The non-alcoholic beverage market was worth $79 billion in 2004, a projected increase of 3% over 2003 and representing an indexed growth of 20% between 1999 and 2004. A lower growth rate in recent years could be attributed to the maturing of the major segments, particularly carbonated beverages, milk, and fruit juice/drinks, which together accounted for 75% of 2003 sales.

The main growth driver was demand for bottled water and sports/energy drinks. These spurred growth in the industry due to health concerns and the increasing popularity of low-carb diets. Much industry growth was tied to consumer health concerns, with innovations focusing on health claims such as low sugar, low carb, and soy protein. The industry has also experienced numerous innovations in the form of line extensions based on new flavors, packaging and functionality.

With today’s consumer preoccupied with health, future growth will likely be influenced more by diet trends than taste considerations. With an understanding of consumer perceptions of the beverage market, companies can more effectively develop and market non-alcoholic beverages. Mintel’s report analyzes consumer behavior by demographic characteristics such as gender, age, income and ethnicity. In addition, Mintel’s five-year forecast of the beverage market provides important insight into future marketing strategies.

This report analyzes the non-alcoholic drinks market, and covers:

carbonated soft drinks, including cola and non-cola, regular and diet

bottled water

coffee, including ground/whole bean, instant/freeze dried, international flavored instant, espresso/cappuccino

tea, including ready-to-drink, refrigerated, bagged, loose and instant

thirst quenchers and sports/activity drinks such as Gatorade or Powerade

sparkling water, seltzer and natural sodas such as Mistic, Orangina, and San Pellegrino

milk, including low fat/skim, whole, chocolate/other flavored, buttermilk, organic and soy

fruit juice and juice drinks

instant hot cocoa mix

powdered soft drinks such as Kool-Aid and Country Time, sweetened and unsweetened

tomato and other vegetable juices

The report covers sales of drinks primarily for home consumption, and does not include foodservice sales. Also not included are yogurt drinks, covered in Yogurt Drinks—U.S., consumer intelligence, April 2004.