The non-alcoholic beverages industry is comprised of companies involved in the production and sales of drinking products not containing alcohol. The breadth of this segment spans from bottled water, to coffee and tea, to soft drinks, juices and other products.
Some of the biggest trends in the industry follow the general trend in consumer goods products of an increased focus on health and wellness. In the non-alcoholic beverages sector this has expressed itself through functional beverages and fermented beverages. Both types of products aim to provide some benefits to the consumer beyond simple thirst quenching or flavor. In the case of functional water, additional nutrients or naturally occurring chemicals are added to the water, while fermented products like kombucha market the naturally occurring health benefits of the product, often digestive health.
The global non-alcoholic beverages market was valued at over 1.1 trillion U.S. dollars in 2019 but shrank to just over one trillion in 2020 due to the impact of the coronavirus outbreak. By 2025, the market is expected to peak at a value of nearly 1.4 trillion U.S. dollars.
China was the single biggest consumer of packaged beverages in the world in 2019, outpacing entire regions. In terms of brands, Coca-Cola had the greatest brand value in the non-alcoholic beverages market space.
Water was the most widely-consumed packaged beverage in the world in 2020, accounting for over 450 billion liters in consumption that year, surpassing both soft drinks and alcoholic beverages.
Bottled water's popularity can be attributed to both convenience and tap water safety. In developed nations, consumers choose bottled water primarily for taste and convenience, whereas in less developed nations, bottled water consumption may be a necessity due to the lack of potable tap water.
Functional water is one of the biggest trends in non-alcoholic beverages currently. Functional water is water that has been enhanced with nutrients or other ingredients like CBD in an aim to provide additional health and wellness benefits, such as stress relief and skin, hair, and nail care.
In 2015, sales of functional bottled water amounted to 3.24 billion U.S. dollars in the United States and are expected to grow to a value of over five billion dollars in 2022.
When it comes to manufacturers of non-alcoholic beverages, Nestlé headed the pack with global sales in excess of 43 billion U.S. dollars in 2020. The Coca-Cola Company followed closely with sales of over 33 billion dollars.
Nestlé produces a wide range of consumer goods but in terms of non-alcoholic beverages, the firm offers products spanning from bottled water (like Nestlé Pure Life), to coffee and tea (Nescafé and Nestea), and dairy-based drinks (Carnation).
The non-alcoholic beverages industry is involved in the production and marketing of all beverages which are free from alcohol. This can range from products such as water, tea, and coffee to sweet drinks like soft drinks and juices. The industry provides not only ready-to-drink beverages but mixes and concentrates as well. One segment that all the biggest companies service is bottled water, which is the largest segment of the industry globally. Between convenience, taste preference, and sometimes no other source of potable water, the bottled water industry is a staple of the non-alcoholic beverages market.
The largest companies involved in the market operate in multiple sub-segments. Nestlé, the largest of such companies, has brands in water, coffee and tea, and dairy beverages. Other giants of the industry like PepsiCo and Coca-Cola likewise have products spanning the width of sub-segments.
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