Beverage industry overview: research and analysis for business owners

As one of the most important industries that satisfy daily human necessities, the beverage industry has witnessed a surge in market cap. Thus, an overview of the beverage industry offers crucial insights into this ever-changing sector.

This report will give insights into the manufacturing, sales, and consumption of beverages globally. We’ll also provide data on the total market size and competition in the beverage industry. This information allows beverage companies to make effective business strategies.

Overview of the beverage industry

The beverage market has been growing steadily on a global scale. According to global market insights and industry trend reports from leading B2B platforms such as Alibaba Smartbuy, demand for soft drinks and ready-to-drink beverages continues to rise, driven by changing consumer preferences and expanding retail channels. Between 2023 and 2028, it is expected to expand from $ 3.56 trillion in 2023 to $ 4.39 trillion in 2030, at a compound annual growth rate (CAGR) of 4.26%.

The food and beverage sector is one of the most essential industries that meet daily human needs

An important note is that drink shops (like milk tea stores , coffee chains, etc.) are part of the food and beverage service sector. This service sector won’t be covered by this beverage industry report.

Generally speaking, there are two primary segments of the beverage industry

Non- Alcoholic beverage

Non-alcoholic beverages contain no alcohol, such as soft drinks, juices, tea, coffee, energy drinks, water, functional drinks, etc. In 2023, the global market for non-alcoholic drinks was expected to be worth $1,223.93 billion USD

Non-alcoholic beverages are vital to our daily life. Bottled water, juice, soft drink keep us hydrated and refreshed. That’s why its consumption is rising in every country. Every day, billions of people buy non-alcoholic beverages to quench their thirst.

Annual consumption of Non-alcoholic beverage among a decade from 2011 to 2021

Alcoholic beverages

Alcoholic beverages include drinks containing alcohol, such as beer, wine, spirits (vodka, whiskey, rum, etc.), and liqueurs. The production process involves fermentation (for beer and wine) and distillation (for spirits). The alcoholic beverages market was valued at $2,313.2 billion USD in 2023.

Despite the considerable number increasing during the years, the alcoholic beverages industry accounts for a booming consumption in some countries, especially in South-est Asia. Three leading countries are Vietnam, China and India, made up of 11.3% to nearly 90% during the given period.

By contrast, there is a slight decrease in the average liters consumed by a person in the developed countries such as Australia (-14.4%), Canada (-10.8%) and the United Kingdom (-7.3%).

The consumption trend of alcoholic beverages regards countries (2010-2017)

Impacts of Covid-19 epidemic on the beverage market

From the beginning stage of Covid-19, the beverage industry had to deal with both the plummet in consumption in almost all categories and the disrupted supply chains. The in-house consumption has increased considerately. However, the out-of-home consumption, which brought the largest profit margin, decreased.

Restaurants are rapidly losing their business, and it is predicted that over ⅓ of all restaurants will not succeed in the long term post-COVID-19. Those who remain open now make a mere 20% of their typical sales via takeout and delivery.

In 2020, it is estimated that one-third of food and beverage owners lost their businesses in the epidemic time. Among them, a lot of companies had been interrupted or closed . The left could only be made up with 20% compared with usual typical sales.

However, at-home consumption has led to the rising popularity of ready-to-drink beverages. This segment significantly boosted beverage sales across the globe.

Negative impacts of Covid-19 epidemic on the beverage industry

The biggest Beverage Industry Segments

The beverage industry’s products are incredibly diverse regarding classification, with a wide range of servings for customers regardless of age or health statement. There are some common ways and the beverage market can be broken up.

Let’s look at the overview of the biggest segments in the beverage industry:

Alcoholic Beverage

Beer

By 2023, the beer market around the world had grown to over $ 649.63 billion. Between 2024 and 2032, the beer market is projected to reach a value of almost $ 847.65 billion, expanding at a CAGR of 3%.

Some competitive beer brands with exceptional sales cases

Emerging markets and developing countries play a pivotal role in driving growth within the beer industry:

• These regions, including countries like China, Canada, and Germany, experience rising acceptance of beer consumption. As economies grow and lifestyles evolve, more people seek out beer for special occasions and everyday enjoyment.
• A growing middle class and urbanization contribute to higher beer consumption in these countries. As disposable incomes rise, so does the demand for beverages like beer.
• Beer companies recognize the potential in these markets and invest strategically. They acquire or partner with local breweries to gain access, expand distribution networks, and cater to diverse tastes.
• The popularity of craft beer is also growing as younger consumers choose its wide range of flavours and styles.

Wine

In 2023, Expert Market Research estimated the global wine market to be worth $ 428.96 billion. It is expected to expand at a CAGR of 6.20% from 2024 to 2032, with an estimated value of $ 737.13 billion by 2032. 

Top wine brands in terms of sales revenue and market share

Being the dominant segment with the largest market share among alcoholic beverages, the wine industry feels confident in leading the profit margin.

The introduction of low-ABV drinks for the working population and the growing trend of people socializing over alcohol are the main drivers of the wine market’s growth.

Spirits

The estimated value of the worldwide spirits market as of 2023 is $ 59,408 million. It is expected to grow at a compound annual growth rate (CAGR) of almost 4% during the forecast period. Around $ 90,288.9 million is expected to be generated by spirits sales worldwide by 2033.

Top spirit brands in terms of sales revenue and market share

The main reason may be the growing demand for premium alcoholic drinks brought on by increased consumer spending. Additionally, the popularity of bars, pubs, hotels, and restaurants that serve alcohol is rising, and this trend is expected to drive spirits sales even higher.

Non-alcoholic Beverage

Juice

The juice market is projected to grow from an estimated $137.9 billion in 2024 to $168.4 billion in 2030.

Juice sales

This growth is attributed to the growing consumer preference for healthier beverages and the use of cold-pressed juices. Healthier diets and organic trends have pushed this industry forward in recent years.

Bottled Water

Let’s look at two tables of sales below:

Bottled water sales

It can be informed that Bottled had the most dramatic growth. Bottled water is essential to disaster struck areas. And they are a safe source of drinking water whenever you travel. This is why it accounts for an outstanding market share.

Soft Drink

In 2023, the market for carbonated soft drinks was valued at about $ 604.0 billion worldwide. With a projected growth rate (CAGR) of 4.18% from 2024 to 2032, it is anticipated to reach $ 872.8 billion.

There is a wide variety of soft drinks available, including carbonated, zelo-calorie, and more

On the other hand, the non-carbonated drink market is projected to grow from $ 335.60 billion in 2024 to $ 514.96 billion in 2030. The projected CAGR is 7.11% from 2022 to 2027.

Industry demand is further driven by millennials’ preference for soft drinks and higher R&D spending in the food and beverage sector.

Coffee

According to Mordor Intelligence, the coffee market was expected to be worth $ 132.13 billion. Growing at a CAGR of 4.72% over the forecast period (2024–2029), it is anticipated to reach roughly $ 166.39 billion by 2029.

Market share and sales case of RTD Coffee

As more people embrace the coffee culture, the demand for coffee continues to rise globally.

Tea

Mordor Intelligence estimates that the global tea market reached $ 12.63 billion by 2023. At a compound annual growth rate (CAGR) of 5.5%, its value is expected to reach roughly $ 17.41 billion by 2029.

Tea, especially when substituted for higher-calorie drinks, is beneficial

This growth is attributed to the health benefits of drinking tea, growing consumer awareness of carbonated drinks, and changing consumer preferences for natural ingredients.

How competitive is the beverage industry?

In general, is the competition in the beverage industry high?

Yes, it is.

The simple reason is that every fat land will attract a vast number of farmers. So does the profitable beverage industry.

The beverage industry is highly competitive due to ongoing innovation, shifting consumer tastes, and shifting market positioning. Businesses face numerous obstacles in their quest for customers’ attention. Here are the 4 biggest challenges for companies in the beverage industry.

A growing number of start-ups

The food and beverage industry is crowded, according to a StartUs Insights report, with over 349,000 companies actively registered in the database. However, the market is dominated and influenced by well-known companies like Nestle, PepsiCo, Anheuser-Busch InBev, Heineken, and Coca-Cola.

Nonetheless, innovative startups are also becoming more prevalent in the beverage industry. These startups compete based on novelty and innovation. As a result, they contribute to over 92,100 patents and more than 6,240 grants.

When new players join the beverage market, they must set themselves apart with creative branding, distinctive value propositions, and innovative approaches.

Changing consumer preferences

Rapidly changing consumer preferences demand a more comprehensive range of sustainable, healthy, and tasty beverage options.

There is a growing market for low- and non-alcoholic beverages (like wine, kombucha, beers, and seltzers).

Customers are turning away from beverages with added sugar.

Brands emphasize premium ingredients, flavours, and experiences because consumers value quality and originality.

• Market dominance is seen in drinks with extra nutrients, such as vitamins, antioxidants, or probiotics.
• Waste reduction, eco-friendly packaging, and ethical sourcing are some top concerns for consumers.

Brands must always remain flexible and agile to stay updated and meet these preferences.

Supply chain complexities

Because of its global nature, the beverage industry faces complex supply chain difficulties. Raw ingredients like fruits and vegetables have high seasonality and locality factors. These can lead to price swings and shortages.

Ensuring the safety and quality of food and beverages is critical. Tainted or adulterated products can hurt customers and ruin a business’s reputation.

Beverage companies can face supply chain issues such as growing fuel costs, fluctuating demand, scarcity, and specialized storage and transportation requirements.

Infrastructure investments are substantial when it comes to beverage production

Environmental concerns

When selecting beverages, consumers give sustainability a top priority. Because of this, brands need to create eco-friendly projects.

• Ensuring the ethical and ecologically sustainable sourcing of raw materials.
• Economical use of resources during manufacturing.
• Reducing trash and encouraging recycling.
• To overcome these problems, brands must engage in strategic planning, be innovative, and have a profound awareness of the industry dynamics.

Top 5 Biggest beverage companies in the world

With their vast product lines and presence on a global scale, these corporations have a dominant position in the beverage industry everywhere.

Anheuser-Busch InBev (AB InBev)

Anheuser-Busch InBev (AB InBev) is a Belgian-Brazilian multinational drink and brewing company headquartered in Leuven, Belgium. It is the largest beverage company in the world by revenue ($59 Billion USD in 2023). Anheuser-Busch InBev specializes in manufacturing and brewing all kinds of alcoholic beverages.

With 595 million hectoliters of beer produced annually, it is the largest brewer in the world. AB InBev is renowned for its wide range of recognizable national and international brands, which include over 500 highly appreciated beers. Their love of brewing inspires them to develop the industry and produce worthwhile experiences.

Anheuser-Busch InBev presently controls over 500 beer brands across 150 countries

The Coca-Cola Co.

Founded in 1892, The Coca-Cola Company is a multinational corporation in the United States. It is the biggest non-alcoholic beverage company in the world by revenue ($45.754 billion USD in 2023).

It manufactures, sells, and markets soft drinks, including the iconic Coca-Cola brand and other non-alcoholic beverage concentrates, syrups, and alcoholic beverages. With products sold in more than 200 countries and territories, it remains a global leader in the beverage industry.

Coca-Cola’s extensive range of beverages and associated products

Nestlé SA

Nestlé SA is a Swiss multinational food and beverage company headquartered in Vevey, Switzerland. In 2023, the company’s beverage divisions (including beverages, water and dairy) generated nearly $40 billion USD in revenue.

Nestlé operates in over 70 countries and offers a variety of wonderful beverage brands that cater to different tastes and preferences. Nestlé is committed to nutrition, sustainability, and advancing regenerative food systems. Their brands touch lives globally, positively impacting quality of life.

Millions of people all over the world love NESCAFÉ coffee

PepsiCo Inc.

PepsiCo is an American multinational food and beverage corporation headquartered in Harrison, New York. In 2023, Pepsico’s net beverage revenue was $37 billion USD (which was 41% of their total revenue).

With a diverse portfolio of brands, PepsiCo produces and markets a wide range of beverages, including Pepsi-Cola, Gatorade, Mountain Dew, and SodaStream. Their commitment to sustainability, diversity, and community impact drives their global presence.

One of the world’s largest beverage producers and distributors is PepsiCo

Heineken NV

Heineken employs approximately 85,000 people and is a global beverage industry leader in alcoholic beverages. Their 2023 revenue is € 30 billion EUR. Heineken continues to shape the beer world as the number one brewer in Europe and one of the largest brewers worldwide by volume.

Heineken N.V. is a Dutch multinational brewing company founded in 1864 by Gerard Adriaan Heineken in Amsterdam.

With over 165 breweries in more than 70 countries, Heineken produces a diverse range of 348 international, regional, local, and specialty beers and ciders.

HEINEKEN Beverages creates a global experience

These businesses are still influencing the beverage sector by adjusting to shifting consumer tastes and worldwide patterns.

Conclusion

To sum up, despite the high mutual competitiveness among segments, the beverage industry is considered a potential market with a promising future. As can be clarified above, we have provided you a general overview of the beverage industry by related statistics for sales revenue, market share, and estimated growth.

From that, you can get the entire picture of both current and future product trends to obtain the purpose of satisfying customers and maximizing their great experiences.

Tan Do is a global beverage ODM/OEM manufacturer and supplier located in Vietnam. Since 1996, we have built trust and credibility not only throughout Vietnam but also in many parts of the world. Leveraging state-of-the-art technology, we have crafted thousands of products that align with ISO, HACCP, HALAL, FDA, and many other standards.