Low/Zero Sugar Beverages Market will Grow at a CAGR of 7.2% During Forecast Period
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.
| Report Metric | Details |
|---|---|
| Base Year | 2020 |
| Study Period | 2019-2029 |
| Forecast Period | 2023-2031 |
| CAGR | 7.2% |
| Market Size | USD Million in 2029 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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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.
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.
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.
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.
