by Large paragraph: Functional beverages are drinks that offer hydration along with additional health benefits. They contain various vitamins, minerals, amino acids, and herbal extracts that provide nutritional and functional benefits. Rising prevalence of lifestyle diseases and increasing health consciousness among people have boosted the demand for functional beverages in recent years.
The global Functional Beverage Market is estimated to be valued at US$ 191.54 billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising demand for health and wellness products is the key trend propelling the growth of the functional beverage market. People are increasingly adopting healthy lifestyles and diets to maintain physical well-being. This has increased the demand for beverages that offer additional health benefits along with hydration. Functional beverages contain various vitamins, minerals, botanical extracts, and other ingredients that promote overall health and wellness. Furthermore, the presence of functional ingredients in these beverages aim to reduce the risk of lifestyle diseases, provide energy, support immune health, and enhance athletic performance. Thus, the increasing consumer inclination toward health and wellness supplements in the form of beverages is driving the functional beverage market.
SWOT Analysis
Strength: Functional beverages offer numerous health benefits to consumers. They contain additional vitamins, minerals, herbs, nootropics, and nutrition to boost energy, immunity, relaxation, cognitive performance and overall wellness.
Weakness: High sugar, calorie and caffeine content of some functional beverages can cause health issues if consumed in excess. Some products make overstated or unsubstantiated claims about their health benefits which lack scientific evidence.
Opportunity: Growing health awareness and preventive healthcare trends are driving consumers towards beverages with functional ingredients over regular soft drinks. There is scope for innovating new products catering to specific wellness needs like relaxation, focus, digestion etc.
Threats: Intense competition from regular soft drinks, bottled water, juices and dairy beverages. Stringent regulations regarding labelling and formulation of functional claims for beverages. Vulnerability to economic slowdowns impacting discretionary spending.
Key Takeaways
The Global Functional Beverage Market Size is expected to witness high growth. Regional analysis comprises the North American functional beverage market currently dominates with the largest share owing to increasing health consciousness. Asia Pacific is expected to be the fastest growing regional market in the forecast period due to rising incomes, growing middle class and shift towards preventive healthcare in countries like China and India.
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. These companies are focusing on new product launches, acquisition strategies and expansion in emerging markets to gain market share and benefit from the fast growth of the functional beverage sector between 2023 to 2030.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
