Functional Beverages Market | 2031 Strategic Insights
The functional beverages market size is projected to reach US$ 261.04 billion by 2031 from US$ 154.75 billion in 2023. The market is expected to register a CAGR of 6.6% during 2023–2031. Increasing health consciousness are likely to remain key functional beverages market trends.
Functional Beverages Market Analysis
The functional beverages market analysis revealed a thriving and dynamic landscape driven by evolving consumer preferences, technological advancements, and health and wellness trends. The increasing health consciousness among consumers has surged the demand for beverages that offer functional benefits beyond basic hydration. This includes beverages fortified with vitamins, minerals, antioxidants, probiotics, and other bioactive ingredients to support specific health goals such as energy enhancement, immune support, digestive health, and stress reduction. Market trends indicate a shift toward clean-label products with natural ingredients, minimal processing, and transparency in sourcing and manufacturing practices.
Functional Beverages Market Overview
The functional beverages market has experienced significant growth in recent years due to increasing consumer awareness of the health benefits associated with these beverages. Apart from basic hydration, functional beverages also offer added health benefits such as improved energy, cognitive function, immunity, or weight management. These beverages are infused with vitamins, herbs, minerals, or other ingredients to promote health and well-being. One of the key factors driving the growth of the functional beverages market is the rising demand for convenient and on-the-go health solutions. Busy lifestyles and a growing focus on wellness have led consumers to seek out beverages that not only taste good but also provide functional benefits. This trend has led to the development of a wide range of functional beverages, including energy drinks, sports drinks, fortified waters, and ready-to-drink tea and coffee.
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Functional Beverages Market: Strategic Insights
Market Size Value in US$ 85,728.85 million in 2021 Market Size Value by US$ 145,146.05 million by 2028 Growth rate CAGR of 7.8% from 2021 to 2028. Forecast Period 2021- 2028 Base Year 2021
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Functional Beverages Market: Strategic Insights
| Market Size Value in | US$ 85,728.85 million in 2021 |
| Market Size Value by | US$ 145,146.05 million by 2028 |
| Growth rate | CAGR of 7.8% from 2021 to 2028. |
| Forecast Period | 2021- 2028 |
| Base Year | 2021 |
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Functional Beverages Market Drivers and Opportunities
Increasing Health Consciousness
The shift toward healthier lifestyles has propelled the demand for functional beverages that offer more than just hydration. Consumers are increasingly seeking beverages that provide additional health benefits, such as vitamins, minerals, antioxidants, probiotics, and other bioactive ingredients. These functional beverages are perceived as healthier alternatives to traditional sugary drinks, aligning with the choices of health-conscious consumers looking to improve their overall well-being. Vitamins and minerals are essential nutrients that support various bodily functions, while antioxidants help combat oxidative stress and inflammation in the body. On the other hand, probiotics promote gut health and digestion by introducing beneficial bacteria to the digestive system.
Rising Interest in Wellness and Self-Care
The rising focus on wellness and self-care has significantly influenced consumer preferences, leading to a surge in demand for functional beverages tailored to support specific health goals. Whether it is boosting energy levels, strengthening the immune system, promoting digestive health, managing weight, or reducing stress, consumers are seeking beverages that offer targeted functional benefits aligned with their wellness objectives.
Functional Beverages Market Report Segmentation Analysis
The key segments that contributed to the derivation of the functional beverages market analysis are product type and distribution channel.
- Based on product type, the functional beverages market is segmented into energy drinks, sports drinks, fortified juices, functional water, and others. The energy drinks segment held the largest market share in 2023.
- Based on distribution channel, the functional beverages market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The supermarkets & hypermarkets segment held the largest market share in 2023.
Functional Beverages Market Share Analysis by Geography
The geographic scope of the functional beverages market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South America/South & Central America.
The North America functional beverages market is growing prominently owing to the rising population and booming food & beverage industry. The rising number of health- and fitness-conscious individuals in North America has increased the demand for functional products, impacting all menu elements; the beverage category holds the biggest opportunity for flavor innovation. In addition, the popularity of zero-calorie, zero-sugar, and low-carb soft beverages and plant-based beverages is growing across the region, driving the functional beverages market. Moreover, the rising vegan population and the growing trend of veganism are boosting the demand for plant-based functional beverages, such as plant-based milk.
Functional Beverages Market Report Scope
Functional Beverages Market News and Recent Developments
The functional beverages market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for functional beverages:
- Tropicana Products Inc. launched two new Vitamin C-containing smoothie flavors. The Tropicana's Smoothie Pineapple & Mango and Strawberry & Banana will be retailed across India in all distribution channels operating in the market. (Source: Tropicana, News, 2023)
- Dole Packaged Foods announced 11 new product launches. This transformation is projected to be driven by a new leadership team in North America composed of four women—a mix of recently hired and tenured executives with a strong background and expertise in the areas of brand building and product development. (Source: Dole, Website, 2023)
Functional Beverages Market Report Coverage and Deliverables
The "Functional Beverages Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type and Distribution Channel
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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