The global sugar-free carbonated drinks market size was estimated at US$121.3 billion in 2020 and is expected to register a CAGR of 7.1% during the forecast period from 2021 to 2027.
Sugar-free carbonated drinks are low-calorie drinks that contain natural ingredients, flavors, colors, and extra preservatives for long use. Sugar-free drinks contain sugar substitutes like Aspartame, Acesulfame K, and Saccharin to maintain the sweetness in the drink. The consumer's expectations with the flavor and nutrition change with time so it has become necessary for companies to introduce new flavors constantly. The market players require continuing a positive impact on the consumers. Hence, the launch of new products and unique flavors are essential for market players to keep up with the demand.
Factors Affecting
The increase in obesity cases in children and adults and high blood sugar levels in people are the key factors driving the rise in the requirement of sugar-free carbonated drinks.
Higher consumption of sugar through drinks can cause severe heart diseases, high blood sugar, diabetes, and even certain type of cancers. The rise in awareness among people, give rise to the requirement of sugar-free carbonated drinks. Hence, the growth of the sugar-free carbonated drinks market is expected during the forecast period.
Moreover, growing aspirations of fitness among the population boost the sugar-free carbonated drinks requirement in the market.
The renowned fast-food chains including Domino’s, KFC, and Burger King are contributing to the sugar-free carbonated drinks market by adding carbonated drinks to their menu. Growing start-ups in the fast-food industry are another key reason for expected promptness in the sugar-free carbonated drinks market during the forecast time.
COVID-19 Impact
The COVID-19 pandemic gave rise to problems worldwide and ended up affecting most of the business sector. Many states' governments announced a complete or partial shutdown which obstructed the entire manufacturing industry. Moreover, lockdown restrictions prohibited the supply of raw material and transportation facilities that negatively affected the global sugar-free carbonated drinks market.
Even after the lockdown shut down manufacturing locations, the revenue of the sugar-free carbonated drinks didn't show any decline. The global sugar-free carbonated drinks market witnessed a swift growth in the consumption of drinks at home. To conclude, the global sugar-free carbonated drinks market faced a very low decline during the COVID-19 pandemic.
North America held dominance in the market and became the maximum shareholder in 2020. As per the 2020 analysis done by the global sugar-free carbonated drinks market, North America and Europe became the leading region, owing to the high disposable income, growing fast-food chains, and increased consumer awareness in both regions. Asia-Pacific is projected to grow at the highest CAGR during the forecast period. The region is likely to witness promising growth because of the growing fast-food startups and expanding fast-food chains. Growth in disposable income and rising awareness among the population can be an additional reason for the expected growth.
Key Players
Key Market Segments
By Type
By Flavor
By Distribution Channel
Segmentation based on Region
