The scope of the recent study on'Functional Beverages Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Product Type (Energy Drinks, Sports Drinks, Fortified Juices, Functional Water, and Others) and Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, and Others)' includes the description of factors governing the market growth, estimation and forecast of revenue, and identification of significant market players and their key developments. It also entails the market share analysis.
The functional beverages market is projected to reach US$ 145,146.05 million by 2028 from US$ million 85,728.85 in 2021; it is expected to grow at a CAGR of 7.8% from 2021 to 2028.
The nutrient profile of functional beverages includes proteins, amino acids, vitamins, minerals, probiotics, among others. These beverages provide energy, boost hydration, and fulfill the body’s daily nutritional requirements. Amid the hectic lifestyles, functional beverages are becoming increasingly popular among consumers owing to their concerns about health, immunity, and fitness.
Based on distribution channel, the functional beverages market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The convenience stores segment held a prominent market share in 2020. Convenience stores are retail establishments that sell products of different brands. They are the most preferred retail channel due to the ease of reach. Manufacturers of functional beverages offer their products through convenience stores owing to significant footfall in these stores.
Based on geography, the functional beverages market is segmented into - North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). North America held the largest market share in 2020. The rising number of health-conscious individuals in the region is one of the primary factors driving the growth of the functional beverages market; calorie consciousness among people compels them to consume zero-sugar and low-calorie energy drinks and sports drinks. The increasing participation in sports and recreational activities also supports the regional market, as functional beverages help in maintaining the energy levels in the body, enhancing nutrient absorption of the body, and keeping the body hydrated. Moreover, the flourishing trend of veganism is bolstering the demand for plant-based functional beverages.
The functional beverages market experienced the mixed impact of the COVID-19 pandemic. The popularity of foods and beverages that help boost natural immunity and maintain overall health increased with the surge in health-consciousness among consumers during the pandemic. However, due to severe disruption of supply chains, there was a shortage of raw materials, which limited the profitability of small-scale and large-scale functional beverages manufacturers. The insufficient product supply created a demand and supply gap, which affected the growth of the functional beverages market. However, the market is moving toward stability as various country governments relaxed the previously imposed restrictions. Manufacturers are recovering from the losses as they are operating with full capacity.
Based on product type, the functional beverages market is segmented into energy drinks, sports drinks, fortified juices, functional water, and others. In terms of distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. On the basis of geography, the functional beverages market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
Reasons to Buy
The functional beverages market is projected to reach US$ 145,146.05 million by 2028 from US$ million 85,728.85 in 2021; it is expected to grow at a CAGR of 7.8% from 2021 to 2028.
The nutrient profile of functional beverages includes proteins, amino acids, vitamins, minerals, probiotics, among others. These beverages provide energy, boost hydration, and fulfill the body’s daily nutritional requirements. Amid the hectic lifestyles, functional beverages are becoming increasingly popular among consumers owing to their concerns about health, immunity, and fitness.
Based on distribution channel, the functional beverages market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The convenience stores segment held a prominent market share in 2020. Convenience stores are retail establishments that sell products of different brands. They are the most preferred retail channel due to the ease of reach. Manufacturers of functional beverages offer their products through convenience stores owing to significant footfall in these stores.
Based on geography, the functional beverages market is segmented into - North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). North America held the largest market share in 2020. The rising number of health-conscious individuals in the region is one of the primary factors driving the growth of the functional beverages market; calorie consciousness among people compels them to consume zero-sugar and low-calorie energy drinks and sports drinks. The increasing participation in sports and recreational activities also supports the regional market, as functional beverages help in maintaining the energy levels in the body, enhancing nutrient absorption of the body, and keeping the body hydrated. Moreover, the flourishing trend of veganism is bolstering the demand for plant-based functional beverages.
Impact of COVID-19 Pandemic on Functional Beverages Market
The functional beverages market experienced the mixed impact of the COVID-19 pandemic. The popularity of foods and beverages that help boost natural immunity and maintain overall health increased with the surge in health-consciousness among consumers during the pandemic. However, due to severe disruption of supply chains, there was a shortage of raw materials, which limited the profitability of small-scale and large-scale functional beverages manufacturers. The insufficient product supply created a demand and supply gap, which affected the growth of the functional beverages market. However, the market is moving toward stability as various country governments relaxed the previously imposed restrictions. Manufacturers are recovering from the losses as they are operating with full capacity.
Functional Beverages Market Breakdown - by Region
The report segments the functional beverages market as follows:
Based on product type, the functional beverages market is segmented into energy drinks, sports drinks, fortified juices, functional water, and others. In terms of distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. On the basis of geography, the functional beverages market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
Reasons to Buy
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the global functional beverages market, thereby allowing players to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth the market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to products, segmentation, and industry verticals
Table of Contents
1. Introduction
3. Research Methodology
4. Global Functional Beverages Market Landscape
5. Functional Beverages Market - Key Market Dynamics
6. Functional Beverages - Global Market Analysis
7. Global Functional Beverages Market Analysis - By Product Type
8. Functional Beverages Market Analysis - By Distribution Channel
9. Global Functional Beverages Market - Geographic Analysis
10. Overview- Impact of Coronavirus Outbreak
11. Company Profiles
12. Appendix
List of Tables
List of Figures
Executive Summary
The functional beverages market is projected to reach US$ 145,146.05 million by 2028 from US$ million 85,728.85 in 2021; it is expected to grow at a CAGR of 7.8% from 2021 to 2028.Functional beverages are fortified with essential nutrients, such as protein, vitamins, minerals, amino acids, and probiotics, to offer health benefits. They help in maintaining the energy levels in the body, thereby boosting stamina and athletic performance. Energy drinks, sports drinks, functional water, fortified juices, among others, fall under the functional beverages category. Energy drinks are popular among sportspersons and fitness enthusiasts. Functional water and fortified drinks are also gaining huge traction among consumers. People are becoming health conscious due to the lack of physical activity and the increasing prevalence of lifestyle diseases, such as obesity and diabetes.
Based on product type, the functional beverages market is segmented into energy drinks, sports drinks, fortified juices, functional water, and others. The functional water segment is projected to register a notable CAGR in the market during the forecast period. Functional water, which falls under the category of non-alcoholic beverages, has supplementary components, sometimes known as aquaceuticals—such as vitamins, minerals, acids, herbs, and raw fruits and vegetables. Consumers prefer functional water over regular water in their daily diets to meet their daily nutritional requirements. Moreover, the availability of a wide variety of flavors in the functional water, which is sold by multiple retailers, is also boosting their popularity among consumers. The manufacturers of functional beverages are spending huge amounts to expand their business operations across North America by introducing new flavors and innovative products. For instance, in 2020, PepsiCo, Inc. went into an agreement, worth US$ 3.85 billion, with Rockstar Energy Beverages, an energy drink manufacturer company in the US. This acquisition was focused on extending the existing product portfolio of PepsiCo’s functional beverages.
Based on geography, the functional beverages market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). In 2020, North America held the largest share of the market, whereas Asia-Pacific is expected to register the highest CAGR during the forecast period. The market growth in North America is attributed to a surge in demand for these products among young adults and athletes and emerging fitness trends. Functional beverages, including sports and energy drinks, enhance the performance and stamina of athletes and fitness enthusiasts. Further, the growing number of fitness enthusiasts has increased the demand for functional products, thus driving the functional beverages market growth in North America.
The leading players in the functional beverages market include PepsiCo, The Coca-Cola Company, Nestle, Kraft Foods, General Mills, Campbell Soup Company, Red Bull, The Wonderful Company LLC, Danone SA, and Monster Energy Company. These players focus on innovating their products in terms of flavors, packaging, and ingredients to expand their customer base and reach. As the functional beverages market is a highly competitive one, the key market players are making significant investments in research and development to retain their market shares.
The overall size of the functional beverages market has been derived using primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. Participants of this process include VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the functional beverages market.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Pepsico
- The Coca-Cola Company
- Nestlé
- Kraft Foods
- General Mills, Inc.
- Danone S.A.
- Monster Energy Company
- Red Bull
- Campbell Soup Company
- The Wonderful Company LLC.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 135 |
| Published | March 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 85728.85 Million |
| Forecasted Market Value ( USD | $ 145146.05 Million |
| Compound Annual Growth Rate | 7.8% |
| Regions Covered | Global |
