. Convenience stores continue to play a vital role in non-alcoholic beverage sales, as their single-serve merchandising strategy effectively encourages consumer experimentation and facilitates new product adoption. This growth trajectory in foodservice aligns with Nestlé Professional's 2025 industry outlook, which emphasizes flexibility, sustainability, and personalization. Foodservice operators are increasingly seeking beverage solutions that maximize ingredient utilization while simultaneously addressing waste reduction objectives.

Geography Analysis

North America dominates the global market with a substantial 34.83% share in 2024, reflecting the region's mature consumer base and successful premium product strategies. The market benefits from well-established FDA labeling guidelines, while manufacturers have successfully adapted to the phase-out of synthetic dyes. The region's commitment to innovation is evident through significant investments, notably PepsiCo's $1.95 billion acquisition of Poppi. While the USMCA agreement facilitates trade advantages for Canada and Mexico, the industry faces challenges from rising aluminum can costs due to universal tariffs, affecting supply chain economics across North America.

The Asia-Pacific region emerges as the fastest-growing market with a 5.74% CAGR, marked by significant regulatory and operational developments. China's introduction of comprehensive pre-packaged labeling standards represents a major step toward market transparency, requiring detailed ingredient and origin information. Coca-Cola's robust performance across key markets, including India, China, and Brazil, underscores the region's growth potential and validates multinational companies' regional expansion strategies.

Europe maintains its position with steady growth, characterized by stringent regulatory compliance and market consolidation. The region's development is shaped by EUDR sustainability reporting requirements and clean label mandates, which favor premium products with transparent sourcing. The market landscape continues to evolve, as demonstrated by Carlsberg's strategic acquisition of Britvic in January 2025, which has consolidated the region's leading squash brand portfolio and enhanced market concentration.