Functional Water Market Size
| Study Period: | 2016 -2027 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | North America |
| CAGR: | 7.06 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Functional Water Market Analysis
The Global Functional Water Market is projected to witness a CAGR of 7.06% in the upcoming five years.
Functional water is witnessing high market growth as it contains healthy additives, such as vitamins, acids, minerals, herbs, and fruits or vegetables. Post-pandemic, consumers’ focus became centered on proper nutritional intake, and a majority of consumers switched toward healthier beverage options, which included vitamin- and mineral-infused functional waters. Moreover, online retail channels are registering higher growth than conventional distribution channels, such as supermarkets and specialty stores, in terms of sales of functional water and are expected to grow during the forecast period. Additionally, the shift in preferences from carbonated and high-sugar beverages is driving demand for the functional water market.
In addition to this, functional water has a wide range of qualities, such as protein-rich functional water, which is essential for the repair and growth of lean muscle and can also aid in promoting a feeling of satiety. Over the forecast period, functional water is expected to develop at a faster pace as a result. The convenience of consumption and its effects on human nutrition are the factors boosting demand in the functional water market. However, with the growing popularity of functional water among the working class and millennial populations, innovative product developments are expected to enhance the market and accelerate its growth over the forecast period.
Functional Water Industry Segmentation
Functional water, which belongs to the non-alcoholic beverage category, offers additional health and other functional benefits. The market studied is segmented by product type, distribution channel, and geography. By product type, the market studied is segmented into protein water, vitamin water, and other product types. By distribution channel, the market is segmented into hypermarkets/supermarkets, specialist retail stores, online retail channels, and other distribution channels. By geography, the study provides key insights into the major regions, including North America, Europe, Asia-Pacific, South America, and Middle-East & Africa. For each segment, the market sizing and forecasts have been done based on value (in USD Million).
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| Online Stores | |
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Functional Water Market Trends
This section covers the major market trends shaping the Functional Water Market according to our research experts:
Consumer Preferences Evolving Toward Value-added Hydration Propelling Market Growth
The rapid demand for the consumption of fortified beverages is attributed to the inclusion of essential ingredients, such as protein, amino acids, vitamins, and minerals, in various functional beverages. The introduction of new and innovative types of functional water by beverage manufacturing companies engaged in the production of water using modified blends of protein and minerals is likely to fuel the market’s growth. The rise in obese and diabetic populations in the United States, Canada, China, India, Australia, and the United Kingdom, among others, has shifted the focus from carbonated soft drinks to bottled water in the recent past. Research by the International Food Information Council Foundation on Food and Health revealed that in 2021, 47% of their total consumers prefer food with additional nutrients. Therefore, this factor is expected to boost the market's growth.
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North America Holds Largest Market Share
The consumption pattern in the North American region is shifting toward food and beverage products infused with healthy and weight management ingredients. The region holds a prominent market share as functional water is such a product. Consumers in the United States have started to develop an interest in beverages that deliver benefits above and beyond simple refreshments, which is also contributing to the expansion of the functional water market. Moreover, due to increasing health concerns in the Canadian provinces, many domestic and international players are attracted to the opportunistic market, and consumers are getting an ample range of products to choose from, driving the overall North American market.
The market for functional waters is growing because they are cheaper than other RTD beverages, and they come in a variety of packaging options, including containers and single-serve bottles, which makes them more popular with consumers. Due to the increase in demand for functional water, companies are expanding their reach into the market in order to gain a competitive advantage. For instance, in 2021, in order to expand its product portfolio toward functional water, Nestle SA acquired Essentia Water, Bothell, and Wash in the United States as part of its strategic shift towards functional water.
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Functional Water Industry Overview
The functional water market is competitive and is still growing owing to products varying across packaging formats, flavors, and sizes. The market vendors are developing new products with an emphasis on organic and taste variants to increase their market shares and gain traction in the global marketplace. Danone SA, The Coca-Cola Company, Herbal Water, PepsiCo Inc., and Dr. Pepper Snapple are some of the prominent players in the functional water market. Some of the other players include Vitamin Well AB, Triamino Brands LLC, and New York Spring, among others. Balance Water and Herbal Water have marked their position in the market with their unique product portfolio, i.e., water enhanced with wildflowers and organic herbs, respectively. Moreover, regional or domestic companies have been marketing their products with strategies, such as sponsorships and significant investments in advertisements.
Functional Water Market Leaders
The Coca-Cola Co.
Danone SA
PepsiCo Inc.
Keurig Dr Pepper Inc
Disruptive Beverages, Inc
*Disclaimer: Major Players sorted in no particular order
Functional Water Market News
- In October 2022, As part of CENTR Brands Corporation's growing portfolio of health and wellness products, the company announced the addition of CENTR Enhanced, a non-CBD functional sparkling water.
- In July 2022, the Flow Vitamin-Infused Water line of products has been introduced to consumers in three new organic flavors: Cherry, Citrus, and Elderberry, as part of Flow Beverage Corp.'s latest product launch.
- In March 2022, as part of Expo West in Anaheim, California, Nirvana Water Sciences Corp. launched its Nirvana HMB + Vitamin D3 spring water. Nirvana HMB + Vitamin D3 is one of the newest products in the portfolio. It combines muscle recovery with immune support.
Functional Water Market Report - Table of Contents
1. INTRODUCTION
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 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Buyers/Consumers
4.3.2 Bargaining Power of Suppliers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products and Services
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Vitamin
5.1.2 Protein
5.1.3 Other Product Types
5.2 Distribution Channel
5.2.1 Hypermarkets/Supermarkets
5.2.2 Specialty Stores
5.2.3 Online Stores
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Germany
5.3.2.3 Spain
5.3.2.4 France
5.3.2.5 Italy
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Most Active Companies
6.3 Company Profiles
6.3.1 The Coca-Cola Co. (Glaceau Smartwater)
6.3.2 PepsiCo Inc. (Soulboost)
6.3.3 Balance Water Company (Balance Water)
6.3.4 Danone SA (Salus, Żywiec Zdrój, Volvic, Aqua, Font Vella, Mizone)
6.3.5 Dr. Pepper Snapple Group Inc. (Canada Dry, Schweppes, Core Hydration, bai)
6.3.6 Function Drinks (function)
6.3.7 Trimino Brands Company LLC (Trimino)
6.3.8 CENTR Brands Corporation (Centr)
6.3.9 Flow Beverage Corp. (Flow)
6.3.10 Disruptive Beverages Inc. (Ayala's Herbal Water)
6.3.11 Nirvana Water Sciences Corp. (Nirvana)
6.3.12 Unique Foods (Perfect Hydration, Icelandic Glacial)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Functional Water Market Research FAQs
What is the study period of this market?
The Functional Water Market is studied from 2016 - 2027.
What is the growth rate of Functional Water Market?
The Functional Water Market is growing at a CAGR of 7.06% over the next 5 years.
Which region has highest growth rate in Functional Water Market?
Asia-Pacific is growing at the highest CAGR over 2016 -2027.
Which region has largest share in Functional Water Market?
North America holds highest share in 2021.
Who are the key players in Functional Water Market?
The Coca-Cola Co., Danone SA, PepsiCo Inc., Keurig Dr Pepper Inc, Disruptive Beverages, Inc are the major companies operating in Functional Water Market.
Functional Water Industry Report
Statistics for the 2023 Functional Water market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Functional Water analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Functional Water Report Snapshots
