Diet Drink Market By Product Type (Zero Calorie, Low Calorie), By Distribution Channel (Supermarkets & General Merchandisers, Convenience Store, Food Service & Drinking Place, Online), By End-User (Teenagers, Young Adults, Middle Aged Adults) and Region, Global Trends and forecast from 2024 to 2030

Diet Drink Market Segmentation Analysis

The market for Diet Drink is divided into segments according to product type, distribution channel, end user and region. The diet drink market encompasses various product types, including zero-calorie and low-calorie options, with distribution channels spanning supermarkets, convenience stores, food service, and online platforms. Tailoring to a diverse consumer base, the market targets end-users across different age groups, including teenagers, young adults, and middle-aged adults, reflecting a broad and segmented approach to meet the preferences and health-conscious demands of various demographics.

With a 71% market share, the zero-calorie category led the global market in 2022. Zero-calorie beverages are becoming more and more popular as people focus more on their health and weight loss. When it comes to soft drinks, those who are controlling their calorie consumption or following specific diets like low-calorie or ketogenic diets sometimes choose zero-calorie options over standard ones. The market for zero-calorie beverages offers a wide variety of tastes and options. Major soft drink companies provide zero-calorie versions of popular brands including cola, lemon-lime, orange, and other fruit-flavored beverages. Furthermore, there are calorie-free options available for carbonated water, flavored water, and energy drinks.

There is a noticeable dispersion in the diet drink market’s low-calorie section, with Transosteal Implants holding a sizable 29% share. This suggests a strong customer preference for low-calorie products in the diet drink sector. Transosteal implants, which pass through the mandible, are a popular option in this particular category, which reflects the varied preferences of consumers for lower-calorie beverages. The noteworthy market share indicates a robust inclination towards the acceptance and utilization of low-calorie products, hence underscoring the need of accommodating diverse dietary choices in the diet drink industry.

With a 42% market share, the supermarket/hypermarket category led the global market in 2022. Given that the products are physically exhibited in the stores, customers may scan the product data. Supermarkets and general merchandisers are major suppliers of diet soft drinks. Customers may scan product details from the actual displays of items in the stores. Additionally, the availability of a large selection of goods from various companies allows customers to compare and select the ideal option. The growth of the organized retail industry as well as the numerous deals and discounts offered by the top companies have contributed to these items’ increased visibility.

Furthermore, the items are purchased via internet distribution channels.  The online distribution channel is being driven by an increase in e-commerce platforms and the expanding everyday use of smartphones. Businesses such as bigbasket.com and groffers.com are developing door-to-door goods delivery services that combine an extensive online product display with in-person delivery. Additionally, the online platforms’ discount offers are affecting consumers’ purchasing decisions.

Diet Drink Market Dynamics

Driver

The increasing health consciousness among consumers drives the diet drink market growth.

The market for diet drinks is expanding rapidly due to customers’ growing health concern. Customers are actively searching for healthier beverage options as they become more conscious of the connection between nutrition and general well-being. Diet beverages have been increasingly popular due to the desire to control weight, cut calories, and treat health concerns associated to lifestyle choices. The emphasis being placed globally on wellness and preventative healthcare is fueling this trend even further. Making educated decisions, consumers are choosing sugar-free and low-calorie products to support their health objectives. This shift in customer tastes favors the diet drink business as health-conscious lifestyles grow more popular. In response, businesses are developing novel product formulas, adding natural components, and highlighting the dietary advantages of their offerings. The robust association between health consciousness and the demand for diet drinks positions the market for sustained growth as consumers continue to prioritize their well-being through mindful dietary choices.

Restraint

The health issues associated with artificial sweeteners hamper the demand for diet drinks, restraining market growth.

Health concerns about artificial sweeteners limit the demand for diet beverages and impede industry expansion. A number of customers have worries over the possible negative health impacts of artificial sweeteners, citing the issues around their effects on metabolism and the microbiota. The safety of several artificial sweeteners has been questioned in reports and research, which has made consumers more skeptical. Prospective customers are further discouraged by concerns including headaches, stomach troubles, and an aftertaste connected to certain sweeteners. The attraction of conventional diet drinks is being impacted by this health-conscious customer segment’s growing preference for natural and alternative sweeteners. Consequently, the industry must innovate in formulations and communicate openly about the safety of components in order to mitigate unfavorable views. Businesses embracing natural sweeteners and attending to health-related issues are better positioned to navigate this challenge and align with evolving consumer preferences for healthier beverage choices.

Opportunities

It might be possible to expand the diet drink market by including functional benefits or supplementing diet soft beverages with minerals, vitamins, or other healthy components.

By adding functional advantages and boosting diet soft drinks with vitamins, minerals, or other health-promoting ingredients, the diet drink industry might be expanded. This strategy is in line with the growing customer preference for functional beverages that provide extra health benefits in addition to low-calorie choices. Producers of diet drinks can reach a wider market by adding components that support general health, such as antioxidants, energy-boosting compounds, or vital minerals. This tactic fills in nutritional deficiencies while also presenting diet beverages as tasty and accessible options for consumers who are health-conscious. In a competitive market, adding functional advantages may set items apart and appeal to consumers who value both flavour and nutritional content. Moreover, this innovation may attract new customer segments interested in specialized diet beverages, ultimately fostering market growth and catering to evolving consumer expectations for beverages that offer more than just reduced calories.

Diet Drink Market Trends

• Functional Ingredients: A growing trend involves the incorporation of functional ingredients such as probiotics, vitamins, and antioxidants in diet drinks, offering additional health benefits beyond calorie reduction.

• Natural Sweeteners: Consumers are increasingly leaning towards natural sweeteners like stevia and monk fruit as alternatives to artificial sweeteners, driving the demand for diet drinks with cleaner ingredient lists.

• Innovative Formulations: Companies are continuously innovating formulations to enhance the taste and texture of diet drinks, addressing previous concerns about aftertastes and texture associated with some artificial sweeteners.

• Sustainable Packaging: There is a rising emphasis on sustainability, with companies adopting eco-friendly packaging solutions to align with consumer preferences for environmentally conscious products.

• Diversification of Flavors: Offering a diverse range of flavors, including exotic and fruit-infused options, has become a trend to appeal to a broader consumer base and provide more enjoyable alternatives to traditional options.

• Personalization and Customization: Brands are exploring personalization options, allowing consumers to customize their diet drinks based on flavor preferences, nutritional needs, and health goals.

• Low-Sugar and Low-Carb Varieties: Beyond calorie reduction, there is a focus on developing low-sugar and low-carbohydrate varieties to cater to consumers specifically seeking to manage their sugar and carbohydrate intake.

Competitive Landscape

The competitive landscape of the diet drink market was dynamic, with several prominent companies competing to provide innovative and advanced diet drink.

1. The Coca-Cola Company
2. PepsiCo, Inc.
3. Nestlé S.A.
4. Dr Pepper Snapple Group
5. Red Bull GmbH
6. Monster Beverage Corporation
7. Keurig Dr Pepper Inc.
8. The Kraft Heinz Company
9. Danone S.A.
10. National Beverage Corp.
11. Asahi Group Holdings, Ltd.
12. Unilever
13. The Hershey Company
14. Ocean Spray Cranberries, Inc.
15. Bai Brands LLC
16. The Coca-Cola Bottling Co. Consolidated
17. Britvic plc
18. The Swire Group
19. Arizona Beverage Company
20. Pepsi Bottling Ventures 

Recent Developments:

07 September 2023 – Nestlé has announced an agreement with Advent International to acquire a majority stake in Grupo CRM, a premium chocolate player in Brazil. Grupo CRM operates a successful direct-to-consumer model, with more than 1 000 chocolate boutiques under the Kopenhagen and Brasil Cacau brands and a strong, growing online presence. The transaction is expected to close in 2024, subject to customary regulatory approvals. The financial details of this transaction will not be disclosed.

21 March 2023 – PepsiCo announced a USD 216 million multi-year investment in long-term, strategic partnership agreements with three of the most well-respected farmer-facing organizations – Practical Farmers of Iowa (PFI), Soil and Water Outcomes Fund (SWOF), and the IL Corn Growers Association (ICGA) – to drive adoption of regenerative agriculture practices across the United States.

Regional Analysis

According to the diet soft drink market data, the diet soft drink market in Asia-Pacific had the most market share in 2022—39%. The market in this area is being driven by the growing health consciousness of the region’s big population. As growing countries like China and India adopt the western lifestyle and culture that allows customers to be concerned of their health in day-to-day living, the area presents attractive potential for the newest categories, such as non-alcoholic drinks and convenience meals. In addition, the growing number of working women is forming them into self-sufficient individuals, creating prospects for convenience food and drinks. In the next years, it is anticipated that these factors would increase demand for diet soft drinks.

North America held the second-largest proportion of the market. The increase in income can be attributed to the growing trend of soft drink consumption among American consumers, particularly those in the 15–20 age range. In order to attract customers with more spending capacity, a lot of new businesses were also concentrating on capturing the new market segments with their premium variety of products, which featured unique flavors in drinks with nutritional and health advantages. New companies are also branching out into new market segments with their premium products, such drinks with unique flavors and health and nutritional benefits, in an effort to reach consumers who have more spending power.

Target Audience for Diet Drink Market

• Health-conscious consumers
• Individuals managing weight
• Fitness enthusiasts
• Diabetic individuals
• People seeking low-calorie alternatives
• Those with sugar-restriction or low-carb dietary preferences
• Millennials and younger demographics
• Urban and busy professionals
• Consumers interested in functional beverages
• Those looking for convenient on-the-go options

Segments Covered in the Diet Drink Market Report

 Diet Drink Market by Product Type

• Zero Calorie
• Low Calorie

 Diet Drink Market by Distribution Channel

• Supermarkets & General Merchandisers
• Convenience Store
• Food Service & Drinking Places
• Online

Diet Drink Market by End User

• Teenagers
• Young Adults
• Middle Aged Adults

Diet Drink Market by Region

• North America
• Europe
• Asia Pacific
• South America

Middle East and Africa

Key Question Answered

• What is the expected growth rate of the diet drink market over the next 7 years?
• Who are the major players in the diet drink market and what is their market share?
• What are the end-user industries driving market demand and what is their outlook?
• What are the opportunities for growth in emerging markets such as Asia-pacific, the middle east, and Africa?
• How is the economic environment affecting the diet drink market, including factors such as interest rates, inflation, and exchange rates?
• What is the expected impact of government policies and regulations on the diet drink market?
• What is the current and forecasted size and growth rate of the global diet drink market?
• What are the key drivers of growth in the diet drink market?
• Who are the major players in the market and what is their market share?
• What are the distribution channels and supply chain dynamics in the diet drink market?
• What are the technological advancements and innovations in the diet drink market and their impact on product development and growth?
• What are the regulatory considerations and their impact on the market?
• What are the challenges faced by players in the diet drink market and how are they addressing these challenges?
• What are the opportunities for growth and expansion in the diet drink market?
• What are the services offered and specifications of leading players in the market?