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Functional Water Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 147 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4602384
UP TO OFF until Dec 31st 2023

Quick Summary:

Navigate the shifting landscape of the Global Functional Water Market and identify strategic growth opportunities across regions. This market research report expertly analyzes the increasing popularity of functional water which, with its blend of vital vitamins, minerals, and other health-enhancing additives, is becoming the beverage of choice for the health-conscious. The report examines how consumer preferences are significantly shifting from sugar-laden beverages to fortified functional water, primarily driven by rising global health awareness and the need for nourishing hydration.

Moreover, it sheds light on the increasingly important role that online retail channels play in the distribution of functional water, surpassing the growth rates of traditional outlets. It also explores emerging trends in the consumer-facing bottling industry, including the rise of protein-rich functional water products and the developmental strides necessary for expanded market presence. This report will provide actionable value to professionals seeking to understand and leverage the undercurrents fostering demand in the functional water market, helping them tread the waves of this dynamic industry and optimize their competitive edge.

The Global Functional Water Market is projected to witness a CAGR of 7.06% in the upcoming five years.

Functional water is witnessing high market growth as it contains healthy additives, such as vitamins, acids, minerals, herbs, and fruits or vegetables. Post-pandemic, consumers’ focus became centered on proper nutritional intake, and a majority of consumers switched toward healthier beverage options, which included vitamin- and mineral-infused functional waters. Moreover, online retail channels are registering higher growth than conventional distribution channels, such as supermarkets and specialty stores, in terms of sales of functional water and are expected to grow during the forecast period. Additionally, the shift in preferences from carbonated and high-sugar beverages is driving demand for the functional water market.

In addition to this, functional water has a wide range of qualities, such as protein-rich functional water, which is essential for the repair and growth of lean muscle and can also aid in promoting a feeling of satiety. Over the forecast period, functional water is expected to develop at a faster pace as a result. The convenience of consumption and its effects on human nutrition are the factors boosting demand in the functional water market. However, with the growing popularity of functional water among the working class and millennial populations, innovative product developments are expected to enhance the market and accelerate its growth over the forecast period.

Functional Water Market Trends

Consumer Preferences Evolving Toward Value-added Hydration Propelling Market Growth

The rapid demand for the consumption of fortified beverages is attributed to the inclusion of essential ingredients, such as protein, amino acids, vitamins, and minerals, in various functional beverages. The introduction of new and innovative types of functional water by beverage manufacturing companies engaged in the production of water using modified blends of protein and minerals is likely to fuel the market’s growth. The rise in obese and diabetic populations in the United States, Canada, China, India, Australia, and the United Kingdom, among others, has shifted the focus from carbonated soft drinks to bottled water in the recent past. Research by the International Food Information Council Foundation on Food and Health revealed that in 2021, 47% of their total consumers prefer food with additional nutrients. Therefore, this factor is expected to boost the market's growth.

North America Holds Largest Market Share

The consumption pattern in the North American region is shifting toward food and beverage products infused with healthy and weight management ingredients. The region holds a prominent market share as functional water is such a product. Consumers in the United States have started to develop an interest in beverages that deliver benefits above and beyond simple refreshments, which is also contributing to the expansion of the functional water market.​ Moreover, due to increasing health concerns in the Canadian provinces, many domestic and international players are attracted to the opportunistic market, and consumers are getting an ample range of products to choose from, driving the overall North American market.

The market for functional waters is growing because they are cheaper than other RTD beverages, and they come in a variety of packaging options, including containers and single-serve bottles, which makes them more popular with consumers. Due to the increase in demand for functional water, companies are expanding their reach into the market in order to gain a competitive advantage. For instance, in 2021, in order to expand its product portfolio toward functional water, Nestle SA acquired Essentia Water, Bothell, and Wash in the United States as part of its strategic shift towards functional water.

Functional Water Market Competitor Analysis

The functional water market is competitive and is still growing owing to products varying across packaging formats, flavors, and sizes. The market vendors are developing new products with an emphasis on organic and taste variants to increase their market shares and gain traction in the global marketplace. Danone SA, the Coca-Cola Company, Herbal Water, PepsiCo Inc., and Dr. Pepper Snapple are some of the prominent players in the functional water market. Some of the other players include Vitamin Well AB, Triamino Brands LLC, and New York Spring, among others. Balance Water and Herbal Water have marked their position in the market with their unique product portfolio, i.e., water enhanced with wildflowers and organic herbs, respectively. Moreover, regional or domestic companies have been marketing their products with strategies, such as sponsorships and significant investments in advertisements.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Buyers/Consumers
4.3.2 Bargaining Power of Suppliers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products and Services
4.3.5 Intensity of Competitive Rivalry
5.1 Product Type
5.1.1 Vitamin
5.1.2 Protein
5.1.3 Other Product Types
5.2 Distribution Channel
5.2.1 Hypermarkets/Supermarkets
5.2.2 Specialty Stores
5.2.3 Online Stores
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America United States Canada Mexico Rest of North America
5.3.2 Europe United Kingdom Germany Spain France Italy Russia Rest of Europe
5.3.3 Asia-Pacific China Japan India Australia Rest of Asia-Pacific
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle East and Africa United Arab Emirates South Africa Rest of Middle East and Africa
6.1 Most Adopted Strategies
6.2 Most Active Companies
6.3 Company Profiles
6.3.1 The Coca-Cola Co. (Glaceau Smartwater)
6.3.2 PepsiCo Inc. (Soulboost)
6.3.3 Balance Water Company (Balance Water)
6.3.4 Danone SA (Salus, Zywiec Zdrój, Volvic, Aqua, Font Vella, Mizone)
6.3.5 Dr. Pepper Snapple Group Inc. (Canada Dry, Schweppes, Core Hydration, bai)
6.3.6 Function Drinks (function)
6.3.7 Trimino Brands Company LLC (Trimino)
6.3.8 CENTR Brands Corporation (Centr)
6.3.9 Flow Beverage Corp. (Flow)
6.3.10 Disruptive Beverages Inc. (Ayala's Herbal Water)
6.3.11 Nirvana Water Sciences Corp. (Nirvana)
6.3.12 Unique Foods (Perfect Hydration, Icelandic Glacial)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • The Coca-Cola Co. (Glaceau Smartwater)
  • PepsiCo Inc. (Soulboost)
  • Balance Water Company (Balance Water)
  • Danone SA (Salus, Żywiec Zdrój, Volvic, Aqua, Font Vella, Mizone)
  • Dr. Pepper Snapple Group Inc. (Canada Dry, Schweppes, Core Hydration, bai)
  • Function Drinks (function)
  • Trimino Brands Company LLC (Trimino)
  • CENTR Brands Corporation (Centr)
  • Flow Beverage Corp. (Flow)
  • Disruptive Beverages Inc. (Ayala's Herbal Water)
  • Nirvana Water Sciences Corp. (Nirvana)
  • Unique Foods (Perfect Hydration, Icelandic Glacial)