A functional beverage is a type of non-alcoholic beverage with an additional benefit through its formulation, often in the form of a health aid or performance-enhancer product. Functional beverages contain non-traditional ingredients such as minerals, vitamins, probiotics, dietary fibers and added fruits. The companies in the functional beverages industry process raw materials into drinks, then package and distribute them through various distribution channels to both individual customers and commercial establishments.
The functional beverages market consists of sales of functional beverages by entities (organizations, sole traders and partnerships) that manufacture functional beverages.
The global functional beverages market was valued at $118,307.5 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 5.0%.
Growing Number Of Health-Conscious Consumers
The increase in the awareness of fitness among people and the growing number of health-conscious consumers propelled the growth of the functional beverages market during the historic period. Consumers are moving towards maintaining good health through various diets, including keto and vegan and fitness training, including gym workouts. This shift is mainly attributed to the rise in sedentary jobs and busy lifestyles which are the major causes of diseases such as high blood pressure and diabetes. For instance, in August 2022, according to research by Koninklijke DSM N.V, a Netherlands-based company focused on health and nutrition, worldwide, 60% of consumers stated that the COVID-19 pandemic made them more conscious of preventing health problems by leading a healthy lifestyle. Therefore, the increase in health-conscious consumers contributed to the growth of the functional beverages market.
Emerging Trends In Relaxation Beverages
Companies in the functional beverages market are increasingly focusing on relaxation drinks to cater to the increasing consumer demand for such products. Relaxation drinks are a mixture of herbs, such as chamomile, amino acids like melatonin, botanicals and vitamins that have been traditionally used as calming agents separately. For example, in February 2024, Lithios, a US-based beverage company, launched unique range of lithia-infused mineral seltzers to New York City. This new product line includes flavors such as Orange Mango, Mixed Berry and Electric Lime, offering a unique blend of over 71 minerals, with the added benefit of lithia. Lithia is known for its mood-enhancing, neuroprotective and anti-inflammatory properties, bringing a healthful twist to the refreshing seltzer. Further, in October 2021, OHMG, a UK-based drinks brand, unveiled a range of magnesium-enriched drinks that aim to reduce anxiety and aid relaxation. The beverages are made with pure water infused with a bioavailable magnesium and functional botanicals that help reduce anxiety, tiredness and fatigue.
The global functional beverages market is concentrated, with large players operating in the market. The top ten competitors in the market made up 44.4% of the total market in 2023.
Functional Beverages Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global functional beverages market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for functional beverages? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The functional beverages market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider functional beverages market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by function and by distribution channel.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the functional beverages market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by function and by distribution channel in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for functional beverages providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Energy Drinks; Sports Drinks; Nutraceutical Drinks; Dairy-Based Beverages; Juices; Enhanced Water; Other Types
- 2) By Function: Health And Wellness; Weight Management
- 3) By Distribution Channel: Brick And Mortar; Specialty Foodservice Stores; Online
- Companies Mentioned: PepsiCo; The Coca-Cola Company; Danone S.A.; Red Bull GmbH; Monster Energy Company
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia.
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; functional beverages indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.