Non Alcoholic RTD Beverages Market Analysis

Non-Alcoholic RTD Beverages Market Overview

The global non-alcoholic RTD beverages market is projected to register a CAGR of 4.5% and reach a value of USD 800 million by 2027. Non-alcoholic RTD beverages are ready-to-consume beverages with zero alcohol content. RTD non-alcoholic beverages are versatile, convenient, and healthy drinks. The increasing demand for ready-to-drink mixed beverages and protein beverages is driving market growth.  There are various types of non-alcoholic RTD beverages, including functional beverages, carbonated soft drinks, tea & coffee, fruits and vegetable juice, bottled water, and dairy-based beverages.

COVID-19 Impact Analysis

The outbreak of COVID-19 has resulted in lockdown across regions, border restrictions, and breakdown of transportation networks. In addition, the economic uncertainty is much higher than past outbreaks such as the severe acute respiratory syndrome (SARS), avian flu, swine flu, bird flu, and Ebola, owing to the escalating number of infected people and the uncertainty about the end of the crisis.With the rapidly rising cases, the global non-alcoholic RTD beverages market is getting affected in many ways.

The availability of the workforce seems to be disrupting the supply chain of the global non-alcoholic RTD beverages market as the lockdown and the spread of the virus are pushing people to stay indoors. The performance of the non-alcoholic RTD beverage manufacturers and the transportation of the goods are interdependent. If the manufacturing activity is brought to a halt, then transportation and, by extension, the supply chain also comes to a halt. The loading and unloading of the products, i.e., raw materials and end products (ingredients), which require a lot of manpower, is also heavily impacted due to the pandemic. From the manufacturing factory gate to the warehouse or from the warehouse to the end users, i.e., application industries, the entire supply chain is severely threatened due to the outbreak.

Market Dynamics

Non-alcoholic RTD beverages include a wide range of functional beverages, tea and coffee, carbonated soft drinks, fruit and vegetable juices, flavored and fortified water, and dairy-based beverages. The increasing demand for non-alcoholic beverages among consumers is majorly driving the market growth of non-alcoholic RTD beverages. The tremendous growth in functional beverages boosts the growth of the overall non-alcoholic RTD beverages market. The growth of the organized retail sector also acts as a driving factor for market growth. Adoption of growth strategies among the market players is creating a lucrative market for players to contribute to the market growth. Also, the rising demand for organic products creates an opportunistic market for the players. However, stringent government regulations and guidelines associated with certain non-alcoholic RTD beverages are restricting the market growth.

Drivers:

• Surging Demand of Non-Alcoholic Beverages

Non-alcoholic beverages are gaining demand across the global populace, especially among millennials. The trend of adopting a healthy lifestyle is rapidly increasing among consumers. The mass population of consumers across the globe is becoming aware of the food and beverages they consume and compare the products to choose the better. Rising consumer awareness, an increasing number of informed consumers with clear perceptions, and a willingness to engage in buying healthy goods are boosting the demand for non-alcoholic beverages globally. In addition, rising awareness regarding the adverse effects of alcohol consumption among the global populace is propelling the consumers to opt for non-alcoholic beverages over alcoholic beverages, such as wines, beers, spirits, and others, including their flavored product formats.

• Rising Demand for Functional Beverages

The trend of adopting a healthy lifestyle is rapidly increasing among consumers. On the other hand, unhealthy lifestyles contribute to the spread of obesity, diabetes, and cardiovascular disease, which has provoked consumers to adopt healthy food & beverages. This has resulted in a surge in demand for functional beverages among consumers. Functional beverages are being marketed as products that have additional ingredients to provide a wide range of health benefits. Due to the presence of ingredients like minerals, vitamins, herbs, amino acids, and bacteria in these beverages, there is an upsurge in its demand. In addition, these beverages have beneficial effects on the body, such as improved immune system, heart rate, digestive health hydration and electrolyte replenishing benefits post-exercise, and improved and better intestinal flora and gut function, which is mainly driving the demand for this product among the consumers.

Restraint:

• Stringent Government Regulations & Guidelines

Manufacturers in the global non-alcoholic RTD beverages market need to comply with certain rules and regulations laid down by the authorities in the countries they operate. These rules and regulations relating to the grant permits, the entry of new players, the launch of new products, and the expiry of products. In some countries, the number of regulations is minimal, and the regulatory authorities are at times lenient, whereas, in other countries, the regulations are stringent and on the rise.

Opportunities:

• Adoption of Growth Strategies

Collaborations, partnerships, joint ventures, product innovations, mergers & acquisitions, and innovative promotional strategies are the top growth strategies adopted by certain market players active in the non-alcoholic RTD beverages market. These strategies have paved the way for market players to expand their business presence and diversify their product portfolio. The top beverage brands have entered the non-alcoholic RTD beverages market in the current market scenario, resulting in high stakes with innovative products and high quality.

Segment Overview

By Product Type

Based on producttype, the global non-alcoholic RTD beverages market has beendivided into functional beverages, carbonated soft drinks, tea & coffee, fruits and vegetable juice, bottled water, dairy-based beverages, and others. The functional beverages are further breakdown into energy drinks, sports drinks, and others. The bottled water segment accounted for the highest market share of the global non-alcoholic RTD beverages market during the forecast period.

By Packaging Type

By packaging type, the global non-alcoholic RTD beverages market has been segmented as bottles, cans, and others. The bottles segment is projected to exhibit the highest CAGR of 5.42% during the forecast period.Bottles are the most popular packaging solutions among beverage manufacturers. Consumers are mainly attracted to glass bottles as they are durable, hygienic, and aesthetically pleasing.

By Distribution Channel

Based on distribution channel, the global non-alcoholic RTD beverages market has been segmented into store-based and non-store-based. The store-based segment accounted for a larger market share in 2019.In addition, the convenience of immediate delivery of the product through offline stores is further aiding the segmental growth.

Regional Analysis

By region, the global non-alcoholic RTD beverages market has been divided into North America, Europe, Asia-Pacific, Rest of the World.Asia-Pacific accounted for the largest market share of 35.87% in 2019 and is also expected to register the fastest growth rate from 2020 to 2027. Europe was the second-largest market in 2019 and is projected to exhibit a CAGR of 4.5% during the review period.

• North America Market

North America is anticipated to be a lucrative region for manufacturers of non-alcoholic RTD beverages. A shift in consumer taste and preference for healthy beverages has increased the interest in various non-alcoholic RTD beverages among the North American population. This has been one of the key reasons behind the growth of the market. This shift is evident from the continuous decline in alcoholic beverage consumption, especially among the US population, and transforming toward low or no alcohol-based healthy drinks.Additionally, the rising trends of functional beverages, such as energy drinks, sports drinks, RTD tea & coffee, and fruit and vegetable juices are boosting the growth of the market. Continuous research and development for the introduction of new fruit flavors in RTD beverages is another key factor boosting the market growth in the region

• Asia-Pacific Market

The Asia-Pacific non-alcoholic RTD beverages market accounted for the highest shareof the global market in 2019. Various non-alcoholic RTD beverages in the Asia-Pacific region are relatively at the introductory stage. However, the presence of a strong population that prefers healthy beverages is expected to create lucrative opportunities in the coming years. The high millennial population in the region prefers healthy drinks. The strong influence of western cultures regarding healthy diets is further anticipated to proliferate the market growth during the review period. Mass urbanization coupled with the growing middle-income population group resulting in the increased consumption of non-alcoholic beverages.

Competitive Landscape

The market comprises tier-1 players along with some local players with diverse product portfolios. Companies such as PepsiCo, Inc., Keurig Dr. Pepper, Inc., The Coca-Cola Company, Nestle S.A., and Starbucks CorporationHolding dominate the global market due to brand reputation, product differentiation, financial stability, and strong distribution network.The players are focused on lowering their environmental footprint and investing in research and development along with strategic growth initiatives such as acquisitions and mergers to strengthen their market position and capture a large customer base.

Prominent players in the global non-alcoholic RTD beverages market include PepsiCo (US), Keurig Dr Pepper Inc. (US), The Coca-Cola Company (US), Nestlé S.A. (Switzerland), Starbucks Corporation (US), Danone S.A. (France), LotteChilsungBeverage Co. Ltd. (South Korea), Suntory Holdings Limited (Japan), POKKA SAPPORO Food & Beverage Ltd (Japan), and Yakult Honsha Co., Ltd. (Japan).

Recent Developments

Few developments occurred in recent times, influencing the market growth of non-alcoholic RTD beverages are listed below:

• In February 2021, Pepsico Inc. launched fruity juice waters for teens. These drinks are made with fruit juices, water, and electrolytes.


• In February 2021, Pepsico Inc. expanded its footprint in the burgeoning functional beverage category with the launch of ‘Bubbly Bounce.’.


• In February 2021, The Coca-Cola company introducedsmartwater, a new line of premium wellness water with unique ingredients and flavor extracts.


• In April 2020, The Coca Cola company brand AHA welcomes raspberry + ACAI and Mango and Black Tea to flavored sparkling water.


• In March2021,Nestle SA acquired Essentia and expands its presence in the premium functional water segment.

Scope of the Report

Global Non-Alcoholic RTD Beverages Market, by ProductType

• 
  Functional Beverages
  
  
  
  • Sports Drinks
  
  
  • Energy Drinks
  
  
  • Others
  
  
  
  


• Carbonated Soft Drinks


• Tea & Coffee


• Fruits & Vegetable Juice


• Bottled Water


• Dairy Based Beverages


• Others

Global Non-Alcoholic RTD Beverages Market, by Packaging Type

• Bottles


• Cans


• Others

Global Non-Alcoholic RTD Beverages Market, by Distribution Channel

• Store-Based


• Non-Store-Based

Global Non-Alcoholic RTD Beverages Market, by Region

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

Intended Audience

• Non-Alcoholic RTD BeveragesManufacturers


• Functional Beverages Manufacturers


• Raw Material Suppliers


• Retailers, Wholesalers, and Distributors


• Governments, Associations, and Industrial Bodies


• Investors and Trade Experts