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The functional drinks market size is forecast to increase by USD 77.3 billion at a CAGR of 10.05% between 2023 and 2028. The market is experiencing significant growth due to several key trends and drivers. New product launches continue to shape the market, as companies introduce innovative beverages with added health benefits. The growing popularity of e-commerce is also fueling market growth, as consumers increasingly turn to online platforms for convenience and accessibility. Additionally, increasing concerns about obesity and the desire for healthier alternatives to sugary drinks and soft drink are driving demand for functional beverages. These beverages offer various health benefits, such as improved immunity, energy boost, and weight loss, making them an attractive option for health-conscious consumers. Overall, the market is poised for continued growth, driven by these trends and the increasing consumer preference for healthier beverage options.
Functional drinks have gained significant popularity in recent years, as consumers seek out beverages that offer more than just hydration. Nutrient-infused drinks, also known as enhanced beverages, are a category of functional drinks that provide additional health benefits. This segment includes wellness beverages, performance drinks, fitness drinks, and fortified beverages. Energy drinks and sports drinks are also functional drinks that cater to specific consumer needs, offering energy and hydration during physical activity. Brain health beverages, mood-enhancing drinks, stress relief drinks, and digestive health drinks are other sub-categories of functional drinks that address various health concerns. Probiotic beverages, bone health beverages, vitamin-enriched drinks, mineral-infused beverages, adaptogenic drinks, herbal beverages, enhanced juice, functional smoothies, superfood beverages, and plant-based functional drinks are some of the other types of functional drinks that offer various health benefits. Overall, the market is expected to grow significantly due to the increasing demand for healthier and functional beverage options.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The energy beverages segment is estimated to witness significant growth during the forecast period. Functional drinks have gained significant popularity in recent years as consumers seek out beverages that offer more than just hydration. These beverages, also known as health beverages or nutrient-infused drinks, are designed to enhance physical performance, support wellness, and address specific health concerns. Performance drinks and fitness drinks provide energy and electrolytes for workouts, while hydration beverages offer enhanced hydration with added electrolytes. Immunity boosters, antioxidant drinks, and cognitive drinks support brain health and focus, while stress relief drinks and digestive health drinks address mental and gut health. Fortified beverages, such as vitamin-enriched and mineral-infused drinks, provide essential nutrients, and adaptogenic drinks and herbal beverages offer natural stress relief.
Moreover, protein drinks and recovery beverages aid in muscle growth and repair, and meal replacement drinks offer a convenient alternative to traditional meals. Functional tea, functional coffee, functional water, enhanced juice, and functional smoothies are also popular options in this category, offering various health benefits from boosting energy to promoting gut health.
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The energy beverages segment was valued at USD 28.70 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Functional drinks have gained significant traction in the beverage industry, with superfood beverages and plant-based options leading the charge. These innovative beverages offer consumers numerous health benefits, making them an attractive alternative to traditional soft drinks. Superfood beverages, rich in antioxidants, vitamins, and minerals, cater to health-conscious consumers seeking to boost their daily nutrient intake. Plant-based functional drinks, derived from fruits, vegetables, and botanicals, provide additional benefits such as improved digestion and enhanced immunity. Performance-enhancing beverages, including functional shots, have also gained popularity among athletes and fitness enthusiasts, offering quick energy boosts and improved recovery. The market is expected to grow steadily, driven by increasing consumer awareness and demand for healthier beverage options.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
New product launches is the key driver of the market. Functional drinks, also referred to as health beverages, nutrient-infused drinks, or enhanced beverages, have gained significant popularity in recent years due to their ability to offer various health benefits beyond basic hydration. These beverages cater to diverse consumer needs, ranging from wellness and performance to cognitive function and stress relief. Examples include energy drinks, sports drinks, hydration beverages, electrolyte drinks, immunity boosters, antioxidant drinks, functional hydration, cognitive drinks, brain health beverages, mood-enhancing drinks, and stress relief drinks. companies in the market have been introducing new product innovations, focusing on improved taste and versatility to cater to evolving consumer preferences.
For instance, in 2020, Pepsico launched Driftwell, a new drink designed to help consumers relax and unwind before bed. Such new product launches, featuring unique health benefits and diverse flavors, are expected to fuel the growth of The market during the forecast period. Additionally, the market is witnessing a trend towards organic functional drinks, functional tea, functional coffee, functional water, enhanced juice, and functional smoothies, further expanding the market landscape.
The growing popularity of e-commerce is the upcoming trend in the market. Functional drinks, including health beverages, nutrient-infused drinks, enhanced beverages, wellness drinks, performance drinks, fitness drinks, fortified beverages, energy drinks, sports drinks, hydration beverages, electrolyte drinks, immunity boosters, antioxidant drinks, cognitive drinks, brain health beverages, mood-enhancing drinks, stress relief drinks, digestive health drinks, probiotic beverages, prebiotic drinks, gut health drinks, weight management drinks, meal replacement drinks, protein drinks, recovery beverages, post-workout drinks, joint health drinks, bone health beverages, vitamin-enriched drinks, mineral-infused beverages, adaptogenic drinks, herbal beverages, natural energy drinks, organic functional drinks, functional tea, functional coffee, functional water, and enhanced juice, are gaining significant popularity due to their health benefits. The expansion of distribution networks through e-commerce channels has fueled their sales.
Moreover, the convenience of purchasing these beverages online in bulk, which lowers the price per unit and makes shipping more convenient, is a key factor driving their popularity. The penetration of online grocery stores is increasing in countries such as India and China, further expanding the reach of functional drinks. Consumers can now easily access a wide range of functional drink brands through e-commerce portals, making online purchasing a preferred choice.
Increasing concerns about obesity is a key challenge affecting the market growth. Functional drinks, also known as health beverages or nutrient-infused drinks, have gained significant popularity in the market due to their ability to provide various health benefits beyond basic hydration. These enhanced beverages cater to diverse consumer needs, including wellness, performance, fitness, hydration, immunity, antioxidant, cognitive, mood-enhancing, stress relief, digestive health, weight management, and recovery. Examples of functional drinks include energy drinks, sports drinks, electrolyte drinks, immunity boosters, antioxidant drinks, functional hydration, cognitive drinks, brain health beverages, probiotic drinks, prebiotic drinks, gut health drinks, meal replacement drinks, protein drinks, recovery beverages, joint health drinks, bone health beverages, vitamin-enriched drinks, mineral-infused beverages, adaptogenic drinks, herbal beverages, natural energy drinks, organic functional drinks, functional tea, functional coffee, functional water, and enhanced juice.
However, the functional smoothies are also a popular choice for health-conscious consumers. Despite their numerous benefits, functional drinks may contain added sugars, particularly in energy drinks and fruit juices. The American Heart Association recommends a daily limit of 25 grams or 100 calories for women and 36 grams or 150 calories for men. Exceeding this limit can lead to weight gain and other health issues. It is essential for consumers to read labels carefully and opt for low-sugar or sugar-free options when possible. Additionally, some functional drinks may contain caffeine, artificial sweeteners, fats, and other additives that should be consumed in moderation.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Archer Daniels Midland Co. - The company offers functional drinks that include cider, spirits, and drinks such as wine which can be consumed as per the requirements.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market encompasses a wide range of health beverages, including nutrient-infused drinks, enhanced beverages, wellness beverages, performance drinks, fitness drinks, and more. These functional beverages cater to various health and wellness needs, such as hydration, energy, immunity, cognitive function, mood enhancement, stress relief, digestive health, weight management, and recovery. Functional beverages come in various forms, such as energy drinks, sports drinks, electrolyte drinks, immunity boosters, antioxidant drinks, functional hydration, cognitive drinks, brain health beverages, mood-enhancing drinks, stress relief drinks, digestive health drinks, probiotic beverages, prebiotic drinks, gut health drinks, weight management drinks, meal replacement drinks, protein drinks, recovery beverages, post-workout drinks, joint health drinks, bone health beverages, vitamin-enriched drinks, mineral-infused beverages, adaptogenic drinks, herbal beverages, natural energy drinks, organic functional drinks, functional tea, functional coffee, functional water, enhanced juice, and functional smoothies.
Moreover, functional drinks have gained significant popularity in recent years due to their ability to provide additional health benefits beyond basic hydration. The market for functional drinks is expected to grow steadily due to increasing consumer awareness of health and wellness and the convenience of consuming these beverages as part of a healthy lifestyle.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.05% |
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Market growth 2024-2028 |
USD 77.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.35 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 41% |
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Key countries |
US, China, Japan, Germany, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Archer Daniels Midland Co., Clif Bar and Co., Danone SA, Glanbia plc, Gujarat Cooperative Milk Marketing Federation Ltd., Kerry Group Plc, Keurig Dr Pepper Inc., Kruger GmbH and Co. KG, Lifeway Foods Inc., Monster Beverage Corp., Nestle SA, Otsuka Holdings Co. Ltd., PepsiCo Inc., Probi AB, Red Bull GmbH, Suntory Holdings Ltd., The Coca Cola Co., The Kraft Heinz Co., and Yakult Honsha Co. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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