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North America Functional Beverage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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    Report

  • 100 Pages
  • August 2022
  • Region: North America
  • Mordor Intelligence
  • ID: 4703905
The North American functional beverage market is expected to witness a CAGR of 7.02% during the forecast period (2022-2027).

COVID-19 had a positive impact on the functional beverage market in the North American region. It alarmed the consumers who were looking for healthy alternatives in foods and beverages to boost immunity. The functional beverage offers high nutrient value, which increases the demand during the pandemic. This is something that will drive demand for functional products that help boost immunity as consumers look to minimize the risk of illness. When it comes to such products, it is crucial that they are deemed affordable and credible when it comes to health claims.

Increasing demand for innovative products, like plant-based and lactose-free beverage products, drive the market studied, while the inclusion of CBD-infused functional beverages is expected to be an opportunity for the future market.

Manufacturers are embracing innovation to gain cost-leadership and fixed suppliers in the early development stage. One of the major advantages of a functional beverage is that consumers are ready to pay a premium for its various functions and health advantages.

Key Market Trends


Flavor Innovations Leading to the Growth of the Market


Consumers are increasingly drawn to the health benefits available through functional beverages. People are more concerned about their health and fitness, which in turn increases the demand for functional foods, impacting all aspects of the menu. The beverage category holds the biggest opportunity for flavor innovation. Manufacturers of functional beverages are investing huge amounts to extend their product line by inaugurating the latest flavors and new categories to attract consumers, especially millennials, in the developed economies, like the United States, as they prefer flavored water more than any other beverage drink. The trend of zero-calorie, zero-sugar, and low-carb content soft drinks is rising across the region, boosting the market growth. The natural flavors are gaining traction due to their health benefits and refreshing tastes.



United States Holds a Major Share in the Market


Due to the high prevalence of diabetes in-country, consumers are becoming more aware of the importance of a healthy diet and active lifestyle, promoting the consumers to prefer natural sweeteners, such as stevia beverages. However, energy drinks and sports drinks hold a major share in the US market as it is the mandatory and obvious choice for them to grab as it contains several functional ingredients which help to boost immunity. With the growing demand for energy drinks, several giant manufacturers were focusing on product innovation and the expansion of their product lines. For instance, in 2020, Coca-Cola inaugurated its first Coke-branded energy drink of four flavors, namely Coka-Cola Energy Cherry, Coka-Cola Energy Zero Sugar, Coka-Cola Energy, and Coka-Cola Energy Cherry Zero Sugar, in the United States. An increase in cardiovascular disease and osteoporosis doubled the growing demand for convenience beverages among consumers as it has low fat, low carb, and low sugar. This drives the growth of functional energy drinks, fortified/functional plant-based, and malt-based hot drinks sales in the United States.



Competitive Landscape


The North American functional beverage market is a competitive market with the presence of various players in each category. Players are also extensively focusing on providing consumers with innovative offerings while including functional benefits in each of their products. Furthermore, while engaging the consumers with innovation and expansion strategies, key players are capitalizing on the market revenue. Some of the major players in the market studied include PepsiCo, Nestle SA, Danone SA, Coco-Cola, and Monster Beverage Corporation. Advanced distribution network and manufacturing expertise give an upper edge to the manufacturers to expand their range of products over the regions of North America.

Additional Benefits:

  • 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 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Energy Drinks
5.1.2 Sports Drinks
5.1.3 Fortified Juice
5.1.4 Dairy and Dairy Alternative Beverage
5.1.5 Other Types
5.2 By Distribution Channel
5.2.1 Hypermarkets/Supermarkets
5.2.2 Drug stores and Pharmacies
5.2.3 Convenience Stores
5.2.4 Online Retail Stores
5.2.5 Other Distribution Channels
5.3 Geography
5.3.1 United States
5.3.2 Canada
5.3.3 Mexico
5.3.4 Rest of North America
6 COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Nestle SA
6.4.2 Pepsico Inc.
6.4.3 Danone SA
6.4.4 Monster Beverage Corporation
6.4.5 The Coca-Cola Company
6.4.6 Campbell Soup Company
6.4.7 General Nutrition Centers Inc.
6.4.8 Red Bull GmbH
6.4.9 Glanbia PLC
6.4.10 The Hain Celestial Group Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS8 IMPACT OF COVID-19 ON THE MARKET

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Nestle SA
  • Pepsico Inc.
  • Danone SA
  • Monster Beverage Corporation
  • The Coca-Cola Company
  • Campbell Soup Company
  • General Nutrition Centers Inc.
  • Red Bull GmbH
  • Glanbia PLC
  • The Hain Celestial Group Inc.

Methodology

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