North America Functional Beverage Market - Growth, Trends, and Forecast (2019 - 2024)

North America Functional Beverage Market is segmented by Product (Energy Drink, Fortified Juice, Sports Drinks, Dairy and Dairy Alternative Drinks); by Distribution Channel (Supermarket/Hypermarket, Pharmacy, Health Stores, Convenience Stores, Internet Retailing, and Other Distribution Channels) and Geography.

Market Snapshot

snapshot
Study Period:

2016-2024

Base Year:

2018

CAGR% (2019-2024):

5.0%

Largest Market:

United States

Fastest Growing Segment:

Energy Drinks

Key Players:

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Market Overview

North America functional beverage market is forecasted to grow at a CAGR of 5.0% during the forecast period of (2019-2024).

  • Functional drinks are ready-to-drink, non-alcoholic beverages that contain non-traditional ingredients. They offer specific health benefits that are beyond the regular daily intake of nutrients, such as, improved mental energy, immune system strengthening and improved bone health.
  • Most commonly found functional drinks are sports & performance drinks, yogurt & dairy drinks, enhanced water, functional milk, energy drinks, enhanced fruit drinks & juices, soy beverages, and ready-to-drink teas. Energy drink is the leading segment, followed by sports drinks and nutraceuticals drinks.
  • 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 functional advantages.

Scope of the Report

The scope of the North America functional beverage market includes energy drink, fortified juice, sports drinks, dairy and dairy alternative drinks. Dairy and dairy alternative beverages include soy, almond, oat, coconut, pea, based dairy alternatives fortified with functional properties such as proteins, micro-nutrients, etc. By distribution channel, it is segmented as supermarket/hypermarket, pharmacy, health stores, convenience stores, internet retailing, and other distribution channels.

By Product Type
Energy Drinks
Sports Drinks
Fortified Juice
Dairy and Dairy Alternative Beverage
By Distribution Channel
Supermarket/Hypermarket
Pharmacies/ Health Stores
Convenience Stores
Online Retail Stores
Others
Geography
North America
United States
Canada
Mexico
Rest of North America

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Key Market Trends

Increased Consumption of Energy Drinks

North America is a major consumer of sports and energy drinks, which account for a major share of the functional beverage market. About 40% of the consumers within the age group 30 to 39 years in North America, consume energy drinks on a daily basis. In the United States alone, about 80% of the adults consume caffeine each day, and the average daily intake of caffeine among adults is 200mg. Despite safety concerns regarding certain ingredients, energy drinks and shots remain popular among consumers, mainly the older millennials (aged between 27-37). Previously, sports drinks were consumed post-workout sessions, as they are isotonic and/or cold brew, but these days energy drinks are considered to provide energy, improve performance, and help in building lean muscles. Sugar-free and low-calorie energy drinks are noticeable trends in the market. 

trend1

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By Packaging Type, PET Bottle are the Fastest Growing Market Segment

Beverage companies have launched pasteurizable lightweight PET bottles with a non-petaloid base. The PET packaging market is undergoing several technological innovations, to increase impermeability and eliminate the risk of harmful substances entering these containers. The latest technology gaining preference among vendors is the plasma coating process, which includes the coating of PET containers with protective layers, to make them less permeable. The silver-based nanoparticles have anti-microbial, bactericidal, and self-sterilizing properties, which increase the shelf life of these bottles. Factors, such as, increasing demand for different-sized packs and increased focus on packaging as an important tool for brand differentiation, are positively influencing the growth of the PET packaging market

trend2

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Competitive Landscape

North American functional beverage market is fragmented with the presence of various players in each category. The market remains concentrated in the sports and energy drinks however, the market is highly fragmented in the RTD functional beverages, and dairy and dairy alternative beverage leading to a fragmented market. Among the top players, with the top three players accounting for over 60% of the market share. Major brands, such as Red Bull, Monster, Rockstar, and Amp are introducing innovative flavors and health-boosting ingredients, to attract consumers. Increased caffeine consumption and demand for functional ingredients/flavors are driving sales of energy drinks, which boosts the functional beverage market.

Major Players

  1. Nestle SA
  2. Campbell Soup Company
  3. PepsiCo, Inc.
  4. The Kraft Heinz Company
  5. Monster Energy Company

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

    1. 3.1 Market Overview

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    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 By Product 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

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarket/Hypermarket

      2. 5.2.2 Pharmacies/ Health Stores

      3. 5.2.3 Convenience Stores

      4. 5.2.4 Online Retail Stores

      5. 5.2.5 Others

    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

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Nestle

      2. 6.4.2 Campbell Soup Company

      3. 6.4.3 PepsiCo, Inc.

      4. 6.4.4 The Kraft Heinz Company

      5. 6.4.5 Monster Energy Company

      6. 6.4.6 The Coca-Cola Company

      7. 6.4.7 The Cloud 9 Energy Drink

      8. 6.4.8 Red Bull GmbH

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

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