Still Drinks Market, by Product Type (Flavored Water & Functional Water, Juices, RTD Tea & Coffee, Sports Drinks, Bottled Water, Others), by Distribution Channel (Supermarkets, Hypermarkets, Online Channels, Convenience Stores, Others)-Global Industry Insights, Trends and Forecast, 2017-2025

Created On: Jun-2018
Report ID: IR101
Format: PDF

Market Introduction

Still drinks are also known as non-carbonated beverages, beverages that do not contain any amount of fizz or alcohol in them. The sale of carbonated beverages is witnessing a steady decline across the globe on account of rising health awareness among the consumers, as they are shifting their focus towards healthier alternatives such as flavored drinks, juices with low fruit content, and sports drinks among others. Carbonated beverages aid in tooth erosion, loss of calcium content in bones, and irritable bowel syndrome among others. These issues have altered consumer mindset and is pushing them towards the consumption of beverages without carbon content, which has paved the way for still drinks in the market. Although carbonated beverages comprise of the higher share in the global non-alcoholic beverages, demand for still drinks is witnessing a faster growth rate at present.

Market Dynamics

High demand for ready to drink (RTD) tea and coffee is a key factor pushing market growth for still drinks. The demand for RTD tea in Japan witnessed a massive surge in 2017 on account of rising demand for healthy beverages among consumers. Freshly brewed tea in Japan has transformed into RTD packaged tea and the demand for the same is majorly supported by the working populace in the country, who prefer convenience. Mugicha RDT tea is the leading brand of RTD Tea in Japan owing to its hydrating, mineral rich, and caffeine free features, which is largely preferred by the consumers. Further, the market of RTD tea in Japan is expected to be fuelled due to rising consumer demand for sugar-free content, varied flavor, and functions. In addition to this, Western Europe is considered to b the third largest market for RTD tea, with the per capita consumption of the same being one of the highest across the globe. Austria, Portugal, and Switzerland are the major consumers of RTD Tea. Turkey and U.K. are expected to witness the fastest growth during the forecast period for RTD Tea. The demand for RTD tea in Turkey is majorly fuelled due to consumer indifference to sugar-based beverages.

According to Insights and Reports, the RTD coffee market is anticipated to maintain a favorable growth of an excess of 6% during the forecast period and the demand for the same is considered to be at par with specialist coffee shops. Manufacturers along with specialist coffee shop vendors are actively increasing their RTD coffee portfolio, with Starbucks introducing the trend back in 2007. Further, in 2018, Starbucks Corporation and Arla Foods extended their agreement, allowing the latter with the license to manufacture, distribute and market the formers premium milk based ready to drink coffee in the EMEA region for a period of 21 years. New Zealand is a key market for RTD coffee as the consumers in the country have a high preference for milk-based beverages. Therefore, in case of RTD coffee, milk based coffee ranks higher in terms of preference compared to brewed coffee without milk. Barista Bros launched by Coca-Cola in 2016 has gained significant traction in terms of brand value to become the third largest RTD Coffee brand in 2017. Further, Ice Break by Parmalat Australia is another brand that has gained strong traction in the RTD coffee market in New Zealand.

Market Segmentation and Analysis

Based on product type, the global still drinks market has been segmented into flavored water and functional water, juices, RTD tea & coffee, sports drinks and bottled water among others. Juices are expected to dominate the market throughout the forecast period on account of rising demand for ready to drink liquid breakfast products among the millennial.

Further, based on distribution channel, the market has been classified into supermarkets, hypermarkets, online channels, and convenience stores among others.

Geographical Outlook

North America led the global still drinks market in 2016 and is expected to retain its stronghold throughout the forecast period as well. Notable transition in the consumption pattern of the consumers in the U.S., with a heightened inclination towards still drinks, is the key factor driving the demand for the still drinks market in the country at present. According to Insights and Reports, the U.S. is the largest consumer of bottled water, with per capita consumption of bottled water amounting to 42 gallons in 2016. Dasani is the leading brand of bottled water in the country, with the revenue crossing the US$ 1 billion mark in 2017, followed by Aquafina, and Nestle Pure Life among others.

Asia Pacific recorded the fastest growth in the still drinks market throughout the forecast period. India and China, being the most populated countries in the world are spearheading the growth of the market in the region. High consumption of tea in countries such as India and China have contributed to the growth of the still drinks market in the region. Further, rising temperatures levels in India has given rise to increased consumption of still drink products such as juices and bottled water. Rising disposable income of the consumers due to the increasing working population in the country has further influenced consumer purchase towards fruit juices, which is replacing homemade juices and is becoming a compulsory item on the breakfast table

Competitive Landscape

Some of the key players operating in the field of still drinks market include Groupe Danone S.A., Nestle S.A., PepsiCo Inc., The Coca Cola Company and Unilever Plc. among others.

Our Research Approach Includes
  •  Market Outlining
  •  Framing discussion guide
  •  Data Validation
  • Data Analysis
  •  Re-Validation and Finalization of Data
  •  Report Insights and Publishing
Our Research Approach Includes
  •  Market Outlining
  •  Framing discussion guide
  •  Data Validation
  • Data Analysis
  •  Re-Validation and Finalization of Data
  •  Report Insights and Publishing
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