Non-alcoholic RTD Beverages are alcohol-free packaged beverages that can be consumed directly upon opening. The global non-alcoholic RTD beverages market is expected to garner a revenue of USD 800 Billion by 2024 at a CAGR of 4.5% during the forecast period of 2019 to 2024. The market is monopolistically competitive in nature due to the presence of several vendors and customers in the market and limited barriers to entry for new players. Vendors in the global non-alcoholic RTD beverages market are witnessing competition from the existing market players and new entrants. To overcome the challenges in such a competitive market, prominent players are focusing on product launches, partnerships, mergers & acquisitions, and expansions in terms of production capacity and geographic reach. In the US, prominent players such as Starbucks Corporation and PepsiCo have entered into a partnership to produce and distribute their products. Similarly, in 2016, Dunkin Donuts and The Coca Cola Company formed a joint venture to produce and distribute RTD coffee in North America and compete directly with the Starbucks Corporation and PepsiCo partnership.
The global non-alcoholic RTD beverages market has been segmented on the basis of type, packaging type, and distribution channel.
Based on type, the global non-alcoholic RTD beverages market has been divided into functional beverages, carbonated soft drinks, tea and coffee, fruit and vegetable juices, flavored and fortified water, dairy-based beverages, and others. The functional beverages segment has further been classified as sports/energy drinks, probiotic and prebiotic drinks, and others. The carbonated soft drinks segment is expected to dominate the global non-alcoholic RTD beverages market during the research period due to the high per capita consumption of carbonated soft drinks. As per WorldAtlas, the per capita consumption of carbonated soft drinks in the US in 2017 was 154 liters. However, the fruit and vegetable juices segment is expected to register the highest growth rate during the forecast period owing to the increasing preference of consumers toward healthy beverages such as natural fruit and vegetable juices.
The global non-alcoholic RTD beverages market has been segregated, by packaging type, into bottles, cans, cartons, and others. The bottles segment accounted for the largest revenue share in 2018 as glass bottles offer high impermeability and longer storage durations than other types of packaging. Moreover, plastic bottles are an inexpensive option for packaging non-alcoholic RTD beverages. However, the cans segment is expected to register the highest growth rate during the forecast period owing to the ease with which RTD beverages can be filled into a can and be consumed.
By distribution channel, the global non-alcoholic RTD beverages market has been classified as store-based and non-store-based. The store-based segment has further been divided into supermarkets and hypermarkets, convenience stores, and others. The store-based segment is expected to gain the lion’s share of the global non-alcoholic RTD beverages market in 2018 owing to the high availability of non-alcoholic RTD beverages in supermarkets and hypermarkets. However, the non-store-based segment is expected to exhibit a higher growth rate during the forecast period owing to the rising presence of e-retail apps and third-party online retailers in e-commerce. Manufacturers of non-alcoholic RTD beverages are opting for third-party online retailers to sell their products rather than investing capital in developing their own e-retail platforms.
Some of the key players in the global non-alcoholic RTD beverages market are The Coca-Cola Company (US), Nestlé S.A. (Switzerland), The Republic of Tea (US), Ting Hsin International Group (Taiwan), Yakult Honsha Co., Ltd. (Japan), DRY Soda Company (US), PepsiCo (US), POKKA SAPPORO Food & Beverage Ltd. (Japan), Danone S.A. (France), Lotte Chilsung Beverage Co. Ltd (South Korea), Starbucks Corporation (US), Suntory Holdings Limited (Japan), Big Easy Blends, LLC (US), Monster Energy (US), and Keurig Dr Pepper Inc. (US).
The key strategies followed by the players operating in the market are innovations, product launches, expansions, and mergers & acquisitions.
The global non-alcoholic RTD beverages market has been segmented, by region, into North America, Europe, Asia-Pacific, and the rest of the world.
North America accounted for the largest market share in 2018 as the region is a prominent hub for numerous market players. Additionally, the increasing consumption of non-alcoholic and natural RTD beverages in North America and Europe, due to their convenience and health benefits is driving the growth of these regional markets. However, changing lifestyles of people and increasing presence of market players in India, China, Japan, and Indonesia are expected to drive the growth of the market in Asia-Pacific, with the regional market registering the highest growth rate during the forecast period of 2019 to 2024.
- In April 2019, Nestle S.A. introduced a new product Poland Spring ORIGIN bottled water under its brand Poland Spring. It is a natural spring water filtered by 10,000-year old glacial sands and contains no additives.
- In January 2019, Big Easy Blends, LLC launched self-packed 6-ounce ready to drink pouches under its brand Welch’s Smoothies. It is available in three flavors—mixed berry, peach mango, and strawberry banana.
- In June 2017, Starbucks Corporation launched its first single-serve RTD Starbucks Iced Latte.
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