by Functional beverages are beverages infused with added ingredients that provide health benefits such as vitamin fortification or herbal extracts. Functional beverages are popular among consumers who prefer health drinks for their health advantages over carbonated drinks. The global functional beverage market includes sports drinks, energy drinks, dairy-based beverages, plant-based beverages, and juices. These beverages help in energy boosting, muscle building, weight management and provide antioxidants and other health supplements.
The global Functional Beverage Market is estimated to be valued at US$ 220.66 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising health consciousness among consumers has propelled the demand for functional beverages in the market. People are increasingly preferring beverages that provide additional health benefits along with refreshment. Functional beverages cater to the health and wellness needs of consumers by supporting immune health, muscle strength, bone health and weight management. The incorporation of ingredients like vitamins, minerals, probiotics and antioxidants in beverages accordingly targets specific wellness goals. This has boosted the popularity of functional drinks amongst the health-conscious demographic and is expected to drive the functional beverage market substantially over the forecast period.
SWOT Analysis
Strength: Functional beverages offer various health benefits. They contain important nutrients, vitamins, minerals and other components that provide health advantages.
Weakness: Functional beverages with excessive sugar content may have certain health disadvantages. Manufacturing and marketing functional beverages also require high investments and expertise.
Opportunity: Rising health consciousness and changing consumer preferences toward healthier options present growth opportunities. The increasing middle-class population in developing regions also offers scope for market expansion.
Threats: Presence of substitute products like energy drinks, bottled water and fresh fruit juices act as threats. Strict regulations pertaining to product labeling and contents are other challenges.
Key Takeaways
The Global Functional Beverage Market Size is expected to witness high growth.
According to studies, the Asia Pacific functional beverage market holds the largest revenue share currently and is anticipated to maintain its dominance over the forecast period. This can be attributed to growing disposable income, increasing health awareness and shifting preference toward plant-based and natural beverages in countries like China, Japan and India.
Key players operating in the functional beverage include PepsiCo, Nestle, Del Monte, Coca-Cola, Britvic, Fonterra, Dannon, Kraft Heinz, Danone, Campbell Soup Company, JDB Group, General Mills,HJ Heinz, Arcadia Beverages, Fonterra Co-operative Group, Archer Daniels Midland Company, Coca-Cola, PepsiCo Inc. Functional beverage manufacturers are investing in product innovations, redesigning labels as per new guidelines and exploring the uses of exotic ingredients to differentiate their products. They are also targeting e-commerce channels and developing eco-friendly packaging solutions to increase market shares.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
