The world market for zero sugar drinks was USD 3,328 million in 2023. The sales growth year on year of 10.6% was faced by zero sugar drinks in 2024 and thus the world market value became USD 4,345.6 million in 2025. World sales would grow at a CAGR of 14.7% between 2025 to 2035 and thus would be the market value of USD 17,127.2 million in 2035.
The key growth driver of the zero sugar drinks market is rising demand for healthy drinks among drinks. The consumers have been more health-conscious and suffering from the negative effects of excessive dependency on sugar, and therefore low sugar or zero sugar drinks demand has seen rapid growth.
Zero-sugar beverages, in which the consumer gets the taste of normal sweetened beverages without any health loss whatsoever, are a huge trend currently. In addition to this, increasing interest in lifestyle conditions like diabetes and obesity has led people to seek alternatives.
These include most of those drink companies like Coca-Cola, PepsiCo, and Nestlé, who have been quick to launch a full line of zero-sugar drinks, from zero-sugar carbonated soft drinks, energy drinks, to flavored water, in a bid to reach out to this new market. They are typically sweetened with low-calorie sweeteners such as artificial or natural sweeteners stevia, sucralose, or aspartame and are thus the appropriate choice for the health-conscious consumer.
| Attribute | Description |
|---|---|
| Estimated Market Size (2025E) | USD 4,345.6 million |
| Projected Market Value (2035F) | USD 17,127.2 million |
| Value-based CAGR (2025 to 2035) | 14.7% |
Along the way of doing that, and along the way of doing this, low-carb and keto diets and body culture also fueled the demand for zero sugar beverages. Convenience of drink to allow the functioning of sugar-free has an excellent means of enabling the consumer to have diet control without sacrificing taste. Sustainability is also driving the market further in that direction. The customers are becoming increasingly aware of the green dimensions and are asking for such companies who are green-friendly.
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| Particular | Value CAGR |
|---|---|
| H1 ( 2024 to 2034) | 14.2% |
| H2 (2024 to 2034) | 14.3% |
| H1 (2025 to 2035) | 14.5% |
| H2 (2025 to 2035) | 14.7% |
Below is six-month comparative CAGR trend from base year (2024) to as-of-year (2025) of global zero sugar beverages market. Analysis provided here reflects swing in performance that is up-to-date and reflects realization of revenues trend and thus offers better understanding to stakeholders of growth trends for a period of twelve months. Half year first one is January to June, H1. Second half one is July to December, H2
During the first half (H1) of the period 2025 to 2035, the company can register a CAGR of 14.5% and be capable of taking its growth to the doorstep of 14.7% in the second half (H2) of the same period. From the five-year perspective of H1 2025 to H2 2035, CAGR will also rise to 14.5% for the first half and rise significantly to 14.7% for the second half.
The company in the first half (H1) had seen an upgradation of 30 BPS, while for the second half (H2) the company had seen an upgradation of 40 BPS. The zero-sugar drink market is expanding at a rapid rate fueled by consumers' demand for healthier drinks and strategic actions of leading retailers and beverage firms. The business professionals in this new venture need to keep themselves updated with industry trends and regulatory standards.
Organized Segment - Global Players and Key Leaders, Strong global beverage players with strong international distribution, established strong distribution networks, and consistent innovation in products head the organized segment. They own huge portfolios of zero-sugar carbonates, energy drinks, flavored water, and functional beverages.
The Coca-Cola Company (USA), with its superb portfolio of zero-sugar offerings such as Coca-Cola Zero Sugar, Diet Coke, Sprite Zero, and Fanta Zero, Coca-Cola is a global beverage leader. The company invests in cutting-edge sweetener technologies such as aspartame and stevia to maintain the original flavor of the soda without sugar.
PepsiCo (USA), PepsiCo also is fighting hard in the zero-sugar segment with Pepsi Zero Sugar, Diet Pepsi, and Mountain Dew Zero Sugar. It is building its sugar-free and low-calorie portfolio in carbonated and non-carbonated drinks like Gatorade Zero and Lipton Zero Sugar Iced Tea.
Nestle (Switzerland) Nestlé leads bottled water and functional drinks segment with sugar-free offerings in Pure Life, Perrier, and San Pellegrino brands. Nestlé dominates nutritional and plant-based drinks in NESCAFÉ and MILO Zero Sugar brands.
Unorganized Segment - Regional and Niche Beverage Makers, The disorganized segment includes small beverage firms, new entrants, and regional ones in the specialty zero-sugar drink category, herbal infusions, and organics. They operate in regional markets and have expertise in natural sweeteners and functional ingredients. Zevia (USA), a rapidly growing firm in the natural zero-calorie drink space, Zevia sells stevia-sweetened sparkling water, energy drinks, sodas, and teas.
Target is buyers of non-GMO and clean-label drinks. Hansen's Natural (USA), while organic and natural beverages are as popular as they are, Hansen's makes sugar-free sodas and sparkling water with fruit juice and other sweeteners. Big K Zero (USA - Regional), Regional Kroger supermarket brand, Big K Zero are cheap, zero-sugar copies of the brand-name sodas, sold by USA chain stores.
Health consciousness & Regulation of Limitation of Sugar
Shift: The world is turning more health-aware in sugar intake with growing concerns regarding obesity, diabetes, and the metabolic syndrome. Government action towards regulation of limitation of sugar includes, for example, the United Kingdom, Mexico, and certain states in the United States, where taxing sugar would help to restrict sugar intake at exorbitant levels.
Consequently, the food and beverage industry is surfing the wave of flavor with more than 60% of global shoppers demanding zero or low-sugar drinks, according to a study by NielsenIQ. Double-digit growth of the zero-sugar versions is a business wave since penetration of sweet carbonates is not high.
Strategic Response: Strategic business leaders in food and drink industries stand ready to provide a warm welcome for re-formulating brands based on such altered preferences. Coca-Cola and PepsiCo re-formulated Coke Zero and Pepsi Zero Sugar to their respective full-sugar equivalent, and that triggered double-digit zero-sugar soda sales in 2023.
Monster Energy lagged behind and launched Monster Ultra, a zero-sugar energy drink, that now accounts for over 30% of its business. Nestlé launches sugar-free powdered drink concentrates in Latin America, taking its penetration to 15%. Zero-sugar and low-calorie beers are launched by Heineken and Budweiser, as well, in response to the demand of consumers for healthy alcoholic beverages.
Transition towards Demand for Functional Zero-Sugar Drinks
Shift: Since zero-sugar drinks are the new players, the preference of the consumers comes into play, i.e., hydration, ease of digestion, alertness, and immunity. Sodas and soft drinks are being replaced by drinks that do something besides stimulating the thirst quenched sensation or nutritional superiority.
Global functional beverage market grew 8.3% in 2023, with zero-sugar energy drinks, hydration drinks, and probiotic fizzy water in the limelight. Low- and zero-calorie functional beverages are being led by health-conscious consumers, led by steadily more Millennial and Gen Z consumers, who are being driven more by flavor and convenience than health.
Strategic Response: The big beverage players are pushing functional ingredients into their zero-calorie line as a move to stay ahead of the trend. Gatorade subsequently launched Gatorlyte Zero, a zero-sugar electrolyte beverage, which grew 12% in the first year and was only equaled by rival competitors and health-conscious followers.
Olipop and Poppi, both of which launched prebiotic sodas to the market just a few years prior, also introduced their zero-sugar variants to their product lines, squarely in the middle market of younger generations in pursuit of gut-benefit utopia. Suntory also tested to bring zero-sugar green tea with collagen and became humongously trendy among Japanese and South Korean health foodies. Red Bull also introduced its Zero-Sugar variants with nootropics for mental acuity for working professionals and students.
Zero-Sugar Beverage Natural Sweetener Frenzy
Shift: Consumers also avoid more and more artificially sweetened products like sucralose and aspartame because of health reasons and flavor. More than 48% of global consumers prefer natural sweeteners like stevia, monk fruit, and allulose for drinks over artificially sweetened drinks.
Clean-label, zero-calorie, and naturally sweetened drinks are becoming very popular particularly in Europe and North America where there is increasing regulatory pressures and consumer food consciousness rendering reformulation inevitable. It was also found that the stevia or the monk fruit flavored drinks have repurchased in volumes greater than artificially flavored drinks once again demonstrating that the customer is searching for products that are derived naturally.
Strategic Response: By way of preparation for this trend, PepsiCo initiated the action of recarbonating Pepsi Zero Sugar by not using aspartame but sucralose and acesulfame potassium blend, and that achieved 16% sales in 2023. Soft drink firm Zevia, whose soft drinks naturally sweeten using stevia, recorded 22% sales growth driven by the rise in clean-label zero-sugar beverage consumption.
To turn the trend around, Coca-Cola introduced "Coca-Cola Stevia No Sugar" throughout Europe, equating to 10% of Coke zero-sugar volume in Europe. Health drink manufacturer Rebbl introduced zero-sugar adaptogenic drinks featuring monk fruit and stevia, and healthy consumers embraced them. Consumer avoidance of artificial sweeteners notwithstanding, however, natural sweetener-supporting companies are gaining hearts and minds in the short term and long term.
Zero-Sugar Bev Beyond Soda
Shift: Zero-sugar colas were ruling the category, but new drinking is encroaching into other categories like iced teas, milk alternative, energy drinks, and spirits. Global zero-calorie spirits market grew 9.5% in 2023, as consumers are still keen on low-calorie beverage products to consume.
Zero-sugar coffee, flavored water, and sparkling water are recording highest sales growth, as the health trend provides consumers sugar-free refreshing drinks. This is felt by Gen Z and millennials who will buy zero-sugar versions of any drink over regular sodas.
Strategic Response: Lipton did this through the utilization of it with the introduction of several Zero-Sugar Iced Teas that garnered an 8% market share of iced tea. Whitler and White Claw, in drinks, innovated zero-sugar hard seltzer and thus boosted volume of sales by 12%. Starbucks leftover pre-emptive-cold-brew coffee recorded growth in take-rates among Gen Z, driven by North America.
Vitaminwater Zero and Hint Water trailed the trend of zero-sugar hydration drinks with added vitamins and electrolytes to further differentiate in expanding functional beverage business. Consumers are trading cola for their zero-sugar version to consume for something new and different and gain new share.
Revolution in Emerging Markets of Zero-Sugar Beverages
Shift: Cool, decades ago in Europe and North America, zero-sugar drinks only began giving birth to their feral twin in Latin America, Africa's newly industrialized countries, and Asia. They are targeting health-focused, disposal incomes and urbanisation are driving zero-sugar beverages, public health trends at local level and government policies are driving low sugar intake downwards, and it is driving the trend for new experience towards zero-sugar drinks. Indian, Chinese, and Brazilian sales of zero-sugar soft drinks increased more than 20% during 2023, and the three nations deserve the market internationalisation of the soft drink.
Strategic Response: Region-variant zero-sugar varieties were rolled out by PepsiCo and Coca-Cola as per the regional preference, hence creating ways for the market share of India and Southeast Asia. Nestlé launched sugar-free milks in Brazil, which saw 17% year-over-year growth in sales.
China's home players Nongfu Spring and Genki Forest rolled out zero-sugar tea and sparkling water drinks, thereby causing overnight conversion to sugar-free. By making in-country marketing, distribution, and manufacturing investments, the developing markets are getting mainstreamed with zero-sugar drinks by the world's largest beverage players and also new players.
The following table shows the estimated growth rates of the top five territories expected to exhibit high consumption of zero sugar beverages through 2035.
| Countries | CAGR, 2025 to 2035 |
|---|---|
| USA | 16.3% |
| Germany | 15.8% |
| China | 8.0% |
| Japan | 10.2% |
| India | 13.5% |
Demand for low-calorie, sugar-free, and functional drinks is a key driver of growth in the USA zero sugar beverages market. Their recent rise is fueled by growing concerns over weight, diabetes and other health risks associated with sugar, with consumers shifting toward zero sugar sodas, flavored waters and plant-based energy drinks. Also driving innovation in the diet beverage category is a trend toward clean-label and natural sweetener alternatives, including monk fruit and stevia.
Germany has been showing significant growth in its zero sugar beverages market owing to strong EU regulations towards using artificial sweeteners, and increasing demand for organic and non-GMO products. There is an increasing demand for low-calorie functional drinks, probiotic sodas, and unsweetened herbal teas. With a base of consumers focused on well-being, German manufacturers are concentrating on natural sugar substitutes, vitamin-enhanced beverages and fortified drinks for hydration.
China's zero sugar beverage market is experiencing rapid growth, propelled by rising health awareness, urbanization, and an increase in demand for alternative sweeteners. Brands are getting creative with zero sugar green teas, gut health-focused collagen waters and kombuchas as the government backs reduced sugar intake. With e-commerce platforms leading a charge in the online beverage sales, Chinese consumers have access to numerous zero sugar beverage opportunities like electrolyte drinks and protein-infused waters.
Japan's zero sugar drinks sector has the advantage of country's huge demand for functional beverages, natural energy stimulation and unsweetened tea culture. Better7:Japanese consumers favour zero sugar green teas, fermented drinks and electrolyte enhanced sports drinks. Moreover, advancements in beverage formulation technology in Japan have resulted in innovations in fiber-enriched, vitamin-fortified, and anti-aging zero sugar beverages.
Market of zero sugar beverages in India is gaining traction owing to rising awareness about diabetes, weight management and healthy hydration. There is a rising demand for Ayurvedic drinks with zero sugar and herbal infusions combined with probiotics in the beverage sector. The emergence of fitness culture and the demand for clean-label beverages is forcing manufacturers to create plant-based energy drinks and immunity-boosting herbal drinks with natural sweeteners.
| Segment | Value Share (2025) |
|---|---|
| Carbonated Zero Sugar Drinks (By Type) | 62.7% |
Demand growth in diet colas, sparkling water and zerocalorie energy drinks has led the carbonated drinks category and the industry. With health-conscious customers yearning for drinks with less sugar and no artificial components, the surge toward low-calorie, stevia-sweetened and naturally flavored carbonated beverages is accelerating. To broaden their appeal, companies are responding with clean-label ingredients, organic extract flavor and natural sweeteners like monk fruit and erythritol.
As functional ingredients ranging from caffeine to electrolytes to antioxidants gain momentum, companies are developing zero-sugar functional sodas and prebiotic-enhanced beverages that invite hydration, digestion and overall well-being. There is also growth in the segment of drinks spiked with adaptogens, B vitamins and probiotics beneficial to gut health, alongside the broader surge in functional wellness drinks.
This category will be moving aggressively forward in this direction with strong growth expected, particularly in Europe and North America, Approaching a tipping point where customers are starting to rapidly replace traditional sweet sodas in their diets with healthy alternative carbonated beverages, With beverage makers leaning toward sustainability, innovative packaging, and more flavor variety, functional carbonated drinks will continue to rise to prominence.
| Segment | Value Share (2025) |
|---|---|
| Sports, Energy & Functional Drinks (By Type) | 37.3% |
Aside from this, the zero sugar segment is also experiencing healthy growth in light of rising preference for natural energy beverages, hydration stimulators, and proteinated drinks. Health-conscious consumers are also seeking BCAA-rich, electrolyte-enhanced, and plant-based energy drinks with either functional benefits without preservatives, artificial sweeteners, and chemical additives. The beverage market is increasingly driven by clean-label, keto-friendly and naturally sweetened options.
As beverage brands explore nootropic compounds, adaptogens and natural sources of caffeine, like green tea extract and guayusa, there’s a growing appetite for premium, non-GMO zero-sugar beverages. Such products show particular appeal among consumers looking to get better focus, sustained energy, and post-exercise recovery without the downside of those sugar crashes.
The zero-sugar drink category has a strong foothold in both North America and Europe and is increasingly gaining mass within other categories of the market from energy drinks, sparkling water, functional wellness drinks, and more. With brands having increasingly capital-fueled emphasis on unique flavor profiles, sustainable packaging, and science-backed active components, this category is poised to expand even further.
The zero sugar beverages market is highly competitive and includes zero-calorie alternative beverages produced by major companies investing in clean-label innovation and natural sweetener alternatives, as well as expanding offerings in the functional beverage sector. To cater to health-conscious consumers, companies are pouring money into monk fruit, stevia, and erythritol-based formulations.
Industry Insights Overall, North America has a tradition of producing sugar-free beverage innovation, functional hydration, and proprietary international distribution, with a few leading manufacturers dominating the sector- The Coca-Cola Company, PepsiCo, Nestlé, Danone, and Keurig Dr Pepper. A lot of multinational firms are growing their Asia-Pacific and European retail footprint to tap into the growing need for convenience, healthy, no sugar drink alternatives.
A few of its key strategies are partnerships with fitness brands and investing in gut-health-enhancing beverages while developing hybrid hydration solutions. Brands are also focusing on sustainable packaging, a low-carbon footprint, and plant-based formulations for drinks.
For instance
The global zero sugar beverages industry is projected to reach USD 4345.6 million in 2025.
Key players include The Hershey Company; Mars Inc.; Nestlé S.A.; Unilever Plc; The Coca-Cola Company; PepsiCo, Inc.; The Kraft Heinz Company; Arizona Beverage Company
North America is expected to dominate due to high consumer demand for diet sodas, functional waters, and sugar-free energy drinks.
The industry is forecasted to grow at a CAGR of 14.7% from 2025 to 2035.
Key drivers include rising demand for low-calorie and functional beverages, increasing consumer preference for natural sweeteners, and the expansion of premium sugar-free hydration drinks.
The market includes a variety of beverages, such as juices, sparkling soft drinks (SSD) including cola and other flavors, energy drinks, and sports drinks, catering to diverse consumer preferences.
These beverages are distributed through multiple sales channels, including B2B and HoReCa (hotels, restaurants, and catering services). Retail sales occur through supermarkets/hypermarkets, convenience stores, food and drink specialty stores, traditional grocery stores, pharmacies/drug stores, and franchise outlets. Additionally, online retail platforms provide an alternative purchasing option for consumers.
The market is segmented as North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Central Asia, Russia and Belarus, Balkan & Baltic Countries, Middle East and Africa.
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Zero Sugar Beverages Market
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