Functional Beverage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Global functional beverage market is segmented by Type (Energy Drink, Fortified Juice, Sports Drinks, Dairy and Dairy Alternative Drinks, and Other Products); by Distribution Channel (Supermarket/Hypermarket, Drug Stores and Pharmacies, Convenience Stores, Online Retail Stores, and Others); and Geography.

Market Snapshot

functional beverage market
Study Period:

2016 - 2026

Base Year:

2020

Fastest Growing Market:

Europe

Largest Market:

Asia Pacific

CAGR:

6.96 %

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Market Overview

The global functional beverage market is projected to grow at a CAGR of 6.96% during the forecast period (2020 - 2025).

  • Increasing demand for innovative products, like plant-based and lactose-free beverage products, drive the market studied, while the inclusion of CBD infused functional beverages is expected to be the opportunity to the future market.
  • The ongoing COVID-19 pandemic is seen as a once-in-a-lifetime event and something that will have a profound impact on concerns about health, as well as eating and drinking habits. This is something that will drive demand for functional products that help boost immunity as consumers look to minimize the risk of illness. When it comes to such products, it is crucial that they are deemed affordable and credible when it comes to health claims
  • Key players are embarking on product innovation, mergers, and acquisitions as their key strategies to achieve consolidation and optimize their offerings. For instance, Glanbia acquired Body & Fit (offers energy drinks in the Netherlands), a leading direct-to-consumer (DTC), online, branded business focused on performance nutrition. This acquisition enabled GPN to have a direct presence in the rapidly growing DTC channel. Additionally, it may help the company increase its revenue, which may drive the market growth.​

Scope of the Report

The global functional beverage market is segmented by type, distribution channel, and geography. Based on type, the market is segmented into an energy drinks, sports drinks, fortified juice, dairy and dairy alternative beverage, and other types. Based on the distribution channel, the market is segmented into supermarket/hypermarket, drug stores and pharmacies, convenience stores, online retail stores, and other distribution channels. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East & Africa.

By Type
Energy Drinks
Sports Drinks
Fortified Juice
Dairy and Dairy Alternative Beverage
Other Types
By Distribution Channel
Supermarket/Hypermarket
Pharmacies/Health Stores
Convenience Stores
Online Retail Stores
Others
By Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
France
Russia
Italy
Spain
Rest of Europe
Asia-Pacific
India
China
Japan
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
South Africa
Saudi Arabia
Rest of Middle East & Africa

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Key Market Trends

The Growing Demand for Healthy Hydration

The progressive inclination of consumers toward health-oriented products has involved probiotic food products as a requisite in the list. In addition, the sale promoting tag lines, such as “ready to drink”, “on the go” and other convenience factors, such as favorable packaging altogether served by beverages, further augments the demand for probiotic drinks, including kombucha. Consumers have started to prefer functional drinks over fruit juices and carbonated drinks. 

With consumers now increasingly aware of the health implications associated with soft drinks categories, concerned drinkers are frequently shunning vilified categories, like carbonates and juices, in favor of ‘healthier’ choices, such as soymilk, probiotics, and other functional drinks. Consumer education has been the key factor behind the rising demand for hydration drinks. The trend of healthy hydration owes its success to the growing awareness toward fermented drinks with natural ingredients and the increasing acceptance of consuming probiotics.

Functional Beverage Market1

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Asia-Pacific holds the Largest Market Share

The high incidence of cardiovascular disease, osteoporosis, and arthritis coupled with the growing demand for convenience beverages and the changing lifestyle among Asian consumers are the major drivers for the growth of functional energy drinks, fortified/functional plant-based and malt-based hot drinks sales in the market.

 Further, due to the high prevalence of diabetes in the countries like India and China, consumers are becoming more aware of the importance of a healthy diet and active lifestyle promoting the consumers to prefer natural sweeteners, such as stevia, in their beverages. According to the International Diabetes Federation, India was home to 77 million diabetes patients in 2019, the second-largest in the world. By 2030, the number is predicted to reach 101 million. Thus, companies like PepsiCo Inc. and Coca-Cola, are committed to remove artificial ingredients and reduce the sugar content in their products

functional beverage market1

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Competitive Landscape

The global functional beverage market is a fragmented market and comprises numerous regional and international competitors. Players are also extensively focusing on providing consumers with innovative offerings while including functional benefits in each of their products. Further, while engaging the consumers with innovation and expansion strategies, key players are capitalizing on the market revenue. Some of the major players in the market studied are PepsiCo, Red Bull GmbH, Coco-Cola, and Monster Beverage Corporation among others.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables and Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Energy Drinks

      2. 5.1.2 Sports Drinks

      3. 5.1.3 Fortified Juice

      4. 5.1.4 Dairy and Dairy Alternative Beverage

      5. 5.1.5 Other Types

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarket/Hypermarket

      2. 5.2.2 Pharmacies/Health Stores

      3. 5.2.3 Convenience Stores

      4. 5.2.4 Online Retail Stores

      5. 5.2.5 Others

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 France

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Spain

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 India

        2. 5.3.3.2 China

        3. 5.3.3.3 Japan

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 South Africa

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 PepsiCo, Inc.

      2. 6.4.2 Red Bull GmbH

      3. 6.4.3 The Coca-Cola Company

      4. 6.4.4 Danone S.A.

      5. 6.4.5 Monster Beverage Corporation

      6. 6.4.6 JAB Holdings Company

      7. 6.4.7 General Nutrition Centers, Inc.

      8. 6.4.8 The Hain Celestial Group, Inc.

      9. 6.4.9 Fonterra Co-operative Group

      10. 6.4.10 Amway Corporation

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Functional Beverage Market market is studied from 2016 - 2026.

The Functional Beverage Market is growing at a CAGR of 6.96% over the next 5 years.

Europe is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

  • PepsiCo, Inc.
  • The Coca-Cola Company
  • Monster Beverage Corporation
  • Red Bull GmbH
  • Danone S.A.

Are the major companies operating in Functional Beverage Market.

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