Lemon Squash Market Size, Share, Growth, and Industry Analysis, By Type (Bottled, Canned & Boxed), By Application (Supermarket, Hypermarket, Convenience Store, Online Shopping Mall & Specific Retailers), and Regional Forecast to 2032

Last Updated: 04 January 2025

LEMON SQUASH MARKET OVERVIEW

The global Lemon Squash market size expanded rapidly USD 918 million in 2024 and is projected to grow USD 1296 Million by 2032, exhibiting a CAGR 4.4% during the forecast period.

As a fairly young segment within the large and constantly developing beverage market, lemon squash is becoming more and more popular due to qualities such as refreshing effect and naturalness of the drink. Lemon Squash, which is made from lemon juice, sugar, and water, provides a sharp, refreshing taste that is believed to be more healthy for consumers compared to most retailers’ sugary soft drinks. This drink has new market coverage because consumers are increasingly becoming conscious of healthy products, products with low calories, natural products, and products that provide energy boosts. Since wellness trends continue to rise, it is believed that the lemon squash market will continue doing well in both developed and developing nations.

COVID-19 IMPACT

Lemon Squash Industry Had a Positive Effect Due to Health Trends during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 outbreak was a major boon to the lemon squash market, given the increased consumption during crises of products that help to boost the immune system and maintain hydration. As the concept of health and wellness grew popular, the consumption of natural vitaminized products such as lemon squash increased, and more so in regions that were targeting immune boosters. Real consumption per capita at home also increased significantly in this direction due to the popularity of their familiar products in a concentrated and ready-for-consumption format during online sales. Conclusively, the period cut short the consumption of lemon squash drink due to its health benefits and convenience.

LATEST TREND

"Market growth in lemon squash driven by organic, sugar-free, vitamin-enriched options"

New trends seen in the lemon squash market include organic and no-added-sugar lemon squash and recyclable packaging materials, as well as incorporation of vitamins in the product. One significant trend that is slowly emerging is the preference in sugar-free lemon squash over sweetened squashes that a lot of consumers have come to turn down sugary drinks. This shift has seen brands try to introduce natural sweeteners to the market as a way of grounding corn-flavored products.

LEMON SQUASH MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Bottled, Canned & Boxed

• Bottled Lemon Squash: Lemon Squash in a bottle provides ease when consumed and can be taken anywhere since they are ready to drink. The requirements of bottled drinks have been on the rise because they can be stored for a long period of time. These products are usually found in different packs; this is with regards to individual packs and packs for the whole family.
• Canned Lemon Squash: Canned Lemon Squash is famous for its petite and lightweight, which serves as sweet bonuses that effectively make it easy to accommodate in any moving gear. The market for canned beverages has experienced a demand for single-served canned beverages that targets providing consumers with fresh and convenient products. Cans also take less space on shelves and have a longer shelf life than bags, and are therefore popular among mass-selling companies.
• Boxed Lemon Squash: They are popularizing Boxed Lemon Squash in response to the public’s concern for the environment and larger pack sizes. This format is usually promoted under the meaning of family size and can serve both as a cheaper and more convenient form of purchasing. Concentrates are common with boxed products because they enable the consumers to mix the flavors of their choice to their desired concentration.

By Application

Based on application, the global market can be categorized into Supermarket, Hypermarket, Convenience Store, Online Shopping Mall & Specific Retailers

• Supermarket: Supermarkets are key distribution channels for Lemon Squash, offering a wide variety of brands and flavors to cater to diverse consumer preferences. The convenience of large, centralized shopping locations makes supermarkets a popular destination for bulk purchases of beverages. In-store promotions and discounts often boost sales and visibility of Lemon Squash in supermarkets.
• Hypermarket: Hypermarkets, with their vast space and extensive product range, provide consumers with a broad selection of Lemon Squash options under one roof. These stores often target price-conscious consumers by offering competitive pricing on bulk purchases. The high foot traffic in hypermarkets helps increase visibility and accessibility for Lemon Squash brands.
• Convenience Store: Convenience stores cater to consumers looking for quick, on-the-go purchases, making them ideal for the sales of bottled or canned Lemon Squash. These stores are strategically located in high-traffic areas, allowing them to attract customers seeking instant refreshment or a healthier beverage option. The small size and easy access make convenience stores essential in catering to last-minute Lemon Squash purchases.
• Online Shopping Mall: Online shopping malls have witnessed significant growth in the Lemon Squash market as more consumers turn to digital platforms for their grocery and beverage needs. The convenience of home delivery and the ability to compare brands and prices have made e-commerce an attractive option for purchasing Lemon Squash. Online platforms often provide detailed product descriptions and reviews, helping customers make informed decisions.
• Specific Retailers: Specific retailers, including health food stores and organic outlets, cater to niche markets that prioritize natural and health-conscious products like Lemon Squash. These retailers often offer premium or locally sourced Lemon Squash brands, targeting consumers who are willing to pay more for quality and sustainability. The specialized nature of these retailers helps build strong brand loyalty among health-focused shoppers.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Health-conscious consumers drive market growth for low-calorie, natural lemon squash"

Awareness regarding health benefits among consumers has undoubtedly inflated the demand for sparkling natural and relatively low-calorie products like lemon squash. Made from lemons, sources of vitamin C and antioxidants, lemon squash is considered harmless compared to sweet spiced sodas. This trend has helped to boost the growth of the market due to the increasing interest of people in wellness.

"Market growth fueled by demand for convenient, portable lemon squash products"

The change of attitude by today’s consumers, who prefer quick solutions, leads to the consumption of products like lemon squash. Available in bottles, cans, and box form, which is convenient for carrying around in case a consumer wants a drink and resulting lemon squash market growth.

Restraining Factor

"Market growth is challenged by concerns over high sugar content"

A threat experienced by lemon squash manufacturers is the increasing customer concern with high sugar content in some brands, which is an influential negative factor for the purchase decision of many people. Situation analysis: Owing to growing awareness on the effects of sugar on the health of consumers, most individuals are now using reduced-sugar or recommended-sugar products. This is a change that can hamper further development of the market, although it is more prominently observed in areas promoting active and healthy lifestyles.

Opportunity

"Market growth opportunity driven by demand for organic, no-sugar lemon squash"

One such fortuitous chance for expansion within the lemon squash market is through the demand for no-sugar and easily organic essences. Ever since the world’s population focuses on health, they go out and purchase drinks that meet their dietary requirements, which are mostly minimal-calorie and organic products. Having an addition of organic and no-sugar-added foods could make a wider market of customers. This change towards healthier products, especially soft drinks, offers a great market growth opportunity for the lemon squash market.

Challenge

"Market growth is hindered by stiff competition and price sensitivity issues"

One major problem the lemon squash market has to battle with is the stiff market competition, which is presented by other beverages, mainly the sugary soft drinks and fruit juices. Global competitive brands dominate these categories, and thus, new or else small Lemon Squash brands can hardly penetrate into the markets. Further, consumer sensitivity to price makes it difficult for the company to achieve targeted earnings for Lemon Squash products. In its turn, perpetual tension with quality, price, and brand identity is observed in the market.

LEMON SQUASH MARKET REGIONAL INSIGHTS

• North America

Market growth in North America driven by health-focused, convenient lemon squash

Lemon Squash has a large consumer base in the North American market, owing to the regions’ simple yet healthy, hygienically enjoyed products and sizeable disposable incomes. This dominance is well supported by the United State lemon squash market, which is experiencing growing consumer preference for natural and low-calorie products. Higher consumer knowledge concerning the health effects of lemon squash, including immunizing attributes, is fueling the expansion of the present market in the US. Also, the feature of convenience and consumption outside the home plays a role in market dominance in the region.

• Europe

Market growth in Europe driven by demand for natural, low-sugar lemon squash

Lemon squash has a large market in Europe, backed by a shift towards the use of natural products and healthy substances. The increase in demand for low-sugar and organic drinks is in line with the healthy ASGE trends that have been observed in the region. Lemon Squash has become popular among European consumers, as they are now looking for an exciting change from sugary soda pops. Furthermore, the well-developed retail market and the continuously increasing sales through online channels create additional opportunities for market growth in Europe.

• Asia

Market growth in Asia driven by urbanization and demand for healthy lemon squash

Asia holds remarkble lemon squash market share because of continuous urbanization, people turn to more gentle and healthy thirst quenchers. Changing lifestyles and a rise in middle-income earners’ demographics have pushed consumers to shift from sugary products to more healthy products, such as lemon squash. India and China, in particular, are gradually establishing bottled and concentrated lemon squash. Furthermore, growing distribution channels and e-commerce are also playing a role in the market growth in the same region.

KEY INDUSTRY PLAYERS

"Market growth driven by product innovation, global reach, and healthy positioning"

The players in the Lemon Squash space are continually pushing the development of new product portfolios, including organic, low-sugar, and even functional options. They have robust outlets where they sell their products through supermarkets, online, and convenience stores, among others. By marketing strategies, mergers, and product differentiation, these players have now extended the product Lemon Squash across the globe to healthy-conscious consumers.

List of Top Lemon Squash Companies

• SanPellegrino (Italy)
• Great Value (US)
• ReaLemon (US)
• Santa Cruz (US)
• Pokka (Japan)

KEY INDUSTRY DEVELOPMENTS

August 2024:  Dabur India Ltd., a leading player in the Indian FMCG sector, launched a new product under its popular brand Real called Real Lemon Squash. This new product is aimed at tapping into the growing demand for ready-to-drink beverages, particularly in the summer season. The launch is part of Dabur's strategic push to expand its presence in the lemon squash and fruit-based beverage market, addressing the increasing consumer preference for natural and refreshing drinks. The product is positioned as a high-quality, convenient option for consumers looking for a ready-to-consume lemon drink with a focus on natural ingredients.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The Lemon Squash market is poised for a continued boom pushed by increasing health recognition, the growing popularity of plant-based diets, and innovation in product services. Despite challenges, which include confined uncooked fabric availability and better costs, the demand for gluten-unfastened and nutrient-dense alternatives supports marketplace expansion. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of Lemon Squash. As customer choices shift towards healthier and numerous meal options, the Lemon Squash market is expected to thrive, with persistent innovation and a broader reputation fueling its destiny prospects.