Market Trends of North America Functional Beverage Industry
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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