Global Functional beverage Market - Segmented by Type, Sales Channel and Geography - Growth, Trends and Forecasts (2022 - 2030)
The global functional beverage market was valued at USD 26.2 billion in 2015, at an expected CAGR of 6.5% during the forecast period. Growing demand for non-alcoholic drinks that provide specific health benefits and contain ingredients like minerals, vitamins, amino acids or added raw fruits is driving the market.
Rising demand for convenience beverages among health conscious consumers
Growing demand from millennial generation, rising health care & wellness awareness and busy lifestyles have led to the growing demand for convenience beverages. Factors such as healthy food habits and innovations in various food and drinks have led to surge in demand for functional drinks and beverages which are also the alternatives to the traditional supplements. The growing health awareness of functional beverages are leading to the opportunity of manufacturing condition specific product offerings which will clearly stand out in the market.
Expanding product portfolio to address use of natural ingredient & technological advancements in functional beverages are the focus areas of major players in the market. The consumer demands for a clean label have been on the rise. However, the manufacturers are unable to define it yet. Other restricting factors are presence of stringent government regulation.
Energy Drinks, Sports Drinks & Nutraceutical Drinks are the Major Segments
The energy drink market is the fastest growing segment. Functional beverages are the emerging class of natural products which helps in reducing the risk of chronic disease beyond basic nutritional functions. The functional beverages market is one of the fastest emerging markets due to its minerals and herbs content in the drinks. It’s also used to keep blood sugar levels under control leading to increased demand.
Consumers are now looking for variations in drinks which include preventive measures taken for specific health conditions. The major ingredients used are vitamins, amino acids and omega-3 fatty acids. Amino acids are used to slow fatigue and vitamins are added to boost the metabolism and generate energy in functional beverages. Omega-3 is widely used and its market is forecasted to grow as it controls inflammation. Prebiotics and probiotics are another ingredients widely used in drinks to ensure proper functioning of digestive system.
North America Dominates the Functional Drinks
The U.S. is the major contributor in North America region due to trending of health awareness amongst all age group consumers, athletic regime, work culture, and busy lifestyle. Asia-Pacific is forecasted as the fastest growing market. In terms of potential, countries such as Australia, China & India look attractive for business growth. Economic growth, changing lifestyle, health awareness are the major factors for the market attractiveness in this region. Other significant potential market is Russia in Europe. The functional beverage industry is highly concentrated with top ten companies accounting for more than 50% of the market share. The leading players in the market are focused on innovative flavors and drinks, which are safe to consume, tastes good and are cheap in cost.
Major players: NESTLE, PEPSICO, MONDO LAZE, FONTERRA, MEIJI GROUP, LIFEWAY KEFIR, DEL MONTE PACIFIC, HAIN CELESTIAL GROUP, DR PEPPER SNAPPLE
Key Developments
• May 2017: Santa Monica-based Red Bull North America released Red Bull Summer Edition Grapefruit Twist.
• June 2017: Pepsico announced the eight emerging nutrition, health, and wellness brands that will join its first collaborative incubator program in Europe. This is designed to support nutrition food and beverage entrepreneurs.
• July 2017: Molson Coors Brewing Company and Hornell Brewing Co., Inc., affiliate of AriZona Beverages entered into a partnership agreement, whereby, Molson Coors will
market and distribute a new Flavored Malt Beverage (FMB) brand – Arnold Palmer Spiked Half & Half – in the United States through its US division, MillerCoors.
Reasons to Purchase this Report
• Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
• Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
• Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
• Regional and Country level analysis integrating the demand and supply forces that are influencing the growth of the market
• Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
• 3 months analyst support along with the Market Estimate sheet in excel.
Customization of the Report
• Value chain analysis
• Consumer behavior analysis in country level
Rising demand for convenience beverages among health conscious consumers
Growing demand from millennial generation, rising health care & wellness awareness and busy lifestyles have led to the growing demand for convenience beverages. Factors such as healthy food habits and innovations in various food and drinks have led to surge in demand for functional drinks and beverages which are also the alternatives to the traditional supplements. The growing health awareness of functional beverages are leading to the opportunity of manufacturing condition specific product offerings which will clearly stand out in the market.
Expanding product portfolio to address use of natural ingredient & technological advancements in functional beverages are the focus areas of major players in the market. The consumer demands for a clean label have been on the rise. However, the manufacturers are unable to define it yet. Other restricting factors are presence of stringent government regulation.
Energy Drinks, Sports Drinks & Nutraceutical Drinks are the Major Segments
The energy drink market is the fastest growing segment. Functional beverages are the emerging class of natural products which helps in reducing the risk of chronic disease beyond basic nutritional functions. The functional beverages market is one of the fastest emerging markets due to its minerals and herbs content in the drinks. It’s also used to keep blood sugar levels under control leading to increased demand.
Consumers are now looking for variations in drinks which include preventive measures taken for specific health conditions. The major ingredients used are vitamins, amino acids and omega-3 fatty acids. Amino acids are used to slow fatigue and vitamins are added to boost the metabolism and generate energy in functional beverages. Omega-3 is widely used and its market is forecasted to grow as it controls inflammation. Prebiotics and probiotics are another ingredients widely used in drinks to ensure proper functioning of digestive system.
North America Dominates the Functional Drinks
The U.S. is the major contributor in North America region due to trending of health awareness amongst all age group consumers, athletic regime, work culture, and busy lifestyle. Asia-Pacific is forecasted as the fastest growing market. In terms of potential, countries such as Australia, China & India look attractive for business growth. Economic growth, changing lifestyle, health awareness are the major factors for the market attractiveness in this region. Other significant potential market is Russia in Europe. The functional beverage industry is highly concentrated with top ten companies accounting for more than 50% of the market share. The leading players in the market are focused on innovative flavors and drinks, which are safe to consume, tastes good and are cheap in cost.
Major players: NESTLE, PEPSICO, MONDO LAZE, FONTERRA, MEIJI GROUP, LIFEWAY KEFIR, DEL MONTE PACIFIC, HAIN CELESTIAL GROUP, DR PEPPER SNAPPLE
Key Developments
• May 2017: Santa Monica-based Red Bull North America released Red Bull Summer Edition Grapefruit Twist.
• June 2017: Pepsico announced the eight emerging nutrition, health, and wellness brands that will join its first collaborative incubator program in Europe. This is designed to support nutrition food and beverage entrepreneurs.
• July 2017: Molson Coors Brewing Company and Hornell Brewing Co., Inc., affiliate of AriZona Beverages entered into a partnership agreement, whereby, Molson Coors will
market and distribute a new Flavored Malt Beverage (FMB) brand – Arnold Palmer Spiked Half & Half – in the United States through its US division, MillerCoors.
Reasons to Purchase this Report
• Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
• Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
• Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
• Regional and Country level analysis integrating the demand and supply forces that are influencing the growth of the market
• Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
• 3 months analyst support along with the Market Estimate sheet in excel.
Customization of the Report
• Value chain analysis
• Consumer behavior analysis in country level
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