The global Functional Beverage Market is estimated to be valued at US$ 191.54 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Functional beverages deliver ingredients such as vitamins, minerals, amino acids and antioxidants that provide functional benefits beyond basic nutrition. They can improve cognitive skills, boost energy, support heart health and more. The beverage industry continues to innovate unique formulations to meet the growing consumer demand for products that enhance well-being.
Market Overview:-
Functional beverages feature added nutrients or ingredients intended to provide specific health or performance benefits. They help address specific wellness goals like hydration, weight management, energy and more. The ease of consumption and perceived health advantages have led to widespread popularity of functional beverages in daily routines.
Market key trends:-
The rising demand for nutrient-rich beverages is driving the functional beverage market. Consumers are increasingly focusing on preventive healthcare and seek beverages that provide functional values. Plant-based formulations combining multiple ingredients are gaining traction. Beverage makers emphasize credible health claims and transparency on ingredients to attract customers focused on wellness. Customization options allow individuals to select beverages that specifically target their requirements. E-commerce platforms boost accessibility of varied functional beverages worldwide.
Segment Analysis:-
The global functional beverage market can be segmented on the basis of type, function, sales channel, and region. By type, the market is segmented into energy drinks, sports drinks, dairy-based beverages, juices, and enhanced water. The energy drinks segment is expected to dominate the market over the forecast period. Energy drinks provide instant energy boost and refreshment to consumers’ busy lifestyles. The rising demand for convenient and on-the-go refreshments is driving the growth of energy drinks segment.
By function, the market is divided into hydration, energy and metabolism, rejuvenation, and weight management. The energy and metabolism function segment held the largest market share in 2019 owing to the growing adoption of active lifestyles and increasing prevalence of obesity worldwide.
Key Takeaways:-
The Global Functional Beverage Market Size is expected to witness high growth, exhibiting CAGR of 8.6% over the forecast period, due to increasing need for functional refreshment among consumers with busy lifestyles.
North America dominated the global market in 2023 due to rising demand for plant-based and organic beverages. Europe is expected to be the fastest growing regional market owing to increasing health consciousness and growing demand for wellness drinks. Asia Pacific is expected grow at a significant rate over the forecast period with China and India emerging as highly lucrative markets.
Key players operating in the functional beverage market are PepsiCo Inc., Red Bull GmbH, The Coca-Cola Company, Danone SA, Monster Beverage Corporation, JAB Holdings Company, General Nutrition Centers Inc., The Hain Celestial Group Inc., Fonterra Co-operative Group, and Amway Corporation. PepsiCo Inc. and The Coca-Cola Company are the leaders in the global functional beverage market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.