Published By : 17 Aug 2016 | Published By : QYRESEARCH
While beverages such as tea, coffee, and fruit juices are the most popular non-alcoholic drinks, alcoholic drinks that contain below 0.5% alcohol by volume are also considered non-alcoholic drinks. Over the last few decades, the demand for non-alcoholic drinks have been on the rise due to a clearer understanding of the adverse effects of alcohol. The increasing health awareness among the global population accounts as a major factor for the growth of the global market for nonalcoholic drinks. Individuals in developed regions are increasingly realizing the health benefits of non-alcoholic drinks, which have been traditionally known for the high consumption of alcoholic drinks. As per a study conducted in 2015, the consumption of soda has fallen in the U.S. to a 30-year low on account of the increasing health awareness among individuals in the country.
Furthermore, 2016 is expected to be the first year when sales of bottled water in the U.S. will surpass the sales of soda-based drinks. This suggests that consumers are turning away from alcoholic drinks and are making healthier choices favoring nonalcoholic drinks.
Changing Lifestyles Leads to Increased Demand for Carbonated Drinks in Emerging Economies
The rising demand for tea and coffee is another major driver of the global market for nonalcoholic drinks. Tea and coffee have several health benefits, because of which there is a rise in the number of tea and coffee drinkers. The availability of easy to consume ready-to-drink tea and coffee is further increasing the demand for non-alcoholic drinks across the world. Tea and coffee is expected to register the highest compounded annual growth rate between 2014 and 2020 than any other non-alcoholic drinks.
On the other hand, in emerging nations, the rising demand for fizzy fruit-based drinks is positively influencing the growth of the non-alcoholic drinks market. While the demand for carbonated drinks is steadily declining in developed countries, the same is on the rise in emerging economies due to changing lifestyle and increasing purchasing power of individuals. As a result, the demand for aerated drinks is still rising in the emerging economies of Asia Pacific and Latin America. In particular, India displays immense potential for the growth of the carbonated drinks market, which will indirectly benefit the nonalcoholic drinks market.