Global Functional Beverages Market by Types (Dairy Based Beverages, Enhanced Water, Energy Drinks, Sports Drinks, Functional Fruit Juices, and Others), Distribution Channels (Store Based, Online, Supermarkets & Hypermarkets, and Convenience Stores), a
The global functional beverage market is estimated to reach USD 208 billion by 2026, expanding at a CAGR of around 9% during the forecast period, 2020 – 2026. The growing consumer inclination towards the consumption functional beverage is mainly due to the rising demands for non-alcoholic beverages. Functional drinks are being preferred over carbonated drinks and fruit juices by consumers. For gaining position in the market companies are coming up with new innovations. For various advantages of functional beverages, the consumers are willing to spend a premium which is one of the major advantages of functional beverage.
Ready to drink beverages that are non-alcoholic and include non-traditional ingredients are known as functional drinks. Functional drinks include few common ingredients such as minerals, herbs, some raw fruits or vegetables, and amino acids. The health-related benefits offered by functional drinks are much more than the daily nutritional intake. Improved heart health, immune system strengthening, improved mental energy, improved bone health, cholesterol management, and other health related benefits related to eye-health and vision. Dairy, enhanced fruit drinks & juices, ready to drink teas, energy drinks, functional milk, soy beverages, and sports & performance drinks are the most common types of functional drinks.
Market Trends, Drivers, Restraints, and Opportunities:
Various health benefits related to the use of functional beverage instead of other drinks is the primary reason for the growth of the market during the forecast period.
Rising obesity and health concerns around the globe are some of the key factors for the growth of the market.
High disposable income and rapid urbanisation are expected to drive the market growth.
Rising domestic and international sporting events around the globe are providing new opportunities for the growth of the market.
New innovative flavors in functional beverages is fuelling the market growth.
Lack of awareness among people and scepticisms for the efficiency of the product may hamper the growth of the market.
High cost of the functional beverages may act as a restrain for the growth of the market.
Scope of the Report
The report on the global functional beverages market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes Details
Base Year 2019
Historic Data 2015–2018
Forecast Period 2020–2026
Regional Scope Asia Pacific, Europe, North America, the Middle East & Africa, and Latin America
Report Coverage Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Global Functional Beverages Market Segment Insights:
Based on types, the global functional beverages market is segregated into dairy based beverages, enhanced water, energy drinks, sports drinks, functional fruit juices, and others. Energy drink is the dominant segment and is expected to remain dominant during the forecast period. The reason for the dominance of this market is due to rising involvement of individuals in various games and sports events.
In terms of distribution channels, the global functional beverages market is segmented into store based, online, supermarkets & hypermarkets, and convenience stores. Supermarkets & Hypermarkets comprises of the majority of the market share and is expected to remain dominant during the forecast period. The reason for dominance is due to convenience of buying, high consumer dependency, and one stop shopping.
On the basis of regions, the global functional beverages market is segmented into Asia Pacific, Europe, North America, Middle East & Africa, and Latin America. North America is the dominant segment and is expected to remain dominant during the forecast period. The dominance of this market can be attributed to rapid urbanization and high disposable income of the individuals. High product demand and increasing awareness regarding the health benefits of functional beverages are some of the important factors for the growth of the market.
Competitive Landscape:
Major companies in the global functional beverages market include The Coca-Cola Company, PepsiCo, Red Bull, Ocean Spray, Del Monte Food, Hain Celestial, Fonterra Co-operative Group, Mondelez International, and Nestle. Companies competing in the functional beverage market are adopting innovative strategies such as predatory pricing, innovative packaging, new product offerings, and distribution through various channels.
Consumer’s taste and preference are changing constantly and competition among the functional beverage manufacturers is intense. Aquarius a new low-calorie functional drink, was launched by The Coca-Cola Company with two new flavors that include important minerals such as lime with zinc and lime with magnesium. A dispensed beverage maker JoeFroyo, introduced its first ever gluten free ready to drink functional coffee that does not contain trans fats, processed sugar, and soy but includes probiotics, caffeine, and protein.
The global golf apparel market has been segmented on the basis of
Types
Dairy Based Beverages
Enhanced Water
Energy Drinks
Sports Drinks
Functional Fruit Juices
Others
Distribution Channels
Store Based
Online
Supermarkets & Hypermarkets
Convenience Stores
Regions
Asia Pacific
Europe
North America
Middle East & Africa
Latin America