Europe Non-Alcoholic Beverage Market Size (2024-2030)

The Europe Non-Alcoholic Beverage Market was valued at USD 282.50 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 342.04 billion by 2030, growing at a CAGR of 2.77%.

A non-alcoholic beverage is a drink that does not contain alcohol at a greater than 0.5% volume. The Non-Alcoholic Beverage Market has witnessed a rapid expansion and diversification of the Non-Alcoholic Beverage Industry due to changes in customer preferences, health awareness, and the need for better beverage options. Expansion in the population, urbanization, increase in incomes, and shift in consumer habits are some of the key factors that affect market growth. The market is classified into carbonated soft drinks (CSDs), bottled water, fruit and vegetable juices and squashes, ready-to-drink (RTD) tea and coffee, functional and health beverages, and dairy as substitutes for Alcoholic beverages.

Key Market Insights:

Consumers are increasingly attracted to the health benefits of non-alcoholic beverages, which increases the demand for non-alcoholic beverages. Various manufacturers are introducing energy drinks that have natural guarana extracts, vitamins B, and lack taurine. Coca-Cola energy, introduced in Spain and Hungary features caffeine from naturally derived sources, guarana extracts, and vitamins B, and lacks taurine. The rise in fitness awareness and growing consumer inclination toward a healthier lifestyle are the key factors in the growth of non-alcoholic beverages. The younger generation in Europe is engaging in fitness activities, which is increasing the sales of non-alcoholic beverages. Also, companies are promoting non-alcoholic beverages on social media platforms. The younger generation in the region who are actively on social & and mass media platforms made the product category one of the most prominent beverages. Thus, all these factors are driving the sales of non-alcoholic beverages in Europe.

Europe Non-Alcoholic Beverage Market Drivers:

Increasing demand for Food & Plant-based beverages is propelling the market for non-alcoholic beverages and drinks.

The vegan population has grown over the past few years. People are switching to a vegan diet due to increased health issues and sustainability concerns. According to the International Food Information Council's 2021 Food and Health Survey, more than 4 out of 10 consumers believe plant-based food and beverages are healthier than other food & beverages even though these products have similar ingredients and provide similar nutritional benefits. The demand for dairy alternatives is increasing due to the growth of veganism and the increasing lactose-intolerant population. Therefore, beverage manufacturers are launching products with plant-based products to meet the growing demand. The products are made with oat milk or almond milk which are certified vegan. In 2021, a UK-based beverage brand, Minor Figures, launched a wide range of barista-quality canned tea and coffee with different flavors like latte, matcha latte, chai latte, and mocha. Thus, the increasing number of product launches under the plant-based beverage is expected to increase the demand for non-alcoholic beverages in the forecasted years.

Europe Non-Alcoholic Beverage Market Restraints and Challenges:

A wide range of options changes consumer preference is affecting the market growth

Wide options are available in the market, changing consumer preferences and current trends also pose challenges for non-alcoholic beverages. The nature of consumer tastes and preferences requires constant innovative ideas and adaptation by beverage companies. Staying ahead of trends, understanding consumer demands, and allowing product offerings accordingly can be a difficult and demanding task. Also, raw material costs and supply chain interruption can impact the market. Fluctuations in commodity prices, like sugar or fruits, can impact production costs and profit margins. Challenges, faced in the Supply chain such as transportation logistics or importing quality ingredients consistently, can affect the availability and affordability of products. Additionally, increasing regulatory scrutiny and consumer expectations regarding ingredient transparency and labeling are the restraints for the growth of the market. Non-alcoholic beverage manufacturers must follow complex regulations to ensure compliance with food safety standards and labeling requirements. Focusing on maintaining regulations while maintaining product quality and consumer trust can be a challenging task for companies.

Europe Non-Alcoholic Beverage Market Opportunities:

Innovation and flavor diversity are influencing the market, with manufacturers introducing unique flavors and fusion to cater to consumer preferences. Moreover, rising growth in incomes has allowed consumers to spend on premium Beverages that offer superior quality, unique flavors, and healthier attributes.

The shift in drinking habits, among younger generations, has also impacted the market as health-conscious millennials and Gen-Z consumers seek healthier beverages as alternatives like non-alcoholic beverages. Marketing and promotions also play a significant role in branding, advertising campaigns, and endorsements helping to raise awareness and create a positive idea of Non-Alcoholic Beverages. These opportunities will drive the growth of the market.

ROBOTICS MARKET REPORT COVERAGE:

Europe Non-Alcoholic Beverage Market Segmentation:

Europe Non-Alcoholic Beverage By Product Type

• Carbonated Soft Drinks
• Bottled Water
• Tea
• Coffee
• Juice
• Dairy Drinks

In product type, carbonated soft drinks have the largest market share in 2023. Carbonated soft drinks, which are also known as soda or fizzy drinks, offer a range of flavors and carbonation levels, providing consumers with a refreshing experience. The bottled water segment is anticipated to experience the fastest growth during the forecast period due to health consciousness and the need for hydration. Bottled water includes still water, sparkling water, flavored water, and water infused with vitamins, minerals, or electrolytes. These beverages fulfill the health concerns of customers.

Juices offer a variety of fruit-based options which attract the consumer to taste different flavors without actually buying fruits. Energy drinks target consumers seeking an instant energy boost like during summer or gym or sports, while tea and coffee offer convenience and refreshment. Functional beverages are designed with added health benefits and flavored water satisfies the demand for a refreshing and flavourful hydrating option.

Europe Non-Alcoholic Beverage  By packaging type

• bottles
• cartons
• Cans
• pouches

In packaging type, the bottles segment held the largest market share in the market. As it is convenient to carry and requires less space to keep. The cans segment is considered to grow the most during the forecasted period. Cans as compared to bottles are not harmful to the environment due to the environmental benefit that can be expected to grow in the market.

Europe Non-Alcoholic Beverage By category

• sugar-free
• conventional

In this category, it is divided into two segments: sugar-free and conventional. The conventional is the dominating segment in the market. For many years people have been drinking beverages with sugar and recently due to a healthy lifestyle they are shifting their options to sugar-free beverages. In the forecasted period, sugar-free segments are expected to grow due to healthier lifestyles.

Europe Non-Alcoholic Beverage By Distribution Channel

• Specialty Stores
• Online Store
• Supermarkets/ HyperMarkets
• Convenience Stores
• Departmental Stores
• Others

In the distribution channel, the supermarkets & and hypermarkets segment be a dominating distribution channel in the European Non-Alcoholic Beverages Market in 2023. Online stores are the fastest growing segment, providing doorstep delivery.

Foodservice outlets, like restaurants and cafes, add beverages as part of their menu options. Vending machines also provide quick and accessible service in public spaces. Companies can strategically position their products to ensure widespread availability and enhance customer convenience like convenience stores, and colleges.

Europe Non-Alcoholic Beverage Market Segmentation - By Region:

• UK
• Germany
• France
• Italy
• Spain
• Rest of Europe

In the region, the UK captured a 31% market share in 2023 and is anticipated to grow with a CAGR of 5% during the forecasted period. In Spain, the demand for fruit juices is rising, as consumers prioritize healthy and natural options in their non-alcoholic drink choices. Finance is the fastest growing in the European non-alcoholic beverage market. Focusing on the young generation providing them a wide range of non-alcoholic beverages as an option.

COVID-19 Pandemic: Impact Analysis

COVID-19 has also affected the growth in the Non-Alcoholic Beverage Market. As per studies by the World Trade Organization (WTO), overall trade around the globe was impacted by 15-30%. The Non-Alcoholic Beverage Market is expected to grow as consumers continue to prioritize healthy, tastier experiences. Manufacturers and brands are likely to invest in research and development to create innovative and healthier beverages, while also focusing on eco-friendly packaging and improving production methods.

Latest Trends/ Developments:

In 2022, the new Zero Sugar Oat Milk and Oat with Almond Plant Milk Blend is the new product, launched which expands the dairy-free line with new plant milk.

Key Players:

These are the top 10 players in the Europe Non-Alcoholic Beverage Market:-

1. The Coca-Cola Company      
2. PepsiCo Inc
3. Starbucks Corporation
4. Red Bull
5. Nestle S.A
6. Keurig Dr Pepper
7. Asahi Group Holdings
8. Califia Farms, LLC
9. SUNTORY HOLDINGS LIMITED
10. Danone S.A Bolthouse Farms, Inc