Zero-Sugar Beverages Market Reach to US$8.8 Bn by 2030

April 2024

Fairfield Market Research, a leading provider of market intelligence and consulting services, unveils an optimistic forecast for the global zero-sugar beverages market. According to their latest analysis, the market, valued at US$3.5 billion in 2023, is anticipated to skyrocket to approximately US$8.8 billion by 2030, boasting a robust CAGR of 13.8% over the period from 2023 to 2030.

Zero-Sugar Beverages Market Report Scope: 

Report Coverage

Details

Base Year

2022

Forecast Period

2023-2030

Zero-Sugar Beverages Market Size 2023

US$3.5 Bn

Growth Rate From 2023 to 2032

CAGR of 13.8%

Zero-Sugar Beverages Market Size 2030

US$8.8 Bn

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

 

Key Market Insights:

The surge in demand for zero-sugar beverages is underpinned by several pivotal trends:

  • Changing Attitudes Towards Sugar Intake: As consumers become increasingly conscious of the adverse health effects associated with excessive sugar consumption, there has been a notable shift towards healthier dietary choices. This change in mindset has propelled the demand for zero-sugar beverages as consumers seek guilt-free alternatives to traditional sugar-laden drinks.
  • Rise in Health-Conscious Consumer Population: A growing segment of the population is prioritizing health and wellness, leading to heightened demand for beverages that align with these objectives. Zero-sugar beverages are perceived as healthier options, driving their popularity among health-conscious consumers and fueling market growth.
  • Government Initiatives and Taxation: Governments worldwide are implementing initiatives to promote healthier dietary habits, including taxation on sugar-filled beverages. These regulatory measures are incentivizing consumers to opt for zero-sugar alternatives, thereby stimulating market expansion.

Factors Driving Growth:

  • Expanding Health-Conscious Consumer Population

The increasing awareness of the adverse health effects associated with sugar consumption has led to a growing segment of health-conscious consumers. These individuals actively seek out products that align with their wellness goals, driving demand for zero-sugar beverages. Their preference for healthier alternatives fuels market growth and presents opportunities for innovation and expansion within the industry.

  • Increased Occurrence of Obesity and Hyperglycemia

The rising prevalence of obesity and high blood sugar levels has heightened consumer awareness of the importance of reducing sugar intake. As individuals become more conscious of their health risks, there is a corresponding increase in demand for sugar-free alternatives. This trend underscores the necessity for zero-sugar beverages in addressing health concerns and catering to evolving consumer preferences, thereby contributing to market expansion.

  • Challenges in Taste and Perception

Despite the growing demand for zero-sugar beverages, taste perception issues remain a significant barrier to market acceptance. Natural and artificial sweeteners, while effective in reducing sugar content, often fail to replicate the taste of sugar accurately. Consequently, consumers may express concerns about flavor consistency, posing challenges for manufacturers in sustaining consumer satisfaction and competitiveness.

Growth Challenges:

Growth Challenges in the Beverage Industry

The beverage industry is continually evolving, driven by changing consumer preferences, technological advancements, and societal trends. In recent years, several key trends have emerged, presenting significant opportunities for businesses to innovate and capitalize on shifting consumer demands.

Demand for Functional Drinks

There is a growing trend towards functional beverages enriched with natural flavors, vitamins, and antioxidants. Consumers are increasingly seeking beverages that not only quench their thirst but also offer additional health benefits. This shift towards functional drinks presents a significant opportunity for beverage manufacturers to innovate and differentiate their products in a crowded market.

Brands that offer zero-sugar drinks with added health benefits stand to capitalize on this trend. By incorporating natural ingredients such as vitamins, minerals, and antioxidants, companies can create functional beverages that appeal to health-conscious consumers seeking both refreshment and nutritional value. Additionally, by leveraging AI analysis, businesses can identify emerging health trends and formulate beverages that align with evolving consumer preferences.

Popularity of Plant-Based Diets and Veganism

The rising popularity of plant-based diets and veganism presents a unique opportunity for beverage manufacturers to tap into a growing market segment. As consumers become more conscious of their dietary choices and environmental impact, there is increasing demand for plant-based and vegan-friendly beverages.

Products that align with these dietary preferences, such as plant-based and vegan-friendly drinks, are in high demand among health-conscious consumers. Beverage companies can capitalize on this trend by developing innovative plant-based beverages that offer a delicious and sustainable alternative to traditional dairy-based drinks. By using plant-based ingredients such as almond milk, coconut water, and fruit juices, companies can create beverages that appeal to a wide range of consumers, including those following plant-based diets or seeking dairy alternatives.

Growth Opportunities Across Regions:

  • North America

North America asserts its dominance in the global zero-sugar beverages market, buoyed by several key factors. The region's high levels of disposable income provide consumers with significant purchasing power, facilitating exploration and investment in healthier alternatives. Additionally, North America's cultural fabric is interwoven with the widespread penetration of fast-food chains, emphasizing convenience and accessibility in consumer choices.

 This prevalence underscores a strong preference for zero-sugar beverages, aligning with heightened consumer awareness regarding health and nutrition. As individuals become more health-conscious, there's a notable shift towards healthier options, driving demand and innovation in the segment. Overall, North America's robust demand for healthier alternatives positions it as a frontrunner in shaping the trajectory of the global zero-sugar beverages market.

  • Asia Pacific

Conversely, Asia Pacific presents a compelling narrative of burgeoning demand and evolving consumption patterns in the zero-sugar beverages segment. Urbanization plays a pivotal role, reshaping lifestyles and consumption habits across the region. With rapid urban migration, there's a growing emphasis on convenience, health, and wellness in consumer choices. Rising disposable incomes further fuel the demand for premium and healthier products, including zero-sugar beverages.

 The region's vast population size presents a substantial market opportunity, coupled with increasing awareness of the benefits of low-calorie beverages, propelling market expansion. As consumers become more health-conscious and discerning, the demand for zero-sugar beverages is expected to witness sustained growth in the foreseeable future.

Key Market Players:

The market is consolidated with key players such as:

  • The Coca-Cola Company
  • Pepsico
  • Keurig Dr Pepper
  • Suntory
  • Monster Beverage Corporation
  • Red Bull GmbH
  • Celsius
  • Hector Beverages
  • Talking Rain Beverage Company(Sparkling Ice)
  • Zevia PBC
  • Tampico Beverages
  • Danone
  • Guaraná Antarctica

The Global Zero-Sugar Beverages Market is Segmented as Below:

By Product Type:

  • Sparkling Soft Drink
  • Juices
  • Sports Drinks
  • Energy Drinks

By Sweetener Type:

  • Natural
  • Artificial

By Sales Channel:

  • Food Service & Restaurents
  • Retail
  • Hypermrket/Supermarket
  • Convenience Store
  • Independent Retailers
  • Specialty Stores
  • Drug Stores/Pharmacies
  • Online Retail

By Geographic Coverage:

  • North America 
  • Europe 
  • Asia Pacific 
  • Latin America 
  • Middle East & Africa