Functional Beverage Market - Growth, Trends and Forecasts (2019 - 2024)

Market Insights

The functional beverage market was valued at USD 26.2 billion in 2015, at an expected CAGR of 6.5% during the forecast period. Functional beverage is a non-alcoholic drink which provides specific health benefits and contains non-traditional ingredients like minerals, vitamins, amino acids or added raw fruits.

Rising demand for convenience beverages among health conscious consumers

Demand coming from millennial generation, rising health care & wellness awareness and busy lifestyles have led to the growing demand for convenience beverages. These factors along with the idea of “healthiness-on-the-go” and innovations in the drink flavors have led to surge in demand for health associated functional drinks and beverages which are also the alternatives to the traditional supplements. The rising health awareness of functional beverages are leading to the opportunity of manufacturing condition specific product offerings which will clearly stand out in the market.

Expanding product portfolio to address use of natural ingredient & technological advancements in functional beverages are the focus areas of major players in the market. The consumer demands for a clean label have been on the rise. However, the manufacturers are unable to define it yet. Other restricting factors are presence of stringent government regulation.

Market Segmentation

Energy drinks, sports drinks & nutraceutical drinks are the major segments of the global functional beverages market. The energy drink market is forecasted to be the fastest growing segment due to the steadily growing demand from health conscious consumers. Functional beverages are the emerging class of natural products which helps in reducing the risk of chronic disease beyond basic nutritional functions. The functional beverages market is one of the fastest emerging markets due to its minerals and herbs content in the drinks. It’s also used to keep blood sugar levels under control leading to increased demand.

Consumers are now looking for variations in daily drinks which include hydration with performance & even preventive measures taken for specific health conditions. The major ingredients used are vitamins, amino acids and omega-3 fatty acids. Amino acids are used to slow fatigue and vitamins are added to boost the metabolism and generate energy in functional beverages. Omega-3 is widely used and its market is forecasted to grow as it controls inflammation. Prebiotics and probiotics are another ingredients widely used in these drinks to ensure proper functioning of digestive system.

Regional Analysis

North America is the top consumer of functional drinks. The U.S. is the major contributor in North America region due to trending of health awareness amongst all age group consumers, athletic regime, work culture, and busy lifestyle. Asia-Pacific is forecasted as the fastest growing market. In terms of potential, countries such as Australia, China & India look attractive for business growth. Economic growth, changing lifestyle, health awareness are the major factors for the market attractiveness in this region. Other significant potential market is Russia in Europe.

Competitive Landscape

The functional beverage industry is highly concentrated with top ten companies accounting for more than 50% of the market share. The leading players in the market are focused on innovative flavors and drinks, which are safe to consume, tastes good and are cheap in cost.

The key players in global functional beverage market includes Nestle, PepsiCo, Mondo laze and Fonterra amongst others.

Reasons to Purchase this Report

• Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
• Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
• Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
• Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
• Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
• 3 months analyst support along with the Market Estimate sheet in excel.

Customization of the Report

• Value chain analysis
• Volume of Functional Beverage Market
• Consumer behavior analysis in country level

This report can be customized to meet your requirements. Please connect with our analyst, who will ensure you get a report that suits your needs.