The global beverage industry stands as one of the largest consumer markets on Earth, and 2025 marked a pivotal year of divergence. The global beverages market reached $5.05 trillion in 2025 and is projected to grow to $5.42 trillion in 2026 , driven by dual forces: a surging wellness movement that rewards functional and non-alcoholic drinks, and a premiumization trend that lifts spirits and craft beverages to higher price points. In the U.S. alone, total liquid refreshment beverage volume climbed to nearly 36.4 billion gallons in 2024, while retail sales rose from $247.3 billion in 2023 to $255.3 billion . The numbers tell a story of an industry in structural transformation — not decline, but recalibration.
This article covers the beverage landscape across nine critical dimensions: overall market size and trajectory, non-alcoholic and alcoholic category performance, the explosive energy drink segment, bottled water dominance, the no-and-low-alcohol revolution, functional beverages, consumer behavior shifts across generations, and the sustainability imperative reshaping packaging and production. Every statistic draws from the most recent industry data, covering 2024 performance and forward-looking projections through the end of the decade.
Global market size and growth trajectory
The beverage industry defies economic headwinds through sheer consumer necessity and rising premiumization across every category. The global beverages market is projected to grow at a CAGR of 4.16%, increasing from $1.83 trillion in 2025 to $2.30 trillion by 2030 . Asia Pacific continues to lead this expansion, dominating the non-alcoholic segment with a revenue share of 33.5% in 2023 , propelled by urbanization, rising disposable incomes, and shifting cultural preferences away from traditional beverages.
As of 2024, 57.3% of the global population lived in urban areas , creating enormous demand for convenient, ready-to-drink formats that fit fast-paced routines. This urbanization megatrend underpins growth across every beverage subcategory, from bottled water to functional drinks to RTD cocktails.
Global market projections and regional dynamics:
$9.6 trillion is the projected global beverages industry value by 2033, growing at a CAGR of 7.4% from 2025
China is the world's largest market for alcoholic drinks, generating more than $335 billion in annual revenue
The United States follows in second place with approximately $286 billion in alcoholic drink revenue
The U.S. generates the most eCommerce beverage revenue worldwide, with a projected $110.48 billion in 2025
The RTD beverage market is projected to grow from $732.49 billion in 2024 to $1,227.81 billion by 2032, a CAGR of 6.06%
Coca-Cola's profitability increased from $14,616 million in 2024 to $14,787 million in 2025, reflecting approximately 1.2% growth
Non-alcoholic beverages: the dominant force
Non-alcoholic beverages now represent the industry's largest and fastest-expanding territory. The global non-alcoholic beverage market reached $1.8 trillion in 2024 and is expected to hit $3.8 trillion by 2034, rising at a CAGR of 7.75% . This growth reflects a fundamental consumer realignment toward health, hydration, and functionality over indulgence.
The U.S. remains the world's largest non-alcoholic market by a wide margin. The U.S. non-alcoholic beverages market reached $169.55 billion in 2024 and is projected to grow to $246.90 billion by 2032, at a CAGR of 4.78% . Bottled water was the most consumed beverage in the United States in 2024, followed by carbonated soft drinks and coffee .
U.S. non-alcoholic category performance:
Bottled water volume grew 2.9% in 2024, much stronger than the 1.0% total liquid refreshment beverage volume increase .
U.S. per capita bottled water consumption reached 47.3 gallons in 2024, a 2.1% increase over the prior year
Carbonated soft drink volume reached nearly 11.9 billion gallons in 2024, up from 11.8 billion gallons in 2023
Carbonated soft drinks accounted for the largest product share at 28.10% of the global non-alcoholic market in 2023
Energy drink volume increased 1.6% in 2024, while sports drinks saw volume decline
Fruit beverages, RTD coffee, RTD tea, and value-added water all registered volume declines in 2024
Combined U.S. non-alcoholic drinks revenue (at-home and out-of-home) amounts to $457.02 billion in 2025
Energy drinks surge past $79 billion globally
No beverage category captures the industry's growth momentum better than energy drinks. The global energy drinks market reached $79.39 billion in 2024 and is projected to hit $125.11 billion by 2030, growing at a CAGR of 8.0% . This category thrives on younger demographics seeking functional performance benefits, a trend that transcends geographic borders.
In the United States, energy drinks have become a convenience-store staple. U.S. energy drink sales reached almost $21 billion in 2024 , making the country the world's largest energy drink market by revenue. Nearly a third of all packaged beverage sales in convenience stores are energy drinks , underscoring just how central this category has become to retail beverage economics.
Energy drink market leaders and segmentation:
Red Bull generated approximately $8 billion in U.S. sales in 2024
Monster Beverage's worldwide net sales reached $7.5 billion in 2024
Red Bull's global revenue amounted to about 11.2 billion euros in 2024
Traditional energy drinks dominated the market with a 44.12% share in 2024
Cans accounted for a revenue share of 82.4% of the global energy drinks market in 2024
North America held a 40% share of the global energy drinks market in 2024
Global energy and sports drinks revenue reached approximately $208 billion in 2024 and is estimated to increase to over $248 billion by 2029
Monster Energy maintains a 40.3% volume share in the energy drinks segment
Alcoholic beverages face a moderation reckoning
The global alcoholic beverages market remains massive, but growth faces structural headwinds from shifting consumer attitudes. The global alcoholic beverages market reached $1,616.59 billion in 2024 , yet the trajectory looks different depending on who you ask. Beer faced value declines of -0.7% and volume declines of -2.9% in off-premise U.S. channels in 2024 , while RTD cocktails and premium spirits thrived.
Consumer drinking frequency tells the deeper story. Only 58% of U.S. adults had "occasion to use alcoholic beverages" in 2024 — a percentage not seen since 1996 and a decrease from 62% in 2023 . This decline reflects generational changes in attitudes toward alcohol, with health and mental wellness driving consumer behavior.
Alcoholic beverage market data and consumption trends:
In 2024, 42.2% of U.S. alcoholic industry revenue and 39.1% of volume came from spirits, a 7% and 6% increase respectively over 2014
Canned cocktails posted a 69% increase in on-premise sales in 2024
Europe dominated the global alcoholic beverages market, holding over 45.0% market share in 2024
The percentage of U.S. consumers who drank alcohol "within the last 24 hours" fell from 34% in 2021 to 28% in 2024
49% of U.S. consumers surveyed in December 2024 said they were trying to reduce their drinking in 2025
Pubs, bars, and restaurants command 30.3% of alcoholic drinks market distribution channels in 2025
The global spirits market alone amounts to approximately $531 billion
The no-and-low-alcohol revolution reshapes the industry
The no-alcohol and low-alcohol segment represents the most disruptive category shift in a generation. The global market for no-or-low-alcohol beverages now exceeds $13 billion , and growth rates dwarf those of traditional alcohol categories. This shift reflects not a fad but a durable realignment of social norms around alcohol consumption, especially among younger adults.
Millennials drive this trend with decisive force. In April 2024, 13% of U.S. drinkers consumed both full-strength and no-alcohol products, up from 7% a year earlier, with the participation rate among Millennials reaching 22% . The data makes clear that moderation is not about abstinence — it is about optionality.
No-and-low-alcohol market metrics:
The U.S. no-alcohol market is forecast to grow at 18% volume CAGR from 2024 to 2028, reaching close to $5 billion by 2028 .
Global no-alcohol sales volumes are expected to grow at a CAGR of +7% between 2023 and 2027, reaching nearly 4% of the overall alcohol market
Non-alcoholic beverage sales in the U.S. off-premise channel neared $1 billion in 2024
Millennials account for 61% of no-alcohol beer consumers, up from 45% in April 2023
Millennials also represent 66% of no-alcohol spirits consumers and 59% of no-alcohol wine consumers
No-alcohol beer achieved a CAGR of +23% between 2019 and 2024, with a forecast CAGR of +18% to 2029
35.8% of Gen Z respondents identify as teetotalers
Approximately 58% of consumers globally are shifting toward non-alcoholic and low-ABV cocktails and beverages
Functional beverages command premium shelf space
Functional beverages — drinks fortified with prebiotics, adaptogens, vitamins, electrolytes, and other bioactive compounds — have graduated from niche wellness stores to mainstream grocery aisles. The functional beverage market reached $151.80 billion in 2025 and is forecast to hit $241.99 billion by 2031 . The category's explosive growth reflects consumers' willingness to pay more for drinks that deliver tangible health benefits beyond hydration.
Major corporations are acquiring their way into this space at record pace. PepsiCo acquired prebiotic soda brand Poppi in March 2025 for $1.95 billion , while Keurig Dr Pepper acquired a 60% stake in Ghost Beverages for $990 million . These billion-dollar deals signal that functional beverages have moved from disruptor status to core corporate strategy.
Functional beverage growth drivers:
The global healthy drink market was valued at $89.25 billion in 2021, expanding at a CAGR of 7.1% through 2030
India's functional beverages segment alone is set to grow at a CAGR of 8.9% from 2024 to 2031
Coca-Cola launched Simply Pop in February 2025, a prebiotic soda with 6 grams of prebiotic fiber, vitamin C, zinc, and no added sugar
In Canada, RTD mocktail sales reached $11.8 million, up 168% year-over-year
E-commerce revenues for non-alcoholic beverages rose an estimated 18.4% year over year in 2024
Generational shifts are rewriting consumption rules
Generational divergence in drinking behavior is the most consequential consumer trend in the beverage industry. Gen Z and Millennials are not just drinking less alcohol — they are redefining what a beverage occasion looks like, prioritizing mental health, functionality, and social media appeal over tradition.
The average number of monthly occasions when consumers reported drinking alcohol fell to 10.6 in 2024, a -13% decrease from the 12.2 monthly occasions reported in 2013 . Among Gen Z participants who chose to reduce consumption, 58% cited improving their mental health as a primary motivator . These behavioral shifts carry enormous implications for product portfolios, marketing strategies, and distribution channels across the entire industry.
Generational consumption patterns:
23% of Gen Z and 24% of Millennial respondents reported drinking non-alcoholic beer, wine, or spirits often, compared to only 6% of Gen X and 1% of Boomers
Among Millennials, the no-alcohol participation rate reached 22%, surpassing Gen Z at 15% and Gen X at 11%
36% of all participants cited weight loss as a motivator for reducing alcohol consumption, rising to 48% among Boomers
Nearly 79% of Americans have tried alcohol at some point in their lives
B2C distribution channels captured an estimated 81% share of the non-alcoholic drinks market in 2024
Supermarkets and hypermarkets account for more than 56% of B2C beverage sales
Sustainability and packaging drive industry investment
Sustainability has become both a consumer demand and a regulatory mandate for beverage companies. The global sustainable packaging market reached $283.37 billion in 2024 and is projected to grow to $552.45 billion by 2033, at a CAGR of 7.70% . For beverage brands, packaging represents the most visible and actionable lever for environmental impact — and consumers are watching closely.
Nearly 70% of consumers are willing to pay more for products with sustainable packaging , creating a clear commercial incentive for brands to accelerate their transitions. The food and drink industry contributes up to 37% of global greenhouse gas emissions , with scope 3 emissions accounting for approximately 90% of a beverage company's total emissions .
Sustainability and packaging metrics:
The biodegradable packaging market reached $495.78 billion in 2024 and is projected to hit $921.95 billion by 2034
78% of consumers say sustainability is vital, and 63% have adopted greener buying practices
In the U.S., approximately 72% of individuals factor packaging design into their buying decisions
Internet retailing for alcoholic beverages is growing at the fastest rate, with a 10.5% CAGR, reflecting accelerating e-commerce adoption
Glass bottle packaging for energy drinks commands a 30–40% price premium over standard formats
U.S. liquid refreshment beverage retail sales growth slowed to 3.3% in 2024, down from 7.8% in 2023, as inflationary pressures moderated
Health, moderation, and function define the next era
The beverage industry's $5 trillion global footprint masks a profound transformation happening beneath the surface. Every major growth vector — functional beverages approaching $242 billion by 2031, no-alcohol products growing at 18% CAGR, energy drinks racing toward $125 billion — points in a single direction: consumers demand more from what they drink. They want hydration plus cognitive support, social ritual without hangover risk, indulgence with ingredient transparency.
The generational data cements this trajectory. Nearly half of U.S. consumers want to drink less alcohol in 2025, and Gen Z's teetotaler rate of 35.8% signals a permanent reset in drinking culture. Companies that interpret this as a headwind miss the point entirely. PepsiCo's $1.95 billion Poppi acquisition and Keurig Dr Pepper's $990 million Ghost Beverages deal reveal where the smart capital flows: toward brands that deliver health benefits, clean labels, and cultural relevance.
Sustainability amplifies every other trend. With 70% of consumers willing to pay more for sustainable packaging and regulators tightening requirements worldwide, the beverage companies that integrate environmental performance into core operations will outperform those treating it as marketing theater. The data is unambiguous: the beverage industry's future belongs to companies that combine health innovation, generational insight, and sustainability at scale.