Low- and No-calorie Soda Market

Low- and no-calorie Soda Market Overview

The low- and no-calorie soda market generated total revenue of USD 20.99 billion in 2022. The industry is anticipated to record a significant CAGR of 2.2% over the forecast period to attain a market revenue of USD 26.67 billion by 2033.

• The demand for healthy beverages as opposed to sugary ones is escalating in light of growing health concerns among the masses. As a result, low- and no-calorie sodas are gaining preference among the target consumers.
• Diabetic patients were the initial target consumers of low- and no-calorie sodas. However, in recent years, the market has also targeted the obese population, which is continuously rising. Chief elements contributing to rampant obesity, especially in developed regions, involve rising desk jobs, a sedentary lifestyle, and numerous fast-food establishments.
• Upsurges in new product launches, inventive and engaging campaigns, and appealing product packaging are a few of the frequently adopted tactics by companies delivering low- and no-calorie sodas.
• Rising awareness of the adverse effects of consuming sweetened beverages and restrictive of their calorie intake is projected to be favorable for the market.
• Manufacturers of low and no-calorie sodas are free from any negative impact of the sugar tax. Rather the consumers of regular carbonated drinks are expected to shift to the lite versions due to sugar tax initiation, thereby compounding the sales.

Market Restraints

• The surge in popularity of vegetable and natural fruit juices, for their myriad health benefits, is projected to disrupt market growth.
• Growing preference for freshly prepared juices, smoothies, and other health drinks, made with traditional or new recipes might also hamper the demand for low- and no-calorie sodas.

Market Opportunities

• The acceptance of these beverages is increasing in developing regions where the young population is substantial. Manufacturers are targeting the young population keen on exploring beverages with new tastes and flavors while maintaining a healthy lifestyle.
• Innovations in product packaging to include sustainable materials for minimum carbon footprint and environmental impact are projected to attract environment-conscious beverage consumers.

New Trends in the Market

• Surfacing of healthy sodas, such as seltzers, sparkling waters, and club sodas, by manufacturers to capitalize on the rising demand for zero or near-to-zero calories beverages.
• Swapping with sugar-free sodas, which are lower in calories and carbohydrates, is a healthy choice compared to sugary counterparts.

Attributes	Details
Low- and no-calorie Soda Market Value (2023)	USD 21.46 billion
Low- and no-calorie Soda Market Forecast Value (2033)	USD 26.67 billion
Low- and no-calorie Soda Market CAGR (2023 to 2033)	2.2%

(2017 to 2022) Demand Outlook for Low- and no-calorie Soda Market Compared to Forecast Period (2023 to 2033)

The low- and no-calorie soda market attained a market revenue of USD 20.99 billion in 2022. In the preceding years, the market was positively influenced by the sugar-reduction trend in food and beverage. The COVID-19 outbreak further pronounced the demand for healthy beverage options, with consumers introspecting the food and beverage they consumed. The pandemic escalated the focus of consumers towards self-care, involving the implementation of healthy eating habits to boost their immune systems.

According to the latest report published by Future Market Insights (FMI), the low- and no-calorie soda industry is anticipated to reach USD 26.67 billion by the end of 2033, registering a CAGR of 2.2%. FMI identifies key developments that are projected to spur market growth:

Duration	Market Analysis
Short Term (2023 to 2026)	The market is anticipated to reach USD 22.41 billion by 2025. Changing consumer purchasing behavior, preferring products with low or zero amounts of sugar and calories is projected to yield increased market revenue.
Medium Term (2026 to 2029)	By 2028, the market is estimated to generate revenue of USD 23.93 billion. The market is projected to be pushed forward by various government initiatives. Alongside, manufacturers of food and beverages are developing new formulations with reduced sugar content to attract consumers and maintain market relevancy.
Long Term (2029 to 2033)	By the end of 2033, the market is slated to reach USD 26.10 billion. In the long run, companies that are able to meet stringent government policies against sugar content in food, and can satisfy consumers' high expectations in terms of taste and health, are projected to stay in the market. Additionally, the incorporation of healthy ingredients in low- and no-calorie soda beverages, offering high nutrition, is predicted to augment market growth.

Category-wise Analysis

Key Insights for Product Type Segment

Reasonably Priced Low- and no-calorie Sodas Containing Artificial Sweeteners to Observe High Demand

The artificial sweetener segment is projected to account for a sizeable market share over the next 10 years, registering a CAGR of 2%. The surging buzz around low-calorie sodas available in the affordable price range is propelling the sales of such beverages, especially in countries undergoing development. Additionally, the low-price range of the product, compared to other sodas composed of natural sweeteners, helps the manufacturers enter the marketplace and gain new consumers.

The low and no-calorie sodas consisting of natural sweeteners cater to consumers' consciousness about their health. In addition, elevating demand for products containing natural ingredients from fitness enthusiasts is anticipated to push the demand for natural sweetener-filled low and no-calorie soda. The segment is estimated to expand at a CAGR of 2.6% from 2023 to 2033.

Country-wise Analysis

The United States Market Chiefly Influenced by Taxes Levied on Sugar-sweetened Soda

The dominance of the United States in the low- and no-calorie soda market is expected to remain intact. Market domination of the country can be attributed to the high rate of obesity among people in America, which is a key factor responsible for the rise in product sales. Furthermore, multiple policy initiatives implemented in the country, including taxation on the purchase of sugar-sweetened soda to reduce the consumption of such products and to fund health-promoting programs, are projected to yield profitable returns for low- and no-calorie soda manufacturers.

Government efforts to publicize the adverse health impact of sugar consumption and high sugar content in beverages are projected to help increase the market size of low- and no-calorie soda in the United States.

China Market Outlook: Rise in Consumption of Healthy, Lower-calorie Beverage Options

The growth of China low- and no-calorie soda industry is projected to continue apace, at a CAGR of 3.5% over the analysis period. By the end of 2033, the market is anticipated to generate a revenue of USD 5.29 billion. The surging interest of MNCs to expand and establish their presence in the country for a wide consumer base is expected to induce market growth. In 2018, for instance, Coca-Cola Company launched a zero-sugar variant of ‘Thumbs Up’. Consumers in China are embracing western culture and lifestyle, which enables them to live a healthy life. As a result, consumption of healthy and low- and no-calorie soda is predicted to increase over the upcoming years.

Innovations in Calorie-free Carbonated Drinks to Lure People of Germany

Germany is expected to emerge as a significant market for low- and no-calorie soda within Europe. The German market is projected to expand at a CAGR of 1.8% over the forecast period. The rising low-sugar beverage launches in Germany to address increasing health concerns are projected to have a positive influence over the forecast period. Brands in the market are adapting to the negative image of sugar and coming up with low-sugar product lines to cater to the evolving consumer demands.

The low- and no-calorie soda serves the consumer base having the urge to consume soft drinks, while not compromising their health. The rising demand for zero-type and low-calories carbonated drinks is expected to foster regional market growth. Beverage makers are also constantly experimenting with the product's taste and flavors to ascertain their permanency in the drinks market.

Health Boom in Japan: Manufacturers to Restrict Calories for Weight-conscious Consumers

Japan low- and no-calorie soda market is projected to exhibit a CAGR of 1.5% over the assessment period. The swiftly widening legion of health-conscious consumers, from young women who want to stay slim to middle-aged men and women who want to trim their girth, is predicted to stimulate market growth. An array of beverages is being developed by manufacturers that help restrict calorie intake and satisfy taste buds to meet the burgeoning demand. Additionally, the surge in the availability of ‘zero-type’ beverages in convenience stores and supermarkets in Japan is projected to support product sales.

An increase in routine health check-ups that evaluate blood pressure, fat content, cholesterol, and blood sugar levels by the people of Japan has made them weight-conscious. Thereby, igniting a boom in the sales of zero-calorie sodas.

What the leading Companies in the Market are up to?

Key players in the industry are incessantly identifying consumer preferences and trends and working to develop flavor profiles that satisfy consumers' ever-evolving needs. FMI identified significant players in the low- and no-calorie soda, as follows:

The Coca-Cola:

The Coca-Cola Company

The firm is a leading beverage conglomerate in the world, incorporated in 1892, and headquartered in Georgia, the United States. The company is famous for its leading product and brand Coca-Cola. The corporation is engaged in manufacturing, marketing, and selling non-alcoholic beverages, soda bottles, alcoholic beverages, and concentrated syrups. The firm is proactively developing new products and limiting the sugar content used in the drinks to prepare low- and no-calorie beverage options.

Recent Development of The Coca-Cola Company

In 2021, the Coca-Cola Company launched reformulated Coca-Cola Zero Sugar in the United States. The company claims to offer an even more iconic-tasting Coke. The Coca-Cola Zero Sugar is a zero-calorie and-sugar alternative to the traditional Coca-Cola, with the aim to mirror the taste as closely as possible. The new recipe was released to align the taste closer to Coca-Cola.

PepsiCo Inc.:

PepsiCo Inc.

The company is a large food, beverage, and snack MNC, operating since 1965. The company has forayed into many categories and has been consistently developing and launching new products to expand its product portfolio containing a wide range of foods and beverages. A few of the innumerable products released by PepsiCo Inc. include Lay’s, Mountain Dew, Quaker, Cheetos, Pepsi-Cola, Doritos, and Gatorade.

Recent Development of PepsiCo Inc.

In January 2023, PepsiCo Inc. launched an improved version of Pepsi Zero Sugar having an incredible taste. The new formula of Pepsi Zero Sugar is a great example of the brand’s innovative approach to providing new flavor profiles.

Keurig Dr Pepper:

Keurig Dr Pepper

Keurig Dr Pepper is an MNC, which specializes in beverages and coffeemakers, and has headquarters in Texas and Massachusetts, in the United States. The firm originated in 2018, post the merger between Dr Pepper Snapple Group and Keurig Green Mountain. The product range of Keurig Dr Pepper Inc. includes diverse varieties of ready-to-drink beverages. A few of the highly recognizable brands falling under the company’s umbrella include 7up, Crush, Dr Pepper, and Sunkist.

Recent Development of Keurig Dr Pepper Inc.

In April 2021, Keurig Dr Pepper released a new zero-sugar range in the United States from its flagship Dr Pepper CSD brand. The Dr Pepper Zero Sugar line comprises three flavors – Cherry, Original, and Cream Soda. Each can of this beverage consists of 55 calories and contains aspartame as a sweetening agent.

Other significant companies offering low- and no-calorie soda include Zevia and Kirin Holdings Co., Ltd, among others.

Scope of Low- and no-calorie Soda Market Report

Attributes	Details
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	USD million / billion for Value
By Product Type	Artificial Sweetener, Natural Sweetener
By Region	North America; Latin America; Europe; Asia Pacific; The Middle East and Africa
Key Countries Covered	The United States, Brazil, Mexico, Canada, the United Kingdom, Germany, France, Spain, Italy, Russia, Argentina, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, Australia, Poland, China, New Zealand, Japan, GCC countries, South Africa, others
Key Players	The Coca-Cola Company; PepsiCo Inc.; Keurig Dr Pepper; Zevia; Kirin Holdings Co., Ltd; Others

Key Market Segmentation

By Product Type:

• Artificial Sweetener
• Natural Sweetener

By Regions:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Africa

Frequently Asked Questions

How big is the Low- and no-calorie Soda market?

The market is valued at USD 21.46 billion in 2023.

Who are the key Low- and no-calorie Soda market players?

The Coca-Cola Company, PepsiCo Inc. and Keurig Dr Pepper are key market players.

Which is the key segment by product type?

Artificial sweetener is likely to remain preferred through 2033.

What is the forecast CAGR for the market until 2033?

The market will register a 2.2% CAGR through 2033.

What will be the market value in 2033?

By 2033, the market will reach USD 26.67 billion.