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TREND REPORT
August 2022
Non-alcoholic beverages

World Market for Non-Alcoholic Beverages

The non-alcoholic beverage market includes the soft drinks,

bottled water and juice segments. In 2022, global sales of non-
alcoholic beverages will reach US$1.253 billion. By 2025, the
sector is expected to reach sales of US$1.577 billion, with an
average annual growth of 8% between 2022 and 2025.

Sales of non-alcoholic beverages were led by the soft drinks

segment, which would reach US$847 billion in 2022 (68% of the
total). This segment includes soft drinks, non-carbonated soft
drinks (ready-to-drink tea, coffee and nectars) and energy and
sports drinks. It is estimated that by 2025 sales will reach
US$1.059 billion, with an average annual growth of 8%
between 2022 and 2025.

The second most important segment was bottled water, which

would represent 24% of sales in 2022 (US$302.5 billion. This
segment does not include flavored or vitaminized bottled
water. Sales of US$389.3 billion are expected by 2025 and an
average annual growth of 9% between 2022 and 2025.

The third segment was juices, which would represent 8% of

sales in 2022 (US$ 103.5 billion). Includes only juices with 100%
content. Sales of US$129.5 billion are expected by 2025 and an
average annual growth of 8% between 2022 and 2025.

By 2022, the United States would continue as the country with

highest domestic sales of non-alcoholic beverages with a
turnover of US$ 425.2 billion, an amount that would represent
34% of world sales. It is estimated that by 2025 it would reach
US$518.5 billion, with an average annual growth rate of 7%
between 2022 and 2025.

China would be the second country with the highest domestic

sales in 2022 (US$ 127.1 billion). It is estimated that by 2025, it
would reach US$ 163.1 billion and would have an average annual
growth of 9% between 2022 and 2025.

By 2025, Nigeria is projected to displace the United Kingdom

from fifth place in sales and reach US$56.1 billion, with an
annual growth rate of 18% between 2022 and 2025; while the
United Kingdom would move to sixth place and reach US$ 47.8
billion.

Imports of non-alcoholic beverages

World imports reached US$45.5 billion in 2021, which

represented an increase of 14% compared to the previous
year. At the country level, in 2021 the main importers of non-
alcoholic beverages were the United States, Germany, the
United Kingdom, the Netherlands and France, which
accumulated 40% of total world imports, for a value of US$
18.1 billion.

1
In the case of the United States, the main market and importer
of non-alcoholic beverages, imports from Peru reached
US$37.9 million in 2021, which represented a growth of 25%
compared to the previous year.

Other fruit or vegetable juices (mainly passion fruit and

ginger), citrus juices with a brix value <= 20 (basically lime) and
mixtures of fruit and vegetable juices (mainly watermelon and
huito) accumulated 87% of North American purchases from
Peru, for a value of US$ 33.1 million, which represented an
increase of 26% compared to 2020.

Exports of non-alcoholic beverages

At the country level, in 2021 the main exporters were the

Netherlands, Austria, Germany, the United States and
Thailand, which registered cumulative sales of US$ 16 billion,
which represented 35% of world exports of non-alcoholic
beverages.

Of the 5 countries, Austria and the Netherlands were the ones

that registered the highest growth in their exports in 2021, with
an increase of 23% and 18%, respectively, compared to the
previous year, while Thailand was the country that reached the
lowest rate , 5%.

In the case of Peru, exports of non-alcoholic beverages

reached US$ 87.4 million in 2021, which meant a growth of 9%
over 2020.

The undisputed leader of Peruvian exports was passion fruit

juice, which registered shipments of US$41.8 million, up 5%
compared to 2020.

In second place were exports of lemon juice, with international

sales of US$ 11.6 million and a growth of 8% compared to the
previous year.

Soft drinks, fruit drinks and nectars rank 3rd, with shipments
of US$10.8 million, which represented a drop of 11% compared
to 2020.

electronic commerce

Physical stores are the predominant sales channel for non-

alcoholic beverages. In 2022 only 3% of global sales will be
made through electronic commerce. By 2025, the e-commerce
of non-alcoholic beverages is expected to reach 5% of total
sales.

45% of electronic non-alcoholic beverage transactions would

take place through smartphones by the end of 2022. It is
projected that by 2025, mobile sales will increase to 53% of
total digital sales.
 Trends
Sugar reduction and substitution
Consumers are looking for healthier options, putting particular
pressure on sugary products. For this reason, the per capita
consumption of soft drinks in the United States, the main market
for non-alcoholic beverages, has shown a downward trend in
recent years, from 139.9 liters in 2019 it is expected that in 2025
it will reach a per capita consumption of 121 litres.

Governments also seek to regulate sugar in products, through a

series of labeling requirements or taxes on sugar content, as was
the case in the United Kingdom in 2018.

The industry has reacted by introducing new variants of artificial

sweeteners such as aspartame or natural sweeteners such as
stevia, which are considered healthier, and by expanding the
range of products in the low-sugar or sugar-free categories.
Likewise, flavored water appears as a viable alternative to classic
soft drinks.

Tea and coffee ready to drink

These drinks combine hydration, caffeine and health. Many

consumers are not yet ready to give up sweetened beverages
entirely, and these beverages offer a middle way by combining
appealing flavors with low calorie and sugar intake.

Ready-to-drink tea and coffee offer varying levels of sweetness,

but the spectrum of sweetener options has expanded
dramatically, as have natural alternatives such as agave syrup.

In addition, ready-to-drink tea and coffee can complement

consumers' push for a milder version as well; while regular
coffee contains around 800mg. of caffeine/litre, ready-to-drink
tea and coffee is available in a wide variety of options, from
24mg. (Nestea) up to 632mg. (Black Medicine Iced Coffee) per
liter per drink.

Sustainable and healthy business

The beverage industry is looking for alternatives to disposable
plastic bottles. Many countries have formulated strategies to
restrict the use of plastic packaging, such as the European
Parliament which approved a ban on single-use plastic items by
2021.

Lemon-Aid is an example of a company focused on sustainable

beverages. All of their tea products are made with organic and
fair trade ingredients, and a fraction of their sales go to charity
projects around the world.

On the other hand, the consumption of beverages that reduce

waste and, in turn, be beneficial to health, such as shell drinks,
which are infusions of coffee cherries, which allow the use of the
whole fruit, is spreading.

* 2022 and 2025 projections

Finally, beverages like kombucha have gained popularity due to
+ All sales values shown are for retail value and include sales tax. perceived health benefits. Global sales are expected to increase
+ + The projections do not consider the impact of the Russia-Ukraine conflict.
from US$1.2 billion in 2018 to US$3.5 billion in 2025.