Enjoy complimentary customisation on priority with our Enterprise License!
The global functional drinks market is estimated to grow at a CAGR of 8.28% between 2022 and 2027. The size of the market is forecast to increase by USD 57.04 billion. The growth of the market depends on several factors, including new product launches, the health benefits of functional drinks, and the increasing consumption by millennials. The New product launches are notably driving the functional beverages market growth. Over recent years, companies in the global market have been focusing on new product launches. They are introducing a variety of flavored products offering unique health benefits. For instance, in 2020, Pepsico launched a new drink called Driftwell, which is meant to help consumers relax and unwind before bed. Similarly, in 2020, IVUSION Beverage Company LLC launched IVUSION, a hydration drink that hydrates without excess sugar. It is created by medical professionals inspired by IV therapy. Many such developments among companies will drive the growth of the market during the forecast period.
This report extensively covers market segmentation by product (energy beverages, functional fruit and vegetable juices, sports beverages, prebiotic and probiotic drinks, and others), application (health, wellness, and weight loss), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The growing popularity of e-commerce is the primary trend driving the growth of the functional beverages market. The rise in the number of e-commerce portals and the penetration of smartphones has enabled companies to sell functional drinks through e-commerce channels. Developing countries such as China and India are witnessing a rise in the number of online grocery stores in major cities to provide grocery items on demand, including functional drinks.
This trend is encouraging companies in the market to expand their presence online. This is helping them save operating and overhead costs when compared with the physical store format. In addition, benefits offered by e-commerce websites, such as easy access to product-related information and enhanced shopping experience, are increasing the online sales of functional drinks. All these factors are driving the growth of the market.
The increasing concerns about obesity are the major challenges impeding the functional beverages market growth. Weight control is a prime concern for consumers when it comes to health and wellness. Consumers require food and beverages that have low calorie and sugar content to control weight. The major sources of added sugars 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 also contain a significant amount of fats, artificial sweeteners, caffeine, and starch. Hence, many people avoid consuming functional drinks. A study conducted by the American Academy of Pediatrics (APP) suggested that consumers who train rigorously in hot and humid weather conditions only need a small amount of sports drinks regularly. An inappropriate amount of consumption can cause major health issues such as weight gain, obesity, and others. These factors may impede the growth of the market growth during the forecast period.
Technavio has segmented the functional beverages market based on product as energy beverages, functional fruit and vegetable juices, sports beverages, prebiotic and probiotic drinks, and others. The market share growth by the energy beverages segment will be significant during the forecast period. Energy drinks are primarily consumed by young consumers in the age group of 18 to 34 years. Energy drinks are also used as mixers for alcoholic cocktails as they lower the effect of alcohol, increase drinking capacity, and reduce dizziness. These factors are increasing the demand for energy beverages in the market.
The energy beverages segment showed a gradual increase market share of USD 26.73 billion in 2017
Get a glance at the market contribution of various segments Request a PDF Sample
The market is observing an increased demand for energy drinks in North America. The rising demand for energy drinks in North America has increased their availability through improved channels of distribution, thereby making them more accessible. This has further increased the scope for growth in the segment.
APAC is projected to contribute 40% of the market growth by 2027.
For more insights on the market share of various regions Request PDF Sample now!
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Consumers in the region are giving up carbonated drinks and are exhibiting interest in functional drinks owing to growing health awareness. Changes in lifestyles due to long and demanding working hours, especially among the working class, have also boosted the demand for functional drinks in APAC. In addition, The demand for nutritious and easily digestible food and beverages, such as probiotic drinks, dairy-based drinks, and juices, is increasing among older people. As a result of these factors, the functional beverages market will witness significant growth in APAC during the forecast period.
The total number of COVID-19 cases in India was around 32.07 million as of August 12, 2021. However, in 2021, after the initiation of large-scale vaccination drives,?lockdown, and travel restrictions was lifted, which led to the resumption of supply chain activities. After this, the demand for various functional drinks from the above-said events increased in 2021. Also, the operations in various industries gradually restarted in limited capacities while maintaining social distancing norms in late 2020, which is expected to normalize market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Functional Drinks Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product launches, to enhance their presence in the functional beverages market.
Archer Daniels Midland Co. - The company offers functional drinks that include cider, spirits, and drinks such as wine which can be consumed as per the requirements.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies , including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Functional Drinks Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.28% |
Market growth 2023-2027 |
USD 57.04 billion |
Market structure |
Fragmented |
YoY growth (%) |
7.74 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Clif Bar and Co., Danone, Glanbia Plc, Gujarat Cooperative Milk Marketing Federation, Kerry Group Plc, Keurig Dr Pepper Inc., Kruger GmbH and Co. KG, Lifeway Foods Inc., Monster Beverage Corp., Nestle SA, Otsuka Holdings Co. Ltd., PepsiCo Inc., Probi AB, Red Bull GmbH, Suntory Beverage and Food Ltd., The Coca Cola Co., The Kraft Heinz Co., and Yakult Honsha Co. Ltd. |
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, and 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.