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Non-alcoholic drinks refer to beverages, which have less than 0.5% alcoholic content by volume. Broadly includes soft drinks and hot drinks. Soft drinks contain
carbonated or non-carbonated water, a sweetener, and a flavor, and hot drinks include coffee and tea. The soft drink category dominates the industry.
The
global soft drink market is led by carbonated soft drinks (or CSDs), which had a market size of $337.8 billion in 2013. In the same year, CSDs were followed by
bottled water, with a market size of $189.1 billion, and juice, with a market size of $146.2 billion. The non-alcoholic beverage market is a highly competitive
industry that includes two behemoths The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP). Collectively, these companies hold about 70% of the US CSD
market. Dr Pepper Snapple Group, Inc. (DPS), Monster Beverage Corporation (MNST), and Cott Corporation (COT) are some other key players in the CSD
market.
North America is the largest market for non-alcoholic drinks globally closely followed by Asia Pacific. The U.S. is one of the major markets for non-alcoholic
drinks in North America.
Non-Alcoholic Drinks Market in terms of revenue and volume is Expected to Reach USD 1,937.73 Billion and 1,289.03 Billion liters respectively in 2020. the
market was valued at USD 1,435.25 billion in 2013, which is expected to reach USD 1,937.73 billion by 2020, growing at a CAGR of 4.3% from 2014 to 2020. In
terms of volume, the global non-alcoholic drinks market was valued at 912.77 billion liters in 2013 and is expected 1289.03 billion liters by 2020, growing at a
CAGR of 4.9% from 2014 to 2020
GROWTH DRIVERS\; Changing customer needs and introduction of new flavors and product variants AND Increasing disposable income in emerging economies
are the major factors driving demand for non-alcoholic drinks globally .
3) Bargaining power of Buyers It is strong, because there are many firms in this industry; it is very easy to find other supplier in the industry.
4) Bargaining Power of Suppliers It is low, because there are many suppliers in this industry; there is substitute firms in the industry.