Functional Beverages Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Functional Beverages Market Revenue Analysis and is Segmented by Type (Energy Drinks, Fortified Juice, Sports Drinks, Dairy and Dairy Alternative Drinks, and Functional/Fortified Water), Distribution Channel (Supermarkets/Hypermarkets, Drug Stores and Pharmacies, Convenience Stores, Online Retail Stores, and Other Distribution Channel), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

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Functional Beverages Market Size

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Functional Beverage Market Summary
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Study Period 2019 - 2029
Market Size (2024) USD 213.74 Billion
Market Size (2029) USD 306.76 Billion
CAGR (2024 - 2029) 7.49 %
Fastest Growing Market South America
Largest Market Asia Pacific

Major Players

Functional Beverage Market Major Players

*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.

Functional Beverage Market : sales of plant-based foods market, the United States, 2022, by category (in USD)

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 Beverage Market : Market Size (%), By Geography, Global, 2023

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

  1. PepsiCo, Inc.

  2. Monster Beverage Corporation

  3. Red Bull GmbH

  4. Danone SA

  5. The Coca-Cola Company

*Disclaimer: Major Players sorted in no particular order

Functional Beverage Market Concentration
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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. 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

      1. 4.1.1 Growing Consumer Inclination Toward Low-sugar/Sugar-free Beverages

      2. 4.1.2 Expenditure on Advertisement and Promotional Activities

    2. 4.2 Market Restraints

      1. 4.2.1 Concerns Over Health Issues Associated with Functional Beverages

    3. 4.3 Porter's Five Forces 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 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 Functional/Fortified Water

    2. 5.2 Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Pharmacies/Health Stores

      3. 5.2.3 Convenience Stores

      4. 5.2.4 Online Retail Stores

      5. 5.2.5 Other Distribution Channels

    3. 5.3 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 Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 PepsiCo Inc.

      2. 6.3.2 Red Bull GmbH

      3. 6.3.3 Danone SA

      4. 6.3.4 Monster Beverage Corporation

      5. 6.3.5 The Coca-Cola Company

      6. 6.3.6 Suntory Holdings Limited

      7. 6.3.7 Nestle SA

      8. 6.3.8 Otsuka Holdings

      9. 6.3.9 Blue Diamond Growers

      10. 6.3.10 Oatly Group AB

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

**Subject to Availability
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Functional Beverages Industry Segmentation

A functional beverage is a non-alcoholic drink containing minerals, vitamins, amino acids, dietary fibers (DFs), probiotics, and raw fruits, which provide essential nutritional value and various health benefits. 

The global functional beverage market is segmented by type, distribution channel, and geography. The market is segmented based on type into energy drinks, fortified juice, sports drinks, dairy and dairy alternative drinks, and functional/fortified water. Based on the distribution channel, the market is segmented into supermarkets/hypermarkets, drug stores and pharmacies, convenience stores, online retail stores, and other distribution channels. The market is segmented based on geography into North America, Europe, Asia-Pacific, South America, the Middle East & Africa. The report offers the market size in value terms in USD for all the abovementioned segments.

Type
Energy Drinks
Sports Drinks
Fortified Juice
Dairy and Dairy Alternative Beverage
Functional/Fortified Water
Distribution Channel
Supermarkets/Hypermarkets
Pharmacies/Health Stores
Convenience Stores
Online Retail Stores
Other Distribution Channels
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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Functional Beverages Market Research FAQs

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.

In 2024, the Functional Beverage Market size is expected to reach USD 213.74 billion.

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.

South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Functional Beverage Market.

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.

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Functional Beverages Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)