by The 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 Overview:-
Functional beverages are non-alcoholic drinks that provide additional health and performance benefits. They contain ingredients that help in improving physical performance, boosting energy levels, enhancing mental focus, aiding weight management or provide digestive support. Popular functional beverages include sports drinks, enriched fruit and vegetable juices, dairy and non-dairy drinks with added vitamins and minerals, prebiotic and probiotic drinks, drinks with omega-3 fatty acids and those containing botanical ingredients. They are consumed by health-conscious individuals and athletes for maintaining good health and immunity.
Market Dynamics:-
The functional beverage market is witnessing high growth owing to increasing health awareness and rising focus on preventive healthcare amongst consumers. The increasing trend of healthy living and wellness has boosted the demand for functional drinks providing nutritional and functional benefits. Furthermore, growing prevalence of lifestyle diseases such as obesity, diabetes and cardiovascular issues have propelled the ‘better-for-you’ beverage market. Also, convenient packaging and availability of functional beverages through various distribution channels including supermarkets, convenience stores, online retailers have enhanced accessibility. However, high pricing of functional drinks compared to regular beverages is a major challenge for market players.
SWOT Analysis:-
- Strength: The functional beverage market has witnessed strong growth over the past few years owing to rising health consciousness among consumers. Functional beverages offer various health benefits such as improved immunity, digestion, energy and overall wellness. Innovations in product portfolio with focus on different functions is fueling market growth.
- Weakness: High sugar content in few functional beverages is a major concern impacting consumer preference. Additionally, less product differentiation and availability of substitutes poses challenges. Functional claims by some brands lack scientific evidence.
- Opportunity: Untapped rural markets in developing regions present lucrative growth opportunities. Product launches targeting specific health issues and customized nutrition solutions will drive future demand. Advances in active ingredients will augment innovations.
- Threats: Stringent regulatory frameworks and compliance issues pose entry barriers for new players. Vulnerability to socio-economic changes can impact sales. Environmental concerns over waste generation from packaging is a challenge.
Key Takeaways:-
The Global Functional Beverage Market Growth is expected to witness high, exhibiting CAGR of 8.6% over the forecast period, due to increasing health awareness among consumers. Consumers are opting for beverages containing added nutrients and functional ingredients to supplement their daily diet and address specific wellness needs.
Regional analysis: North America dominates the global functional beverage market owing to growing health and wellness trend and strong product penetration. Asia Pacific exhibits fastest growth on back of expanding consumer base, rising incomes and shift towards preventive healthcare in major countries like India and China.
Key players related content: 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. They are focused on expansion in high growth regions through strategic deals and new product launches.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.
