A 28-year analysis of Australian non-alcoholic drink sales has revealed major shifts in what Australians are choosing to drink, with water and low- and no-sugar carbonated drinks now dominating the beverage aisle.

The research, conducted by FOODiQ Global and published in the peer-reviewed, scientific journal Nutrients, is promoted as the longest-running study of its kind globally. It 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.

The independent research was commissioned by the Australian Beverages Council and launched recently at an industry briefing. Key research findings include:

• Australians are buying fewer sugar-sweetened carbonated drinks and more low- and no-sugar options. In 1997, sugar-sweetened water-based beverages accounted for 70% of the category. By 2024, this figure fell to 35%. In contrast, low- and no-sugar varieties have doubled their market share, from 30% to 65% in the same period.
• Water is driving market growth. Still and sparkling water’s market share has grown from 4.8% to 36%, in the 28-year period. In 2024, still and sparkling water outsold sugar-sweetened carbonated soft drinks (36% vs 23% market share).
• Less sugar in water-based drinks. The sugar content of water-based drinks has halved (down 54%) since 1997, including a 31% reduction in the sugar content of carbonated soft drinks.

‘Unprecedented and comprehensive’ view

Australian Beverages Council CEO Geoff Parker says the world-first data analysis provides an “unprecedented and comprehensive” view of how Australia’s beverage market has evolved.

“Australians are making different drinks choices today than they were three decades ago and are actively seeking more low- and no-sugar options,” he says.

“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.”

The data shows the rate of decline in sugar-sweetened carbonated drink sales increased by 50% between 2015 and 2024, following the introduction of the Sugar Reduction Pledge, the industry’s voluntary initiative to reduce sugar across portfolios.

“This research underpins the importance of robust, evidence-based policies,” says Mr Parker.

“It’s 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.”

Other findings

The 28-year trends research findings reinforced and complemented existing national data, including recent ABS consumption findings, which shows the proportion of Australians consuming sugar-sweetened beverages decreased from 43.2% in 1995 to 20.9% in 2023.

The trends research also examines changes across additional beverage categories.

Juice consumption declined by 15% between 2015 and 2024. There was a sharper fall in sales of fruit drinks with added sugar, down 27%, compared to sales of 100% juice with no added sugar, down 6%.

Australians bought more flavoured milk, with a 37% sales increase, and kombucha was a growing market segment.