Functional beverages consist of nutritive ingredients that provide health benefits beyond basic hydration. They offer nutrients, vitamins, minerals, fibers, and other components that help in boosting immunity or improving physical or cognitive performance. The increasing health consciousness among people has accelerated the demand for beverages rich in functional ingredients like vitamins, herbs, amino acids, teas, juices, and probiotics.
The global Functional Beverage Market is estimated to be valued at US$ 191.54 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing demand for health and wellness products is one of the major trends driving the functional beverage market. Consumers are increasingly focusing on preventive healthcare and immunity enhancement. The COVID-19 pandemic has further heightened health awareness and induced lifestyle changes. As a result, consumers are choosing beverages that provide nutrients and promote overall well-being. Various functional ingredients like vitamins, minerals, botanical extracts are being incorporated across different beverage categories from soft drinks to juices to dairy and plant-based drinks. Manufacturers are innovating new products targeting specific health benefits which is supporting the increasing popularity of functional beverages.
Segment Analysis
The global functional beverage market can be segmented on the basis of product type and packaging type. Based on product type, the energy drink segment dominates the market. Energy drinks are highly consumed by young adults due to growing awareness regarding health and fitness. They provide instant energy and help to boost physical performance. Based on packaging type, the bottle segment generates maximum revenue in this market. Bottles offer convenience of use and reusability. Wide distribution networks ensure easy availability of bottled functional beverages.
Key Takeaways
The Global Functional Beverage Market Demand is expected to witness high growth during the forecast period of 2023 to 2030. North America currently dominates the market owing to growing health consciousness and active lifestyles among consumers in countries like the US and Canada. Key players are focusing on the region by launching new products tailored to regional taste preferences.
Regional analysis:
The Asia Pacific region is expected to witness the fastest growth in the functional beverage market during the forecast period. This can be attributed to growing disposable incomes, increasing health awareness, and rising obesity issues in developing countries of the region. Furthermore, young population in countries like India and China are actively adopting fitness trends and western lifestyles which is fueling the demand for functional drinks in the Asia Pacific region.
Key players:
Key players operating in the functional beverage market are PepsiCo Inc., Red Bull GmbH, The Coca-Cola Company, Danone SA, Monster Beverage Corporation, JAB Holdings Company, General Nutrition Centers Inc., The Hain Celestial Group Inc., Fonterra Co-operative Group, and Amway Corporation. These players are launching innovative products with attractive formulations and marketing strategies to capture more market share.
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