Different beverages are served to suit various tastes of consumers and market needs. Carbonated soft drinks, one the most significant categories across worldwide beverages accounts for more than 45% market share. This segment is dominated by companies like Coca-Cola and PepsiCo, which offer a number of flavors and formulations to cater top the tastes of consumers.
The second notable segment is packaged water, which has experienced impressive growth rates from elevated health awareness among end-users. The global market for bottled water was capped at $217.66 billion in 2020 and is constantly growing at a value compound annual growth rate of 7.1%. It caters for different consumer profiles, with a very broad selection of still, sparkling and flavoured waters offered by suppliers.
The energy drinks market, which is expected to grow at a CAGR of 7.2% from now until 2026 (forecast period), accounts for brand new dynamism in itannabinoid and naturally occurring products sector worth an estimated $86.01 billion by the end of that year Performance-enhancing beverages in this study included potions containing caffeine, taurine and vitamins. This category is dominated by brands such as Red Bull and Monster Energy that are constantly launching new products to stay relevant in their respective markets.
This includes some portion of the beverage portfolio, which providers offer juices and juice drinks as well. The worldwide fruit juice market is expected to grow by 4.3% during the forecast period, with consumers increasingly moving toward beverages which are natural and have health benefits The suppliers offer 100% fruit juices, juice blends and fortified drinks based on a variety of ingredients that is likely to suit different tastes of health-conscious consumers.
Another key section is alcoholic beverages, with beer as the head segment in addition to wine & spirits. The market is pronounced to be the alcoholic beverages global turnover, which amounted last year $1.49 trillion and 39% or almost a half of this volume are beer sales. Suppliers carry a variety of products including craft beers, premium wines and aged spirits that meet different consumer preferences and occasions.
These functional beverages are very healthy and they include: sports drinks, probiotic drinks, fortified waters. In contrast, functional beverage applications are set to demonstrate a higher CAGR of 6.1% between the same periods due to rising consumer preference for health & fitness plans. These include products in hydration, nutrition and broader health by brands such as Gatorade and Vitaminwater.
Tea and coffee have always been an essential part of a diet, available in numerous formats like ready-to-drink (RTD), which are provided by the suppliers. RTD tea and coffee market size is expected to reach USD 116.13 billion by the end of 2027, for rising at a considerable compound annual growth rate (CAGR) during 2021-2027 according to our research report on temperature data loggers & recorders market. Manufacturers serve a broad palette of consumers with flavors and formulations (iced tea, cold brew coffee or herbal infusions) by its Beverage supplier.
Milk, flavored milk and yogurt drinks; remain the preferred types of dairy-based beverages. Furthermore, the global dairy alternatives market is on a growth trajectory with an anticipated CAGR of 10.3% owing to rising demand for plant-based products. There is also a massive selection of dairy and non-dairy beverages that suppliers can deliver to accommodate each unique lifestyle.
Finally, consumers are showing an increased interest in non-alcoholic beverages such as mocktails and alcohol-free beers as they look for better-for-you options to replace traditional alcoholic drinks. This will grow at a CAGR of 8.1%, demonstrating the increase in mindful drinking and wellness, inset within our consumer trends report.
A wide range of beverages for all tastes, needs and lifestyles: Suppliers never stand still in their drive to innovate as consumer preferences change; Whether your go-to is for hydration, energy, relaxation or a bit of celebration, you can guarantee that beverage manufacturers will have something to suit all needs.