Low/Zero Sugar Beverages Market Size, Share & Trends Analysis Report By Product Type (Carbonated Soft Drinks, Juices, Bottled Waters, Sports and Energy Drinks, RTD Teas and Coffees), By Flavor Type (Flavored Beverages, Unflavored Beverages), By Packaging (Plastic Bottles, Glass Bottles, Tins), By Distribution Channel (B2B, B2C) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Low/zero sugar beverages market size was valued at USD 3.19 billion in 2023. It is estimated to reach USD 10.47 billion by 2032, growing at a CAGR of 14.10% during the forecast period (2024–2032).

Low/zero sugar beverages are sweetened with one or more high-intensity sweeteners in place of energy-yielding sugars. The changing perception regarding sugar consumption and an increasing number of health problems, such as obesity and diabetes, are the key factors driving market growth. As per the World Health Organization (WHO), around 6.7 million people in Germany alone have type 2 diabetes. Thus, rising awareness among consumers regarding their health and fitness is compelling the consumers to shift towards healthier eating habits, further driving the market growth.

Rapid industrialization and urbanization, coupled with increasing employee working hours, have surged the demand for healthy food and beverage products that can provide basic nutrition to consumers in order to completer their daily routines efficiently. Thus, consumers are now shifting towards on-the-go drinks, such as energy drinks and milk-based drinks, further providing an impetus to the market growth.

Market Dynamics

Regional Analysis

Low/Zero Sugar Beverages Market in North America

North America dominates the low/zero sugar beverages market on account of the striking change in the consumer consumption pattern. Reducing sugar content and substituting it for sweeteners and natural alternatives have become a running trend in the market. This is primarily driven by the increasing concern in the obesity levels and rising sedentary lifestyle, leading to various problems, such as diabetes. Thus, the manufacturers in the industry are focusing on innovating new products that will not only reduce the sugar levels in the beverages but also provide essential health nutrients to the consumers. Also, the presence of well-known international players, such as Coca-Cola Company, PepsiCo, Inc, and The Kraft Heinz Company, drives the regional market growth.

Debouching Dieting Trends in India and China to Drive Asia-Pacific’s Market Growth

Asia-Pacific is expected to be the fastest-growing market in low/zero sugar beverages during the forecast period on account of the improving disposable income, rising trend of socializing, and surging consumerism. Additionally, the region’s large population, rapid urbanization, and rising preference for better functional and healthier drinks, especially among the young adult demographics, have gained the interest of a large number of international players, further driving the market growth. Country-wise, the regional market is led by China and India, where the continuously rising population and ongoing stimulus towards the consumption of a low sugar diet are driving the demand for no‐calorie sugar beverages.

Europe to Be Backed with the World’s Largest Home Food and Beverages Industries and Rising Consumer Demand for Healthy Products

The European region holds a prominent share in the low/zero beverages sugar beverages during the forecast period. The region is backed by the present one of the largest food and beverage industries in the world. According to the FoodDrinkEurope, in 2018, over 294,000 companies were engaged in the food and beverage business. The increasing number of health-conscious consumers and rising demand for drinks that can cater to both the dietary and ever-changing daily nutritional needs are anticipated to be another factor influencing the regional market growth.

Segmental Analysis

Increasing Product Innovation and Offerings to Drive the Carbonated Soft Drinks Segment

The carbonated drinks segment holds the largest market share on account of the increasing product innovation and offerings across the segment. The changing consumer preference, coupled with the rising trend towards high-functionality drinks, have compelled the manufacturers to introduce new flavors while keeping in mind the health and wellness concerns of consumers. Additionally, the surging consumer base of the young population, coupled with improving consumer spending, drives segment growth.

Plastic Bottles Segment to Dominate the Market on Account of Its Versatile Properties

The plastic bottle segment dominates the market during the forecast period. Plastic bottles are lightweight, durable, versatile, hygienic, cost-effective, and can be decorated in many ways. Additionally, as compared to some of its substitutes, the use of plastic bottles for packaging helps in curbing the CO₂ emissions from industries. Thus, several manufacturers are focusing on packaging these beverages in plastic bottles in effort to reduce their CO₂ emissions. Also, plastic bottles reduce the risk of breakage and prevent potential shipment rejection.

B2C Channel to Dominate the Market during the Forecast Period

The sales of low-zero sugar beverages from the B2C segment have registered substantial growth in the last few years. This growth is primarily driven by the exponential growth of the online retail channel, coupled with the rising influence of digital media and marketing that is further encouraging individuals and manufacturers to opt for this business model. Additionally, the  COVID-19 outbreak has had a positive impact on the sales of the online retail channel. The hypermarkets, retail stores, and supermarkets, on the other hand, still enjoy an edge over the online retail channels one can simply walk down to a store rather than waiting for the arrival of an online delivery package.

Impact of covid-19

The impact of COVID-19 has an unprecedented effect across all industry verticals globally. The market of the blended learning market has witnessed a surge in demand amid pandemic COVID-19. The growth is attributed to governments' stringent regulations, such as; social distancing, the shutdown of schools, universities, corporate offices, and manufacturing sites. This enables schools and universities to adopt the online learning process to teach students.

Also, increasing adoption among corporate offices to teach employees various courses amid pandemic COVID-19 to improve skills and enhance productivity paves the way for blended learning platforms. For instance, in October 2020, UNESCO and Blackboard have launched teacher training in the Caribbean for online and blended learning.

Recent Developments