Non-Alcoholic RTD Beverages Market - By Type (Carbonated Drinks, Non-Carbonated Drinks), By Category (Soft Drinks, Juices, Energy Drinks, Ready-to-Drink Tea & Coffee, Functional Beverages, Dairy-Based Beverages), By Packaging, By Distribution Channel & Forecast, 2023 – 2032

Non-Alcoholic RTD Beverages Market Size

Non-Alcoholic RTD Beverages Market size was valued at around USD 720.5 billion in 2022 is anticipated to grow at a CAGR of 6.3% between 2023 and 2032. Consumers' increasing focus on health and wellness has driven the demand for healthier beverage options. Non-Alcoholic RTD Beverages that offer low sugar, natural ingredients, functional benefits, and added vitamins and minerals have gained popularity. Non-Alcoholic RTD Beverages such as water, sports drinks, and fruit juices provide hydration and refreshment, making them popular choices for quenching thirst and re-energizing throughout the day.
 

Manufacturers have been introducing innovative flavors and formulations to cater to diverse consumer preferences. Unique and exotic flavors, as well as functional ingredients like probiotics, antioxidants, and herbal extracts, have attracted consumer interest.
 

The Non-alcoholic RTD beverages market is highly competitive, with numerous established brands and new entrants vying for market share. This intense competition can lead to price wars, reduced profit margins, and challenges in establishing brand differentiation. The industry is susceptible to supply chain disruptions, including raw material shortages, transportation delays, and geopolitical issues. Such disruptions can affect production schedules and lead to product shortages in the market. Maintaining product quality and consistency is crucial to retaining consumer trust and brand loyalty. Variability in ingredient sourcing, formulation, and production processes can impact the overall quality of Non-Alcoholic RTD Beverages Thus, the risks associated with Non-alcoholic RTD beverages may drive down the acceptance rate, further hampering the business growth.
 

COVID-19 Impact

During the pandemic, there was a shift in consumer behavior as people spent more time at home and limited their outings. With the closure of restaurants, bars, and cafes, consumers turned to packaged beverages, including Non-Alcoholic RTD Beverages, for in-home consumption. Consumers sought out beverages that provided hydration and immune system support during the pandemic. This led to increased demand for water, juices, vitamin-enriched beverages, and other functional Non-Alcoholic RTD Beverages. Thus, the reduced number of COVID-19 cases and implementation of subsequent strategies by government and non-government organizations is anticipated to drive the Non-alcoholic RTD beverages industry expansion in the upcoming years.
 

Non-alcoholic RTD Beverages Market Trends

Consumers were increasingly seeking healthier beverage options, leading to a rise in demand for Non-Alcoholic RTD Beverages that are low in sugar, free from artificial additives, and contain functional ingredients with perceived health benefits. The trend of functional beverages, which offer additional health benefits beyond hydration, has influenced the Non-Alcoholic RTD Beverages industry. Functional ingredients like vitamins, antioxidants, probiotics, and herbal extracts were being incorporated into beverages to appeal to health-conscious consumers. Consumers were showing a preference for beverages made with natural ingredients and clean labels.
 

Non-alcoholic RTD beverages Market Analysis

Based on product, the non-alcoholic RTD beverages market is segmented as carbonated drinks, non-carbonated drinks. Carbonated drinks held a majority market value of USD 489.94 billion in 2022. The popularity of carbonated soft drinks is driven by their refreshing and effervescent nature, making them a preferred choice for quenching thirst and enjoyment. Consumers are attracted to the wide range of flavors available in carbonated soft drinks, catering to different taste preferences. Moreover, an increasing usage will further accelerate the segmental growth.
 

Based on category, the non-alcoholic RTD beverages market is segmented as soft drinks, juices, energy drinks, ready-to-drink tea & coffee, functional beverages, dairy-based beverages. Soft drinks held a dominant market share of around 28% in 2022 and is expected to grow at a lucrative pace by 2032. Soft drinks and enhanced waters offer a flavoured and more exciting alternative to plain water, encouraging consumers to stay hydrated. These beverages often have low or no added sugars, attracting health-conscious consumers seeking natural and healthier drink choices.
 

Based on packaging, the non-alcoholic RTD beverages market is segmented as bottles, cans, tetra packs, pouches, others. Bottles held a dominant market share in 2022 and is anticipated to grow at 5.2% CAGR till 2032. Bottles offer a lightweight and portable packaging solution for on-the-go consumption, appealing to busy consumers. Bottles allow consumers to see the beverage's color and condition, enhancing product visibility. Thus, the high-quality services and growing usage of Non-alcoholic RTD beverages at places are anticipated to expedite the business growth.
 

Based on distribution channel, the non-alcoholic RTD beverages market is segmented as supermarkets & hypermarkets, convenience stores, online retailing, specialty stores, others. Supermarkets held the dominant market in 2022 and is anticipated to grow through the years. Supermarkets and hypermarkets offer a one-stop shopping experience, allowing consumers to purchase non-alcoholic RTD beverages along with other groceries and household items. These retail outlets typically carry a broad range of beverage options, giving consumers access to a diverse selection of non-alcoholic RTD beverages.
 

U.S. dominated the North American region with majority market share and a revenue of USD 117.7 billion in 2022 and is anticipated to expand at a significant pace from 2023-2032. North American consumers have been increasingly health-conscious, leading to a growing demand for healthier beverage options. Non-Alcoholic RTD Beverages that are low in sugar, free from artificial additives, and contain functional ingredients with perceived health benefits have gained popularity.
 

Non-alcoholic RTD beverages Market Share

Some of the major market players operating in the Non-alcoholic RTD beverages market are

• The Coca-Cola Company
• PepsiCo, Inc.
• Keurig Dr Pepper Inc.
• Nestlé S.A.
• Danone S.A.
• Monster Beverage Corporation
• Red Bull GmbH
• Starbucks Corporation
• The Kraft Heinz Company
• Unilever N.V
• Campbell Soup Company
• The Hershey Company
• Ocean Spray Cranberries, Inc.
• Suntory Beverage & Food Limited
• JAB Holding Company

These players focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
 

Non-alcoholic RTD Beverages Industry News

In July of 2022, PepsiCo Inc. entered into an agreement to purchase land situated near Denver International Airport for the purpose of constructing a vast manufacturing facility. The proposed facility will span 1.2 billion square feet, making it the largest soda manufacturing plant operated by the company within the United States. To facilitate this project, Denver has committed funding of one billion United States dollars to PepsiCo via its Business Incentive Fund.
 

Non-alcoholic RTD beverages market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Units from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

By Type

• Carbonated
• Non-Carbonated

By Category

• Soft Drinks
• Juices
• Energy Drinks
• Ready-to-Drink Tea & Coffee
• Functional Beverages
• Dairy-Based Beverages

By Packaging

• Bottles
• Cans,
• Tetra Packs
• Pouches
• Others

By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Online Retailing
• Specialty
• Stores
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt