Australia non-alcoholic beverages market to hit $48 billion by 2034

By AI, Created 8:05 AM UTC, May 20, 2026, /AGP/ – Australia’s non-alcoholic beverages market is projected to grow from $28.86 billion in 2025 to $48.01 billion by 2034, driven by demand for functional drinks, low-sugar products and zero-alcohol alternatives. The shift is also being shaped by packaging changes, digital retail growth and stronger competition from major beverage groups and fast-moving craft brands.

Why it matters: - Australia’s non-alcoholic beverages market is moving from basic refreshment to wellness, moderation and premiumization. - The shift is creating growth opportunities across functional drinks, low-sugar formulations, plant-based alternatives and zero-alcohol products. - Packaging, retail channels and product development are changing fast as consumers reward convenience, sustainability and health benefits.

What happened: - The Australia non-alcoholic beverages market was valued at USD 28.86 billion in 2025. - The market is projected to reach USD 48.01 billion by 2034. - The forecast implies a compound annual growth rate of 5.82% from 2026 to 2034. - Consumer demand is rising for flavoured water, kombucha, craft sodas and premium zero-alcohol beverages. - Circana data showed the share of Australians purchasing zero-alcohol beverages more than doubled between August 2020 and January 2025. - Suntory is launching Suntory Oceania, a AUD $3 billion multi-beverage business combining 40 brands across alcohol and non-alcohol categories. - The Australian Medical Association’s 2026-27 Pre-Budget Submission proposes a sugar-sweetened beverage tax of 50 cents per 100g of sugar. - Jim is launching what it describes as Australia’s first functional soda, with 5g protein, prebiotics and BCAAs per can. - Jim’s product is now stocked in more than 100 wellness centres and health food stores nationwide.

The details: - Carbonated soft drinks remain the largest category with a 32% market share. - Coca-Cola Europacific Partners and Asahi Holdings together account for more than 82% of soft drink manufacturing industry revenue. - The category is being sustained by reformulation into zero-sugar and low-calorie variants. - The kombucha segment is expanding, with the Australia kombucha tea market valued at USD 42.25 million in 2025. - The report links kombucha growth to interest in gut health and probiotic-rich products. - Bottles lead packaging with a 49% market share. - Retail is the largest distribution channel with a 34% market share. - Australia Capital Territory and New South Wales lead regionally with a 31% market share. - The supplier base includes domestic and international sources for sugar, fruit concentrates, botanical extracts and packaging materials. - A $50 million PET recycling facility in Melbourne is being developed by Pact Group, Cleanaway, Asahi Beverages and Coca-Cola Europacific Partners. - The facility is expected to process up to one billion bottles a year. - Visy has partnered with Lion, Stone & Wood, Novelis and Rio Tinto on a beverage can with 83% recycled aluminium. - The can is estimated to reduce carbon emissions by 59%. - Victoria’s largest PET bottle recycling plant is processing up to one billion bottles annually. - Woolworths reported a 39% rise in fast grocery delivery services. - E-commerce is helping smaller and craft beverage brands reach customers without large retail infrastructure. - The market includes carbonated soft drinks, juices, bottled water, sports drinks, RTD tea and coffee, and functional beverages. - Key players mentioned in the report include Altina Drinks, Asahi Beverages, Brunswick Aces, Bundaberg Brewed Drinks, ETCH Sparkling, Lyre’s Spirit Co, NON, Polka, Sobah Non-Alcoholic Beverages and Suntory Beverage & Food Australia Pty Ltd.

Between the lines: - The market’s growth is being driven by a broader consumer move away from sugary beverages and toward drinks tied to health outcomes. - The zero-alcohol surge suggests moderation is becoming a mainstream buying pattern, not just a niche trend. - Sustainability has become a commercial differentiator, not just a branding message. - Digital commerce is lowering barriers for niche brands, which increases competition for established players. - The proposed sugar tax and industry reformulation efforts point to policy pressure and consumer demand moving in the same direction.

What’s next: - More beverage makers are likely to expand low-sugar, functional and zero-alcohol lines. - Sustainable packaging investment should continue as brands respond to consumer and regulatory pressure. - Online and direct-to-consumer sales are likely to keep growing, especially for premium and specialty brands. - Competition may intensify as larger groups scale up through acquisitions, new launches and broader brand portfolios. - Native botanicals, premium flavors and health-focused claims are likely to remain key product themes.

The bottom line: - Australia’s non-alcoholic beverage market is growing because consumers want drinks that do more than hydrate. The winners are likely to be brands that combine health, convenience, sustainability and premium positioning.