South America Functional Beverage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The South American functional beverage market is segmented by Product (Energy Drinks, Fortified Juices, Sports Drinks, Dairy and Dairy Alternative Drinks, and Other Products), Distribution Channel (Supermarkets/Hypermarkets, Pharmacies, Health Stores, Convenience Stores, Internet Retailing, and Other Sales Channels), and Geography.

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South America Functional Beverages Industry Overview

South America Functional Beverage Market
Study Period: 2018 - 2028
CAGR: 8.75 %

Major Players

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*Disclaimer: Major Players sorted in no particular order
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South America Functional Beverages Market Analysis

The South American functional beverage market is projected to record a CAGR of 8.75%, during the forecast period (2020-2025).

  • South American countries are witnessing growing urbanization and changing lifestyles due to globalization, and this, in turn, is driving the demand for convenience and packaged foods comprising healthy ingredients, thus, boosting the market.
  • Consumers in South America have a greater understanding of the relationship between diet and health, which is fueling the growth in the industry.

South America Functional Beverages Industry Segments

The South America functional beverage market is segmented by product into energy drinks, fortified juice, sports drinks, dairy and dairy alternative drinks, and other products. By distribution channel, the market is segmented into supermarkets/hypermarkets, pharmacies, health stores, convenience stores, internet retailing, and other sales channels. The market is also segmented by geography.

By Type
Energy Drinks
Sports Drinks
Fortified Juices
Dairy and Dairy Alternative Drinks
Other Types
By Distribution Channel
Supermarkets/Hypermarkets
Health Stores
Convenience Stores
Online Retail Stores
Other Distribution Channels
By Geography
Brazil
Argentina
Rest of South America

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South America Functional Beverages Market Trends

This section covers the major market trends shaping the South America Functional Beverages 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. Although gut health and functional foods have impacted all aspects of the menu, the beverage category holds the biggest opportunity for flavor innovation. This blends the beverage industry with vitamins and supplements, allowing nutrient-dense ingredients, such as kale and turmeric to find a natural home. Innovations in the flavor industry have made flavor ingredients, such as natural isojasmone and natural hibiscus extract liquid possible, which provide a much more accurate and much more flavorful version of floral flavor for use in products ranging from functional juice blends and enhanced waters to energy drinks.

South America Functional Beverage Market

Brazil Holds a Major Share in the Market

The functional beverage market in Brazil is benefited by the strong economy and health consciousness in the country. The ageing population is fueling the demand for functional beverages, to prevent or overcome health conditions. The increasing number of single households and a growing mobile society are changing the food and beverage consumption pattern in favor of the convenience food industry. Thus, there is a rise in the demand for convenient food, including ready-to-eat products, fruit juices, and coffee. Chocolate-based flavored drinks have seen a growth in the market and are anticipated to boost the overall market. Energy drinks are the fastest-growing subcategory in functional beverages, recently standing out with leading brands developing the overall category and is expected to show strong growth over the forecast period.

South America Functional Beverage Market - 2

South America Functional Beverages Market Competitor Analysis

The South American functional beverage market is a competitive market with the presence of various major players in the market. The growth of a company in the functional beverage industry in the future depends on its distribution channel and innovation in its product list with a lucrative packaging style. The major companies are located in all regions and the major countries of those regions. The most active companies in the functional beverage market include PepsiCo, Danone, Coco-Cola, and Red Bull.

South America Functional Beverages Market Top Players

  1. PepsiCo, Inc.

  2. The Coca-Cola Company

  3. Red Bull GmbH

  4. Monster Beverage Corporation

*Disclaimer: Major Players sorted in no particular order

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South America Functional Beverages Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  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 Type

      1. 5.1.1 Energy Drinks

      2. 5.1.2 Sports Drinks

      3. 5.1.3 Fortified Juices

      4. 5.1.4 Dairy and Dairy Alternative Drinks

      5. 5.1.5 Other Types

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Health Stores

      3. 5.2.3 Convenience Stores

      4. 5.2.4 Online Retail Stores

      5. 5.2.5 Other Distribution Channels

    3. 5.3 By Geography

      1. 5.3.1 Brazil

      2. 5.3.2 Argentina

      3. 5.3.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Position Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 PepsiCo Inc.

      2. 6.4.2 Red Bull GmbH

      3. 6.4.3 The Coca-Cola Company

      4. 6.4.4 Danone SA

      5. 6.4.5 Monster Beverage Corporation

      6. 6.4.6 Keurig Dr Pepper Inc.

      7. 6.4.7 Fonterra Co-operative Group

      8. 6.4.8 Rockstar Inc.

      5. *List Not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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South America Functional Beverages Market Research FAQs

The South America Functional Beverages Market is studied from 2018 - 2028.

The South America Functional Beverages Market is growing at a CAGR of 8.75% over the next 5 years.

PepsiCo, Inc., The Coca-Cola Company, Red Bull GmbH, Monster Beverage Corporation are the major companies operating in South America Functional Beverages Market.

South America Functional Beverages Industry Reports

In-depth industry statistics and market share insights of the South America Functional Beverages sector for 2020, 2021, and 2022. The South America Functional Beverages 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 South America Functional Beverages report PDF.

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