Functional Beverage Market in Europe by Product and Geography - Forecast and Analysis 2022-2026

Published: Feb 2022 Pages: 120 SKU: IRTNTR72496

The functional beverage market share in Europe is expected to increase to USD 13.95 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 8.25%.

The report extensively covers functional beverage market segmentation in Europe by the following:

  • Product - Energy drinks, sports drinks, fortified juice, and others
  • Geography - Germany, UK, France, Spain, and Rest of Europe

The functional beverage market in Europe report offers information on several market vendors, including Danone SA, Energy Beverages LLC, Fonterra Co operative Group Ltd., Monster Energy Co., Nestle SA, PepsiCo Inc., Red Bull GmbH, Starbucks Coffee Co., The Coca-Cola Co., and The Kraft Heinz Co. among others.

This functional beverage market in Europe research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches.

What will the Functional Beverage Market Size in Europe be During the Forecast Period?

Download the Free Report Sample to Unlock the Functional Beverage Market Size in Europe for the Forecast Period and Other Important Statistics

 

Functional Beverage Market in Europe: Key Drivers, Trends, and Challenges

The health benefits of functional beverages are notably driving the functional beverage market growth in Europe, although factors such as increasing concerns of obesity may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the functional beverage industry in Europe. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Functional Beverage Market Driver in Europe

  • One of the key factors driving growth in the Europe functional beverage market is the health benefits of functional beverages.
  • Functional beverages offer several health benefits due to the addition of various functional ingredients.
  • Sports drinks and fruit and vegetable juices contain carbohydrates, electrolytes, and minerals such as calcium, magnesium, and sodium. These drinks help in keeping the body hydrated during activities that require extensive energy, such as sports, exercises, and workouts.
  • Functional drinks offer benefits over regular water and other drinks. Prebiotics can help prevent bowel diseases, diarrhea, and indigestion.
  • Probiotic bacteria in the digestive system support the immune system and help control chronic irritation, which may lead to various diseases. Hence, rising consumer awareness regarding the health benefits of functional beverages is expected to boost the market growth during the forecast period.

Key Functional Beverage Market Trend in Europe

  • One of the key Europe functional beverage market trends fueling the market growth is the growing popularity of e-commerce.
  • The expansion of distribution networks through e-commerce channels has fueled the sales of functional drinks.
  • The e-commerce distribution channel offers a wide range of functional drink brands, which is a key factor that is driving the popularity of e-commerce retail sales. A significant increase in the number of e-commerce portals and the penetration of smartphones has enabled vendors to sell functional drinks through e-commerce channels.
  • Functional drinks are considered easy online purchases as they are available in bulk, which further lowers the price per unit and makes it more convenient to ship an extra-large package than hauling it from the store.
  • The penetration of online grocery stores is increasing in European countries such as Germany, Italy, Poland, and Hungary. This helps vendors save operating and overhead costs compared to the physical store format.  Hence, such factors are expected to foster market growth during the forecast period.

Key Functional Beverage Market Challenge in Europe

  • The increasing concerns of obesity will be a major challenge for the functional beverage market in Europe during the forecast period.
  • Weight control is a prime concern for consumers when it comes to health and wellness. Consumers require food and beverages with low calorie and sugar content to control weight.
  • The major sources of added sugar in functional drinks are fruit juices and energy drinks. A can of energy drink, on average, contains about 26.5 grams of added sugar, while large cans have double the amount of added sugar.
  • Energy drinks contain a significant amount of fat, artificial sweetener, caffeine, and starch. Hence, many people avoid consuming functional drinks. An inappropriate amount of consumption can cause major health issues such as weight gain and obesity. Such factors can hamper the market growth.

This functional beverage market in Europe analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the functional beverage market in Europe as a part of the global soft drinks market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the functional beverage market in Europe during the forecast period.

Who are the Major Functional Beverage Market Vendors in Europe?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

  • Danone SA
  • Energy Beverages LLC
  • Fonterra Co operative Group Ltd.
  • Monster Energy Co.
  • Nestle SA
  • PepsiCo Inc.
  • Red Bull GmbH
  • Starbucks Coffee Co.
  • The Coca-Cola Co.
  • The Kraft Heinz Co.

 

This statistical study of the functional beverage market in Europe encompasses successful business strategies deployed by the key vendors. The functional beverage market in Europe is fragmented and the vendors are deploying growth strategies such as focusing on distinguishing their products and service offerings through clear and unique value propositions to compete in the market.

Product Insights and News

  • Danone SA - The company offers functional beverages such as Danone Waters.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The functional beverage market in Europe forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Functional Beverage Market in Europe Value Chain Analysis

Our report provides extensive information on the value chain analysis for the functional beverage market in Europe, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the soft drinks market includes the following core components:

  • Inputs
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
  • Support activities
  • Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Functional Beverage Market in Europe?

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34% of the market's growth will originate from Germany during the forecast period. Market growth in this region will be slower than the growth of the market in the UK, France, and Spain.

The demand for beverages that offer enhanced taste and functional benefits will facilitate the functional beverage market growth in Germany over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The COVID-19 outbreak has had a mixed impact on the sales of functional beverages in Germany. The sales from the offline stores reduced drastically in 2020. However, the sales through online distribution channels increased in the same year. The implementation of lockdowns disrupted supply chain management, which increased the demand-supply gap. However, the initiation of vaccination drives led to a decrease in the number of COVID-19 cases in the country. This led to the resumption of various sports-related events and tournaments except swimming in H2 2021. Therefore, the market is expected to register significant growth during the forecast period

What are the Revenue-generating Product Segments in the Functional Beverage Market in Europe?

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The functional beverage market share growth in Europe by the energy drinks segment will be significant during the forecast period. Europe is one of the largest markets for energy drinks globally. The availability of these drinks through improved distribution channels makes them more accessible. These factors are expected to drive the functional beverage market in Europe during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the functional beverage market size in Europe and actionable market insights on post COVID-19 impact on each segment.

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Functional Beverage Market Scope in Europe

Report Coverage

Details

Page number

120

Base year

2021

Forecast period

2022-2026

Growth momentum & CAGR

Accelerate at a CAGR of 8.25%

Market growth 2022-2026

$ 13.95 billion

Market structure

Fragmented

YoY growth (%)

7.75

Regional analysis

Europe

Performing market contribution

Germany at 34%

Key consumer countries

 Germany, UK, France, Spain, and Rest of Europe

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Danone SA, Energy Beverages LLC, Fonterra Co operative Group Ltd., Monster Energy Co., Nestle SA, PepsiCo Inc., Red Bull GmbH, Starbucks Coffee Co., The Coca-Cola Co., and The Kraft Heinz Co.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Functional Beverage Market in Europe Report?

  • CAGR of the market during the forecast period 2022-2026
  • Detailed information on factors that will drive functional beverage market growth in Europe during the next five years
  • Precise estimation of the functional beverage market size in Europe and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behaviour
  • The growth of the functional beverage industry in Europe across Germany, UK, France, Spain, and the Rest of Europe
  • A thorough analysis of the market's competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of functional beverage market vendors in Europe

We can help! Our analysts can customize this report to meet your requirements. Get in touch

***1. Executive Summary                        

              **1.1 Market Overview

                             *Exhibit 01:  Key Finding 1

                             *Exhibit 02:  Key Finding 2

                             *Exhibit 03:  Key Finding 3

                             *Exhibit 04:  Key Finding 5

                             *Exhibit 05:  Key Finding 6

                             *Exhibit 06:  Key Finding 7

***2. Market Landscape                          

              **2.1 Market ecosystem            

                             *Exhibit 07:  Parent market

                             *Exhibit 08:  Market Characteristics

              **2.2 Value Chain Analysis         

                             *Exhibit 09:  Value chain analysis: Soft drinks

                             *2.2.1   Inputs

                             *2.2.2   Inbound logistics

                             *2.2.3   Operations

                             *2.2.4   Outbound logistics

                             *2.2.5   Marketing and sales

                             *2.2.6   Support activities

                             *Industry innovation

***3. Market Sizing                     

              **3.1 Market definition

                             *Exhibit 10:  Offerings of vendors included in the market definition

              **3.2 Market segment analysis 

                             *Exhibit 11:  Market segments

              **3.3 Market size 2020 

              **3.4 Market outlook: Forecast for 2020 - 2025 

                             *3.4.1Estimating growth rates for emerging and high-growth markets

                             *3.4.2   Estimating growth rates for mature markets

                             *Exhibit 12:  Global - Market size and forecast 2021 - 2026 (million $)

                             *Exhibit 13:  Global market: Year-over-year growth 2021 - 2026 (%)

***4. Five Forces Analysis                        

              **4.1 Five Forces Summary       

                             *Exhibit 14:  Five forces analysis 2021 - 2026

              **4.2 Bargaining power of buyers          

                             *Exhibit 15: Bargaining power of the buyer

              **4.3 Bargaining power of suppliers      

                             *Exhibit 16: Bargaining power of the supplier

              **4.4 Threat of new entrants    

                             *Exhibit 17: Threat of new entrants

              **4.5 Threat of substitutes        

                             *Exhibit 18: Threat of substitutes

              **4.6 Threat of rivalry  

                             *Exhibit 19: Threat of rivalry

              **4.7 Market condition

                             *Exhibit 20: Market condition - Five forces 2021

***5. Market Segmentation by Product

  **5.1 Market segments

                             *Exhibit 21 :Product- Market share 2020-2025 (%)

              **5.2 Comparison by Product    

                             *Exhibit 22:  Comparison by Product

              **5.3 Energy drinks - Market size and forecast 2021-2026            

                             *Exhibit 23:  Energy drinks - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 24:  Energy drinks - Year-over-year growth 2021-2026 (%)

              **5.4 Sports drinks - Market size and forecast 2021-2026            

                             *Exhibit 25:  Sports drinks - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 26: Sports drinkss - Year-over-year growth 2021-2026 (%)

              **5.5 Fortified juice - Market size and forecast 2021-2026           

                             *Exhibit 27:  Fortified juice - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 28:  Fortified juice - Year-over-year growth 2021-2026 (%)

              **5.6 Others - Market size and forecast 2021-2026         

                             *Exhibit 29:  Others - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 30:  Others - Year-over-year growth 2021-2026 (%)

              **5.7 Market opportunity by Product    

                             *Exhibit 31:  Market opportunity by Product

***6. Customer landscape                       

                             *Technavio’s customer landscape matrix comparing Drivers or price sensitivity, Adoption lifecycle, importance in customer price basket, Adoption rate and Key purchase criteria

                             *Exhibit 32:  Customer landscape

***7. Geographic Landscape                   

              **7.1 Geographic segmentation

                             *Exhibit 33:  Market share by geography 2021-2026 (%)

              **7.2 Geographic comparison  

                             *Exhibit 34:  Geographic comparison

              **7.3 Germany - Market size and forecast 2021-2026     

                             *Exhibit 35:  Germany- Market size and forecast 2021-2026 ($ million)

                            *Exhibit 36:  Germany - Year-over-year growth 2021-2026 (%)

              **7.4 UK - Market size and forecast 2021-2026  

                             *Exhibit 37:  UK - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 38:   UK - Year-over-year growth 2021-2026 (%)

              **7.5 France- Market size and forecast 2021-2026          

                             *Exhibit 39:  France - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 40:  France - Year-over-year growth 2021-2026 (%)

              **7.6 Spain - Market size and forecast 2021-2026            

                             *Exhibit 41:  Spain - Market size and forecast 2021-2026 - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 42: Spain - Market size and forecast 2021-2026 - Year-over-year growth 2021-2026 (%)

              **7.7 Rest of Europe - Market size and forecast 2021-2026          

                             *Exhibit 43:  Rest of Europe - Market size and forecast 2021-2026 ($ million)

                             *Exhibit 44:  Rest of Europe - Year-over-year growth 2021-2026 (%)

              **7.8 Market opportunity by geography

                             *Exhibit 45:  Market opportunity by geography ($ million)

***8. Drivers, Challenges, and Trends                 

              **8.1 Market drivers     

                             *8.1.1   Health benefits of functional beverages

                             *8.1.2   New product launches

                             *8.1.3   Increasing consumption by millennials

 

              **8.2 Market challenges             

                             *8.2.1   Increasing concerns of obesity

                             *8.2.2   Meeting clean labeling requirements

                             *8.2.3   Threat from other health and wellness products

                             *Exhibit 46:  Impact of drivers and challenges

              **8.3 Market trends     

                             *8.3.1   Growing popularity of e-commerce

                             *8.3.2   Use of functional drinks as mixers in other drinks

                             *8.3.3   Increasing demand for organic juices

***9. Vendor Landscape                          

              **9.1 Overview

                             *Exhibit 47:  Vendor landscape

              **9.2 Landscape disruption       

                             *Exhibit 48: ?Landscape disruption?

                             *Exhibit 49: Industry Risk

***10. Vendor Analysis              

              **10.1 Vendors Covered            

                             *Exhibit 50: Vendor Landscape

              **10.2 Market positioning of vendors   

                             *Exhibit 51: ?Market positioning of vendors?

              **10.3 Danone SA         

                             *Exhibit 52:  Danone SA - Overview

                             *Exhibit 53:  Danone SA - Business segments

                             *Exhibit 54:  Danone SA - Key news

                             *Exhibit 55:  Danone SA - Key offerings

                             *Exhibit 56:  Danone SA - Segment focus

              **10.4 Energy Beverages LLC     

                             *Exhibit 57:  Energy Beverages LLC - Overview

                             *Exhibit 58:  Energy Beverages LLC - Product and service

                             *Exhibit 59:  Energy Beverages LLC - Key offerings

              **10.5 Fonterra Co operative Group Ltd.             

                             *Exhibit 60:  Fonterra Co operative Group Ltd. - Overview

                             *Exhibit 61:  Fonterra Co operative Group Ltd. - Business segments

                             *Exhibit 62:  Fonterra Co operative Group Ltd. - Key offerings

                             *Exhibit 63:  Fonterra Co operative Group Ltd. - Segment focus

              **10.6 Monster Energy Co.        

                             *Exhibit 64:  Monster Energy Co. - Overview

                             *Exhibit 65:  Monster Energy Co. - Product and service

                             *Exhibit 66:  Monster Energy Co. - Key offerings

              **10.7 Nestle SA            

                             *Exhibit 67:  Nestle SA - Overview

                             *Exhibit 68:  Nestle SA - Business segments

                             *Exhibit 69:  Nestle SA - Key news

                             *Exhibit 70:  Nestle SA - Key offerings

                             *Exhibit 71:  Nestle SA - Segment focus

              **10.8 PepsiCo Inc.       

                             *Exhibit 72:  PepsiCo Inc. - Overview

                             *Exhibit 73:  PepsiCo Inc. - Business segments

                             *Exhibit 74:  PepsiCo Inc. - Key news

                             *Exhibit 75:  PepsiCo Inc. - Key offerings

                             *Exhibit 76:  PepsiCo Inc. - Segment focus

              **10.9 Red Bull GmbH  

                             *Exhibit 77:  Red Bull GmbH - Overview

                             *Exhibit 78:  Red Bull GmbH - Product and service

                             *Exhibit 79:  Red Bull GmbH - Key offerings

              **10.10 Starbucks Coffee Co.    

                             *Exhibit 80:  Starbucks Coffee Co. - Overview

                             *Exhibit 81:  Starbucks Coffee Co. - Business segments

                             *Exhibit 82:  Starbucks Coffee Co. - Key news

                             *Exhibit 83:  Starbucks Coffee Co. - Key offerings

                             *Exhibit 84:  Starbucks Coffee Co. - Segment focus

              **10.11 The Coca-Cola Co          

                             *Exhibit 85:  The Coca-Cola Co. - Overview

                             *Exhibit 86:  The Coca-Cola Co. - Business segments

                             *Exhibit 87:  The Coca-Cola Co. - Key news

                             *Exhibit 88:  The Coca-Cola Co. - Key offerings

                             *Exhibit 89:  The Coca-Cola Co. - Segment focus

              **10.12 The Kraft Heinz Co.       

                             *Exhibit 90:  The Kraft Heinz Co. - Overview

                             *Exhibit 91:  The Kraft Heinz Co. - Business segments

                             *Exhibit 92:  The Kraft Heinz Co. - Key news

                             *Exhibit 93:  The Kraft Heinz Co. - Key offerings

                             *Exhibit 94:  The Kraft Heinz Co. - Segment focus

***11. Appendix                          

              **11.1 Scope of the report        

                             *11.1.1 ????Market definition

                             *11.1.2 ????Objectives

                             *11.1.3 ????Notes and caveats

              **11.2 Currency conversion rates for US$           

                             *Exhibit 95: ?Currency conversion rates for US$?

              **11.3 Research Methodology  

                             *Exhibit 96: ?Research Methodology

                             *Exhibit 97: ??Validation techniques employed for market sizing?

                             *Exhibit 98: ??Information sources

              **11.4 List of abbreviations       

                             *Exhibit 99: List of abbreviations

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Key Questions Answered

  • What are the key global market and the regional market share?
  • What are the revenue-generating key market segments?
  • What are the key factors driving and challenging this market’s growth?
  • Who are the key market vendors and their growth strategies?
  • What are the latest trends influencing the growth of this market?
  • What are the variables influencing the market growth in the primary regions?
  • What are the factors influencing the growth of the parent market?

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