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2021

Functional Beverages Market

Functional Beverages Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Distribution Channel and End User : Global Opportunity Analysis and Industry Forecast, 2021-2030

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Author's: Anil Kamble | Roshan Deshmukh
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The functional beverages market size was valued at $ 110,148.9 million in 2020 and is estimated to reach $200,080.3 million by 2030, registering a CAGR of 5.9% from 2021 to 2030.          

Functional beverages contains nontraditional ingredients like raw fruit, minerals, herbs, probiotics and some artificial ingredients. It provides health benefits beyond their nutritional value and it positively effects on body and mind.  

Functional-Beverages-Market-2021-2030

Rise in number of fitness enthusiasts and growing consumer inclination towards healthy lifestyle are expected to be the key growth drivers of the functional beverages market. Growing participation of people in sports at national and international level are likely to increase the number of athletes, which in turn accelerate the growth throughout functional beverages market forecast period. Functional beverages processing companies are launching beavers with low calorie and fats, and adding fruit and vegetable flavoring additives for appealing to refined taste owing to growing number casual users for sports and energy drinks. Casual users of the functional beverages are those who drinks functional beverages just for fun. Furthermore, distribution channel plays vital role in the growth of the functional beverages market. Thus, specialty store and supermarket and hypermarket are considerably contributing for the growth of the market. 

Furthermore, risk associated with energy drink consumption and availability of the healthy substitute are likely hold back the growth of the functional beverages market during the forecast period.  For instance, the major health issues associated with energy drink consumption are primarily related to the caffeine content. Excess consumption of caffeine can cause hypertension, palpitation, dieresis nausea, central nervous system stimulations, and vomiting.

Functional beverages is a new product and concept of fulfilling food and beverage deficiencies, which require retail sector for its wide area distribution. Rapidly increasing number of large retail stores including supermarkets and hypermarkets and speciality stores in developing economies has enabled easier availability of functional beverages, as these stores are helps to increase the sales of function beverages products

According to the functional beverages market analysis, the functional beverages market segmented into type, distribution channel, end user and region. On the basis of type, the market is categorized into energy drinks, sports drinks, dairy-based beverages, juices and others. By distribution channel, it is bifurcated into supermarket and hypermarket, specialty stores, E-commerce and others. Depending on end user, it is segregated into athletes, fitness lifestyle users and others. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, Australia, India and Rest of Asia-Pacific), and LAMEA (Brazil, Argentina, Saudi Arabia, South Africa and Rest of LAMEA).

According to the functional beverages market trends, on the basis of type, the energy drinks segment was the highest contributor to the market, with $44,801.2 million in 2020, and is estimated to reach $75,365.0 million by 2030, at a CAGR of 5.1% during the forecast period. Energy drinks are provides instant energy along with providing mental and physical stimulation. The main ingredient, which helps in providing stimuli, is caffeine. Taurine is another major component, which is essential for cardiovascular function and skeletal muscle development. Various manufacturing companies are focusing on innovations and launching organic energy drinks with different flavors, which meet up the nutritional demand of consumers, which further garner the growth of functional beverages through energy drink segment.

Functional Beverages Market
By Type
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Energy Drinks segment helds the major share of 40.7% in 2020

According to the distribution channel, the supermarket and hypermarket segment was the highest contributor to the market, with $43,578.6 million in 2020, and is estimated to reach $73,333.8 million by 2030, at a CAGR of 5.1% during the forecast period. Supermarket and hypermarkets accommodates variety of products including functional beverages, grocery products and merchandises under one roof. Hypermarkets allow customers to satisfy all their shopping needs. Supermarket and hypermarket focus on maximizing product sales to increase their profit margins. Supermarket effectively display variety of functional beverages products of different brands. In North America and Europe, supermarkets and hypermarkets are the most preferred retail outlets for purchase of consumer goods. Increasing urbanization, rising working class population and competitive pricing is boosting the popularity of supermarket and hypermarkets in the developed and developing region. 

Functional Beverages Market
By Distribution Channel
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Supermarket and Hypermarket segment helds the major share of 39.6% in 2020

Depending on end user, the fitness lifestyle users segment was the valued at 35,319.6 million in 2020, and is estimated to reach $ 58,588.5 million by 2030, at a CAGR of 4.9% during the forecast period. Fitness lifestyle users is evolving category of the health and fitness conscious category people who   perceive fitness and sports performance as part of their daily activities. Growing health concerns and awareness regarding the benefits daily exercise and yoga are likely to increase the number of fitness lifestyle users. Furthermore, growing obese population and increasing enrolment for the health & gym clubs are expected to support the growth of the functional beverages market through fitness lifestyle users segment.

Functional Beverages Market
By End User
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Fitness Lifestyle Users segment helds the major share of 43.8% in 2020

Region wise, North America garnered the major functional beverages market share in 2020, and is expected to maintain its dominance throughout the forecast period.  The product market in North America remains largely unaffected by changing consumer attitude, in spite increase in preference for more natural ingredients. In addition, the market growth in this region is driven by upsurge in demand from young adults and athletes. Furthermore, functional beverages including sports and energy drink enhance performance and stamina of athletes and fitness lifestyle users, thus driving the demand for dairy based beverages and sports drinks. Therefore, all these factors are expected to foster the functional beverages market growth in this region. The growth of product market in North America is attributable for presences of leading sports and energy functional beverages companies in region such as Monster Beverage Corp, Red Bull GmbH, and Dr Pepper Snapple Group Inc.,

Functional Beverages Market
By Region
2030
North America 
Europe
Asia Pacific
LAMEA

North America region helds the major share of 39.5% in 2020

The players operating in the global functional beverages industry have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Red Bull, Dupont Nutrition Biosciences ApS, MaxiNutrition, Clif Bar, The Coca-Cola Company, Monster Beverage Corporation, Meiji Co., Ltd, Nestlé S.A., National Beverage Corp., and Pepsico, Inc..

Key Benefits For Stakeholders

  • The report provides a quantitative analysis of the current trends, estimations, and dynamics of the market size from 2020-2030 to identify the prevailing opportunities.
  • Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
  • In-depth analysis and the market size and segmentation assist to determine the prevailing market opportunities.
  • The major countries in each region are mapped according to their revenue contribution to the market. 
  • The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the functional beverages market.

Key Market Segments  

By Type

  • Energy Drinks
  • Sports drinks
  • Dairy-based beverages
  • Juices
  • Others 

By Distribution Channel

  • Supermarket and Hypermarket
  • Specialty Stores
  • E Commerce
  • Others 

By End User 

  • Athletes
  • Fitness Lifestyle Users
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • Australia
    • India
    • Rest of Asia-Pacific
  • LAMEA
    • Brazil
    • Argentina
    • Saudi Arabia
    • South Africa
    • Rest of LAMEA

Functional Beverages Market Report Highlights

Aspects Details
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By Type
  • Energy Drinks
  • Sports drinks
  • Dairy-based beverages
  • Juices
  • Others
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By Distribution Channel
  • Supermarket and Hypermarket
  • Specialty Stores
  • E Commerce
  • Others
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By End User
  • Athletes
  • Fitness Lifestyle Users
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

MEIJI CO., LTD., Red Bull, NESTLÉ S.A., Clif Bar, MONSTER BEVERAGE CORPORATION, MaxiNutrition, Pepsico, Inc., National Beverage Corp., Dupont Nutrition Biosciences ApS, The Coca-Cola Company

Analyst Review

Functional beverages contain raw fruit, minerals, herbs, probiotics and some artificial ingredients which fortify the nutritional value of the beverages and it can address the specific needs of the diseases. Sports and energy drinks collectively accounting for highest share in functional beverages market and is expected to grow at considerable CAGR growth rate especially in developing countries such as India and China.  Growing participation of the people in sports related activities, increasing enrolment for fitness centers and health clubs and increasing popularity of the adventurous tours like motor biking, treking and mountain climbing are likely to encourage people to consume instant energy food and beverages, thereby increase the demand for functional beverages.

In 2020, North America dominated the global functional beverages market, owing to increase in health concerns and rise in awareness toward the benefits of consuming energy drinks. The Asia-Pacific region is anticipated to grow at the highest rate during the forecast period, owing to surge in disposable income and change in demographics.

Existing challenges, such as close substitutes and lack of awareness regarding functional beverages benefits, are expected to hamper the growth of the functional beverages market during the forecast period. Furthermore, lack of proper distribution channel in rural and remote area and increasing inclination of the people for fresh, natural, organic and artificial additives less beverages are key challenges facing by the functional beverages processing companies.

 

 

Author Name(s) : Anil Kamble | Roshan Deshmukh
Frequently Asked Questions?

The functional beverages market size was valued at $ 110,148.9 million in 2020 and is estimated to reach $200,080.3 million by 2030, registering a CAGR of 5.9% from 2021 to 2030.

2021-2030 is the forecast period in the Functional Beverages Market report.

2020 is the base year calculated in the Functional Beverages Market report.

Red Bull, Dupont Nutrition Biosciences ApS, MaxiNutrition, Clif Bar, The Coca-Cola Company and Monster Beverage Corporation are some of the top companies hold the market share in the Functional Beverages Market.

Sports drink is the most influencing segment growing in the Functional Beverages Market report.

North America holds the maximum market share of the Functional Beverages Market.

Companies are selected on the basis of product portfolio, geographic presence, market share, merger, partnership, and acquisitions.

The functional beverages market size was valued at $ 110,148.9 million in 2020.

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Functional Beverages Market

Global Opportunity Analysis and Industry Forecast, 2021-2030