The global functional beverage market size is projected to expand at a CAGR of 6.8% during the forecast period, 2021-2028. The growth of the market is attributed to rising health concerns among the consumers.
Ready-to-drink (RTD) beverages are preferred among consumers strive as it helps to maintain their healthy lifestyles despite their hectic schedules. Millennials are increasingly consuming convenience foods and beverages with a diverse nutritional profile. Growing number of people are adopting fitness activities is expected to spur the market growth. Manufacturers are capitalizing on these factors by developing products such as vegan and plant-based beverages.
Rising trend of nootropic beverages among health-conscious customers is estimated to fuel the growth of the market. Such advancements is anticipated to have significant impact on the global functional beverage industry. Functional beverages are liquids that hydrate the body while also providing nutritional balance. These are fortified beverages that help people of all age group to avoid health problems. It provides numerous health benefits such as boosting immune system, improving mental capability, bone health, and heart health, and controlling cholesterol
Market Trends, Drivers, Restraints, and Opportunities
- Increasing awareness among millennials about functional beverages is projected to drive the market growth.
- The COVID-19 outbreak has encouraged people to consume healthy products, positively influencing the growth of the market.
- Development of natural functional beverages is anticipated to create immense opportunities for the market players.
Scope of the Report
The report on the global functional beverage market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Functional Beverage Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Types (Energy Drinks, Fortified Juices, Sports Drinks, Dairy and Dairy Alternative Drinks, and Other Products), and Distribution (Supermarkets/Hypermarkets, Drug Stores and Pharmacies, Convenience Stores, Online Retail Stores, and Other Distribution Channels)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
PepsiCo, Red Bull GmbH, Coco-Cola, and Monster Beverage Corporation
Functional Beverages Market Segment Insights:
Energy drinks segment to account a major market share
Based on types, the market is segregated into energy drinks, fortified juices, sports drinks, dairy and dairy alternative drinks, and other products. In 2020, the energy drinks segment dominated the market, with above 20% market share. This increase is attributed to the rising preference for energy drinks and growing reliance on them for instant energy among the young population.
Consumers' increasing preference for health-oriented beverages has included probiotic food products as a requirement on the list. Furthermore, sale promoting tag lines such as ready-to-drink or on the go have increased demand for probiotic drinks, including kombucha. Consumers are increasingly preferring functional drinks over fruit juices and carbonated beverages. Concerned drinkers are frequently shunning vilified categories, such as carbonates and juices, in favor of healthier choices. Consumer education has been a driving force behind the increased demand for healthy hydration drinks. Growing awareness about fermented drinks with natural ingredients, as well as the increasing acceptance of consuming probiotics, has contributed to the growth of the market.
Supermarkets/hypermarkets segment is anticipated to exhibit a high CAGR
On the basis of distribution channels, the functional beverage market is segregated into supermarkets/hypermarkets, drug stores and pharmacies, convenience stores, online retail stores, and other distribution channels. Most of the functional beverage are sold through supermarkets and hypermarkets, followed by online retail channels. This is due to easy availability and presence of various brands in the arena.
North America is projected to hold a major market share
In terms of regions, the global functional beverage market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America to account a large market share owing to rising demand for functional beverages and growing awareness about the health benefits associated with it. It is expected to dominate during the forecast period. The market in Asia Pacific is estimated to expand at a high CAGR during the forecast period owing to increasing per capita income as a result of the improving economy.
Segments Covered in the Report
The global functional beverage market is segmented on the basis of
- Energy Drinks
- Fortified Juices
- Sports Drinks
- Dairy and Dairy Alternative Drinks
- Other Products
- Drug Stores and Pharmacies
- Convenience Stores
- Online Retail Stores
- Other Distribution Channels
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Red Bull GmbH
- Monster Beverage Corporation
The major players in the functional beverage market include PepsiCo, Red Bull GmbH, Coco-Cola, and Monster Beverage Corporation.
Companies are engaging in partnerships with supermarkets and hypermarkets to expand their market share.