Lemonade Market to Grow at a CAGR of 6.8% During the Forecast Period 2020-2025

Lemonade Market size is $11.4 Bn in 2019, growing at a CAGR of 6.8% during the forecast period 2020-2025. Lemonade is a refreshing drink made from the lemon juice, water and sugar to make it palatable. It is a natural source of vitamin C and other nutritional benefits accompanied in diet. These flavors are commonly found in soft drinks, juices and others and lemonade drinks are also manufactured in different flavors like raspberry, strawberry and others. Lemonade has plenty of health benefits for its consumers such as digestive assistance, kidney stone prevention, weight loss support and cancer prevention. Manufacturer over the years are focused upon developing innovative products, in terms of a new ingredients or new technology owing towards inclination of proper health and welfare are resulting to the rise in demand of the market.

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By Type - Segment Analysis

In 2019, Hypermarket/Supermarket segment dominated the Lemonade Market in terms of revenue is estimated to grow at a CAGR of 6.15% owing towards the enhancements and availability of varieties of product and in all flavor types. Supermarket provides attracts consumers by giving discounts on items. People find it more useful as it makes purchase easy by giving comparison on the basis of its varieties, helps in saving time. Convenience and ease of availability of products aids to the segmental growth of the Lemonade Market.

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Geography - Segment Analysis

In 2019, the North America region dominated Lemonade Market in terms of revenue with a market share of 41.6% owing towards rising public & private funding for R&D in this region. The increasing health consciousness and the rising awareness of the benefits of leading a healthy lifestyle will increase the demand for natural drinks like lemonade drinks in the region aids to the market’s growth. The consumption of lemonade as a cold soft drink has increased over the years, especially during the summers and its demand is set to increase the growth. In U.S., more than 85% of high schools have vending machines supplying carbonated drinks to students leading to growing concern regarding the easy availability of these drinks are key factors in the growth of the Lemonade market. Europe is set to record the fastest growth rate during the forecast period 2020-2025.

Drivers – Lemonade Market

Increasing Awareness Among People

Consumers are becoming aware about the unfavorable effects of artificially flavored drinks and hence are shifting their beverage consumption focus on naturally flavored drinks abetting towards the growth of the market. Increased investments and pro-government policies in the farming procedures also aid the growth in many countries. The involvement of companies in making innovative packaging type to increase the self-life of the drinks with better distribution channel is further driving the market’s growth.

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Challenges – Lemonade Market

Major Regulatory Concerns

The growing stringent government policy and taxes on the beverages drinks in several countries toward market is restraining the growth of the market. For instance, U.S. federal government has imposed taxes on soda and carbonated drinks which led to the surge in prices of the lemonade products which in turn negatively impacted the growth of the market. Also, the replacement of lemonade like soft drinks, alcohols and other beverage drinks is restraining the business growth over the forecast years.

Lemonade Industry Outlook

Product Launches was the key strategy of the players in the Lemonade Industry. Lemonade top 10 companies include Arizona Beverages, Huberts Lemonade, Keurig Dr Pepper, Inc., Kraft Foods, Me The Bees Lemonade, Odwalla Lemonade, Pepsico, Simply Orange Juice Company, The Coca Cola Company and Turkey Hill Dairy.

Acquisitions/Product Launches

In August 2017, The Coca Cola Company launched Coca-Cola No Sugar - its brand new sugar-free product in Australia. The product offers a great new choice for those who love the taste of Coke but are conscious of their sugar intake.

In March 2020, Pepsico launched Pepsi Café which is a blend of Pepsi cola and coffee. The product launched in U.S. retail in two flavors. This launch provided opportunity to leverage the industry-leading capabilities.

Key Takeaways

The increase in the consumer’s preference towards lower calorie intake and opting for natural drinks over carbonated drinks, accelerating the Lemonade demand over the forecast years.

The increasing awareness about the advantages of leading a healthy lifestyle among the consumers is likely to be the major driving factor for the market’s growth.

Increasing consumer awareness towards preventative healthcare and an inclination towards products with low cholesterol levels is set to propel the growth of the market.

Europe region is projected to record the fastest growth rate during the forecast period 2020-2025.

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Venkat Reddy
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