Beverages & Soft Drinks Market - Forecast(2023 - 2028)

Beverages & Soft Drinks Market Overview

Beverages & Soft Drinks Market Size is estimated to reach $169.3 billion by 2027 and it is poised to grow at a CAGR of 4.8% over the forecast period of 2022-2027. Any liquid that can quench the thirst after drinking it is known as a beverage. Beverages & soft drinks include bottled water, carbonated soft drinks, RTD Tea & Coffee or Caffeinated drinks, Fruit juice, Milk or flavored milk or other alcoholic beverages, or fermented alcoholic drinks like beer and wine, seltzer water, or others. Most beverages & soft drinks or carbonated drinks contain sugar or sugar substitutes, soda & other additives such as colors, flavors, stabilizers & preservatives. Beverages & soft drinks are consumed as fresheners but nowadays functional beverages which contain non-traditional ingredients like minerals, vitamins, amino acids, dietary fibers (DFs), probiotics, added raw fruits, etc. are popular among consumers. 

According to studies, drinking beverages & soft drinks can help relieve constipation symptoms like stomach pain and irregular bowel movements. Gluten-free beverages have gained significant popularity among health-conscious consumers, as people with celiac disease or allergies discover the benefits of gluten-free beverages and gluten-free beverages & soft drinks have proven to be beneficial for people suffering from inflammatory diseases and autoimmune disorders. The rising popularity of flavored alcoholic beverages and healthier alternatives has led to a worldwide demand for ready-to-drink beverages. Aside from that, several manufacturers are producing novel product varieties to broaden their existing product portfolio. Increased demand for low alcohol, low calorie & low carbohydrate beverages propelling the growth of the beverages & soft drinks market, as well as brand awareness advertising by manufacturers, are the fundamental reasons driving the beverages & soft drinks market size during the forecast period 2022-2027.

Beverages & Soft Drinks Market Report Coverage

The report: “Beverages & Soft Drinks Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Beverages & Soft Drinks Market.

Key Takeaways

• Geographically, North America held a dominant market share in the year 2021 due to the rise in the demand for beverages & soft drinks by consumers.
• Owing to desirable nutrients and bioactive substances such as antioxidants, dietary fibers, prebiotics, proteins, peptides, unsaturated fatty acids, minerals and vitamins, functional beverages & soft drinks are being used as an alternative to beer. They have anti-stress, anti-aging, antioxidant and anti-inflammatory qualities, as well as boosting the immune system and improving physical and mental health that will help the market's growth during the forecast period of 2022-2027. However, lack of consumer awareness in many regions and the absence of distribution channels may slightly hinder the growth of the global beverages & soft drinks market throughout the forecast period.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Beverages & Soft Drinks Market Report.

Beverages & Soft Drinks Market: Market Share (%) by Region, 2021

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Beverages & Soft Drinks Market Segmentation Analysis- By Type

Beverages And Soft Drinks Market based on type can be further segmented into Alcoholic Beverages (Beer, Wine, Seltzer water); Non-Alcoholic Beverages (Bottled Water, Caffeinated Drinks, Carbonated Drinks, RTD Tea & Coffee, Fruit Juice, Milk). The Non-Alcoholic beverages segment held a dominant Beverages And Soft Drinks market share in the year 2021. Consumers preferred low alcoholic drinks & want to cut down alcohol intake which boosts the non-alcoholic beverages segment. According to an IWSR survey, 52% of consumers surveyed were seeking ways to reduce their alcohol intake in 2019. Due to high consumer demand in the market for Beverages and soft drinks many alcohol companies have been persifying their product lines to include low-alcohol beverages. As a result, moderate drinkers prefer to replace beverages and soft drinks instead of beer. Over the projected term, these qualities are expected to improve product sales all over the world. 

However, Alcoholic beverages are estimated to be the fastest-growing, with a CAGR of 5.7% over the forecast period of 2022 -2027. Owing to a consistent increase in demand for fermented alcoholic drinks among adults across virtually all demographics. The tremendous increase in millennial demand for spirits has given the spirits industry a new dimension. The impact of social media and peer pressure on college students and young people is producing a lot of buzz in the spirits industry. Due to high pay packages and lifestyle freedom, millennials and young people in emerging nations have developed a habit of going out to clubs and bars in recent years. During such outings, fermented alcoholic drinks, mainly spirits such as whisky and vodka, are widely drunk.

Beverages & Soft Drinks Market Segmentation Analysis- By Packaging Type

Beverages & Soft Drinks Market based on packaging type can be further segmented into metal cans, glass bottles & plastic bottles. The metal segment held a dominant Beverages & Soft Drinks market share in the year 2021. Metal cans are widely utilized as containers in the beverage industry due to their commercial advantages, which include durability, multi-color printing, marketing assistance, convenience and sustainability. Furthermore, beverages in metal packaging do not require any additions, do not lose their nutritive properties and retain their natural flavor for an extended period. Metal, as a permanent material, preserves its qualities even after infinite recycling, substantially decreasing resource waste. For packing purposes, metals like aluminum are particularly easy to sterilize. It is a good choice for packing materials due to its durability and high barrier protection.

However, the plastic segment is expected to grow at the quickest rate between 2022 and 2027, with a CAGR of 6.0% owing to the adoption of PET can lead to weight reduction by up to 90%, compared to glass, allowing a more economical transportation process as they offer reusable packaging for mineral water and other beverages. PET has wide applications and is easily blown into a bottle or formed into a sheet. To develop a bottle to match a brand's specific needs, PET properties can be improved with colorants, UV blockers, oxygen barriers/scavengers and other additives which can grow the plastic segment in the forecast period.

Beverages & Soft Drinks Market Segmentation Analysis- By Geography

The Beverages & Soft Drinks Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America and the Rest of the World. North America held a dominant Beverages & Soft Drinks market share of 34% in the year 2021. This is attributed to reasons like the presence of key market players and their product developments. Key manufacturers are promoting their products in innovative ways. Mexico is the largest consumer of beverages followed by the United States as per Statista. According to another report by Organization Cultivar, Mexican consumed an average of 148 litter per year of carbonated beverages. The increasing number of innovative product launches and the rising concentration of significant firms such as Anheuser-Busch InBev and Barefoot Cellars in the region are driving this region's growth. The expansion of the beverages & soft drinks industry is fueled by rising cleanliness and health concern among customers. 

Furthermore, the Asia-Pacific region is estimated to grow with the fastest-growing over the forecast period 2022-2027. The Asia Pacific is a rapidly growing market with increasing urbanization & increasing disposable income, expanding industrialization and the humid and arid climate in various Asia-Pacific countries are fuelling the expansion of the beverages & soft drinks market in the Asia-Pacific region.

Beverages & Soft Drinks Market Drivers

The Growing Awareness & Demand for Low-alcohol & Sugar-Free Products to Aid in Market Growth.

The beverage sector is seeing a significantly larger trend of low-alcohol, sugar-free carbonated beverages. A growing number of health-conscious customers is driving a massive shift toward healthful and nutritious beverages. The fact that leading manufacturers in the carbonated beverages sector are shifting their portfolios, which acts as a major contributor to the beverages & soft drinks market's growth, indicates this. According to the DSM survey report in 2019, More than 41% have opted for a sugar-free carbonated soft drink versus a sugar-free juice and Consumer interest in low- and no-sugar products is high in all markets surveyed and the awareness of the health implications of too much sugar is significant and increasing. Low-alcohol, low-calorie and gluten-free beverages are popular among consumers. Furthermore, millennials are becoming increasingly interested in flavored alcoholic beverages, which will support the beverages & soft drinks industry over the projected period.

Marketing Strategies of Key Players are Propelling the Market Growth.

In the beverages & soft drinks industry key players introducing a variety of products with innovative ideas, tastes & brand promotion. For example, in April 2021, HEINEKEN launched a new beverages & soft drinks brand, Pure Piraña, in Europe and would be available in Austria, Ireland, the Netherlands, Portugal and Spain. Carbonated drinks account for 51% of PepsiCo's overall sales in India. As a result, the market for beverages & soft drinks is growing due to the rising consumer demand for carbonated beverages. Marketing Strategies of Key Companies are propelling the market growth in the forecast period.

Beverages & Soft Drinks Market Challenges 

Side Effects Associated with Beverages & Soft Drinks is Hindering Market Growth.

Beverages & Soft Drinks are said to cause tooth enamel erosion, calcium insufficiency and irritable bowel syndrome (IBS), among other things. According to the World Health Organization (WHO), 3 million deaths every year result from harmful use of alcohol, which represents 5.3% of all deaths. Drinks containing alcohol or caffeine are well absorbed, but they decrease the effect of antidiuretic hormone (ADH), leading to increased urine production. High sodium content is not good for people with high blood pressure also it increases the work of the kidney. beverages & soft drinks also contain alcohol which increases the pH of the blood. Owing to the acidity of water, it can harm enamel. Such things may affect the growth of beverages & soft drinks market size in the forecast period.

Beverages & Soft Drinks Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Beverages & Soft Drinks Market. The top 10 Beverages & Soft Drinks Market companies include:

1. Anheuser-Busch InBev
2. Barefoot Cellars
3. Blue Marble
4. Boathouse Beverage Co
5. Future Proof Brands LLC
6. Cutwater Spirits
7. High Noon Spirits Company
8. Kona Brewing Co
9. The Coca Cola Company
10. Mark Anthony Brands International

Recent Developments

• In October 2021, Anheuser Busch InBev India (AB InBev) launched Budweiser Beats in the non-alcoholic energy drink category with a price range of 90 Rs for a 250 ml can. The company declared its third-quarter results in October 2021 show a hike in total volume growth by 3.4%, from that beer, contributed 2.8% & non-beer 11.9%. 
• In April 2021, Bluemarble expand from 181000 sq. ft to 425000 sq. ft with multiple new canning lines, In-house sleeving and a variety of packaging systems to increase the production of alcoholic & non-alcoholic based products including ready to drink a cocktail, sparkling fruit juices, kombuchas, vitamin wellness drinks, canned water and of course vodka, gin, tequila, whiskey and rum-based hard seltzers.
• In June 2019, Barefoot Cellars most awarded brand in the U.S. launched its new product ‘Barefoot Wine To Go’ in four delicious flavors (Muscat, Rosé, Pinot Gigi and Chardonnay) in a 500 ml bottle packed in a cardboard box. This product launch is expected to expand the business.

Relevant Titles

APAC Carbonated Soft Drinks Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
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North America Carbonated Soft Drinks Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
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