In Matthew Iovane’s opinion, what exactly is the size of the beverage industry? Globally, the industry is vast and rising. Bottled water is the industry's fastest-growing category, with a compound annual growth rate of 7.4 percent predicted for the next six years. It is estimated that the category accounts for 24% of the entire beverage market in the United States. It is followed by coffee, with 60% of American people regularly consuming bottled water.
As the industry expands and becomes more global, the number of beverage manufacturers expands and changes. To keep ahead of the competition, some of the world's largest beverage firms are merging, acquiring, and developing new products. Chi Ltd., a prominent juice and dairy products firm, was recently bought by the Coca-Cola Company. Diageo announced in August that it will buy Seedlip, a non-alcoholic beverage firm.
Several prominent companies are tailoring recipes to local tastes. Other firms are providing innovative packaging in order to increase their market share. Many manufacturers are intending to offer new items in the near future as health and wellness trends continue to develop. Super premium juices, handcrafted soda, and premium hydration are among the new offerings. These items are expected to increase dramatically in the coming years. While the sector as a whole is large, certain important businesses are concentrating on specialty niches such as organic drinks and functional beverages.
Aside from the big players in the non-alcoholic beverage market, there are a number of smaller and less established firms operating. The Coca-Cola Company, Nestle Waters, and Danone S.A. are three of the world's largest producers. SUNTORY BEVERAGE & FOOD LIMITED, Asahi Group Holdings LTD, and PepsiCo are among the other notable corporations.
Matthew Iovane pointed out that the non-alcoholic beverage industry is highly concentrated, with North America accounting for the lion's share. To accommodate the rising demand, key firms are experimenting with new product launches, mergers, and marketing methods. A recent example of this is the introduction of a line of sparkling cocktails under the brand name Bar None in the United States. The drinks are increasingly seen as a healthy substitute for alcoholic beverages. The beverage sector is one of the fastest expanding industries in the world.
While soft drinks have long been a cornerstone of the business, the past decade has seen a number of intriguing advancements. CBD-infused sparkling water and plant-based milk beverages are becoming more popular. As a consequence, all beverage players are putting in extra effort to suit the expectations of the next generation customer. PepsiCo just introduced Hydrate, a new platform for customers that allows them to personalise their drinks.
The market for non-alcoholic beverages is divided into four sections: type, distribution channel, geography, and region. The figures are in billions of dollars. During the forecast period, the market is expected to expand at a CAGR of 4.7 percent (2022-2027).
Non-alcoholic drinks constitute more than half of the worldwide beverage market. In recent years, the non-alcoholic beverage sector has grown rapidly, accounting for about half of the total beer business. Rising consumer demand, changing consumer tastes, and the removal of trade obstacles are driving this growth trend. In the next years, Asia Pacific's rising nations will become the world's biggest beverage markets. For investors, the global beverage market provides a comprehensive perspective of the industry.
According to Matthew Iovane, RTD beverage consumption suffered greatly during the recession but began to recover by 2010. RTD teas and coffees now account for the lion's share of the market. Nutrient-enhanced waters and sports drinks are also popular. RTD teas and coffees were valued at $565 million in 2013. Another consideration is convenience, with ready-to-drink cans enabling customers to duplicate the out-of-home experience at home at a lower cost.