Functional Drinks Market size is set to grow by USD 77.3 billion from 2024-2028, New product launches to boost the market growth, Technavio

NEW YORK, June 11, 2024 /PRNewswire/ -- The global functional drinks market  size is estimated to grow by USD 77.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 10.05%  during the forecast period. New product launches is driving market growth, with a trend towards growing popularity of e-commerce. However, increasing concerns about obesity  poses a challenge. Key market players include 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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Key Market Trends Fueling Growth

The e-commerce distribution channel's expansion has significantly increased functional drink sales due to the vast selection of brands. The rise in e-commerce portals and smartphone usage enables vendors to sell these drinks online, making them convenient and cost-effective for consumers. In countries like India and China, the growth of online grocery stores is driving functional drink vendors to focus on the internet market and adopt online retail formats, reducing operational costs compared to physical stores. Consequently, the popularity of e-commerce is expected to boost the global functional drinks market in the forecast period. 

The functional drinks market is experiencing significant growth, with beverages containing vitamins, minerals, and other health benefits gaining popularity. Drinks with protein, fiber, and functional ingredients like ginger, turmeric, and probiotics are trending. Digestive and energy drinks are also in demand.

Coffee and tea are common functional beverages, while fruit and vegetable juices are popular sources of essential nutrients. Functional drinks are marketed as convenient alternatives to traditional healthy food choices. The market is expected to continue growing due to increasing consumer awareness and preference for healthier options. 

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Market Challenges

•         The functional drinks market faces challenges due to growing concerns over obesity and high added sugar content. Major sources of added sugars include fruit juices and energy drinks, which often contain significant amounts. For instance, a standard can of energy drink contains approximately 26.5 grams of added sugar.

•         Consumers prioritize low-calorie and low-sugar options for weight control. The American Heart Association recommends a daily limit of 100 calories or 25 grams of added sugar for women and 150 calories or 36 grams for men. Overconsumption of sports drinks, which can contain excessive sugars and other unhealthy additives, can lead to weight gain and obesity. Thus, this concern may hinder market growth in the forecast period.

•         The functional drinks market is experiencing significant growth due to the increasing consumer preference for healthier beverage options. However, this market faces several challenges. One major challenge is the high competition from various players offering similar products. Another challenge is the need to meet the evolving consumer demands for new and innovative flavors and functional benefits.

•         Additionally, regulatory requirements and certifications pose a challenge in terms of cost and compliance. Furthermore, the sustainability and ethical sourcing of ingredients are becoming important factors for consumers, adding to the complexity of the supply chain. Overall, the functional drinks market presents both opportunities and challenges for businesses aiming to succeed in this dynamic industry.

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Segment Overview 

1. Product 
• 1.1 Energy beverages
• 1.2 Functional fruit and vegetable juices
• 1.3 Sports beverages
• 1.4 Prebiotic and probiotic drinks
• 1.5 Others
2. Application 
• 2.1 Health and wellness
• 2.2 Weight loss
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Energy beverages-  Functional drinks market experiences consistent growth due to increasing consumer preference for healthier options. These beverages offer additional health benefits beyond basic hydration. Key players in the industry focus on innovation, using natural ingredients and convenient packaging to cater to diverse consumer needs. The market is driven by factors such as rising health consciousness, busy lifestyles, and growing demand for functional foods and beverages.

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Research Analysis

The Functional Drinks Market encompasses a wide range of beverages designed to support various health and wellness goals. These include nutrient-infused drinks, enhanced beverages, wellness beverages, performance drinks, fitness drinks, fortified beverages, energy drinks, sports drinks, brain health beverages, mood-enhancing drinks, stress relief drinks, digestive health drinks, 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. These performance-enhancing beverages cater to diverse consumer needs, offering benefits such as increased energy, improved focus, enhanced mood, stress reduction, and better digestion.

The Functional Drinks Market encompasses beverages that offer additional health benefits beyond basic hydration. These beverages can contain vitamins, minerals, amino acids, herbs, and other nutrients. The market is driven by consumers seeking convenient and healthy alternatives to traditional sugary drinks. Beverages like functional waters, sports drinks, energy drinks, and plant-based milks are popular choices.

The market is also influenced by trends such as the increasing preference for natural and organic products, and the growing awareness of the negative health effects of sugary drinks. The demand for functional drinks is expected to continue growing due to their ability to cater to various health needs and lifestyles. The market is segmented by product type, distribution channel, and region. The market is expected to witness significant growth in the coming years due to these factors.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Energy Beverages
• Functional Fruit And Vegetable Juices
• Sports Beverages
• Prebiotic And Probiotic Drinks
• Others
• Application
• Health And Wellness
• Weight Loss
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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