Demand coming from millennial generation, rising health care & wellness awareness and busy lifestyles has led to the growing demand for convenience beverage. These factors along with the idea of â€œhealthiness-on-the-goâ€ and innovations in the drink flavors have led to surge in demand for sports and energy drinks which are also the alternatives to the traditional supplements. The rising health awareness is leading to the opportunity of manufacturing condition specific product offerings which will clearly stand out in the market.
Expanding product portfolio to address immunity and digestion concerns & 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 stabilization challenge and undefined regulatory acts.
Energy drinks, sports drinks & Nutraceuticals drinks are the major segments of the global functional beverages market. The energy drink market was worth $50 billion in 2014 and is forecasted to be the fastest growing segment due to the steadily growing demand from health conscious consumers. A new health paradigm is evolving in the recent years which place more emphasis on the positive aspects of diet. Nutraceutical beverages are the emerging class of natural products which helps in reducing the risk of chronic disease beyond basic nutritional functions. The Nutraceuticals market is one of the fastest emerging markets due to its minerals and herbs content in the drinks. It also used to keep blood sugar levels under control leading to increased demand. Nutraceutical beverages help in maintaining the normal physiological function and maintain good health.
Consumers are now looking for variations in their daily drinks which include hydration with performance & even 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. Regular/daily intake of omega-3 offers various health benefits like improved cognitive function (especially for elderly and children), joint health, mental health, lowered incidence of heart failure and irregular heartbeat and lowered blood triglyceride levels. Such benefits spike the market to grow at a healthy CAGR. Pre and probiotics are another ingredients widely used in these drinks to ensure proper functioning of digestive system.
Key players are engaged in innovating production and packaging processes. The major packaging types are Pet bottles, Can, Pouch out of which Pet bottles are majorly in demand due to its user friendly make. New techniques such as flip open caps are introduced to better suit the product for consumer convenience. Other few innovations are the light weighted and sophisticated aluminium bottles with a premium look and feel, which are not only trending but are also recyclable & resealable with the screw cap closure options. Single dose new packaging is now becoming new normal for the consumers demand for the packaging that speaks to them directly without compromising on the traditional functions. Convenience stores, supermarkets, malls are the major sales channels opted by manufacturers to cater the larger population.
North America is top consumer of functional drinks. 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. Europe is the largest market for Nutraceuticals drinks due to rising consumer awareness about pro-health food and is estimated to grow at CAGR of 7% during the forecasted period. 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 focussed on innovative flavors and drinks, which are safe to consume, tastes good and are cheap in cost. The leading players are also concentrating on the ingredient usage and the labelling of the product as the demand for specific consumption by demographics (men, women & kids) is high. Investment in R&D to introduce new innovative products is another strategy adopted by manufacturers to stay ahead of the competition in matured market of North America and Europe.
This Report Offers:
Market Definition for the specified topic along with identification of key drivers and restraints for the market.
Market analysis for the Global Functional Beverage Market, with region specific assessments and competition analysis on a global and regional scale.
Identification of factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies, which can influence the market on a global and regional scale.
Extensively researched competitive landscape section with profiles of major companies along with their share of markets.
Identification and analysis of the Macro and Micro factors that affect the Global Functional Beverage market on both global and regional scale.
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
Why Buy This Report?
For getting a comprehensive overview of the Global Functional Beverage market
To gain wide-ranging information about the major players in this industry and the strategies adopted by them.
To gain an insight about the major countries/regions in which this industry is blooming and also identify the regions, which are untapped.
1.1 Research Methodology
1.2 Definition of the Market
1.3 Report Description
2. Key Findings of the Study
3. Market Overview
4. Market Dynamics
4.1.1 Growing Demand for Convenience Beverage Segment
4.1.2 Rising Consumer Demand for Energy Drink
4.1.3 Demand Coming From Youths
4.1.4 Alternatives to Traditional Supplements
4.2.1 Allegations on Potential Health Hazards
4.2.2 Demand for Consumption Limit to be Specified on Labels
4.3.1 Condition Specific Product Offerings
4.3.2 Innovations to Address Health and Safety Concerns
4.4 Porter Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. Market Segmentation
5.1 By Ingredients Type
5.1.2 Amino Acids
5.1.5 Super Fruit Extracts & Botanicals
5.2 By Packaging
5.2.1 Bottles (Pet)
5.3 By Sales Channel
5.3.1 Convenience Stores
5.3.3 Mass Merchandisers
5.3.4 Drug Stores
5.3.5 Food Services/ Sports Nutrition Chain
5.4 By Geography
5.4.1 North America
5.4.4 South America
188.8.131.52 South Africa
5.5 Competitive Landscape
5.5.1 Mergers & Acquisitions
5.5.2 Joint Ventures
5.5.3 New Product Launches
5.5.4 Most Active Companies in the Past Five Years
5.5.5 Market Share Analysis
5.6 Company Profiles
5.6.1 Red Bull
5.6.2 Monster Beverage Corporation
5.6.3 Rock Star Inc
5.6.6 Arizona Beverage Company
5.6.7 National Beverage Corp
5.6.8 Dr. Pepper Snapple Group
5.6.9 Living Essentials
5.6.10 Vital Beverages Pvt. Ltd.
5.6.11 Cloud 9
5.6.12 Extreme Drinks Co
5.6.13 Mountain Fuel Co
5.6.14 Otsuka Holdings
5.6.15 TC Pharmaceutical Industries