As per the report published by Kings Research, the global Functional Beverages Market was valued at USD 189.39 billion in 2022. The market is projected to reach USD 278.28 billion by 2030, growing at a CAGR of 5.13% from 2023 to 2030.
The functional beverages market has witnessed significant growth in recent years, driven by increasing consumer awareness about the importance of a healthy lifestyle. With a rising demand for products that offer both refreshment and functional benefits, the market is expected to continue its upward trajectory.
Consumers are increasingly seeking beverages that provide specific health benefits, such as improved digestion, increased energy levels, or enhanced mental focus. This has led to a surge in the availability of functional beverages that cater to these specific needs. As a result, companies are investing heavily in research and development to create innovative and unique formulations in order to meet the diverse demands of consumers.
Additionally, the growing popularity of functional beverages has prompted collaborations between beverage companies and health professionals, thereby enhancing the credibility and appeal of these products. With an increasing emphasis on wellness and self-care, the functional beverages market is poised to witness continued growth in the coming years.
Key Insights
- Based on type, the energy drinks segment held the largest market share of 30.26% in 2022
- Based on distribution channel, the supermarkets/hypermarkets segment accounted for 31.98% of the market share in 2022
- On the basis of region, Asia-Pacific led the market, accumulating a share of 34.65% in 2022
Hangobi Functional Expands Its Retail Business Nationally
April 2023: Hangobi, a natural functional drink that combines the benefits of a delicious multivitamin with a refreshing taste, experienced a rapidl increase in its availability in retail stores nationwide. After successfully establishing a strong presence in over 225 independent and chain locations in New York City, Hangobi expanded its reach to other regions across the country. This was made possible through strategic partnerships with renowned distributors such as KeHE, UNFI Supervalu, and C&S Wholesale.
Changing Consumer Preferences to Drive the Growth of Functional Beverages Market
Shifting preferences of consumers are a key driver supporting the expansion of the functional beverages industry. individuals are placing greater emphasis on their health and are in search of products that deliver both enjoyable flavors and nutritional advantages. This shift in preferences has created a demand for functional beverages that are not only refreshing but also provide added functional ingredients, such as vitamins, minerals, and antioxidants. As a result, companies in the functional beverages market are constantly innovating to cater to these changing consumer preferences.
For instance, numerous brands are offering a wide range of flavors and variations to appeal to different tastes. Additionally, companies are incorporating natural and organic ingredients to meet the growing demand for healthier options. Moreover, to further differentiate themselves from competitors, some companies are collaborating with nutritionists and health experts to develop beverages that target specific health concerns, such as boosting energy levels or improving digestion.
Rising Number of Athletes is Anticipated to Boost Functional Beverages Market Progress
The rising number of athletes is driving the growth of the functional beverages market due to their increased demand for performance-enhancing drinks. Athletes are constantly seeking ways to improve their physical performance, and functional beverages offer a convenient and effective solution. These beverages are specially formulated with ingredients that provide various benefits such as increased energy, improved hydration, and enhanced recovery.
For instance, many functional beverages contain natural ingredients such as green tea extract, which is known for its ability to boost metabolism and provide a sustained energy release. Additionally, electrolyte-rich beverages are popular among athletes as they help replenish the body's fluids and minerals lost during intense workouts. Furthermore, some functional beverages are infused with vitamins and antioxidants that promote muscle recovery and reduce inflammation. The market for functional beverages is expected to grow rapidly as athletes increasingly prioritize their performance and recovery needs.
Europe to Experience Significant Growth, with a Value of USD 72.26 Billion by 2030
Europe is anticipated to emerge as the second largest market for functional beverages due to a strong culture of prioritizing health and wellness. The region exhibits a high demand for products that offer functional benefits. Consumers in Europe are increasingly seeking beverages that not only fulfill their appetites but also provide added health benefits. This trend is fueled by a growing awareness of the importance of maintaining a healthy lifestyle and the desire to incorporate functional ingredients into their daily routines.
Additionally, Europe is home to several leading players in the functional beverages industry, who have successfully established their brands and built a loyal customer base. These companies have invested heavily in extensive research and development to create innovative and effective functional beverages that cater to the specific needs and preferences of European consumers.
Market Players Focusing on Launching New Products to Gain a Competitive Edge in the Market
The global functional beverages market is consolidated with significant players such as The Coca-Cola Company, Monster Beverage Corporation, PepsiCo, Red Bull GmbH, Otsuka Holdings Co., Ltd., Suntory Group, DANONE SA, Nestlé, Kraft Heinz Company, and Fonterra Co-operative Group Limited, among others. These companies are focusing on expanding their business through collaboration and partnership strategies.