The Functional Beverages Market is expected to register the highest CAGR of 6.7% from 2022–2029 to reach $179.8 billion by 2029. Functional beverages refer to non-alcoholic drinks containing non-traditional ingredients such as vitamins, minerals, dietary fibers, amino acids, raw fruits, and probiotics. Sports drinks, energy drinks, herbal tea, vitamin water, and fruit drinks with additives are commonly available functional beverages. They are widely consumed to improve health, energy, athletic endurance, and hydration. Functional beverages assist in delivering nutrients and bioactive compounds to the body, including antioxidants, fatty acids, fibers, plant extracts, and micronutrients. As a result, their consumption promotes a healthy cardiovascular system, improves digestion, prevents cancer, boosts immunity, regulates weight loss, strengthens joints, and enhances memory.
The growth of this market is mainly driven by factors such as the growing demand for functional beverages in emerging economies, increasing demand for sports drinks, and a rise in health expenditure. However, the accessibility to healthier substitutes and the high price of functional beverages compared to conventional beverages are expected to restrain the growth of this market to a certain extent.
Impact of COVID-19 on the Functional Beverages Market
The COVID-19 outbreak caused by the SARS-CoV-2 virus created a severe public health emergency globally, spreading quickly in more than 215 countries. To combat & control the spread of this disease, numerous countries worldwide declared emergencies and announced complete nationwide, statewide, or citywide lockdowns, halting all travel, transport, manufacturing, educational institutions, and non-essential trade, which significantly impacted many industries globally and reduced manufacturing and distribution activities worldwide. In the functional beverages market, manufacturers faced disruptions in raw material supply due to the COVID-19 pandemic. Also, imports and exports in many countries were either restricted or delayed since the outbreak, creating hurdles for suppliers.
The food & beverage industry across different regions suffered from severe disruption due to lockdowns, travel bans, border restrictions, and manufacturing unit shutdowns, which resulted in shortages in raw materials and disturbances in supply chains. The functional beverages market also faced similar difficulties as manufacturers could not operate at full capacity. However, as consumers became health-conscious during the pandemic, they preferred healthy and nutritious foods & beverages. Moreover, the demand for immunity-boosting beverages also surged during the first quarter of 2020. With the relaxation of government restrictions in late 2020, manufacturers overcame the demand and supply gap, which boosted their growth pace. Therefore, the COVID-19 pandemic had a mixed impact on the functional beverages market.
On the other hand, the market's growth is the result of increasing demand for functional beverages due to rising health awareness regarding healthy lifestyles & diets. Also, companies are focusing more on energy drinks that boost immunity to fight against infection. Moreover, according to a news article published by Outlook India, in July 2020, the demand for energy drinks increased due to their immunity-boosting properties.
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Increase in Health Expenditure
The consumer has become more health conscious during the pandemic; people started consuming healthy and nutritious foods and beverages. Also, the demand for immunity-boosting beverages has increased. The healthcare expenditure of people worldwide has increased significantly due to the rising concerns regarding health and the growing prevalence of chronic diseases, such as cancer, heart disease, diabetes, and obesity. According to the U.S. Centers for Medicare & Medicaid Services (CMS), in 2020, health spending accounted for 19.7% of the country's GDP. In addition, healthcare spending in the U.S. increased by 9.7% in 2020, totaling USD 4.1 trillion. As people are becoming health conscious, they are increasingly spending on foods and beverages that help them stay healthy. Hence, the increasing healthcare spending is projected to offer notable growth opportunities for the functional beverages market players in the coming years.
Key Findings in the Functional Beverages Market Study:
Sports Drinks Segment to Witness Fastest Growth During Forecast Period
Based on type, the sports drink segment is expected to register the highest CAGR during the forecast period of 2022–2029. The key factor attributed to the highest growth of this segment is the increasing popularity of sports drinks among teenagers and adults due to higher involvement in sports in developed economies.
Health & Wellness Segment to Dominate the Functional Beverages Market in 2022
Based on application, in 2022, the health & wellness segment is expected to account for the largest share of the functional beverages market. The large market share of this segment is attributed to factors such as an increase in health-conscious people and demand for clean-label and non-GMO food products.
Convenience Stores Segment to Dominate the Functional Beverages Market in 2022
Based on distribution channel, in 2022, the convenience store segment is expected to account for the largest share of the functional beverages market, while the E-commerce segment is expected to register the highest CAGR during the forecast period. The major growth of this segment is attributed to factors, such as the availability of a wide variety of products at online stores, with significant discounts, and home delivery service.
North America: The Dominating Regional Market
The functional beverages market is divided into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2022, North America is expected to account for the largest share of the functional beverages market. The large market share of this region is attributed to the well-established packaged drinks market, high awareness of the health benefits of functional beverages, and high demand for healthy drinks across the region.
Asia-Pacific is expected to register the highest CAGR during the forecast period. The growth of this market is mainly attributed to the increasing incidences of diabetes and obesity, rising low-carb and clean-label trends, growing demand for sugar-free products and awareness regarding health and fitness in the region.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategic developments by leading market participants in the industry over the past four years.Some of the key players operating in the functional beverages market are Danone S.A. (France), Meiji Holdings Co., Ltd. (Japan), Monster Beverage Corporation (U.S.), National Beverage Corp. (U.S.), Nestle S.A. (U.S.), PepsiCo, Inc. (U.S.), Red Bull GmbH (Austria), Suntory Holdings Limited (Japan), The Coca-Cola Company (U.S.), and The Kraft Heinz Company (U.S.).
Scope of the Report:
Functional Beverages Market, by Type
Functional Beverages Market, by Application
Functional Beverages Market, by Distribution Channel
Functional Beverages Market, by Region
Key Questions Answered in the Report:
The functional beverages market is expected to reach a value of $179.8 billion by 2029, with a CAGR of 6.7% from 2022–2029.
The sports drinks segment is expected to account for the largest share of the functional beverages market in 2022.
The health & wellness segment is expected to account for the largest share of the functional beverages market in 2022.
The rising demand for functional beverages in emerging economies, increasing demand for sports drinks, and an increase in health expenditure are the major drivers for the growth of the functional beverages market.
Rising demand for natural botanicals-infused drinks & relaxation drinks and an increase in investment by small- & mid-sized food products manufacturing companies offer lucrative growth opportunities for the players operating in this market.
The major key players operating in the functional beverages market are Danone S.A. (France), Meiji Holdings Co., Ltd. (Japan), Monster Beverage Corporation (U.S.), National Beverage Corporation (U.S.), Nestle S.A. (U.S.), PepsiCo, Inc. (U.S.), Red Bull GmbH (Austria), Suntory Holdings Ltd (Japan), The Coca Cola Company (U.S.), and The Kraft Heinz Company (U.S.).
Among other regional markets, North America exhibits signs of strong future growth. The rapid growth of this regional market is mainly attributed to the high awareness of the health benefits of functional beverages, and there is high demand across the region.
This report provides pre & post COVID-19 market estimates.
1. Introduction
1.1. Market Definition
1.2. Market Ecosystem
1.3. Currency
1.4. Key Stakeholders
2. Research Methodology
2.1. Research Approach
2.2. Data Collection & Validation
2.2.1. Secondary Research
2.2.2. Primary Research
2.3. Market Assessment
2.3.1. Market Size Estimation
2.3.1.1. Bottom-up Approach
2.3.1.2. Top-down Approach
2.3.1.3. Growth Forecast
2.3.2. Market Share Estimation
2.4. Assumptions for the Study
2.5. Limitations for the Study
3. Executive Summary
3.1. Introduction
3.2. Segment Analysis
3.2.1. Functional Beverages Market, by Type
3.2.2. Functional Beverages Market, by Application
3.2.3. Functional Beverages Market, by Distribution Channel
3.3. Functional Beverages Market: Regional Analysis
3.4. Market Competitors & Competitive Scenario
4. Market Insights
4.1. Introduction
4.2. Drivers
4.2.1. Growing Demand for Functional Beverages in Emerging Economies
4.2.2. Increasing Demand for Sports Drinks
4.2.3. Rise in Health Expenditure
4.3. Restraints
4.3.1. Accessibility of Healthier Substitutes
4.3.2. High Price of Functional Beverages Compared to Conventional Beverages
4.3.3. Stringent Government Regulations & Guidelines
4.4. Opportunities
4.4.1. Rising Demand for Natural Botanicals Infused Drinks & Relaxation Drinks
4.4.2. Increase in Investment by Small & Medium-sized Food Products Manufacturing Companies
4.5. Challenges
4.5.1. Adverse Health Effects of Certain Ingredients
4.6. Trend
4.6.1. Rising Trend of Clean-label and Natural Ingredients
5. Functional Beverages Market, by Type
5.1. Introduction
5.2. Energy Drinks
5.3. Sports Drinks
5.4. Dairy-based Beverages
5.5. Nutraceutical Drinks
5.6. Vegetable & Fruit Beverages
5.7. Other Beverages
6. Functional Beverages Market, by Application
6.1. Introduction
6.2. Health & Wellness
6.3. Weight Management
7. Functional Beverages Market, by Distribution Channel
7.1. Introduction
7.2. Supermarkets & Hypermarkets
7.3. Convenience Stores
7.4. Pharmacies & Health Stores
7.5. E-commerce
7.6. Other Distribution Channels
8. Functional Beverages Market, by Geography
8.1. Introduction
8.2. North America
8.2.1. U.S.
8.2.2. Canada
8.3. Europe
8.3.1. Germany
8.3.2. Spain
8.3.3. Italy
8.3.4. France
8.3.5. U.K.
8.3.6. Russia
8.3.7. Rest of Europe (RoE)
8.4. Asia-Pacific
8.4.1. China
8.4.2. Japan
8.4.3. India
8.4.4. Australia
8.4.5. Rest of Asia-Pacific (RoAPAC)
8.5. Latin America
8.5.1. Brazil
8.5.2. Mexico
8.5.3. Argentina
8.5.4. Rest of Latin America (RoLATAM)
8.6. Middle East & Africa
9. Competitive Landscape
9.1. Introduction
9.2. Key Growth Strategies
9.3. Market Share Analysis, by Key Players, 2022 (%)
9.4. Competitive Benchmarking of Key Players
10. Company Profiles (Business Overview, Financial Overview, Product Portfolio, Strategic Developments)
10.1. Danone S.A. (France)
10.2. Meiji Holdings Co., Ltd. (Japan)
10.3. Monster Beverage Corporation (U.S.)
10.4. National Beverage Corp. (U.S.)
10.5. Nestle S.A. (U.S.)
10.6. PepsiCo, Inc. (U.S.)
10.7. Red Bull GmbH (Austria)
10.8. Suntory Holdings Limited (Japan)
10.9. The Coca-Cola Company (U.S.)
10.10. The Kraft Heinz Company (U.S.)
10.11. Other Companies
11. Appendix
11.1. Questionnaire
11.2. Available Customization
List of Tables
Table 1 Global Functional Beverages Market: Impact Analysis of Market Drivers (2022–2029)
Table 2 Global Functional Beverages Market: Impact Analysis of Market Restraints (2022–2029)
Table 3 Global Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 4 Global Energy Drinks Market Size, by Country/Region, 2020–2029 (USD Million)
Table 5 Global Sports Drinks Market Size, by Country/Region, 2020–2029 (USD Million)
Table 6 Global Dairy-based Beverages Market Size, by Country/Region, 2020–2029 (USD Million)
Table 7 Global Nutraceutical Drinks Market Size, by Country/Region, 2020–2029 (USD Million)
Table 8 Global Vegetable & Fruit Beverages Market Size, by Country/Region, 2020–2029 (USD Million)
Table 9 Global Other Beverages Market Size, by Country/Region, 2020–2029 (USD Million)
Table 10 Global Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 11 Global Functional Beverages Market Size for Health & Wellness, by Country/Region, 2020–2029 (USD Million)
Table 12 Global Functional Beverages Market Size for Weight Management, by Country/Region, 2020–2029 (USD Million)
Table 13 Global Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 14 Global Functional Beverages Market Size for Supermarkets & Hypermarkets, by Country/Region, 2020–2029 (USD Million)
Table 15 Global Functional Beverages Market Size for Convenience Stores, by Country/Region, 2020–2029 (USD Million)
Table 16 Global Functional Beverages Market Size for Pharmacies & Health Stores, by Country/Region, 2020–2029 (USD Million)
Table 17 Global Functional Beverages Market Size for E-commerce, by Country/Region, 2020–2029 (USD Million)
Table 18 Global Functional Beverages Market Size for Other Distribution Channels, by Country/Region, 2020–2029 (USD Million)
Table 19 North America: Functional Beverages Market Size, by Country, 2020–2029 (USD Million)
Table 20 North America: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 21 North America: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 22 North America: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 23 U.S.: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 24 U.S.: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 25 U.S.: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 26 Canada: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 27 Canada: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 28 Canada: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 29 Europe: Functional Beverages Market Size, by Country, 2020–2029 (USD Million)
Table 30 Europe: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 31 Europe: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 32 Europe: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 33 Germany: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 34 Germany: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 35 Germany: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 36 Spain: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 37 Spain: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 38 Spain: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 39 Italy: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 40 Italy: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 41 Italy: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 42 France: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 43 France: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 44 France: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 45 U.K.: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 46 U.K.: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 47 U.K.: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 48 Russia: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 49 Russia: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 50 Russia: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 51 Rest of Europe: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 52 Rest of Europe: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 53 Rest of Europe: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 54 Asia-Pacific: Functional Beverages Market Size, by Country, 2020–2029 (USD Million)
Table 55 Asia-Pacific: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 56 Asia-Pacific: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 57 Asia-Pacific: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 58 China: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 59 China: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 60 China: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 61 Japan: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 62 Japan: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 63 Japan: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 64 India: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 65 India: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 66 India: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 67 Australia: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 68 Australia: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 69 Australia: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 70 Rest of Asia-Pacific: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 71 Rest of Asia-Pacific: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 72 Rest of Asia-Pacific: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 73 Latin America: Functional Beverages Market Size, by Country, 2020–2029 (USD Million)
Table 74 Latin America: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 75 Latin America: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 76 Latin America: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 77 Brazil: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 78 Brazil: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 79 Brazil: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 80 Mexico: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 81 Mexico: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 82 Mexico: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 83 Argentina: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 84 Argentina: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 85 Argentina: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 86 Rest of Latin America: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 87 Rest of Latin America: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 88 Rest of Latin America: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
Table 89 Middle East & Africa: Functional Beverages Market Size, by Type, 2020–2029 (USD Million)
Table 90 Middle East & Africa: Functional Beverages Market Size, by Application, 2020–2029 (USD Million)
Table 91 Middle East & Africa: Functional Beverages Market Size, by Distribution Channel, 2020–2029 (USD Million)
List of Figures
Figure 1 Key Stakeholders
Figure 2 Research Process
Figure 3 Key Secondary Sources
Figure 4 Primary Research Techniques
Figure 5 Key Executives Interviewed
Figure 6 Breakdown of Primary Interviews (Supply-side & Demand-side)
Figure 7 Market Size Estimation
Figure 8 Energy Drinks to Dominate the Functional Beverages Market in 2022
Figure 9 Health & Wellness to Dominate the Functional Beverages Market in 2022
Figure 10 Convenience Stores to Dominate the Functional Beverages Market in 2022
Figure 11 North America: Lucrative and Growing Market for Functional Beverages Stakeholders
Figure 12 Market Dynamics
Figure 13 Global Functional Beverages Market Size, by Type, 2022 Vs.2029 (USD Million)
Figure 14 Global Functional Beverage Market Size, by Application, 2022 Vs.2029 (USD Million)
Figure 15 Global Functional Beverages Market Size, by Distribution Channel, 2022 Vs.2029 (USD Million)
Figure 16 Global Functional Beverages Market Share Analysis, by Key Players, 2021 (%)
Figure 17 Functional Beverages Market: Competitive Benchmarking of Key Players, by Type
Figure 18 Danone S.A.: Financial Overview, 2021
Figure 19 Meiji Holdings Co., Ltd.: Financial Overview, 2021
Figure 20 Monster Beverage Corporation: Financial Overview, 2021
Figure 21 National Beverage Corp.: Financial Overview, 2021
Figure 22 Nestle S.A..: Financial Overview, 2021
Figure 23 PepsiCo, Inc.: Financial Overview, 2021
Figure 24 Red Bull GmbH: Financial Overview, 2021
Figure 25 Suntory Holdings Ltd: Financial Overview, 2021
Figure 26 The Coca-Cola Company: Financial Overview, 2021
Figure 27 The Kraft Heinz Company: Financial Overview, 2021
This report provides pre & post COVID-19 market estimates.
This report provides pre & post COVID-19 market estimates.
Published Date: Apr-2023
Published Date: Jan-2023
Published Date: Sep-2013
