The Asia-Pacific (APAC) region is expected to book the fastest growth in volume sales of low-calorie soft drinks over the next four years, new data shows.
A new report from GlobalData, Just Drinks’ parent, predicts volume sales for low-calorie soft drinks in the region will book an 8% CAGR, to 10.2 billion litres.
Volume sales for the category there registered a 12.9% CAGR from 2017 to 2023.
Low-calorie drinks, as per GlobalData’s definition, refer to beverages containing under 20kcal per 100ml.
The findings follow on from another report by the group this week that showed low-calorie soft drinks volumes in China grew in 39.6% in 2023 on the year prior, as consumers opted for low-sugar drinks.
The Middle East & Africa (MEA) is also forecasted to see the second-largest growth in low-calorie soft drinks sales, with volume sales expected to grow at a 4.3% CAGR rate in the next four years, to 2.7 billion litres.
North America and Europe are still projected to hold the largest volume sales share of low-calorie soft drinks by 2028, at 25.3 billion litres and 20.1 billion litres respectively.
Growth of this particular area of soft drinks in these regions is still “relatively moderate” compared to APAC and MEA, said GlobalData. North America is expected to see a 1.2% CAGR in volume sales by 2028, while Europe is expected to book 2% for the same period.
Global volume share of low-calorie is expected to grow 4ppts from 2023 to 14.8% in 2028, while regular-calorie drinks’ share is predicted to decline 4ppts to 85.2%.
Low-calorie will play a particularly important role in carbonates and energy drinks, said GlobalData. Sales volume share of low-calorie drinks in the former is forecasted to reach 16% by 2028, while in the latter it is set to hit 4.7%.
In the last 52 weeks to June 2024, the data and analytics company registered 286 global patent applications tagged with the theme ‘sugar reduction’.
Commenting on the growing consumer shift to low-calorie drinks in the APAC, Ashleigh Warnock, beverages managing consultant and analyst at GlobalData, told Just Drinks that the region is seeing a “growing middle-class population”, which has “improved buying power” and is helping to fuel low-calorie demand.
“Consumers are willing to spend more on healthier beverage options, including functional low-calorie variants.”
She added: “As in many markets worldwide, the Covid-19 pandemic intensified consumer interest in the links between what they eat and drink and their physical health and wellbeing. That interest has also had an impact on product categories that aren’t obviously centred on health, including carbonated soft drinks, where many consumers associate consuming low-sugar products with a healthy lifestyle.
“Manufacturers are focusing on meeting consumers' demand for healthier and more innovative products. Coca-Cola launched Sprite Lemon+ Zero Sugar in Malaysia, Thailand and the Philippines over the last two years. Drinks such as Sprite Lemon+ are positioned as guilt-free indulgences that can tap into consumer demand for healthier options than conventional drinks without having to compromise on their craving for CSDs [carbonated soft drinks].”
