|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The global functional beverage market is projected to register a CAGR of 7.5% during the forecast period (2022 - 2027).
With the s impact of COVID-19, the market has witnessed a surge in demand for products that provide functional benefits, such as immune health, which is likely to impact the market positively. Consumers are increasingly seeking functional beverage products as they believe might aid in the body's defenses. Countries like the United kingdom have already announced a proof plan to counter rising obesity in the country with campaigns like '' better health''.Such initiatives are being considered a potential for the market that earns on consumers turning to opt for a functional beverage with functional benefits. Increasing demand for innovative products, like plant-based and lactose-free beverage products, drive the market study, while the inclusion of CBD-infused functional beverages is expected to be an opportunity for the future market.
As more consumers gain awareness and experience with the online and DTC distribution models, the market is expected to witness a transition of online channels by functional beverage manufacturers in the coming years. Also, the effect of lockdown has prompted the growth of beverage products, such as functional drinks in their grocery mart. Hence, COVID-19 is projected to have a positive impact on the funcifunctionalrages market.
Scope of the Report
A functional beverage is classified as a conventional liquid food marketed to convey product ingredients or supposed health benefits. The global functional beverage market is segmented by type, distribution channel, and geography. Based on type, the market is segmented into 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 and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
|Dairy and Dairy Alternative Beverage|
|By Distribution Channel|
|Online Retail Stores|
|Other Distribution Channels|
Key Market Trends
The Growing Demand for Healthy Hydration Products
The progressive inclination of consumers toward health-oriented beverages 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 healthy 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.
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Asia-Pacific is the Fastest Growing Region
The high incidence of cardiovascular disease, osteoporosis, and arthritis, coupled with the growing demand for convenience beverages and the changing lifestyle among Asian consumers, is the major driver for the growth of functional energy drinks, fortified/functional plant-based, and malt-based hot drinks sales in the market. Furthermore, due to the high prevalence of diabetes in 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 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.
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The functional beverage market is competitive 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. Furthermore, while engaging the consumers with innovation and expansion strategies, key players are capitalizing on the market revenue. Key players operating in the market 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 (which 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 market growth. Some of the major players in the market studied are PepsiCo, Red Bull GmbH, Coco-Cola, and Monster Beverage Corporation, among others.
The Coca-Cola Company
Monster Beverage Corporation
Red Bull GmbH
- In 2021, Plant-based beverage Koia, announced that their products will be nationally distributed in 7-Eleven convenience stores in Uthe united States. Over 60% of consumers come to 7-Eleven for beverages, making it critical for the company portfolio to match their needs of living healthy lives.
- In 2020, PepsiCo launched a new functional beverage, Driftwell, which it claims is designed to help consumers relax, unwind and de-stress. It contains L-theanine, an amino acid commonly found in tea leaves that is said to promote relaxation without drowsiness, as well as magnesium, and it has a spa-water-inspired flavor with hints of blackberry and lavender.
- In 2020, OWYN announced a growth investment round led by PowerPlant Ventures. With the investments, PowerPlant Ventures joined Clearlake and Halen Brands as Partners to Accelerate the Growth of OWYN, the company’s leading Plant-Based Protein Beverage and Functional Nutrition Brand.
Table of Contents
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Energy Drinks
5.1.2 Sports Drinks
5.1.3 Fortified Juice
5.1.4 Dairy and Dairy Alternative Beverage
5.1.5 Other Types
5.2 By Distribution Channel
5.2.2 Pharmacies/Health Stores
5.2.3 Convenience Stores
5.2.4 Online Retail Stores
5.2.5 Other Distribution Channels
5.3.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 South Africa
22.214.171.124 Saudi Arabia
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 PepsiCo Inc.
6.4.2 Red Bull GmbH
6.4.3 The Coca-Cola Company
6.4.4 Danone SA
6.4.5 Monster Beverage Corporation
6.4.6 JAB Holdings Company
6.4.7 General Nutrition Centers Inc.
6.4.8 The Hain Celestial Group Inc.
6.4.9 Fonterra Co-operative Group
6.4.10 Amway Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Frequently Asked Questions
What is the study period of this market?
The Functional Beverage Market market is studied from 2016 - 2027.
What is the growth rate of Functional Beverage Market?
The Functional Beverage Market is growing at a CAGR of 7.5% over the next 5 years.
What is Functional Beverage Market size in 2016?
The Functional Beverage Market is valued at 258 Billion USD in 2016.
Which region has highest growth rate in Functional Beverage Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Functional Beverage Market?
North America holds highest share in 2021.
Who are the key players in Functional Beverage Market?
PepsiCo, Inc., The Coca-Cola Company, Monster Beverage Corporation, Red Bull GmbH, Danone S.A. are the major companies operating in Functional Beverage Market.