Children's Beverages Market Size, Share Report, Analysis, Trends, Growth 2030

Children's Beverages Industry Prospective:

The global children's beverages market size was worth around USD 200.95 billion in 2022 and is predicted to grow to around USD 243.01 billion by 2030 with a compound annual growth rate (CAGR) of roughly 2.40% between 2023 and 2030.

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Children's Beverages Market: Overview

Beverages that are specially designed and formulated for children are classified in the category of children’s beverages. These are drink items that appeal to the developing taste of food and drinks among young children. Owing to the type of customers that belong to the children’s beverages sector, the products available in the market are produced under extremely stringent regulations laid down by international and regional regulatory authorities. Some of the most popular children’s beverages include whole milk, naturally flavored water, vegetable or raw fruit juice, and coconut water. However, the market is also filled with artificially flavored drinks. The latter type of beverages for children are not recommended by experts, especially regularly.

The demand for beverages for children is growing at a rapid pace as parents and guardians continue to seek healthy ways of improving children's immune systems as well as keeping them away from unhealthy sugar-filled drinks. Beverage providers, on the other hand, are adopting novel ways of attracting new customers, especially through creative and appealing advertisements. During the projection period, the children's beverages industry is expected to grow at a steady momentum.

Key Insights:

• As per the analysis shared by our research analyst, the global children's beverages market is estimated to grow annually at a CAGR of around 2.40% over the forecast period (2023-2030)
• In terms of revenue, the global children's beverages market size was valued at around USD 200.95 billion in 2022 and is projected to reach USD 243.01 billion, by 2030.
• The children’s beverages market is projected to grow at a significant rate due to the rising disposable income globally
• Based on age group segmentation, 14 to 18 years was predicted to show maximum market share in the year 2022
• Based on type segmentation, conventional was the leading segment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Children's Beverages Market: Growth Drivers

Rising disposable income globally to drive market growth

The global children’s beverages market is expected to grow due to the increasing disposable income of the general population across the globe. As the world is rapidly globalizing at a rapid rate along with increasing job opportunities, the per capita income and spending capacity of the general population have improved in recent times. For instance, as of the latest official data published in May 2023, India has registered a 35.12% increase in per capita income from 2014 to 2022. The rate of increase can be attributed to several factors such as significant growth in government investments toward infrastructure development and a push toward the Make in India vision allowing the creation of novel job opportunities.

In March 2022, the Jobs Now Africa Coalition emphasized the urgent need to create more than 15 million jobs in the African continent by 2025 to ensure steady economic survival. As the spending capacity improves, consumers will have more money to spend on products such as children’s beverages apart from the necessary drinks such as water.

Rising number of births globally to help market players gain higher revenue access

The birth rate across the globe has reached new heights in recent times. As per the United Nations (UN), an average of 385,000 babies are born every day. As per the same projections, the world population is expected to cross over 10 billion by 2056. As the consumer base increases, the demand for beverages for kids will automatically rise. In addition to this, the adoption rate has also improved worldwide. This allows more children globally to live in a supportive and loving environment.

As per UN reports, around 260,000 adoptions occur globally every year. These factors are likely to contribute to the global children’s beverages market during the projection period.

Children's Beverages Market: Restraints

Increasing concerns over the health impact of sweetened beverages to restrict market growth

The global children’s beverages industry is expected to be impacted by the growing concerns over the long-term health impact of artificially sweetened beverages. Since children tend to have sweet tooth, they are vulnerable to getting addicted to sweetened drinks if they are exposed to such beverages often. However, studies indicate that such drinks are often linked to serious medical concerns including obesity and conditions that may arise due to heavier body weight.

Furthermore, some of the other problems include the development of picky eating and tooth decay or erosion. As awareness around these issues has improved, more guardians and caregivers are focusing on the exact ingredients in children’s beverages to ensure that only quality drinks are provided to their children.

Children's Beverages Market: Opportunities

Increasing investments in research & development (R&D) to improve the nutrient content of the beverages may create higher growth opportunities

The global children’s beverages market is projected to gain benefit from the increasing R&D activities undertaken by companies dominating the industry. The research and innovation-led approach will attract more consumers to the market in the coming years. Companies are increasingly experimenting with ways in which they can improve the overall nutrition content of the beverage without showcasing any negative effect on the overall health of the children.

In November 2023, global food & beverages (F&B) giant Nestle, announced that it is developing a new range of N3 milk made from cow’s milk. With the use of confidential technology, it has managed to reduce the sugar content in the milk in the form of lactose and has around 15% lower calories as compared to other competitors in the market. N3 brand is first being launched in China. In August 2019, Borden launched a new range of highly nutritious milk range for children in the form of Kid Builder offering more than 50% protein as compared to counterparts along with other essential nutrients.

Growing initiatives by regional government to provide access to quality food among underprivileged children hold expansion possibilities

Malnutrition is one of the leading causes of death among children on a global scale. This is especially applicable in countries that are witnessing a rise in social-political tension. Regional governments have increased their spending on ensuring that a large part of the underprivileged children's section gains access to quality food through several state-run programs. As per data published by the Food Research & Action Center, 9 states in the US have legislation that allows school students free meals irrespective of their financial background.

Children's Beverages Market: Challenges

Curbing the sale of poor-quality children’s beverages may challenge market expansion

The global children’s beverages market will be challenged by the rising number of cases related to the sale of poor-grade or unregulated beverages for children. Several incidents have been reported globally related to the production and marketing of beverages prepared in unhygienic conditions without following the necessary laws laid down by regulatory authorities. Curbing the sale of such products and protecting the children from the harm caused by them remains a key point of focus for all associated stakeholders.

Children's Beverages Market: Segmentation

The global children's beverages market is segmented based on age group, type, and region.

Based on age group, the global market is segmented into 14 to 18 years, 9 to 13 years, 4 to 8 years, 2 to 3 years, and others. In 2022, the highest growth was observed in the 14 to 18 years segment. The children under this age group have better control and understanding of their preferences in terms of beverages. Additionally, they can consume more types of drinks including artificially sweet drinks since they have a better understanding of what suits their needs. The beverage choice for younger children is mostly managed by their guardians and hence the options remain limited since the main aim is to provide them with healthy drinks. 1 cup of low-fat milk provides around 314 milligrams of calcium, as per the U.S. Department of Agriculture.

Based on type, the global market is divided into conventional and organic. In 2022, the highest growth rate was observed in the conventional segment since currently, most produce providers are dealing with conventional forms of children’s beverages. However, there is a significant and growing industry segment for organic drinks. The main point of constraint for the organic segment is the high price of the products thus limiting the consumer base. In 2021, more than 900 million tons of milk was produced globally.

Children's Beverages Market: Report Scope

Children's Beverages Market: Regional Analysis

North America currently holds the majority of the market share

The global children's beverages market is currently led by North America. The higher spending capacity of the regional population along with increased sales of all forms of children's beverages through large-scale supermarkets and retail chains add to the regional dominance. In addition to this, the US is currently witnessing a rise in the number of children’s drink manufacturers and suppliers.

In December 2023, Else Nutrition announced that it would make its kid's shakes available online by January 2024 in collaboration with the country’s biggest retailers. The shakes are currently available in 2 flavors and contain around 25 minerals and vitamins. Furthermore, the regional population is more accepting of beverages designed for children that do not solely relate to milk-based products.

In May 2023, the former First Lady of America, Michelle Obama launched PLEZi. The new platform will provide healthier food and beverage options to children. Asia-Pacific is the fastest-growing region. The sheer population strength of Asian countries will act as the driving force.

Children's Beverages Market: Competitive Analysis

The global children's beverages market is led by players like:

• Honest Kids
• Capri Sun
• Organic Gemini
• Juicy Juice
• Aquaball
• Mott's
• Happy Family Organics
• Minute Maid
• GoGo squeeZ
• Welch's
• Apple & Eve
• Nature's Best
• Good2Grow
• Danimals
• Nestlé Juicy Juice

The global children's beverages market is segmented as follows:

By Age Group

• 14 to 18 Years
• 9 to 13 Years
• 4 to 8 Years
• 2 to 3 Years
• Others

By Type

• Conventional
• Organic

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa