FOODiQ Global has completed a 28-year analysis of Australian non-alcoholic drink sales, revealing a strong swing towards water and low- and no-sugar carbonated drinks for consumer choices in the beverage aisle. The study was commissioned by the Australian Beverages Council.
Published in the scientific journal Nutrients, Evolving Sweet Preferences: Temporal Trends in Australian Non-Alcoholic Beverage Sales from 1997 to 2024 shows Australians are buying fewer sugar-sweetened carbonated drinks and more low- and no-sugar options.
The report examined non-alcoholic, water-based beverage sales in Australia from 1997 to 2024, building on three previously published studies. The paper also provides additional sales data on kombucha, flavoured milk, juice and fruit drinks from 2015 to 2024.
In 1997, sugar-sweetened water-based beverages accounted for 70 per cent of the category. By 2024, this figure fell to 35 per cent. In contrast, low- and no-sugar varieties have doubled their market share, from 30 per cent to 65 per cent in the same period.
Importantly, the data showed the rate of decline in sugar-sweetened carbonated drink sales increased by 50 per cent between 2015 and 2024, following the introduction of the Sugar Reduction Pledge – with companies including Coca-Cola Europacific Partners, PepsiCo, Asahi Beverages and Frucor Suntory having pledged to cut the sugar in their products by 25 per cent by 2025.
According to FOODiQ Global, there has been a consistent movement away from purchases of sugar-sweetened to those of non-sugar-sweetened and unsweetened varieties, a pattern that appears to have accelerated in 2015, in alignment with the initiation of the industry’s Sugar Reduction Pledge.
“These sales trends correlate with reductions in sugar content and contribution, as well as patterns of beverage intake reported by national surveys, and thus may have played a role in the reduction in free sugar intake within the Australian population to below 10 per cent of dietary energy,” stated the report.
The Australian Beverages Council has provided consistent updates since the 2018 pledge, showing there was a 30 per cent decrease in per capita sugar contribution from non-alcoholic water-based beverages by 2021 (from 2015 data), and the Sugar Reduction Pledge progress report finding leading non-alcoholic beverage companies had reduced sugar across their portfolios by more than 16 per cent from 2015 to 2021.
The FOODiQ Global report showed the sugar content of water-based drinks has halved (down 54 per cent) since 1997, including a 31 per cent reduction in the sugar content of carbonated soft drinks. Water is now driving market growth, with still and sparkling water’s market share growing from 4.8 per cent to 36 per cent over the 28-year period. In 2024, still and sparkling water outsold sugar-sweetened carbonated soft drinks (36 per cent vs 23 per cent market share).
The trends research also examined changes across additional beverage categories. Juice consumption declined by 15 per cent between 2015 and 2024. There was a sharper fall in sales of fruit drinks with added sugar, down 27 per cent, compared to sales of juice with no added sugar, down 6 per cent. Australians also bought more flavoured milk, with a 37 per cent sales increase, and kombucha was a growing market segment.
Some beverage categories, including energy drinks, sports drinks, and functional beverages, show increases in sugar-sweetened beverage sales over time, warranting ongoing monitoring.
Australian Beverages Council CEO, Geoff Parker, said the world-first data analysis provided an unprecedented and comprehensive view of how Australia’s beverage market had evolved.
“Australians are making different drinks choices today than they were three decades ago and are actively seeking more low- and no-sugar options,” said Parker.
“These long-term trends reflect sustained, proactive action by the industry to expand the range of drinks available to consumers and reduce sugar across beverage portfolios.
“This research underpins the importance of robust, evidence-based policies. It is clear that industry strategies are supporting consumers to make informed decisions about their drink choice without the need for regressive policies that add to already constrained household budgets and that fail to deliver any demonstrable health benefits,” he said.
As the water-based beverage industry has grown, the report also noted that the market has expanded to include a broader mix of choices, a wider range of pack sizes, and new categories – a trend Parker outlined for Food & Drink Business in 2023.
The research reinforced and complemented existing national data, including recent ABS consumption findings, which showed the proportion of Australians consuming sugar-sweetened beverages decreased from 43.2 per cent in 1995 to 20.9 per cent in 2023.
For further information on the FOODiQ Global report and data, head to australianbeverages.org.
