Sugar Free Beverage Market Analysis

Global Sugar-Free Beverage Market Overview 

The global sugar-free beverage market is estimated to reach a valuation of USD 38 billion by the year 2032, at a CAGR of 7.23% by 2032. Sugar-free beverage is known to be the best and a healthy substitute for sugar-based beverages. Such sugar substitutes also contain sugar content, but the sweeteners added in these beverages are generally artificial sweeteners like sucralose, neotame, saccharin, aspartame, and stevia. People who are more inclined towards weight reduction tend to prefer sugar-free beverages, stevia-sweetened drinks, diet sodas and zero-calorie drinks as these are healthier substitutes and help in reducing the overall sugar intake of an individual. The demand for these beverages is increasing as This drink helps in reducing cravings while maintaining a healthy diet.

Sugar-Free Beverage Market Trends Insights 

The evolving trend of consuming sugar-free food products owing to the growing concerns of lifestyle diseases is aiding the market's growth.

Food and beverage items are high in both calories and sugar, which can have drastic health effects in the long term. Health-conscious consumers strive to consume low-calorie and sugar-free food and beverages as a result of the adverse effects of consuming sugar in excess amounts. Concurrently, it is expected that the rising incidence of obesity will stimulate the market for sugar-free foods and beverages throughout the projected timeframe. The incidence of overweight and obesity has escalated over the past decade, which is why the trend of consuming sugar-free products has evolved and is taking the market associated with it on a high note in terms of revenue generation.

The prevalence of overweight individuals aged 18 and older in North American nations, including the United States, was reported to be 31.9% by the Centers for Disease Control and Prevention. With these horrifying numbers, people are now more intrigued to consume sugar-free food products and beverages that would eliminate any health issues. Similarly, the rising prevalence of diabetes among the local populace is stimulating the demand for sugar-free foods and beverages. Furthermore, a growing preference among the expanding diabetic community for bakery items such as sugar-free pastries, muffins, and biscuits has been on the rise in recent years, which is one of the reasons for the said market's growth.

One can achieve several advantages by decreasing sugar consumption, including weight loss and obesity prevention, reduced risk of developing type 2 diabetes or pre-diabetes, and decreased likelihood of developing inflammatory digestive conditions like Crohn's disease and irritable bowel syndrome. Low-carb beverages are specifically formulated to offer sustained energy and aid in the acceleration of the metabolic rate. Consequently, this factor is propelling the sugar-free beverage market's expansion. 

Sugar-Free Beverage Market Segment Insights 

The global sugar-free beverage market is segmented based on product type, claims and distribution channels.

Based on Product Type, the global sugar-free beverage market is further sub-segmented into dairy beverages, energy drinks, soft drinks, fruits and vegetable juices, and others. Out of which the fruits and vegetable juices sub-segment owes the major market share, owing to its crucial health benefits.

Based on claims, the said market segment is further divided into organic, lactose-free, gluten-free and others, where the organic segment dominates the market share in the said segmentation due to the increased dependency on preservative-free and naturally produced food and beverage products. 

Based on distribution channels, the global sugar-free beverage market is further divided into store-based physical distribution channels and non-store-based physical distribution channels. Among these two sub-segments based on the distribution channels, the store-based physical distribution channels segment owes the major market share, as it helps in improving the retail format while aiding the market's growth.

Sugar-Free Beverage Market Region Insights 

The global sugar-free beverage market is primarily studied across four major regions, namely, North America, Europe, Asia-Pacific and the Rest of the World. Out of these, the North American region dominates the global market share owing to the presence of major developed economies like the United States, Canada and Mexico. People from the North American region are considered to be the most health-conscious people around the world, which is the sugar-free beverage industry in the region is rapidly growing and is generating huge revenues over the past few years and is said to keep the momentum.

Asia-Pacific is the second largest market share holder in the global market for sugar-free beverages. Asia-Pacific is stated to be the fastest-growing region globally in the said market segment. The presence of countries like Japan, Australia, India, and China covers the major proportion of the population all across the globe and hence it creates more market demand for sugar-free beverages. Additionally, a rise in disposable income in this region also creates a huge demand for sugar-free consumables including zero-calorie drinks, sugar-free energy drinks, unsweetened beverages, etc., which is eventually aiding the market's growth.

The third-largest market share in the global market is held by the European region owing to the presence of various developed and developing countries like the United Kingdom, Spain, Italy, France, Germany, and others. The improvement in the health infrastructure provides various growth opportunities in this region. Also, people in the European region tend to spend more money on their well-being, hence creating more demand for sugar-free products to eat and drink.

Sugar-Free Beverage Market Key Players & Competitive Insights

Major key players in the said market segment employ various strategies to sustain their market position in the global sugar-free beverage market by going for mergers and acquisitions, collaborating, setting up a new joint venture, establishing a partnership, developing a new production process, developing a new product line, innovation in the existing product, and many others to expand their customer base in the untapped market of the sugar-free beverage all across the globe.

Sugar-Free Beverage Market Key Companies Insights

• The Kraft Heinz Company (US)


• PepsiCo (US)


• The Coca-Cola Company (US)


• Unilever (UK)


• Nestle (Europe)


• Mars Inc. (US)


• The Hershey Company (US)


• Mondelez International Inc. (US)


• Glanbia PLC (Ireland)


• Galletas Gullon S.A (Spain)


• Zydus Wellness (India)


• Lindt & Sprungli AG (Switzerland)

Recent Developments -

April 2022 - 

In April 2021, Coca-Cola launched its new stevia-based drink called Coca-Cola Stevia to cater to the health-conscious consumer segment, as people will opt for this drink as it has no sugar content.

May 2021 - 

In May 2021, Red Bull, a leader in the energy drink segment, launched a new sugar-free energy drink that has a very minimal sugar content and almost 8 calories in its can of 250 ml to increase its consumer base to health-conscious consumers.

February 2023 - 

In February 2023, PepsiCo, a global leader in the beverages industry, launched caffeine-free lemon-lime flavored soda in the United States in regular and zero-sugar formats.

Market Segmentation

By Product Type

• 
  
  
  
  • Dairy beverages
  
  
  • Energy drinks
  
  
  • Soft drinks
  
  
  • Fruits and vegetable juices
  
  
  
  

By Claims

• 
  
  
  
  • Organic
  
  
  • Lactose-free,
  
  
  • Gluten-free and others
  
  
  
  

By Distribution channels 

• 
  
  
  
  • Store-based physical distribution channels
  
  
  • Non-store-based physical distribution channels.
  
  
  
  

By Region 

• 
  
  
  
  • North America
  
  
  • Europe
  
  
  • Asia-Pacific
  
  
  • Rest of the World