Market Trends of Beverages Industry
Consumer Inclination Toward Sugar-Free Drinks
- Healthy food choices attract consumers' attention due to their vast interest in holistic well-being. Consumers are looking for products low in sugar and contain health-enhancing ingredients. Furthermore, according to the International Diabetes Federation, India was home to 77 million diabetes patients in 2019, the second-largest in the world. By 2030, the number is predicted to reach 101 million. According to the same source, around 114 million adults in China had diabetes in 2019. Due to the high prevalence of diabetes globally, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle.
- Moreover, changes in consumer preferences for reduced or no-sugar products direct beverage manufacturers toward product innovation. Manufacturers in the market effectively communicate their products to live up to consumers' expectations and deliver the functionality they demand. They are developing a range of novel products to meet the consumers' demand who are actively trying to avoid consuming sugary drinks to prevent the harmful effects of excessive sugar intake.
- For instance, Shine Drink launched a new sugar-free range in October 2022. The product is called 'brain drinks' or 'smart -drinks' and contains natural functional ingredients. The product is available in blueberry lemonade and peach passion fruit flavors. Moreover, private-label companies are also entering the market to meet the demand for healthier alternatives in the beverage category, competing with the top brands.
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North America Holds the Largest Market Share
- Shifting consumer preference for non-alcoholic beverages is identified as the key market driver in the beverages market in North America. In addition, the market growth can be attributed to the high consumption of sports and energy drinks owing to the widespread participation in leisure sports, physical activities, and intense gym workouts. The trend is also anticipated to continue during forecast years due to the rising government initiatives to accelerate the active participation of school and college students in various sports activities.
- Moreover, the increasing prevalence of lactose intolerance and dairy allergies led to the penetration of plant-based beverages such as fruit and vegetable juices and flavored cold drinks. In addition, increasing affinity towards organic and clean-label products is influencing key manufacturers to develop innovative variants in the ready-to-drink beverages category.
- For instance, in February 2022, Starbucks launched a new plant-based Frappuccino line with two flavors, Caramel Waffle Cookie and Dark Chocolate Brownie. Additionally, the strong consumer demand for portability and convenience has accelerated innovations in packaging shape, lighter packaging materials, and an increased application of flexible packaging. Thus, all these factors drive the beverage market in North America.
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