Non-Alcoholic Drinks - Southeast Asia

The Non-Alcoholic Drinks market in Southeast Asia has been experiencing significant growth in recent years.

Customer preferences: Customers in Southeast Asia have shown a strong preference for non-alcoholic drinks due to various reasons. One of the main reasons is the increasing health consciousness among consumers. With the rising awareness of the importance of a healthy lifestyle, people are opting for beverages that are low in sugar and calories. Non-alcoholic drinks such as herbal teas, fruit juices, and infused water have gained popularity as healthier alternatives to sugary sodas and energy drinks. Another factor driving customer preferences in Southeast Asia is the region's tropical climate. The hot and humid weather makes people crave refreshing and hydrating beverages. This has led to a growing demand for non-alcoholic drinks that are not only tasty but also provide a cooling effect. Coconut water, iced tea, and fruit smoothies are some of the popular choices in the region.

Trends in the market: One of the prominent trends in the Non-Alcoholic Drinks market in Southeast Asia is the increasing popularity of functional beverages. Consumers are looking for drinks that offer additional health benefits beyond hydration. This has led to the rise of beverages infused with vitamins, minerals, antioxidants, and other functional ingredients. Drinks like kombucha, probiotic drinks, and herbal tonics have gained traction among health-conscious consumers. Another trend in the market is the growing demand for natural and organic products. Consumers in Southeast Asia are becoming more aware of the potential harmful effects of artificial additives and preservatives. As a result, they are seeking out beverages made from natural ingredients and free from artificial sweeteners, colors, and flavors. This has created opportunities for companies that offer organic juices, herbal teas, and plant-based milk alternatives.

Local special circumstances: Southeast Asia is a diverse region with different countries having their own unique preferences and tastes. For example, in Thailand, traditional herbal drinks like butterfly pea flower tea and lemongrass tea are highly popular. In Indonesia, sweet and fruity drinks like avocado smoothies and coconut-based beverages are favored. Understanding these local preferences and adapting product offerings accordingly is crucial for success in the Non-Alcoholic Drinks market in Southeast Asia.

Underlying macroeconomic factors: The rapid economic growth in Southeast Asia has contributed to the development of the Non-Alcoholic Drinks market. As disposable incomes rise, consumers have more purchasing power to spend on beverages. Additionally, urbanization and changing lifestyles have led to an increase in the number of people eating out and seeking convenient on-the-go options. This has created a growing market for bottled drinks and ready-to-drink beverages. Furthermore, the influence of social media and digital platforms cannot be ignored. Southeast Asia has a large and active social media user base, and online platforms play a significant role in shaping consumer preferences and driving trends. Beverage companies are leveraging digital marketing strategies and influencer collaborations to reach and engage with their target audience effectively. In conclusion, the Non-Alcoholic Drinks market in Southeast Asia is experiencing growth due to customer preferences for healthier and refreshing beverages, the rise of functional and natural products, local special circumstances, and underlying macroeconomic factors. As the region continues to develop and consumer tastes evolve, the market is expected to witness further innovation and expansion.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.