Global Sugar-Free Carbonated Drinks Market - 2023-2030

Market Overview

Global Sugar-Free Carbonated Drinks Market reached US$ 118.4 billion in 2022 and is expected to reach US$ 211.1 billion by 2030 growing with a CAGR of 7.5% during the forecast period 2023-2030.

Sugar-free carbonated drinks are beverages that provide a sweet and fizzy experience without the added sugar found in traditional carbonated drinks. Zero-calorie carbonated beverages are carbonated drinks that contain no calories, as they are typically sweetened with zero-calorie artificial sweeteners or natural sugar substitutes. Artificial sweeteners are synthetic sugar substitutes used in sugar-free carbonated drinks to provide sweetness without the added calories or carbohydrates. Examples of artificial sweeteners include aspartame and sucralose.

Beverage manufacturers have responded to the growing demand for sugar-free carbonated drinks by expanding their product portfolios. Many brands now offer a wide variety of sugar-free options, including diet sodas, zero-calorie carbonated water, and naturally sweetened beverages with sugar substitutes like stevia or erythritol.

Market Dynamics

Increasing Consumers' Health Concerns is Driving the Sugar-Free Carbonated Drinks Market

The global prevalence of obesity has been steadily increasing over the years. According to the World Health Organization (WHO), the number of obese individuals worldwide nearly tripled between 1975 and 2021. Excessive sugar consumption is often linked to weight gain and obesity. Increasing consumers' health concerns about obesity and its associated health risks have led to a growing demand for healthier beverage options, including sugar-free carbonated drinks.

The prevalence of diabetes has been on the rise globally. According to the Diabetes Research Institute Foundation (DIRF), an estimated 8.5 million people have diabetes in 2022. Diabetes management often involves controlling blood sugar levels, and reducing sugar intake is an important aspect of that. Consumers with diabetes or those concerned about blood sugar control may turn to sugar-free carbonated drinks as a way to enjoy a sweet and fizzy beverage without the added sugar content.

Rise in Diabetic-Friendly Options is Expected to Foster the Sugar-Free Carbonated Drinks Market

The prevalence of diabetes has been on the rise globally. According to The IDF Diabetes Atlas (2021) reports that 10.5% of the adult population (20-79 years) has diabetes, with almost half unaware that they are living with the condition. This increasing prevalence has led to a greater demand for diabetic-friendly food and beverage options, including sugar-free carbonated drinks.

Individuals with diabetes often need to monitor and control their blood sugar levels. As a result, they often follow diabetic-friendly diets that involve reducing their sugar intake. Sugar-free carbonated drinks, which do not contain added sugars or have low sugar content, can be suitable options for individuals with diabetes as they provide a sweet and fizzy experience without affecting blood sugar levels.

Negative Impacts Associated with Sugar-Free Drinks is Hindering the Sugar-Free Carbonated Drinks Market

Sugar-free carbonated drinks, including diet sodas and sugar-free flavored sparkling water, may cause problems ranging from headaches to increased risk of developing diabetes. Even though these sugar-beverages contain fewer calories than traditional sugar-sweetened drinks, consuming them may contribute to weight gain. According to the Center for Science in the Public Interest, these artificial ingredients may promote certain forms of cancer, thyroid problems and preterm birth.

Many people consume sugar-free carbonated beverages because they provide fewer calories than sugar-sweetened alternatives. However, the artificial sweeteners found in these drinks may actually lead to weight gain. For instance, according to an article published in the "Yale Journal of Biology and Medicine", eating natural sweeteners activates food reward pathways in your brain, but artificial sweeteners don't fully activate these pathways.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The global sugar-free carbonated drinks market is segmented based on type, flavor, distribution channel, and region.

By Flavor, the Lime Segment is Estimated to Have Significant Growth During the Forecast Period

Lime is a widely recognized and popular flavor in the beverage industry. Its refreshing and tangy taste appeals to a broad range of consumers. Lime flavor is commonly used in various carbonated drinks, including both sugary and sugar-free options. According to Tastewise, 3.66% restaurants offer Lemon Lime Soda on their menus.

Consumer preferences play a significant role in driving the market share of different flavor segments within the sugar-free carbonated drinks market. Lime flavor has gained popularity among consumers, leading to its prominence in the market. The demand for lime-flavored sugar-free carbonated drinks can be attributed to its refreshing taste and its versatility in pairing with other flavors.

Geographical Analysis

Europe is the Fastest Growing Market in the Sugar-Free Carbonated Drinks Market

Consumer preferences in Europe have been shifting towards healthier beverage choices, including those with reduced sugar content. This trend is driven by an increasing focus on personal health and wellness. For instance, the European Food Safety Authority (EFSA) recommends that the intake of added and free sugars should be as low as possible in the context of a nutritionally adequate diet. Sugar-free carbonated drinks, offering a sweet and fizzy experience without the added sugars, align with these changing preferences and contribute to the market's growth.

The European market has witnessed product innovation in the sugar-free carbonated drinks segment. Beverage manufacturers have been introducing new flavors, formulations, and natural sweeteners to cater to consumer preferences and health-conscious demands. This product innovation contributes to the growth of the market in Europe.

Competitive Landscape

The major global players in the market include Keurig Dr Pepper INC., Kofola Ceskoslovensko A.S., Bisleri International Pvt. Ltd, Asahi Group Holdings, Ltd., Suntory Holding Limited, Refresco Group B.V., The Coca-Cola Company, Arizona Beverages USA LLC, Jones Soda Co., and PepsiCo.

Why Purchase the Report?

• To visualize the global sugar-free carbonated drinks market segmentation based on type, flavor, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of sugar-free carbonated drinks market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global sugar-free carbonated drinks market report would provide approximately 61 tables, 61 figures, and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies