Sugar-free and Low-sugar Drinks Research: with a compound annual growth rate (CAGR) of 6.1% in the next few years

QY Research Inc. (Global Market Report Research Publisher) announces the release of 2025 latest report "Sugar-free and Low-sugar Drinks- Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032". Based on current situation and impact historical analysis (2020-2024) and forecast calculations (2026-2032), this report provides a comprehensive analysis of the global Sugar-free and Low-sugar Drinks market, including market size, share, demand, industry development status, and forecasts for the next few years.

The global market for Sugar-free and Low-sugar Drinks was estimated to be worth US$ 12351 million in 2024 and is forecast to a readjusted size of US$ 21423 million by 2031 with a CAGR of 9.6% during the forecast period 2025-2031.

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Sugar-free and Low-sugar Drinks Market Summary

According to the latest report "Global Sugar-free and Low-sugar Drinks Market Report 2025-2031" by the QYResearch research team, the global Sugar-free and Low-sugar Drinks market size is expected to reach US$2.14 billion in 2031, with a compound annual growth rate (CAGR) of 6.1% in the next few years.

Sugar-free and low-sugar drinks refer to drinks that contain little or no sugar. Their sweetness primarily comes from artificial sweeteners or natural sweeteners, such as aspartame, stevia, and trifluorochlorothiazol, or from natural ingredients like fruits and plants. These drinks include, but are not limited to, sugar-free carbonated drinks, low-sugar fruit juices, sugar-free teas, and low-sugar energy drinks. Sugar-free drinks typically do not contain sucrose or other added sugars, while low-sugar drinks refer to drinks with a sugar content below a specified standard, commonly no more than 5 grams of sugar per 100 milliliters. Sugar-free and low-sugar drinks are designed to meet the needs of increasingly health-conscious consumers, helping to control sugar intake and are suitable for diabetics, those trying to lose weight, and health-conscious individuals. Furthermore, these drinks are low in calories, meeting the needs of sugar-free or low-sugar diets and helping to maintain weight management and prevent chronic diseases related to excessive sugar intake. Sugar-free and low-sugar drinks are widely used in daily consumption, fitness supplements, and functional drinks, and have experienced rapid growth in the global health drink market in recent years, becoming a representative of sugar intake control and healthy eating trends.

The growth drivers of sugar-free and low-sugar drinks primarily stem from increased consumer demand for health, government policy support, technological advancements, and changes in global consumption patterns. Specifically:

1. Increased Health Awareness.

As global consumers become increasingly health-conscious, the relationship between sugar intake and chronic diseases such as obesity and diabetes is widely recognized. This increased health awareness has fueled demand for sugar-free and low-sugar drinks. Younger generations and older consumers, in particular, are placing greater emphasis on low-sugar options to control weight and reduce health risks. This trend has made sugar-free and low-sugar drinks an important category in the market.

2. The Prevalence of Diabetes and Obesity.

The number of people with diabetes and obesity is rising globally, especially in developed countries and some developing countries. Diabetes and obesity are considered health problems closely related to excessive sugar intake. To address this issue, more and more consumers are choosing sugar-free or low-sugar drinks as their daily drinks. Manufacturers have therefore increased their R&D efforts in sugar-free and low-sugar drinks to meet market demand.

3. Support from Government Policies and Regulations.

Many countries and regions have introduced relevant policies and regulations to promote low-sugar diets and limit the consumption of high-sugar foods. For example, some countries have implemented sugar taxes, levying taxes on sugary drinks to encourage consumers to choose healthier drinks. These policies not only influence consumer choices but also prompt drink manufacturers to launch more sugar-free and low-sugar alternatives, further driving market growth.

4. Advances in Sugar Substitute Technology.

With continuous advancements in sugar substitute technology, a wider variety of low-calorie, high-sweetness sugar substitutes have emerged on the market, such as stevia, aspartame, and trifluorochlorothiazolium. These sugar substitutes not only closely resemble natural sugars in sweetness but also feature low calories, low sugar, and no side effects, making them widely used in the production of sugar-free and low-sugar drinks. The diverse selection of sugar substitutes enriches the taste and sweetness of sugar-free and low-sugar drinks, increasing consumer acceptance and satisfaction.

5. Environmental and Sustainability Trends.

With increasing environmental awareness, consumers are paying more attention to sustainable products. Sugar-free and low-sugar drinks typically involve less processing and additives, making them more aligned with current trends in sustainable consumption. Furthermore, many sugar-free and low-sugar drink brands have begun using environmentally friendly packaging materials (such as recyclable bottles and cartons), which has also attracted consumers who are concerned about environmental protection.

6. Social Media and Digital Marketing.

With the rise of social media and digital marketing, interactions between brands and consumers have become more frequent, and changes in consumer preferences and needs can be quickly reflected in the market. Sugar-free and low-sugar drink brands spread the concept of healthy drinks through social media platforms, using online advertising and social media to promote their products, enabling more consumers to understand and accept low-sugar drinks. This rapid dissemination of information has effectively driven the market expansion of sugar-free and low-sugar drinks.

7. Growing Demand in Emerging Markets.

With economic growth in emerging markets such as the Asia-Pacific region, Latin America, and Africa, consumers in these regions are paying more attention to healthy eating, especially in countries such as China, India, and Brazil, gradually increasing the demand for sugar-free and low-sugar drinks. With rising living standards and increased health awareness, these emerging markets will become important engines for the growth of sugar-free and low-sugar drinks in the future.

8. The Emergence of Innovation and Diversified Products.

Innovation in sugar-free and low-sugar drinks continues to drive the industry's development. More and more brands are launching functional drinks, herbal drinks, sugar-free juices, and low-sugar sports drinks to meet the needs of diverse consumers. Meanwhile, some brands are combining sugar-free and low-sugar drinks with emerging elements such as plant-based and probiotic ingredients, creating products that not only satisfy taste preferences but also offer health benefits. This innovative trend is further driving market growth.

With the combined effect of these factors, the market demand for sugar-free and low-sugar drinks will continue to grow in the coming years, especially given the increasing health awareness in the market, making this a promising sector.

This report profiles key players of Sugar-free and Low-sugar Drinks such as Coca-Cola、SUNTORY、Pepsi、Nestle、Genki Forest、Kiwi Drinks、Nongfu Spring、AG Barr、Gravity Drinks Co.、Polar Krush、Zevia、UNI-PRESIDENT CHINA HOLDINGS LTD.、Danone、Lipton Iced Tea、Lovely Drinks、CELSIUS、Nespresso、Peet's Coffee. In 2023, the global top five Sugar-free and Low-sugar Drinks players account for 73% of market share in terms of revenue.

The sugar-free/low-sugar drink industry chain is a modern industrial value chain deeply integrated with food science, modern agriculture, precision manufacturing, and digital marketing, driven by consumer health needs. It extends from the initial raw material cultivation all the way to the bottle of drink in the consumer's hand, and even subsequent recycling.

Upstream of the Industry Chain: Raw Material Supply and Core R&D.

The upstream of the industry chain is the foundation of the entire industry, providing raw materials and technical support for core products. The core of this level lies in the supply of sweeteners and raw materials. First, there are sugar substitute suppliers, who provide two main categories of sweeteners: one is high-intensity sweeteners, such as sucralose, aspartame, acesulfame potassium, and natural steviol glycosides and mogrosides. These are used in extremely small amounts but have extremely high sweetness, forming the technological cornerstone of the "0 sugar, 0 calories" claim; the other is sugar alcohols, such as erythritol and xylitol. These not only provide sweetness but also a sucrose-like sensation and refreshing taste, making them key ingredients in many "0 sugar" drinks. In addition, the upstream sector includes suppliers of other basic raw materials, such as tea leaves, coffee beans, fruit juice concentrates, dairy bases, flavorings, food additives, and packaging materials (such as PET preforms, aluminum cans, and labels). The upstream R&D capabilities, especially in exploring new flavors and natural sweeteners, directly determine the innovation potential of midstream products.

Midstream of the Industry Chain: Product R&D and Manufacturing.

The midstream of the industry chain is the core of value creation, responsible for transforming upstream raw materials into products that consumers love. At the core of this level are brand operators and manufacturers. Brand owners (such as Coca-Cola, Genki Forest, and Suntory) are responsible for market insights, product definition, formula development, and brand marketing. They need to precisely adjust the ratio of artificial sweeteners to other ingredients to simulate the perfect taste of sucrose while avoiding aftertaste bitterness and ensuring product stability. Next are bottling plants and contract manufacturers, which have highly automated production lines responsible for water treatment, formulation, carbonation (if any), sterilization, filling, capping, labeling, and packaging of the formulation solution. The core competitiveness of the midstream segment lies in flavor development, supply chain management, and quality control, ensuring consistency in taste, safety, and quality for every bottle of product. Many brands adopt a "brand + OEM" model to achieve asset-light operations and rapid expansion.

Downstream of the industry chain: Distribution channels and end consumers.

The downstream of the industry chain is responsible for delivering finished products to consumers and realizing value. The key at this level is diversified distribution channels and precise marketing outreach. Traditional distribution channels include offline retail networks such as large supermarkets, chain convenience stores, grocery stores, food and drink channels (restaurants, cafes), and vending machines, which ensure widespread product availability. Meanwhile, online channels play an increasingly important role, including official brand e-commerce platforms, comprehensive e-commerce platforms (Tmall, JD.com), social e-commerce (Douyin, Kuaishou), and community group buying. These not only quickly reach a wider audience but also directly educate consumers through content marketing, reinforcing their "health" awareness. Downstream marketing strategies, such as Genki Forest's "0 sugar, 0 fat, 0 calories" slogan, precisely target young consumers' demand for a balance of health and taste, directly driving market growth. Supply Chain Support System: Standards, Certification, and Trend Guidance.

A sound support system runs through the entire supply chain, ensuring its standardization, credibility, and continuous innovation. Regulatory and standards-setting bodies (such as the National Health Commission, the State Administration for Market Regulation, and the FDA) are responsible for defining sugar content, the scope and limits of sugar substitutes, and nutrition labeling standards, which form the basis for the legality of "sugar-free/low-sugar" claims. Third-party testing and certification agencies provide testing services to ensure products meet their claims, and certifications such as organic and non-GMO further increase product trust. Furthermore, market research institutions, consulting firms, and the media collectively constitute the industry's information ecosystem. They track consumer trends, publish market reports, guide health trends, and continuously drive the entire supply chain towards a healthier, more transparent, and more sustainable direction. Finally, environmental recycling systems are increasingly important, responsible for recycling packaging after consumption, responding to consumer concerns about environmental protection, and completing the supply chain loop.

The sugar-free and low-sugar drink market has continued to grow in recent years, driven by factors such as increased consumer health awareness, the growing prevalence of diabetes and obesity, and government policy support. This market encompasses a wide range of categories, including sugar-free carbonated drinks, low-sugar tea drinks, sugar-free juices, low-sugar sports drinks, and sugar-free coffee, catering to a diverse consumer base ranging from everyday consumption to specific health needs.

The sugar-free and low-sugar drink market is dominated by several well-known drink brands, including multinational corporations such as Coca-Cola, PepsiCo, Danone, and Nestlé. These large companies hold a dominant position in terms of brand influence, distribution networks, and R&D capabilities. They attract consumers not only by launching sugar-free and low-sugar versions of traditional drinks (such as Coca-Cola Zero and PepsiCo Sugar), but also by actively innovating in the functional drink sector. In addition, some local brands and emerging brands are gradually gaining recognition through precise market positioning and innovative products.

Despite the enormous growth potential of the sugar-free and low-sugar drink market, it also faces some challenges. First, sugar substitutes (such as stevia and aspartame) are relatively expensive, and consumer acceptance of these substitutes varies, with some consumers potentially harboring skepticism towards artificial sweeteners. Secondly, the market offers a wide variety of sugar-free and low-sugar drinks at significantly different prices. Brands need to strike a balance between product innovation and pricing strategies to attract more consumers.

The future of sugar-free and low-sugar drinks will continue to be driven by health trends and consumer preferences for functional, natural ingredients. This is particularly true in emerging markets such as Asia, Latin America, and Africa, where the market potential is enormous due to economic growth and increased health awareness. Furthermore, brands still have considerable room for improvement in developing natural sugar substitutes, innovative flavors, and environmentally friendly packaging, which are expected to be key areas of competition in the future.

Overall, the sugar-free and low-sugar drink market is highly competitive, but with the rise of new brands and increased consumer health awareness, the market is becoming more diversified. In the future, innovative product development, precise market positioning, and environmentally friendly and sustainable production methods will be key factors for brands to stand out in this highly competitive market.

The report provides a detailed analysis of the market size, growth potential, and key trends for each segment. Through detailed analysis, industry players can identify profit opportunities, develop strategies for specific customer segments, and allocate resources effectively.

The Sugar-free and Low-sugar Drinks market is segmented as below:
By Company
Coca-Cola
SUNTORY
PepsiCo
Nestle
Yuanqisenlin
Kiwi Beverages
Gravity Drinks Co.
Polar Krush
Zevia
Mars, Incorporated
Monster Beverage Corporation
Red Bull
Masterkong
Nongfushanquan
Danone

Segment by Type
Physically Desugared Type
Sugar Substitute Type
Natural Low Sugar Type

Segment by Application
Home Consumption
Dining Scene
Office Scene
Others

Each chapter of the report provides detailed information for readers to further understand the Sugar-free and Low-sugar Drinks market:

Chapter 1: Introduces the report scope of the Sugar-free and Low-sugar Drinks report, global total market size (valve, volume and price). This chapter also provides the market dynamics, latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry. (2021-2032)
Chapter 2: Detailed analysis of Sugar-free and Low-sugar Drinks manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc. (2021-2026)
Chapter 3: Provides the analysis of various Sugar-free and Low-sugar Drinks market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments. (2021-2032)
Chapter 4: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.(2021-2032)
Chapter 5: Sales, revenue of Sugar-free and Low-sugar Drinks in regional level. It provides a quantitative analysis of the market size and development potential of each region and introduces the market development, future development prospects, market space, and market size of each country in the world..(2021-2032)
Chapter 6: Sales, revenue of Sugar-free and Low-sugar Drinks in country level. It provides sigmate data by Type, and by Application for each country/region.(2021-2032)
Chapter 7: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc. (2021-2026)
Chapter 8: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 9: Conclusion.

Benefits of purchasing QYResearch report:

Competitive Analysis: QYResearch provides in-depth Sugar-free and Low-sugar Drinks competitive analysis, including information on key company profiles, new entrants, acquisitions, mergers, large market shear, opportunities, and challenges. These analyses provide clients with a comprehensive understanding of market conditions and competitive dynamics, enabling them to develop effective market strategies and maintain their competitive edge.

Industry Analysis: QYResearch provides Sugar-free and Low-sugar Drinks comprehensive industry data and trend analysis, including raw material analysis, market application analysis, product type analysis, market demand analysis, market supply analysis, downstream market analysis, and supply chain analysis.

and trend analysis. These analyses help clients understand the direction of industry development and make informed business decisions.

Market Size: QYResearch provides Sugar-free and Low-sugar Drinks market size analysis, including capacity, production, sales, production value, price, cost, and profit analysis. This data helps clients understand market size and development potential, and is an important reference for business development.

Other relevant reports of QYResearch:
Global Sugar-free and Low-sugar Drinks Market Research Report 2025
Global Sugar-free and Low-sugar Drinks Market Outlook, In‐Depth Analysis & Forecast to 2031
Global Sugar-free and Low-sugar Drinks Sales Market Report, Competitive Analysis and Regional Opportunities 2025-2031

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