DUBLIN--(BUSINESS WIRE)--The "Functional Beverages Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type and Distribution Channel" report has been added to ResearchAndMarkets.com's offering.
The functional beverages market is projected to reach US$ 145,146.05 million by 2028 from US$ million 85,728.85 in 2021; it is expected to grow at a CAGR of 7.8% from 2021 to 2028.
Functional beverages are fortified with essential nutrients, such as protein, vitamins, minerals, amino acids, and probiotics, to offer health benefits. They help in maintaining the energy levels in the body, thereby boosting stamina and athletic performance. Energy drinks, sports drinks, functional water, fortified juices, among others, fall under the functional beverages category.
Energy drinks are popular among sportspersons and fitness enthusiasts. Functional water and fortified drinks are also gaining huge traction among consumers. People are becoming health conscious due to the lack of physical activity and the increasing prevalence of lifestyle diseases, such as obesity and diabetes.
Based on product type, the functional beverages market is segmented into energy drinks, sports drinks, fortified juices, functional water, and others. The functional water segment is projected to register a notable CAGR in the market during the forecast period.
Functional water, which falls under the category of non-alcoholic beverages, has supplementary components, sometimes known as aquaceuticals-such as vitamins, minerals, acids, herbs, and raw fruits and vegetables. Consumers prefer functional water over regular water in their daily diets to meet their daily nutritional requirements.
Moreover, the availability of a wide variety of flavors in the functional water, which is sold by multiple retailers, is also boosting their popularity among consumers. The manufacturers of functional beverages are spending huge amounts to expand their business operations across North America by introducing new flavors and innovative products.
For instance, in 2020, PepsiCo, Inc. went into an agreement, worth US$ 3.85 billion, with Rockstar Energy Beverages, an energy drink manufacturer company in the US. This acquisition was focused on extending the existing product portfolio of PepsiCo's functional beverages.
In 2020, North America held the largest share of the market, whereas Asia-Pacific is expected to register the highest CAGR during the forecast period. The market growth in North America is attributed to a surge in demand for these products among young adults and athletes and emerging fitness trends.
Functional beverages, including sports and energy drinks, enhance the performance and stamina of athletes and fitness enthusiasts. Further, the growing number of fitness enthusiasts has increased the demand for functional products, thus driving the functional beverages market growth in North America.
The leading players in the functional beverages market include PepsiCo, The Coca-Cola Company, Nestle, Kraft Foods, General Mills, Campbell Soup Company, Red Bull, The Wonderful Company LLC, Danone SA, and Monster Energy Company.
These players focus on innovating their products in terms of flavors, packaging, and ingredients to expand their customer base and reach. As the functional beverages market is a highly competitive one, the key market players are making significant investments in research and development to retain their market shares.
Key Market Dynamics
Market Drivers
- Surging Demand for Beverages with Functional Benefits
- Increasing Healthcare Expenditure
Market Restraints
- High Costs of Functional Beverages and Stringent Labeling Norms
Market Opportunities
- Hike in Demand for Plant-based Functional Beverages
Future Trends
- Growing Popularity of Nootropic Beverages
Company Profiles
- Pepsico
- The Coca-Cola Company
- Nestle
- Kraft Foods
- General Mills, Inc.
- Danone S.A.
- Monster Energy Company
- Red Bull
- Campbell Soup Company
- The Wonderful Company LLC.
For more information about this report visit https://www.researchandmarkets.com/r/20ewfi
