Functional Beverage Market Size

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.