Functional Beverages Market Size
|2019 - 2029
|Market Size (2024)
|USD 213.74 Billion
|Market Size (2029)
|USD 306.76 Billion
|CAGR (2024 - 2029)
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Functional Beverages Market Analysis
The Functional Beverage Market size is estimated at USD 213.74 billion in 2024, and is expected to reach USD 306.76 billion by 2029, growing at a CAGR of 7.49% during the forecast period (2024-2029).
Consumers gravitate toward beverages with functional benefits, majorly influenced by health and wellness trends. Functional drinks with protein and claims to boost energy are gaining popularity, especially among fitness enthusiasts. Functional beverages are gaining immense popularity among millennials due to aggressive marketing campaigns toward young consumers. Advertisements promoting functional beverages such as energy drinks, sports drinks, and other fortified beverages as the drinks that ignite the mind, refresh the body, and enhance performance and stamina are further capturing consumer attention. Moreover, digestive health is likely the next functional crowd-pleaser, and consumers are willing to pay high prices. Therefore, brands may leverage the opportunity to expand their product portfolio and consumer base. As the functional beverages market is highly competitive, manufacturers must stay in tune with changing consumer needs and deliver innovation with proven scientific benefits of powerful active ingredients to stand out. For instance, in October 2023, the Tropicana brand of PepsiCo Inc. launched its two new smoothie flavors containing Vitamin C. The products Tropicana Smoothie Pineapple & Mango and Strawberry & Banana are to be retailed across India in all distribution channels operating in the market.
Functional Beverages Market Trends
Inclination Toward Dairy and Dairy Alternative Beverages
The rising demand for probiotic drinks by health-conscious consumers primarily drives the market. The growing trend of veganism further increases the demand for plant-based functional milk products. Plant-based milk analogs may lack some of the nutritional benefits of dairy. Hence, manufacturers incorporated micronutrients such as vitamins B12 and D and calcium to enhance the product's nutritional value.
The market is fueled by the availability of numerous flavors and packaging variants, the growing consumer indulgence for exotic flavors, and significant investments by manufacturers. For instance, in June 2022, Danone North America launched the Activia+ multi-benefit probiotic yogurt drink, which includes billions of active and live probiotics to support gut health. The product is a good source of zinc and vitamins D and C.
Asia-Pacific is the Largest Market
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. Thus, several companies are committed to removing artificial ingredients and reducing the sugar content in their products. For instance, in 2023, Monster Energy launched Monster Energy Zero Sugar globally. It is claimed to contain 100% Monster and 0% sugar and primed with 160 mg of caffeine. It is further stated that Monster Energy Zero Sugar consumption helps fight fatigue and improve mental performance and focus.
Australia is one of the significant markets for functional beverages in Asia-Pacific. Consumer preference for low-sugar beverages is growing as they become more conscious of their food and drinks. Players also heavily emphasize bringing consumers novel options while incorporating valuable ingredients into each of their items. For instance, in August 2023, Straight Up Energy, operating in Australia, launched its new energy drink product in three flavors: Green Apple, Mango and Passionfruit, and Watermelon and Pineapple.
Functional Beverages Industry Overview
The functional beverage market is competitive and comprises numerous regional and international competitors. Players operating in the market are embarking on product innovation, mergers, and acquisitions as their key strategies to consolidate and optimize their offerings. They also focus on expansion strategies to capitalize on the market revenue. Some of the major players in the market studied are PepsiCo, Red Bull GmbH, Coco-Cola, Danone SA, and Monster Beverage Corporation.
Functional Beverages Market Leaders
Monster Beverage Corporation
Red Bull GmbH
The Coca-Cola Company
*Disclaimer: Major Players sorted in no particular order
Functional Beverages Market News
- October 2023: Tropicana brand launched two new smoothie flavors containing Vitamin C. The products Tropicana Smoothie Pineapple & Mango and Strawberry & Banana are to be retailed across India in all distribution channels operating in the market.
- August 2023: Brisk brand partnered with Tiktok influencers to launch its new pure leaf and brisk iced tea products in operating markets. The flavors are to be promoted by influencers on social media in Canada and other regions.
- March 2023: Dole brand launched its new functional beverage products such as 100% Pineapple Juice, Pineapple Mango Juice, and Dole Digestive Bliss Fruit Juice, which are claimed to be made from 100% fruits.
Functional Beverages Market Report - 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
4.1.1 Growing Consumer Inclination Toward Low-sugar/Sugar-free Beverages
4.1.2 Expenditure on Advertisement and Promotional Activities
4.2 Market Restraints
4.2.1 Concerns Over Health Issues Associated with Functional Beverages
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
5.1.1 Energy Drinks
5.1.2 Sports Drinks
5.1.3 Fortified Juice
5.1.4 Dairy and Dairy Alternative Beverage
5.1.5 Functional/Fortified Water
5.2 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
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle East &Africa
220.127.116.11 South Africa
18.104.22.168 Saudi Arabia
22.214.171.124 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 PepsiCo Inc.
6.3.2 Red Bull GmbH
6.3.3 Danone SA
6.3.4 Monster Beverage Corporation
6.3.5 The Coca-Cola Company
6.3.6 Suntory Holdings Limited
6.3.7 Nestle SA
6.3.8 Otsuka Holdings
6.3.9 Blue Diamond Growers
6.3.10 Oatly Group AB
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Functional Beverages Market Research FAQs
How big is the Functional Beverage Market?
The Functional Beverage Market size is expected to reach USD 213.74 billion in 2024 and grow at a CAGR of 7.49% to reach USD 306.76 billion by 2029.
What is the current Functional Beverage Market size?
In 2024, the Functional Beverage Market size is expected to reach USD 213.74 billion.
Who are the key players in Functional Beverage Market?
PepsiCo, Inc., Monster Beverage Corporation, Red Bull GmbH, Danone SA and The Coca-Cola Company are the major companies operating in the Functional Beverage Market.
Which is the fastest growing region in Functional Beverage Market?
South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Functional Beverage Market?
In 2024, the Asia Pacific accounts for the largest market share in Functional Beverage Market.
What years does this Functional Beverage Market cover, and what was the market size in 2023?
In 2023, the Functional Beverage Market size was estimated at USD 197.73 billion. The report covers the Functional Beverage Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Functional Beverage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Functional Beverages Industry Report
Statistics for the 2024 Functional Beverage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Functional Beverage analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.