Market Size of Beverages Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.26 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Beverage Market Analysis
The beverages market is expected to grow from USD 3.56 trillion in 2023 to USD 4.39 trillion by 2028 at a CAGR of 4.26% during the forecast period (2023-2028).
- Rising health consciousness and the growing prevalence of lifestyle diseases encouraged consumers to choose healthy drinks. Furthermore, the market is witnessing an increased demand for low-alcohol-by-volume beverages, specifically among millennials and baby boomers. For instance, according to UN Comtrade statistics, the amount of non-alcoholic drinks imported to Hungary peaked in 2022 at 174 million euros from 154 million euros in 2021. The sales of low-alcohol drinks have been rising, with the availability of a broader product portfolio with improved taste, aiding consumers to select products as per their preferences easily.
- Furthermore, the increasing participation of individuals in professional sports, recreational outdoor activities, and exercise and physical fitness is creating demand for dietary supplements, such as energy drinks. Energy drinks are functional beverages that help increase energy and enhance mental alertness and physical performance. Leading players are further focusing on developing sugar-free drinks to cater to the needs of individuals with diabetes and other chronic illnesses.
- For instance, in 2022, an Australian soft drinks company, Nexba, launched a range of caffeine- and sugar-free energy drinks with added vitamins and prebiotics. Nexba Natural Energy drinks are free from artificial ingredients and available in two flavors: Lemon yuzu and Wild Citrus. The company claims the flavors contain ginseng extract, vitamin B complex, and vitamin C to improve gut health and enhance energy levels. Therefore, the abovementioned factors will likely influence the market positively during the forecast period.
Beverage Industry Segmentation
The 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.
The beverages market is segmented by product type, distribution channel, and geography. The product type is segmented into alcoholic and non-alcoholic beverages. Alcoholic beverages is further sub-segmented into beer, wine, and spirit. Non-alcoholic beverages is further sub-segmented into energy and sports drinks, soft drinks, bottled water, packaged juice, RTD tea and coffee, and other non-alcoholic beverages. By distribution channel, the market is segmented into on-trade and off-trade. Off-trade channel is further sub-segmented into supermarkets/hypermarkets, convenience/grocery stores, online retail stores, and other pff-trade channels. By geography, the market is segmented into North America, Europe, South America, Asia-Pacific, and the Middle East and Africa.
The market sizing and forecasts have been done for each segment based on value (in USD).
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Beverages Market Size Summary
The beverage market is poised for significant growth, driven by evolving consumer preferences and increasing health consciousness. As consumers become more aware of lifestyle diseases, there is a notable shift towards healthier drink options, including low-alcohol and sugar-free beverages. This trend is particularly evident among millennials and baby boomers, who are seeking products that align with their health and wellness goals. The demand for energy drinks and dietary supplements is also on the rise, fueled by the growing participation in sports and fitness activities. Companies are responding by innovating and expanding their product portfolios to include functional beverages that cater to these preferences, such as sugar-free energy drinks with added vitamins and prebiotics.
In North America, the beverage market is experiencing a shift towards non-alcoholic and plant-based drinks, driven by increased consumer interest in organic and clean-label products. The prevalence of lactose intolerance and dairy allergies has further propelled the popularity of fruit and vegetable juices. Additionally, the demand for convenience and portability is influencing packaging innovations. Major players in the market, including Nestlé S.A., Anheuser-Busch InBev, Heineken N.V., PepsiCo, Inc., and The Coca-Cola Company, are focusing on product innovation to meet changing consumer demands. This competitive landscape is characterized by the introduction of new flavors and functionalities, as seen with products like Gatorade's caffeinated energy drink and Starbucks' plant-based Frappuccino line.
Beverages Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Preference for Plant-based and Clean-label RTD Products
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1.1.2 Consumer Inclination Toward Sugar-Free Drinks
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1.2 Market Restraints
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1.2.1 Concerns Over Health Issues Associated With Beverages
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Alcoholic Beverages
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2.1.1.1 Beer
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2.1.1.2 Wine
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2.1.1.3 Spirits
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2.1.2 Non-Alcoholic Beverages
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2.1.2.1 Energy & Sports Drink
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2.1.2.2 Soft Drinks
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2.1.2.3 Bottled Water
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2.1.2.4 Packaged Juice
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2.1.2.5 RTD Tea and Coffee
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2.1.2.6 Other Non-Alcoholic Beverages
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2.2 By Distribution Channel
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2.2.1 On-trade
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2.2.2 Off-trade
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2.2.2.1 Supermarkets/Hypermarkets
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2.2.2.2 Convenience/Grocery Stores
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2.2.2.3 Online Retail Stores
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2.2.2.4 Other Off Trade Channels
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2.3 By Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 Spain
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East & Africa
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2.3.5.1 Saudi Arabia
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle East & Africa
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Beverages Market Size FAQs
What is the current Beverages Market size?
The Beverages Market is projected to register a CAGR of 4.26% during the forecast period (2024-2029)
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.
