Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Beverages market is projected to register a CAGR of 4.25% during the forecast period, 2022-2027.

Post Covid-19, with the changing consumption habits, consumers are now ready to experiment with new products, especially healthy and safer ones, which has prompted companies to look at interesting and affordable products. Keeping this in view and the growth in demand during the pandemic, beverages manufacturers have started diversifying their product portfolio with new ranges that include reduced sugar and offer functional benefits.

Rising health-consciousness, increasing awareness regarding the need for an active lifestyle, and the growing rates of lifestyle diseases inspired health-oriented consumers to opt for healthy drinks. The beverages market is also projected to grow due to an increase in the promotional and advertisement strategies by various manufacturers operating in the market. Furthermore, market is witnessing an upsurge in the demand for low alcohol by volume beverages, specifically among the millennial and the baby boomer generations. The sales of low-alcohol beverages have been rising, with consumers’ growing interest in health-consciousness and availability of a wider product portfolio with improved taste, aiding consumer to easily select product as per their preference.

Key Market TrendsConsumer Inclination Towards Sugar/Sugar-Free Drinks

Due to the high prevalence of diabetes in the world, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle. Owing to the rising health concerns and the increasing measures to prevent the occurrence of lifestyle diseases, consumers are opting for low-calorie, low sugar, or sugar-free dietary patterns in foods and beverages. Consumers prefer natural sweeteners, such as stevia, in their beverages. Companies like PepsiCo Inc. and Coca-Cola are committed to remove artificial ingredients and reduce the sugar content in their products.

Moreover, changes in consumer preferences for reduced or no-sugar products directed the beverage manufacturers toward product innovation. These manufacturers are developing a range of novel products to meet the accelerating demand for such products, as consumers are actively trying to avoid consuming sugary drinks to prevent the harmful effects of excessive sugar intake​.

North America Holds the Largest Share

Players operating in the region are experimenting with their portfolios to meet the nutritional, taste/flavor, and size requirements of the ever-evolving consumers in the region. Moreover, the key players are rapidly producing innovative product offerings in order to satiate the growing consumer demand. For instance, within three months, till January 2020, AB InBev added four new low- or no-alcohol beers. In line with the athleisure trend, consumers are increasingly seeking various types of healthy beverages to fulfil their nutrition and water requirement. Additionally, a continued shift toward more active lifestyles drives the demand for leisure activities and sports, such as soccer, football, and others, which, in turn, will propel the demand for sports beverages in the region.

Competitive Landscape

The market is highly competitive with the presence of key players operating in the market, such as Nestlé S.A., Pernod Ricard, Diageo PLC, PepsiCo, Inc., The Coca-Cola Company, among others. Various active companies in the market have adopted product innovation as the strategy, due to changing consumer preferences, worldwide. The major focus of the companies is to offer products with different flavors and added functionalities, thereby, catering consumer preferences efficiently. For instance, in May 2020, PepsiCo Inc.’s Gatorade brand introduced a new sports drink, Gatorlyte, which has less sugar and more electrolytes. Gatorlyte was designed for athletes seeking ‘rapid rehydration’ .

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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