Functional Beverages Market Outlook
According to Market Research Future (MRFR), the functional beverages market size of 200,050.6 million is expected to grow at a CAGR of 5.6% during the Forecast Period 2020-2030. Growing industrialization, urbanization, and improving economic conditions worldwide act as significant driving forces.
The global functional beverage market is growing pervasively over the past few years. Factors such as increasing health-centric (health-conscious) populaces and the millennial generation increase the functional beverages market size. Moreover, the rising popularity of functional beverages and rising consumer preference for verities of drinks are accelerating the market growth to booming heights.
Functional beverages trends not only drive the market growth but also encourage the makers/manufacturers to bring novelty to the drinks. Manufacturers invest substantial investments in RD activities and develop attractive packaging solutions. All such efforts commutatively drive the market by increasing the demand, sales, and size of the functional beverages market.
The development of the supply chain and distribution network is expected to play an important role in the growth of this market. The penetration of large format retail, including supermarkets, hypermarkets, and online shopping for groceries has been increasing, especially in developing countries. Among these, online channels provide convenience to price-sensitive consumers. Rising disposable incomes are encouraging consumers to go for bulk purchases of these beverages.
COVID 19 Analysis
The COVID-19 outbreak has wreaked havoc on the food industry, with the lockdown forcing the closure of manufacturing plants and the halting of various activities. Considering the disastrous impacts of the SARS-CoV-2 pandemic, players are concentrating on strengthening their supply chains and speeding up their manufacturing processes to develop a wider range of functional beverages and avoid further revenue losses. Enhanced fruit drinks juices, as well as energy drinks, should benefit the market over the analysis period, thanks to rising health consciousness because of the new coronavirus and the resulting growth in demand for sports performance drinks. The continuing COVID-19 pandemic is being viewed as a once-in-a-lifetime occurrence that will have a significant impact on health issues as well as eating and drinking habits. As consumers seek to reduce their risk of sickness, this will increase demand for functional items that assist boost immunity. When it comes to such products, they must be considered affordable and trustworthy in terms of health claims. However, COVID had a bad impact on the business and industry line, but it is still possible to increase market trends and functional beverages market growth.
Segmentations
MRFR has segmented the report into four dynamics to widen the scope of understanding,
By Type: Energy Drinks, Sports Beverages, Prebiotic Probiotic Drinks, Functional Fruits Vegetable Juices, Functional Dairy Products, Dairy Alternative Beverages, and others (Water, Teas Coffee).
By Distribution Channel: Store-Based and Non-Store Based
By Function: Health Wellness, Energy Rejuvenation, Weight Management, Hydration, and others.
By Regions: Asia Pacific, North America, Europe, and the Rest of the World.
Regional Analysis
The European region dominates the global functional beverages market. The largest share of the market attributes to the growing sales of functional beverages in the region. Besides, high disposable income and increasing health eccentric populace drive the regional market growth. The functional beverage market in Europe is predicted to create a valuation of USD 74.26 BN, registering a CAGR of 6.22% CAGR during the review period (2018 to 2023). Also, the influence of the media industry is going to escalate the regional market growth further. Germany, France, Spain, and Italy are the major markets in the region.
North America accounts for the second-largest share in the global functional beverages market share. Factors such as high per capita income and the presence of large innovative players drive the growth of the regional market. The region is expected to scale up a market value of USD 68.12 BN with a 6.42% CAGR during the forecast period. It can scale Mexico is expected to grow at the fastest CAGR, whereas the US would have the largest market share accounting for a valuation of USD 49.51 BN.
The Asia Pacific functional beverage market is expected to grow rapidly, attributing to the rising awareness of the benefits of these drinks. Owing to the flourishing markets in developing countries such as India, Japan, and China, the functional beverages market in the APAC is expected to grow with a 7.29% CAGR during the assessment period. China's functional beverage market is expected to reach USD 19.96 BN by 2023.
Competitive Analysis
Highly competitive, the plant-based beverages market appears to be fragmented due to the presence of many well-established players. To gain a larger market share, these players in corporate strategic initiatives such as mergers acquisitions, collaboration, expansion, and product technology launches. There seems to be a very low product differentiation and the availability of a wide range of similar products. Manufacturers are increasingly focusing on reducing the brand recall of their products through effective marketing communications. The high potential growth of the market attracts many new entrants, which in turn intensifies the market competition further.
Major Players:
Players leading the functional beverages include The Coca-Cola Company (US), Nestle S.A. (Switzerland), PepsiCo Inc. (US), Mondelez International Inc. (US), Fonterra Co-operative Group Ltd. (New Zealand), Hain Celestial Group (US), Kraft Heinz Company (US), Monster Beverage Corporation (US), Danone (France), and Campbell Soup Co. (US), among others.
Natur is a Eurasian functional product company offering "farm-to-functional," natural organic, and plant-based foods beverages, including full and broad-spectrum CBD (cannabinoid) and terpene-blended consumer products. Temple Turmeric offers elixirs, raw vinegar, prana shots, and probiotics.
NOTE: Our Team of Researchers is Studying Covid19 and its Impact on Various Industry Verticals and wherever required we will be considering Covid19 Footprints for Better Analysis of Market and Industries. Cordially get in Touch for More Details.
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