Functional Beverages Market Size, Share & Industry Analysis, By Type (Fortified Juice, Energy Drink, Sports Drink, Dairy-based Beverage, Enhanced Water, Others), By Distribution Channel (Supermarket/Hypermarket, Departmental Stores, Health Stores, Online Stores, Others) and Regional Forecast, 2024-2032

The global functional beverage market size is projected to witness a steep rise during the forecast years (2019-2026), due to rising awareness regarding the health benefits of functional beverages enriched with important health-enhancing components, such as vitamins, amino acids, and others. Increased marketing efforts by market players to promote functional beverages, coupled with the launch of various new products is further anticipated to fuel the market growth of functional beverages across the world.

Key companies operating in the global market are focusing on the launch of novel products and strengthening their product portfolio to maintain their market prominence. PepsiCo Inc., The Coca-Cola Company, and Fonterra Co-operative Group Limited are some of the key companies performing in the global functional beverage industry.

Functional beverages are drinks that are non-alcoholic in nature and are added with various health-enhancing ingredients, such as fruit or vegetable extracts, herbs, minerals, vitamins, amino acids, and others. Functional beverages have the potentials to aid immune health, boost energy, aid memory, aid heart health, and help in weight loss.

The functional beverage market is expected to perform tremendously during the foreseeable years due to increasing consumer inclination towards non-alcoholic and health benefitting drinks. Rising health consciousness among different consumer categories, coupled with their increasing expenditure on health and wellness products is expected to fuel the growth of the functional beverages market crucially in the upcoming years. Furthermore, initiatives taken by key players to promote functional beverage products is anticipated to aid the growth of the market during the forecast years. However, the high cost of functional beverages can act as a restraining factor in the growth of global market.

Key Players Covered:

Some of the major companies that are present in the global functional beverage market are The Coca-Cola Company, PepsiCo Inc., Nestle S.A., Kraft Heinz Company, Fonterra Co-operative Group Limited, Red Bull GmbH, Glanbia Plc., Suntory Holdings Ltd, Universal Nutrition, The Hain Celestial Group, and Danone S.A. among the other players operating in the global market.

On the basis of type, the global market has been segmented into fortified juice, energy drink, sports drink, dairy-based beverages, and others. The energy drink segment has shown tremendous growth in recent years and is expected to grow significantly during the forecast years, due to their ability to enhance energy level and physical performance. The sports drink segment is expected to perform decently throughout the forecast years and show considerable growth, especially across developed economies, owing to higher involvement of people in sports and games in developed economies.

On the basis of the distribution channel, the global functional beverage market has been segmented into supermarket/ hypermarket, departmental stores, health stores, online stores, and others. Supermarket/hypermarket segment is projected to hold the major market share during the forecast years, owing to higher consumer dependency on them for the purchase of food & beverage products. Distribution of functional beverages through health stores and online stores is projected to grow rapidly over the forecast years, due to the presence of a wide variety of specialty products at health and wellness stores, and the rising popularity of online channels.

Regional Analysis:

North America currently enjoys the major market share in the global functional beverages market and is expected to hold dominance during the forecast years, due to high awareness regarding the benefits of consumption of functional beverages and the product’s high demand across the region. The presence of key global market players, coupled with growing number of functional RTD beverage manufacturers in countries such as US is expected to further aid the growth of the functional beverage market of North America.

Europe and the Asia Pacific are projected to register significant growth during the foreseeable years, owing to increasing demand for functional beverages in countries such as UK, Germany, China, and Japan. Rising health consciousness among Asian consumers, coupled with increasing per capita income of consumers based in emerging economies of Asia is expected to contribute significantly in the growth of functional beverage market of Asia Pacific.

Segmentation

Key Industry Developments

• In April 2019, The Coca-Cola Company, announced the launch of ‘Aquarius’, a low-calorie range of flavored and functional drink. The product claims to contain important minerals and it comes in two flavors that include lime with magnesium and lemon with zinc.

• In August 2017, JoeFroyo, a significant dispensed beverage maker announced the launch of its first ever ready-to-drink (RTD) functional coffee that includes protein, caffeine, and probiotics. The product claims to be gluten-free, and does not contain soy, processed sugars and trans fats.