Low-Zero Sugar Beverages Market Size, Growth Report, 2033

Low-Zero Sugar Beverages Market Overview

The Low-Zero Sugar Beverages Market size was valued at USD 3.48 million in 2024 and is expected to reach USD 9.76 million by 2033, growing at a CAGR of 13.76% from 2025 to 2033.

The global low-zero sugar beverages market has seen a significant surge in consumer demand, with over 7.2 billion liters of low and zero sugar drinks sold globally in 2023. North America accounted for approximately 35% of this total volume, driven by health-conscious consumers seeking to reduce their sugar intake. Europe follows closely, with more than 2.1 billion liters sold last year, highlighting the region’s strong preference for sugar alternatives. In Asia-Pacific, sales volumes crossed 1.8 billion liters in 2023, supported by increasing urbanization and health awareness.

Diet sodas represent over 42% of all low-zero sugar beverage sales worldwide, while flavored water and unsweetened fruit juices are rapidly gaining ground, together making up about 38% of the market share by volume. Supermarkets and hypermarkets account for over 65% of all low-zero sugar drink purchases, with online sales growing by 22% year-over-year. Brands continue to innovate with natural sweeteners such as stevia and monk fruit, which were used in over 48% of new product launches last year. With more than 72% of global consumers actively checking sugar content labels, the demand for low and zero sugar beverages is set to maintain strong momentum.

Key Findings

DRIVER: Rising consumer awareness of sugar-related health risks has driven over 7.2 billion liters of low-zero sugar beverages sold worldwide.

COUNTRY/REGION: North America leads, accounting for about 35% of total global low-zero sugar beverage consumption.

SEGMENT: Diet sodas dominate, representing over 42% of total low-zero sugar beverage volume.

Low-Zero Sugar Beverages Market Trends

The low-zero sugar beverages market has witnessed a sharp rise in demand across multiple regions as more consumers shift toward healthier lifestyles. In 2023, over 68% of surveyed consumers in the US reported buying low-sugar or sugar-free beverages at least once a week. Sales of flavored water surged by 19% year-over-year, crossing 1.1 billion liters globally, with millennials driving more than 53% of total purchases in this category. Natural sweeteners have become mainstream, with stevia-based drinks accounting for 32% of all new launches in 2023, a jump from 25% in 2021. The sports drink segment has seen an uptick too, with nearly 450 million liters of sugar-free or reduced-sugar sports drinks consumed globally last year, an increase of 14% compared to the previous year. The introduction of functional low-sugar drinks—infused with vitamins, electrolytes, or probiotics—now makes up about 21% of new products in the segment. Major foodservice outlets have added low-zero sugar beverages to their menus, with over 65% of quick-service restaurants in North America offering at least two diet or sugar-free drink options. In Europe, over 70% of retail shelves now feature dedicated low-sugar drink sections. Asia-Pacific consumers are increasingly seeking local flavors with low sugar content, driving 17% growth in sugar-free green tea beverages. Pack sizes are also changing, with over 40% of brands introducing smaller cans or single-serve bottles under 300 ml to cater to calorie-conscious consumers. The rise of online grocery platforms has amplified reach, with e-commerce sales of low-zero sugar drinks climbing by 22% globally in 2023. With governments pushing sugar taxes in over 50 countries, beverage makers are expected to launch more products with zero or minimal sugar in the coming years.

Low-Zero Sugar Beverages Market Dynamics

Low-Zero Sugar Beverages Market Dynamics refers to the main factors that drive, restrain, create opportunities for, and challenge the low-zero sugar beverages industry. Drivers include rising health awareness, with over 72% of global consumers now checking sugar labels. Restraints involve taste acceptance issues, with 41% of European buyers reporting dissatisfaction with some sweeteners. Opportunities come from innovation in natural sweeteners, with 48% of new drinks in 2023 using stevia or monk fruit. Challenges include raw material supply fluctuations, like an 8% drop in stevia harvests that pushed prices up 12% last year. These dynamics shape production trends, new product launches, and consumer adoption worldwide.

DRIVER

Rising demand for healthier drink alternatives and sugar-free options.

Growing awareness of the health impacts of excess sugar intake has fueled a surge in demand for low-zero sugar beverages. In the US alone, over 58% of adults actively avoid sugary drinks due to concerns over diabetes and obesity. This shift has resulted in supermarkets dedicating 25% more shelf space to low-sugar alternatives compared to five years ago. In 2023, more than 1.5 billion liters of diet sodas were sold in North America, underlining the role of sugar-free soft drinks in daily consumer purchases. Asia-Pacific markets have also embraced these products, with over 600 million liters of flavored water containing no added sugars sold last year. Beverage manufacturers are capitalizing on this trend by launching drinks with natural sweeteners and clearer labeling, meeting the growing demand for transparency and healthier choices.

RESTRAINT

Taste and consumer acceptance challenges.

Despite increasing demand, taste remains a critical barrier to wider adoption of low-zero sugar beverages. Over 41% of consumers in Europe have cited aftertaste issues with certain artificial sweeteners like aspartame and sucralose. Studies show that about 27% of first-time buyers of zero sugar drinks do not make repeat purchases if taste expectations are not met. This has pushed producers to experiment with new sweetener blends and natural alternatives, yet the reformulation process can extend development timelines by 6 to 12 months for each product. Moreover, regulatory hurdles for new sweeteners mean that manufacturers in over 35 countries must comply with additional testing, adding complexity to market entry.

OPPORTUNITY

Innovation in natural sweeteners and clean labels.

The shift toward clean labels and plant-based sweeteners has opened significant opportunities for the low-zero sugar beverages market. In 2023, more than 48% of new product launches included stevia or monk fruit as the primary sweetener, compared to 32% five years ago. Beverage brands are investing heavily in research to develop better-tasting, naturally derived sweeteners with fewer aftertaste issues. By mid-2024, at least 65 brands introduced new sugar-free drinks using a blend of erythritol and stevia, delivering improved flavor profiles. Consumer demand for beverages with fewer than 5 grams of sugar per serving has grown by 23% in the past two years. Additionally, over 40% of consumers say they prefer drinks with no artificial colors or preservatives, driving brands to combine low sugar with broader clean-label claims.

CHALLENGE

Fluctuating raw material costs for natural sweeteners.

One of the main challenges in the low-zero sugar beverages market is the volatility of raw material prices for natural sweeteners. The global supply of stevia leaves dropped by 8% in 2023 due to poor harvests in key producing countries, leading to a 12% rise in average bulk prices. Monk fruit extract faced similar issues, with supply constraints driving costs up by 10% year-over-year. These fluctuations impact profit margins for manufacturers, especially for products relying solely on natural sweeteners. Smaller beverage companies find it harder to absorb these costs, with over 35% reporting narrower margins compared to their artificially sweetened competitors. Price sensitivity in emerging markets adds further pressure, as consumers are less willing to pay premium prices for sugar-free drinks when cheaper, high-sugar alternatives are widely available.

Low-Zero Sugar Beverages Market Segmentation

The low-zero sugar beverages market is segmented by type and application. By type, the market includes diet sodas, flavored water, and fruit juices, which collectively accounted for over 7.2 billion liters in 2023. By application, the key segments are health-conscious consumers and the soft drink industry, with health-focused purchases driving about 58% of global volume.

By Type

Diet Sodas: Diet sodas remain the largest type segment, contributing over 42% of global low-zero sugar beverage volume. In 2023, more than 3 billion liters of diet sodas were sold worldwide, with North America consuming about 1.5 billion liters. Consumer preference for diet sodas is strong in the US and Europe, where over 62% of soft drink buyers choose diet or light variants at least once a month. Classic cola flavors still dominate, but citrus and cherry variations have gained popularity, accounting for 18% of new diet soda launches in 2023.
Flavored Water: Flavored water is the fastest-growing segment, with global sales exceeding 1.1 billion liters last year. In Europe, flavored water makes up about 19% of all bottled water sales, with sugar-free options representing 67% of that share. Asia-Pacific markets are adopting flavored water rapidly, with Japan alone consuming over 220 million liters of zero-sugar flavored water in 2023. Brands are focusing on added benefits such as electrolytes and vitamins, with over 45% of new launches featuring functional claims.
Fruit Juices: Low-zero sugar fruit juices contributed approximately 1.7 billion liters to the market in 2023. About 54% of health-focused consumers in North America and Europe prefer fruit juices with reduced or no added sugar. Innovations like cold-pressed, no-sugar-added juices are driving category growth, with more than 65 million liters sold in premium retail channels last year. In Asia-Pacific, sugar-free fruit juice consumption rose by 12% in 2023, particularly for local flavors such as mango and lychee.

By Application

Health-conscious consumers: Health-conscious consumers remain the largest driver for low-zero sugar beverages, accounting for over 58% of global sales by volume. Around 72% of millennials and Gen Z consumers in urban areas report actively reducing their sugar intake.
Soft drink industry: The soft drink industry uses low-zero sugar formulations to maintain market share amid sugar tax regulations, with over 35% of mainstream soft drinks now offering a sugar-free variant to meet evolving consumer expectations.

Regional Outlook for the Low-Zero Sugar Beverages Market

Regional Outlook for the Low-Zero Sugar Beverages Market describes how demand, consumption, and growth trends vary across key regions, supported by measurable figures. North America leads globally, consuming over 2.5 billion liters of low-zero sugar beverages in 2023, with the US making up about 72% of this total. Europe follows closely, with annual consumption surpassing 2.1 billion liters, led by the UK’s 620 million liters of sugar-free soft drinks sold each year. Asia-Pacific shows rapid adoption, reaching more than 1.8 billion liters consumed in 2023, with Japan and China as major contributors. The Middle East & Africa market is expanding steadily, with over 450 million liters sold in 2023, driven by rising health awareness and new sugar content regulations, especially in the UAE and Saudi Arabia, which together account for 58% of regional volume.

North America

North America’s low-zero sugar beverages market continues to thrive, accounting for about 35% of global consumption. The US leads the region, with over 2.5 billion liters sold in 2023, followed by Canada with 420 million liters. The average American household buys about 18 liters of diet sodas every month.

Europe

Europe holds strong, with over 2.1 billion liters sold in 2023. The UK alone consumes over 620 million liters of sugar-free soft drinks annually, partly due to the country’s sugar levy on high-sugar beverages. Germany and France combined add another 780 million liters, driven by rising demand for flavored water and low-sugar fruit juices.

Asia-Pacific

Asia-Pacific is experiencing rapid growth, consuming over 1.8 billion liters in 2023. Japan leads the region, accounting for about 600 million liters, while China and India combined contributed over 850 million liters. Regional demand is fueled by the popularity of sugar-free teas and locally inspired fruit flavors.

Middle East & Africa

Middle East & Africa region consumed about 450 million liters in 2023. The UAE and Saudi Arabia together account for 58% of this volume, with rising health awareness and new regulations encouraging beverage makers to expand their low-zero sugar ranges.

List of Top Low-Zero Sugar Beverages Companies

The Coca-Cola Company (USA)
PepsiCo (USA)
Nestlé (Switzerland)
Unilever (UK)
Mars Inc. (USA)
The Hershey Company (USA)
The Kraft Heinz Company (USA)
Danone (France)
Arizona Beverage Company (USA)
Zevia (USA)

The Coca-Cola Company (USA): Sold over 3 billion liters of low-zero sugar beverages worldwide in 2023.

PepsiCo (USA): Distributed more than 2.4 billion liters of diet and sugar-free drinks globally last year.

Investment Analysis and Opportunities

Investments in the low-zero sugar beverages market have accelerated, with over $2.1 billion invested globally in 2023 for new product development, production upgrades, and sustainability initiatives. Around 40% of this investment went into natural sweetener research and better flavor formulation processes to improve taste and acceptance rates. In North America, major beverage companies invested in 12 new production lines dedicated to sugar-free drinks, increasing output by over 15% year-over-year. Europe saw over 350 new low-sugar SKUs launched by mid-2023 as brands expanded their portfolios to comply with regional sugar taxes. In Asia-Pacific, local brands invested in new flavored water production, with at least 85 million liters of new capacity added in 2023 alone. Smaller craft and startup brands also attracted significant funding, raising over $200 million through private equity to scale up distribution and launch functional zero-sugar drinks. E-commerce remains a big opportunity, with online sales growing by 22% last year and expected to keep rising as direct-to-consumer strategies gain popularity. Health and wellness trends have also boosted partnerships between beverage companies and fitness brands, with over 30 co-branded products launched in 2023 targeting gym-goers and athletes. Investments in sustainable packaging are rising too, with 28% of brands introducing recyclable or biodegradable bottles for their low-zero sugar product lines. With rising health awareness and tightening sugar regulations worldwide, the market is poised for more innovation-driven investments in the next three years.

New Product Development

New product development in the low-zero sugar beverages market has accelerated rapidly in the last two years, with more than 420 new SKUs launched globally in 2023 alone. Major beverage brands are focusing heavily on expanding their sugar-free portfolios to address rising consumer demand. In North America, over 120 new diet soda flavors were introduced last year, adding unique blends like cherry vanilla and citrus berry, which together contributed over 85 million liters in sales within six months of launch. Europe has seen a surge in low-zero sugar flavored water innovations, with over 95 new variations launched in 2023, featuring botanicals and natural extracts such as mint, cucumber, and elderflower.

Brands are also innovating with functional sugar-free beverages — nearly 27% of new low-sugar products launched globally now feature added health benefits like probiotics, antioxidants, or electrolytes. For example, at least 35 brands launched low-sugar sports hydration drinks with zero added sugar and natural flavors last year, collectively selling over 150 million liters in key urban markets. Packaging has become part of the innovation focus too — more than 40% of new launches are in single-serve recyclable cans or bottles under 300 ml, catering to portion control trends among calorie-conscious consumers.

Manufacturers are pushing natural sweetener technology forward as well. By late 2023, over 60 new low-zero sugar beverages were launched using innovative stevia or monk fruit blends that reduce aftertaste complaints by 32% compared to older formulas. This focus on taste has helped brands increase repeat purchases: surveys show that nearly 68% of consumers who tried these next-generation sugar-free drinks said they would buy again within three months. Emerging brands are also joining the race, with at least 80 new startup beverage labels debuting sugar-free or zero-sugar products last year in niche categories like cold brew teas and sparkling botanical sodas. With consumer surveys indicating that 72% of shoppers now actively check sugar levels on beverage labels, new product development will remain a critical strategy for brands to win market share in the fiercely competitive low-zero sugar drinks sector.

Five Recent Developments

The Coca-Cola Company launched 25 new sugar-free product variants across its global markets in 2023, adding over 200 million liters of new annual production capacity.
PepsiCo unveiled a new line of zero-sugar energy drinks in early 2024, distributing more than 60 million cans within the first quarter.
Danone expanded its sugar-free flavored water range in Europe, selling over 40 million liters of new SKUs in six months.
Nestlé introduced a zero-sugar fruit juice brand in Asia-Pacific in 2023, shipping over 25 million liters by the end of the year.
Zevia announced a new sustainability plan in 2024 to switch 70% of its packaging to recyclable aluminum cans for its entire zero-sugar portfolio.

Report Coverage of Low-Zero Sugar Beverages Market

The Low-Zero Sugar Beverages Market Report provides an in-depth study of the worldwide landscape, highlighting production volumes, key segments, consumer preferences, innovation pipelines, and competitive positioning. Covering over 80 countries, the report outlines facts such as 7.2 billion liters of low-zero sugar drinks sold globally in 2023, with North America contributing 35% of total volume and Europe reaching over 2.1 billion liters annually. It segments the market by product type — diet sodas at over 42% of global share, flavored water exceeding 1.1 billion liters, and fruit juices contributing about 1.7 billion liters each year.

The report covers market dynamics in detail, including the main drivers such as 72% of global consumers checking sugar labels and more than 68% of millennials and Gen Z actively cutting back on sugar. It highlights restraints like taste concerns, reported by over 41% of European buyers, and raw material cost spikes for natural sweeteners, with stevia prices up 12% in 2023. The study also uncovers opportunities, such as the 48% share of new launches using natural sweeteners, and challenges such as the supply chain impact on monk fruit, with global supply down by 10% last year.

Regionally, the report analyzes trends in North America, where the US alone accounts for 2.5 billion liters of annual consumption, and Europe’s strong performance, led by the UK with over 620 million liters of sugar-free soft drinks sold every year. It also highlights Asia-Pacific’s growth, with more than 1.8 billion liters consumed in 2023 and the Middle East & Africa’s emerging volume of 450 million liters, led by the UAE and Saudi Arabia.

The report profiles leading players such as The Coca-Cola Company, which sold over 3 billion liters of low-zero sugar drinks globally last year, and PepsiCo, with over 2.4 billion liters distributed worldwide. Investment trends show over $2.1 billion committed to new sugar-free production lines, R&D for cleaner formulations, and sustainable packaging, with over 35 co-branded products launched to tap into fitness and wellness segments. Covering over 420 new SKUs launched in 2023 alone and tracking five recent expansions by leading players, the report provides actionable insights for manufacturers, retailers, investors, and stakeholders looking to capitalize on the booming low-zero sugar beverages market.