Beverages are important part of balanced and healthy life. They provide energy, quench thirst, and provide hydration. The key ingredients in non-alcoholic beverages include high fructose corn syrup, caffeine and low calorie sweetener. Consumers beverage choice are no longer restricted to refreshment purpose, but rather are influenced by various factors. Hence the beverage market is more focusing on ingredients to satisfy the demand of its consumers. The most widely consumed beverage is tea.

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The key drivers for beverage ingredients market include increase in young population worldwide, increased popularity of sports, and increase in fast food chains where beverages are given as complementary. Also low temperatures in western countries lead to increased consumption of beverages. Entrance of new beverage ingredients will help in changing the preference of customers thereby changing the growth of beverage market. The major restraint of beverage ingredient market is increase in health conscious among consumers. Increased consumption of caffeinated drinks leads to viscous cycle of fatigue and insomnia. Also zero calorie beverages may seem appealing but they can actually hurt the metabolism thus affecting the way body responds to sugar. The major opportunity of this market is introduction of light drink or sugar free beverages to attract female customers.

North America is leading consumer of beverages market followed by Europe and Asia Pacific. India and China have been the major markets for beverage ingredients, sharing superiority in both expansion as well as price competiveness. On basis of types, beverages are classified into soft drinks, juices, and alcoholic beverages. Ready to drink non alcoholic beverage is expected to be dominant segment of beverage market. Based on beverage ingredients, tea is more consumed compared to coffee, carbonated and flavored drinks.

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Some of the key players of this market are PepsiCo, Coca-Cola, Kraft Foods Inc., Anheuser-Busch InBev, Monsanto Company Inc. Red Bull GmBH, and GlaxoSmithKline among the others.