Sugar-Free Beverages Market: Research Report – A Latest Research Report to Share Market Information and Dynamics

Sugar-free drinks market

Sugar Free Beverages Market Research Report: Insights by Product Type, Claim, Distribution Channel and Region Forecast to 2027

NEW YORK, NEW YORK, UNITED STATES OF AMERICA, January 10, 2022 / – Sales of sugar-free drinks are booming, and Future Market Research (MRFR) has predicted a strong growth curve around the world sugar-free drinks market over the forecast period 2017-2023 in its latest report.

Diabetes and obesity have almost reached an epidemic stage. The co-occurrence of these two illnesses with other lifestyle-related illnesses has caused major concern among consumers around the world. It corresponds to the adoption of a healthy lifestyle. Amid rising apprehensions, various food trends such as paleo, ketogenic and others have gained traction. Such food trends strictly omit the consumption of sugar, which is a key factor for the growth of the sugar-free beverage market. Fast-paced lifestyles and a growing number of demographics joining the workforce, the demand for ready meals has also increased. Sugar-free drinks are highly sought after by consumers to meet their nutritional needs. Not only are sugar-free drinks healthy, they align with current food trends.

The negative media spotlight on sugar consumption further prompted consumers to cut back on sugar, which in turn increased sales of sugar-free drinks. Taking advantage of the huge opportunity offered by the sugar-free market, various beverage manufacturers are re-evaluating their beverage recipes. They are developing low-sugar or sugar-free drinks with additional nutritional attributes to address the concerns of health-conscious consumers.

Various beverage manufacturers also view sugar-free as a price-cutting strategy other than attracting consumers. In addition, the sugar tax on sugary drinks has been a key driver of growth. The sugar tax was introduced as a major measure to reduce the consumption of sugary drinks, prompting beverage manufacturers to rethink their beverage formulations. In addition, the attitude of major beverage manufacturers around the world has changed. The drinks are moving away from the traditional role of “treat” and becoming part of a bigger nutrition movement.

Other factors that are catalyzing market growth include the availability and popularity of alternative sweeteners, product premiumization, and specialized private label offerings.
On the other hand, sugar-free drinks do not meet the taste requirements of consumers; therefore, have a low rate of acceptability. Moreover, lack of awareness of sugar-free drink variants along with fierce competition from sugary drinks are likely to restrain the market growth.

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The sugar-free drinks market has been segmented on the basis of product type, claims, and distribution channel.
By product type, the sugar-free drinks market has been segmented into fruit and vegetable juices, carbonated drinks, energy drinks, milk drinks, and others. The fruit and vegetable juice segment dominates the market due to the many health benefits they offer.
According to the claims, the sugar-free drinks market has been segmented into gluten-free, lactose-free, organic and other drinks. The growing consumer inclination towards unlabeled, preservative-free food products is driving the organic segment.

By distribution channel, the sugar-free beverage market has been segmented into non-store and in-store. The organized retail format gives the in-store distribution channel leverage over the out-of-store distribution channel.

Regional analysis
By region, the sugar-free beverage market has been segmented into North America, Rest of the World (RoW), Europe, and Asia-Pacific (APAC).
The market is doing exceptionally well in the North America region. In line with the widespread sugar-free trend, beverage manufacturers are engaging in product development. The high base of health-conscious demographic groups who follow various dietary trends and influx of various sugar-free products is catalyzing the growth of the region. Additionally, affordability and high incidence rate of diabetes and obesity are key factors affecting the market.
The European sugar-free drink market is boosted by a gradual increase in the occurrence of chronic diseases in the region, which has prompted the adoption of a healthy lifestyle. Market players expand their activities in Europe has contributed to the growth of the market.

The APAC sugar-free beverages market is expected to witness rapid growth during the forecast period owing to increased health awareness and rising disposable income. A major change in the eating habits has been noticed in the region, which is driving the growth of the sugar-free drinks market.

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Competitive landscape
The Coca-Cola Company (US), Nestlé (Europe), Mars Inc. (US), Unilever (UK), The Hershey Company (US), PepsiCo (US) and Kraft Heinz Company (US) are the distinguished players on the sugar-free drinks market.

Industry Updates
• April 2019 – Tampico Beverages, an American producer and distributor of fruit juice concentrates, has launched a sugar-free range of its namesake juice brand, the Zero range. Tampico Zero comes in two flavor variations and only has five calories per serving. The new product line has been rolled out in the United States and will be available on a larger scale this year.
• April 2019 – Coca-Cola Japan launched the first sugar-free flavored water under the “I LOHAS” brand in Japan. The product only contains lemon juice, mineral water and lemon flavor extract.

NOTE: Our team of researchers are studying Covid19 and its impact on various industry sectors, and where applicable, we will be looking at Covid19 footprints for better market and industry analysis. Contact us cordially for more details.

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