The functional beverage market (Markt für funktionelle Getränke) size is projected to surpass USD 164,058 million in 2023 and is likely to attain a valuation of USD 277,744 million by 2033. The functional beverage market share is expected to rise at a CAGR of 5.4% from 2023 to 2033.
Functional drinks have solidified their place in the sports and fitness industry as essential tools for enhancing performance, aiding post-workout recovery, and providing pre-activity nourishment. These products have become integral to fitness routines, aligning seamlessly with the pursuit of optimal physical performance and proper nutritional intake.
The functional beverage market is thriving, fueled by a growing public awareness of health concerns. These drinks address various issues, such as stress management, anxiety, inflammation, and digestive health. As consumers seek effective solutions, the market is poised to tackle real-world health challenges with targeted, practical offerings.
The growth of the functional beverage sector is also heavily influenced by impactful marketing and branding strategies. Compelling narratives, eye-catching packaging, and targeted endorsements capture consumers’ attention and loyalty. Strong branding is vital for fostering long-term relationships with customers and differentiating products in this competitive landscape.
The advent of e-commerce platforms and direct-to-consumer sales channels is substantially propelling the functional beverage market’s expansion. These channels enable manufacturers to reach a larger audience while incurring fewer distribution expenses and providing consumers with quick access to a bigger range of product selections.
Personalization is emerging as an increasingly important motivator. Customization possibilities are available from functional beverage providers, allowing customers to customize their beverages to specific health requirements or flavor preferences. This increases brand loyalty and customer engagement.
CBD (cannabidiol) and hemp-based compounds have been gaining popularity in the functional beverage industry. These substances are linked to possible health benefits and relaxing effects, attracting a niche audience interested in holistic well-being.
Key Takeaways from this Report:
- In 2018, the global market size stood at USD 123,764.6 million.
- The market size expanded at a 6% CAGR from 2018 to 2022.
- In 2022, the global market size stood at USD 156,250 million.
- Energy drinks held 28.3% of market shares in 2023.
- Hypermarkets and supermarkets captured 35.30% of shares in 2023.
- Germany’s market will expand at a staggering 13.1% CAGR through 2033.
- The market in Japan will develop at a splendid 12.9% CAGR through 2033.
- Australia will witness expansion at an astounding 15.9% CAGR through 2033.
Key Players in Global Functional Beverage Market:
- Red Bull
- The Coca-Cola Company
- PepsiCo
- Monster Beverage Corporation
- Nestlé S.A.
- Danone
- Dr. Pepper Snapple Group
- GlaxoSmithKline
- Keurig Dr. Pepper
- Abbott Laboratories
Recent Developments Observed by FMI Experts:
- The Drinkable Company launched a new cannabis beverage brand in October 2023.
- BodyArmor Sports Nutrition launched its latest innovation, BodyArmor Flash I.V. Hydration Boosters in 2023.
- Kombucha brand Lo Bros launched two new flavors in the United Kingdom in October 2023.
“The functional beverage market is undergoing a substantial shift, which is being driven by innovation, scalability, strategic alliances, and a greater emphasis on sustainability. This shifting landscape confronts organizations with both problems and possibilities, forcing them to adapt to changing customer demands and regulatory needs while promoting development and resilience in a highly competitive market”, – Nandini Roy Choudhury, Client Partner at Future Market Insights
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Market Segmentation:
By Ingredient Type:
- Antioxidants
- Minerals
- Amino Acids
- Probiotics
- Prebiotics
- Vitamins
- Super-fruit Extracts
- Botanical Flavors
By Product Type:
- Energy Drinks
- Sports Drinks
- Nutraceutical Drinks
- Dairy-based Beverages
- Juices
- Enhanced Water
- Others
By Distribution Channel:
- Supermarkets
- Hypermarkets
- Health Stores
- Online Retail
- Departmental Stores
- Convenience Stores
- Others
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia & Pacific
- Middle East & Africa (MEA)
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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