U.K. Nootropic Functional Beverages Market Size, Share & COVID-19 Impact Analysis, By Distribution Channel (Supermarkets/Hypermarkets, Pharmacy Stores, Specialty Retailers, Online Channels, Others), and Country Forecast, 2020-2027

The U.K. nootropic functional beverages market size stood at USD 126.9 million in 2019 and is projected to reach USD 260.2 million by 2027, exhibiting a CAGR of 10.2% during the forecast period.

The emerging trend of consumption of healthy and natural foods has created vibrant and fast-paced categories within the market. The rising popularity and consumption of health and wellness-related food products such as nootropic supplements and functional beverages are influencing the market growth positively. Furthermore, increasing awareness about the potential benefits of memory-enhancing nootropic functional beverages among students and professionals is expected to support the steady growth of the market.

COVID-19 Outbreak has resulted in an Unsettled Supply Chain of Raw Materials

The eruption of COVID-19 has sent shock waves across the global markets. It has disturbed supply chains, has imposed closure of numerous manufacturing facilities in various regions, and has caused serious disruption in air and sea traffic leading to the closure of vital air and water routes. All industrial activities are being paused, transnational travel has stopped, and only essential businesses such as medications and food are being permitted to function. These actions are having a significant effect on almost all industrial sectors, including nootropic functional beverages.

Though the demand for these functional beverages has been relatively stable, the coronavirus crisis has hit the supply chain brutally. Hence, the nootropic functional beverage industry is anticipated to observe interruptions and production decline during this pandemic period. The reason behind this interruption is attributable to raw material scarcity, labor shortages, and border closure situations. The companies operating in the market are focusing on several partnerships with the relevant stakeholders to expand the reach of their products. Moreover, the companies are rigorously working on digitalization, ecosystem-based collaborations, and new business models to sustain in this pandemic situation.

LATEST TRENDS

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Proliferating Demand for Product to Cater to Elderly Population to Propel Market Growth

Mental health problems have a significant effect on physical health. Thus, it is essential to study the mental performances and health of the elderly population, in addition to age-related physical health conditions and physical decline. The increasing concerns regarding their health and well-being and the rising number of older adults in the U.K. who have dementia and Alzheimer's are expected to drive the demand for smart drugs or brain function boosters such as nootropic functional beverages. According to the Alzheimer’s Society, the number of patients suffering from dementia in the United Kingdom is expected to reach around 1 million by 2021. Furthermore, by 2051, this number is expected to increase and reach around 2 million.

DRIVING FACTORS

Increasing Demand for Smart Drugs is Playing to Augment Market Growth

Nootropic, often referred to as a smart drug, is a supplement that helps to improve the cognition abilities of a person. This supplement is extensively consumed to up-lift mood and augment cognitive performance in healthy individuals. The growing awareness about the potential benefits of the memory-enhancing nootropic functional beverages among professionals, entrepreneurs, students, scientists, artists, and investment bankers to gain a competitive mental edge is expected to be a favorable factor for market growth in forthcoming years.

The increasing number of professionals and students who consume these brain booster tonics and smart drugs to improve memory and focus is anticipated to drive the demand for these functional beverages in the U.K. Furthermore, the rising buyer’s inclination towards traditional functional drinks instead of caffeine-containing high sugar drinks can further drive the market growth as this beverages can offer similar benefits such as energetic and refreshing feeling.

Continuous Innovation in the Industry to Support Market Growth

The increasing popularity of innovative nootropic functional beverages is encouraging market players to experiment with product premiumization and differentiation. For instance, in June 2019, Koios announced the launch of a new pear guava nootropic drink. The new product is infused with MCT oil. MCT oil is a fat collected from coconuts that offer fast fuel for the brain and body. The product is packaged in a 355ml aluminum can and widely available in online and offline stores.

The robust customer demand for convenience and portability packaging solutions has further resulted in innovations and improvement in old-styled packaging shapes, the use of lighter packaging materials, and the increased use of flexible packaging solutions. The continuous innovation in product packaging or formulation is expected to support the steady growth of the market.

RESTRAINING FACTORS

Lack of Legal Approval to Certain Nootropic Substances May Restrict the Market Growth

Some of the nootropic products contain substances or ingredients that are not legally approved in the U.K. For instance, the marketing of the most basic nootropic ingredients such as L-theanine and coffee in the UK is quite a task as the European Food Safety Authority (EFSA) could not find any trustworthy evidence that proves the nootropics benefits of these products. Therefore, validating nootropics and their benefits is a challenge for even the prominent market players, which can restrain the growth of the market.

SEGMENTATION

By Distribution Channel

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Online Channels Segment to Experience Vibrant Growth owing to Ease of Purchase

Customers are no longer shopping or spending entirely offline or online, and instead, they are choosing a mixed approach, using whatever channel best suits their requirements.

The supermarkets/hypermarkets segment is predicted to remain a key distributor of the product owing to the various discounts or freebies offered by them. The high customer reliance on such stores for purchasing several food products & healthy foods and drinks or energy drinks owing to the easy availability of different flavors and brands under one roof is anticipated to increase foot counts on the floor. The organization of distinct shelves for the nootropic functional beverages and easy availability of a wide variety of products are anticipated to increase the sales through these stores.

With the hectic schedules and busy lifestyle, customers prefer to purchase grocery items through online retail stores such as Amazon, BigBasket, and others owing to them offering hassle-free door-step deliveries. This is expected to have a positive impact on product sales through online channels.

The special guidance offered by the specialty retailers and pharmacy store keepers about the product consumption and benefits is anticipated to increase the sales of these nootropic beverages through these stores.

COUNTRY INSIGHTS

The increasing health consciousness among buyers and the rising spending on health benefiting food products have supported the sales of these products in the U.K. The government ban on sales of various drinks to the under-16-year children due to their high sugar content and the rising prevalence of obesity among children are anticipated to have a strong demand for comparatively healthy products such as nootropic functional beverages. Moreover, the rising focus of market players on the launch of low and no-sugar nootropic beverages will support the U.K. nootropic functional beverages market growth.

The growing popularity of multi-utility drugs has prompted the market players to focus on expanding their consumer offerings, which is expected to be a favorable factor for market growth. Moreover, the ongoing research and development activities in the industry and the growing popularity of nootropic supplements as healthier alternatives to prescription drugs are likely to further drive the market growth in the forthcoming years. The product is widely considered as an innovative and popular type of supplement formulation in the market as it is very safe to consume and widely available in several flavors and variants in online and offline retail stores.

KEY INDUSTRY PLAYERS

Industry Emphasis on New Product Development to Boost Market Growth

The nootropic functional beverages have been around for decades, and they have become a buzzword on the fringes of the health-awareness movement. The rising popularity of this product is propelling major players to expand their distribution network and product portfolio to increase their market reach and consumer base. Brite Drinks, Raylex Ltd., and TruBrain are some of the leaders operating in the U.K. nootropic functional beverage market. New product development and mergers and acquisitions are some of the crucial strategies adopted by the company to compete in the regional market.

July 2020: Brite Drinks announced a partnership with GoodSixty, an online food shopping/delivery application, to expand its consumer base. The investment in this platform will offer significant opportunities for further growth and development of brite drinks.

August 2018: Brite Drinks announced the launch of its new variant, Raspberry with Mint and Lemon flavor. This new product launch will enable the company to capitalize on the growing demand for safe, healthy, and tasty nootropic beverages.

LIST OF KEY COMPANIES PROFILED:

• Brite Drinks (London, England)


• Raylex Brands (London, England)


• Kimera Koffee (Florida, United States)


• LIFEAID Beverage Company LLC (California, United States)


• TruBrain (California, United States)


• Onnit (Texas, United States)


• Neurohacker Collective LLC (California, United States)


• Onnor Ltd (London, United Kingdom)


• Neurobrands LLC (California, United States)


• Vite Naturals Ltd. (London, United Kingdom)

KEY INDUSTRY DEVELOPMENTS:

• July 2020: Neurobrands LLC announced the launch of nootropic drink mixes. The new powder drink mixes are formulated with the highest quality ingredients and from sustainable sources. The products are vegan, gluten-free, lactose-free, and certified OU Kosher. 


• October 2019: Onnor Ltd. announced the launch of the first nootropic-infused coffee. The new product contains natural ingredients such as tyrosine, Lion’s Mane, acetyl-L-carnitine, Alpha-GPC, and Vitamin B6.


• October 2019: Neurohacker Collective LLC. announced the launch of Qualia Nootropic Energy Shot, its first liquid nootropic product designed to support brain energy levels leading to optimal mental and physical performance in high-demand situations such as work, school, social interactions, and the gym. The product will help to maintain the mental and physical fitness of the individual.

REPORT COVERAGE

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The U.K. nootropic functional beverages market report provides qualitative and quantitative insights on the market and a detailed analysis of market size and growth rate for all possible segments in the market. Along with this, the market research report provides an elaborative analysis of the market dynamics, swot analysis, and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.

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