Sugar Free Carbonated Drinks Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, Flavor and Distribution Channel : Global Opportunity Analysis and Industry Forecast 2021-2030

The global sugar free carbonated drinks market size was valued at $125.3 billion in 2020, and is estimated to reach $243.5 billion by 2030, registering a CAGR of 7.3% from 2021 to 2030.

Sugar free carbonated drinks are low calorie or no calorie carbon infused drinks with added natural/artificial flavors, coloring, preservatives, and other ingredients. Aspartame, Saccharin, Acesulfame K are some of the sugar substitutes used as sweetener in sugar free carbonated drinks. The sugar free carbonated drinks market is a brand conscious industry. It is very important for the market players to maintain a positive brand image among the consumers. Moreover, the consumers’ taste and preferences change constantly in this market. Hence, the introduction of new products and new flavors at regular time intervals have become increasingly important for the market players to compete in the market.

The rise in prevalence of obesity and high blood sugar levels among the population is the key reason behind the surge in demand for the sugar free carbonated drinks. Everyone loves the fizzy and bubbly taste of regular carbonated drinks such as seltzer, sparkling water, energy drinks, sports drink, and regular soft drinks. Regular carbonated drinks contain sugar that is harmful for health thus people are shifting toward sugar free substitute of carbonated drinks. According to a study by the Global Burden of Disease, around 4.72 million people died prematurely due to obesity and around 6.53 people died due to high blood sugar in 2017. Higher consumption of added sugar may lead to obesity that again results in various health risks such as heart disease, diabetes, high blood pressure, and certain cancers. These factors are responsible for rise in health consciousness among the population. Moreover, rise in health awareness among the global population boosts the demand for sugar free substitutes of carbonated drinks. These factors propel the growth of the sugar free carbonated drinks market during the forecast period. The desire to look fit and active among the consumers is a key factor that fuels the demand for the sugar free carbonated drinks in the market.

The rapid growth and penetration of fast food chains such as Domino’s, KFC, and Burger King has contributed exponentially toward the market growth in the consumption of sugar free carbonated drinks. These fast food chains include a carbonated drink in their regular meal plans and therefore, boosting the sales of the sugar free carbonated drinks. According to the data published by the Centers for Disease Control and Prevention (CDC), around 36.6% of adults in the U.S. consumes fast food on regular basis. North America and Europe are the largest sugar free carbonated drinks market due to the higher penetration of fast food chains, increased health consciousness, higher purchasing capacity, and higher demand for low calorie products.

The outbreak of COVID-19 resulted in the complete or partial shutdown of manufacturing operations. There were restrictions on travel that disrupted the supply chains and the transport of only essential goods was permitted. However, the revenue of the sugar free carbonated drinks was not much affected. The market witnessed a rapid upsurge in at-home consumption of sugar free carbonated drinks. The COVID-19 had very low or no effect on the global sugar free carbonated drinks market.

The sugar free carbonated drinks market is segmented on the basis of type, flavor, distribution channel, and region. By type, the sugar free carbonated drinks market is divided into soft drinks, energy drinks, sports drink, and carbonated water. By flavor, it is segregated into cola, lime, orange, lemonade, and others. By distribution channel, it is classified into hypermarkets/supermarkets, convenience stores, independent retailers, and others. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, Spain, France, Austria, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, South Africa, Saudi Arabia, and rest of LAMEA).  

According to the sugar free carbonated drinks market forecast, on the basis of type, the soft drinks segment was the highest contributor to the sugar free carbonated drinks market size, accounting for $48 billion in 2020, and is expected to sustain its significance during the forecast period, owing to higher preference and consumption of soft drinks across the globe. The sports drink segment is expected to be the fastest-growing segment due to the increase in participation of population in sports activities owing to the demand for healthy and active lifestyle.

On the basis of flavor, the cola segment exhibited around 54% of the sugar free carbonated drinks market share in 2020 due to the immense popularity of the cola flavor. Cola flavor was popularized by the aggressive marketing campaigns by The Coca-Cola Company, market leader in the carbonated drinks market, in the past few decades.

By distribution channel, the others segment was the prominent segment. This segment includes food service industry, fast food chains, quick service restaurants, food delivery services, online sale channels, and others. Others distribution channel is a dominating and the fastest-growing segment due to surge in popularity of fast food chains and online sales channels all across the globe, and fostering the sugar free carbonated drinks market growth.

According to the global sugar free carbonated drinks market analysis, in 2020, North America dominated the market, garnering around 34.6% of the total sugar free carbonated drinks market share, followed by Europe. North America and Europe are characterized by high disposable income, higher penetration of fast food chains, and increased consumer awareness, which makes them leading markets for sugar free carbonated drinks. However, Asia-Pacific is expected to show promising growth rate due to surge in penetration of fast food chains, rise in disposable income, and increase in awareness among consumers regarding the benefits of low calorie drinks.

Players operating in the global sugar free carbonated drinks market have adopted various developmental strategies to expand their market share, exploit the sugar free carbonated drinks market opportunities, and increase profitability in the market. The key players profiled in this report include Arizona Beverage Company, Llc., Asahi Group Holdings, Ltd., Bisleri International, Jones Soda Co., Keurig Dr Pepper, Inc., Kofola CeskoSlovensko A.S., PepsiCo, Inc., Refresco Group B.V., Suntory Group, and The Coca-Cola Company.

Benefits For Stakeholders

• The report provides a quantitative analysis of the current sugar free carbonated drinks market trends, estimations, and dynamics of the market size from 2020 to 2028 to identify the prevailing opportunities.
• Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
• In-depth analysis and the market size and segmentation assist to determine the prevailing sugar free carbonated drinks market opportunities.
• The major countries in each region are mapped according to their revenue contribution to the market.
• The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the sugar free carbonated drinks industry.

Key Market Segments

By Type

• Soft Drinks
• Energy Drinks
• Sports Drink
• Carbonated Water

By Flavor

• Cola
• Lime
• Orange
• Lemonade
• Others

By Distribution Channel

• Hypermarkets/Supermarkets
• Convenience Stores
• Independent Retailers
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • Spain
  • France
  • Austria
  • Italy
  • Rest of Europe
•  
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• LAMEA
  • Brazil
  • Argentina
  • South Africa
  • Saudi Arabia
  • Rest of LAMEA

  Sugar Free Carbonated Drinks Market Report Highlights

Aspects	Details
By Type	Soft Drinks Energy Drinks Sports Drink Carbonated Water
By Flavor	Cola Lime Orange Lemonade Others
By Distribution Channel	Hypermarkets/Supermarkets Convenience Stores Independent Retailers Others
By Region	North America  (U.S., Canada, Mexico) Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific) LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
Key Market Players	KEURIG DR PEPPER INC., JONES SODA CO., SUNTORY HOLDINGS LIMITED, KOFOLA CESKOSLOVENSKO A.S., THE COCA-COLA COMPANY, ARIZONA BEVERAGES USA LLC, REFRESCO GROUP B.V., .BISLERI INTERNATIONAL PVT. LTD, ASAHI GROUP HOLDINGS, LTD., PEPSICO, INC.

Analyst Review

The carbonated drinks industry exhibited a modest growth in the past. However, the growing prevalence of obesity and high blood sugar levels among the population resulted in increased health consciousness among the consumers. According to a study by the Global Burden of Disease, around 4.72 million people died prematurely due to obesity and around 6.53 people died due to high blood sugar in 2017. Higher consumption of added sugar may lead to obesity that again results in various health disease such as heart disease, diabetes, high blood pressure, and certain cancers. These numbers are the key factors stimulating the consumers to opt for sugar free carbonated drinks by replacing the regular carbonated drinks. Therefore, manufacturers are now focusing on reducing the use of sugar and are constantly focusing on developing healthier options to regular carbonated drinks. Sugar free is a trending topic among the global consumers. Hence, availability of sugar free carbonated drinks are expected to propel in the upcoming years.

Further, the sugar free carbonated drinks is such an industry where the taste, preference, perception, and purchasing behavior of the consumers constantly changes. To tackle such change, the players are continuously engaged in building positive image of their brand among the consumers. Apart from creating brand consciousness, new product launches play an important role in attracting the customers. The players operating in the sugar free carbonated drinks market are constantly involved in developing more healthy substitutes of sugar and also try to introduce new innovative flavors in the market. For instance, Flow Alkaline Spring Water has launched vitamin infused spring water in three flavors such as cherry, citrus, and elderberry. Therefore, the introduction of new flavors and contents in the drinks is expected to be opportunistic for the players operating in the sugar free carbonated drinks market, during the forecast period.

Author Name(s) : Dinesh Thakur| Aniket Kadam | Roshan Deshmukh

Related Tags

• Carbonated Beverage
• Soft Drink
• Canned Beverage
• Bottled Beverage
• Packaged Beverage
• Plant Based Baverage