Market Size of MEA Functional Beverages Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.17 % |
| Market Concentration | Low |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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MEA Functional Beverages Market Analysis
The MEA Functional Beverages Market size is expected to grow from USD 8.22 billion in 2023 to USD 10.08 billion by 2028, at a CAGR of 4.17% during the forecast period (2023-2028).
- Functional beverages are becoming increasingly popular among millennials due to rising advertising and promotional spending, largely because of aggressive marketing initiatives aimed at this demographic. Additionally, ads for energy drinks portray them as beverages that energize the intellect, revive the body, and improve performance and stamina. For Instance, in 2021, the consumption of packaged beverages in Africa and the Middle East totaled nearly 118 billion liters, according to Krones.
- The functional beverage market in the Middle East and Africa is embracing a growth phase with new flavor formulations, reduced sugar, calories, and ingredients innovations such as botanicals and herbs. For Coca-Cola, South Africa offers an energy drink called Coca-Cola Energy. The drink, available in a 300ml can, contains caffeine, guarana extracts, B vitamins, and no taurine.
- Moreover, consumers are becoming increasingly health-conscious and interested in trying new, better food options as worries about obesity, chronic illnesses, and other health problems increase. Incorporating functional drinks into one's daily routine is a simple and easy approach to increasing one's intake of essential nutrients, vitamins, and minerals. In addition, functional beverages frequently contain all-natural and plant-based components, which are becoming increasingly appealing to consumers.
- Also, reduced-sugar beverages are likely to gain popularity as people make a consumption-pattern shift to avoid diabetic symptoms. The probiotic drinks segment is also expected to witness many new buyers due to the growing concern about strengthening immunity. Manufacturers of functional beverages are predicted to increasingly shift towards online channels as more customers grow familiar and comfortable with the online and DTC distribution methods in the coming years. In addition, students and office employees are increasingly substituting energy drinks for coffee. Additionally, these energy drinks are gaining popularity as alcoholic cocktail mixers.
