North America Functional Beverage Industry Overview
*Disclaimer: Major Players sorted in no particular order
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North America Functional Beverage Market Analysis
- The North American functional beverage market is expected to witness a CAGR of 7.02% during the forecast period.
- Increasing demand for innovative products, like plant-based and lactose-free beverage products, drives the market studied, while the inclusion of CBD-infused functional beverages is expected to be an opportunity for the future market. Manufacturers are embracing innovation to gain cost leadership and fixed suppliers in the early development stage. One of the major advantages of a functional beverage is that consumers are ready to pay a premium for its various functions and health advantages.
- Athletes typically consume sports and energy drinks during high-intensity exercise to replenish fluids and electrolytes and provide instant energy. Therefore, it is mainly consumed by sportspersons, gym-goers, and fitness enthusiasts to speed rehydration, provide instant energy, and promote overall recovery after exercise.
- Product offerings, technologies, marketing expenditures (including advertising and endorsements), pricing, production costs, customer service, digital commerce platforms, digital services and experiences, and social media presence are areas of intense competition as far as the North American functional beverage market is concerned.
- With the growing importance of social media in a shopper’s purchase journey, the companies are evolving and stepping up their advertising, marketing, and endorsement game across different channels of distribution, including supermarkets/hypermarkets, specialty stores, and online retail stores, among others, using television, radio, social media, magazines, and other print media as a medium for garnering consumer attention.
- Furthermore, these companies have been collaborating with sports clubs and tournaments and strengthening their presence on social media platforms, like Twitter, Facebook, and Instagram, among others, to garner consumer attention, promote their portfolio of offerings, and increase the visibility of their brand.
North America Functional Beverage Industry Segments
A functional beverage is classified as a conventional liquid food marketed to convey product ingredients or supposed health benefits.
The North American functional beverage market is segmented by type, distribution channel, and geography. Based on type, the market is segmented into energy drinks, sports drinks, fortified juice, dairy and dairy alternative beverage, and other types. 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. Based on geography, the market is segmented into the United States, Canada, Mexico, and the Rest of North America.
For each segment, the market sizing and forecasts have been done based on value (in USD Million).
|Dairy and Dairy Alternative Beverage|
|Drug stores and Pharmacies|
|Online Retail Stores|
|Other Distribution Channels|
|Rest of North America|
North America Functional Beverage Market Trends
This section covers the major market trends shaping the North America Functional Beverage Market according to our research experts:
Flavor Innovations Leading to the Growth of the Market
- Consumers are increasingly drawn to the health benefits available through functional beverages. People are more concerned about their health and fitness, increasing the demand for functional foods and impacting all aspects of the menu. The beverage category holds the biggest opportunity for flavor innovation.
- Manufacturers of functional beverages are investing considerable amounts to extend their product line by inaugurating the latest flavors and new categories to attract consumers, especially millennials, in developed economies, like the United States, as they prefer flavored water more than any other beverage drink.
- The trend of zero-calorie, zero-sugar, and low-carb content soft drinks is rising globally, boosting market growth. Natural flavors are gaining traction due to their health benefits and refreshing tastes.
- According to Beverage Marketing Corporation, the most popular beverage category in the United States in 2021 was bottled water, which consumed almost 25% of all beverages there. Energy drinks and functional water ranked among the emerging beverages that year.
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United States Holds a Major Share in the Market
- Due to the high prevalence of diabetes in-country, consumers are becoming more aware of the importance of a healthy diet and active lifestyle, encouraging consumers to prefer natural sweeteners, such as stevia beverages.
- However, energy and sports drinks hold a significant share in the United States market as it is the mandatory and obvious choice for them to grab as it contains several functional ingredients which help boost immunity.
- With the growing demand for energy drinks, several giant manufacturers focused on product innovation and expanding their product lines. An increase in cardiovascular disease and osteoporosis doubled the growing demand for convenience beverages among consumers as it has low fat, low carb, and low sugar.
- This drives the growth of functional energy drinks, fortified/functional plant-based, and malt-based hot drink sales in the United States.
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North America Functional Beverage Market Competitor Analysis
The North American functional beverage market is competitive, with various players in each category. Players also extensively focus on providing consumers with innovative offerings while including functional benefits in each product. Furthermore, while engaging the consumers with innovation and expansion strategies, key players are capitalizing on the market revenue. Some of the major players in the market studied include PepsiCo, Nestle SA, Danone SA, Coco-Cola, and Monster Beverage Corporation. Advanced distribution networks and manufacturing expertise give an upper edge to the manufacturers to expand their range of products over the regions of North America.
North America Functional Beverage Market Top Players
Monster Beverage Corporation
The Coca-Cola Company
*Disclaimer: Major Players sorted in no particular order
North America Functional Beverage Market Recent Developments
- February 2022: Tropicana Light products introduced two flavors -Berry Colada and Tropical Sunrise. The new drinks featured 70% fewer calories and no added sugar than current Tropicana Premium Drinks brands. They are claimed to be a strong source of vitamin C and contain 15% juice. Both are sold at the suggested retail price of USD 2.79 per 52 oz bottle in grocery stores across the United States.
- January 2022: Bubly sparkling water beverage brand launched three new limited-edition flavors of sparkling water in Canada. The initial launch of the functional beverage included mango bubly as its first flavor, along with others.
- January 2021: Danone North America debuted a new protein-packed, plant-based beverage geared toward athletes. Designed for muscle maintenance and repair, Silk Ultra is a multi-serve, dairy-free beverage that provides 20 g of soy protein per serving.
North America Functional Beverage Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
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 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 Other Types
5.2 Distribution Channel
5.2.2 Drug stores and Pharmacies
5.2.3 Convenience Stores
5.2.4 Online Retail Stores
5.2.5 Other Distribution Channels
5.3.1 United States
5.3.4 Rest of North America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Nestle SA
6.3.2 Pepsico Inc.
6.3.3 Danone SA
6.3.4 Monster Beverage Corporation
6.3.5 The Coca-Cola Company
6.3.6 Campbell Soup Company
6.3.7 General Nutrition Centers Inc.
6.3.8 Red Bull GmbH
6.3.9 Glanbia PLC
6.3.10 The Hain Celestial Group Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Functional Beverage Market Research FAQs
What is the study period of this market?
The North America Functional Beverage Market market is studied from 2017 - 2027.
What is the growth rate of North America Functional Beverage Market?
The North America Functional Beverage Market is growing at a CAGR of 7.02% over the next 5 years.
Who are the key players in North America Functional Beverage Market?
Nestle SA, PepsiCo, Inc., Danone S.A., Monster Beverage Corporation, The Coca-Cola Company are the major companies operating in North America Functional Beverage Market.
North America Functional Beverage Industry Reports
In-depth industry statistics and market share insights of the North America Functional Beverage sector for 2020, 2021, and 2022. The North America Functional Beverage research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the North America Functional Beverage report PDF.