Global Beverage Market - Forecasts from 2023 to 2028

The global beverage market is expected to grow at a CAGR of 3.47% from an initial value of US$1,568.389 billion in 2021 and is estimated to reach a market size of US$1,991.845 billion in 2028.

Due to increasing disposable income, and shifting consumer preferences towards ready-to-drink beverages, particularly in developing and emerging economies, the market is anticipated to grow at a fair rate throughout the forecast period. Furthermore, rising per capita consumption of alcoholic beverages and consumer preferences for premium products are likely to fuel market expansion. For instance, according to the Estonian Ministry of Social Affairs, the Estonian people consumed an average of 11.1 liters of absolute alcohol per adult (15+) population in 2021, a 2.3% increase from the previous year. The increase in consumption was primarily due to an increase in consumption of strong alcoholic beverages such as whisky, gin, and liqueur, as well as a slight increase in consumption of beer, wine, and other mild alcohol.

However, increased health concerns about the sugar content of packaged beverages, combined with health worries about alcohol usage, may stymie market expansion during the projection period. However, the introduction of new products in the non-alcoholic segment, such as drinks with lower sugar content, is expected to generate several opportunities for the market during the projection period and beyond. For instance, Coca-Cola India announced plans to offer low and zero-sugar variations of its sparkling brands over the next two years, betting big on the fast-growing reduced sugar beverage category. The beverage company also stated that its bottling partners are investing approximately $1 billion in production growth. Limca Sportz, which contains glucose and electrolytes, was launched in August 2022 as part of the company's broader hydration strategy.

The global beverage market is driven by the increasing adoption of fruit-based beverages.

The introduction of new non-alcoholic products, such as those with healthier content and based on fruits, is expected to generate several chances for the market during the projection period and beyond. According to Eurostat, in the EU, 9% of adults (15 and older) drank sugar-sweetened soft drinks every day in 2019, 6% did so four to six times per week, and 19% did so once or less per week. Regular intake of sugar-sweetened beverages has been related to heart disease, type 2 diabetes, kidney illness, cavities, gout, a form of arthritis, tooth decay, and non-alcoholic liver disease. The demand for fruit-based beverages with reduced sugar content may eventually increase due to growing health concerns about the sugar level of packaged beverages and alcohol consumption. For instance, Berezovsky signed a multi-million-dollar agreement in August 2022 to distribute 100 million liters of juice made by BlueTree Technologies, a small Israeli startup that uses cutting-edge technology to simply remove up to 50% of the sugar from naturally squeezed orange juice without affecting the flavor. At Fresh Start in Kiryat Shmona, BlueTree is operating its prototype, which can produce up to 50 liters per day. To promote BlueTree's products to various global companies, the business has also struck a contract with the Israeli soft drink manufacturer Priniv and is about to do the same with a global juice and beverage manufacturer.

Key Developments.

• Tata Consumer Products (TCPL) has joined the fruit-based drinks sector with the November 2022 launch of Fruski Juice N Jelly drink through its subsidiary NourishCo. The new introduction is in keeping with NourishCo's goal of expanding its product portfolio and becoming a prominent player in the non-alcoholic beverages category. India's ready-to-drink sector is greatly underserved. Unbranded juices and ethnic beverages dominate the market. The corporation identified enormous potential in this area and intends to enter the juices and ethnic beverages space with the Tata Fruski brand.
• In December 2022, Fresh Del Monte debuted a line of energy drinks in conjunction with Scotland-based beverage maker, Old Tom Gin. The beverages in the 'A Kick of Fruit' line include at least 20% actual fruit juice and no added sugar.
• In January 2022, Danone North America, the maker of Silk plant-based products, added Silk Extra Creamy Almond milk to its portfolio of alternative dairy products which is also a good source of vitamins and minerals, and is free from dairy, soy, and gluten, making it a suitable choice for people with food sensitivities.

North America accounts for major shares of the global beverage market.

By geography, the beverage market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America has been further classified into US, Canada, and Mexico. The region is a significant market for beverages due to growing awareness of health and wellness, and consumers seeking healthier and more premium beverage options. In the United States, there is a growing trend towards healthier and more sustainable beverage options like plant-based milk, energy drinks, functional beverages, and sugar-free drinks with the increasing demand for convenient and on-the-go beverage options that are expected to drive the market growth over the forecast period. For instance, In March 2021, Bragg Live Food Products, a well-known producer of apple cider vinegar products, and Ardagh Group, a leading producer of glass containers, announced a partnership to introduce a new 16oz glass bottle for its line of apple cider vinegar beverages.

Market Segmentation:

By Type

• Alcoholic Beverage
• Non-Alcoholic Beverage
• Bottled Water
• Carbonated Soft Drinks
• Fruit Juice
• Milk
• Dairy
• Almond
• Soy
• Rice
• Oat
• Cashew
• Coconut
• Others

By Packaging Type

• Cans
• Bottles
• Others

By Distribution Channel

• Online
• Offline
• Supermarkets
• Departmental Stores
• Convenience and Independent Stores
• Foodservice

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others