Functional Beverages Market is projected to grow at 7.0% CAGR during the forecast period and expected to reach USD 188 Billion by 2027.

Introduction of the Functional Beverages Market Report

Functional beverages are the non-alcoholic conventional liquid made of non-traditional ingredients like vitamins, amino acids, minerals, prebiotics, etc. Functional beverage group comprises medicinal tisanes, isotonic, and lifestyle/wellness drinks. Functional beverage boosts immunity, digestive health, and have less sugar concentration. As the functional beverage provides several benefits, there has been a growing recognition of such beverages, which has driven the growth of the market.

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Market Dynamic

Key Drivers and Emerging Trends

Functional beverages drinks are targeted across multiple demographic groups, ranging from senior citizens to children as per their own specific desires and needs. Functional beverages are tremendously convenient, and one unit with all the ingredients and nutrients allows in-order to fit well in the fast-paced environment. This has driven the overall growth of the functional beverage market. Also, the shelf life of functional beverages can be extended, which has attracted more consumers, which is one of the emerging functional beverage market trends that is driving the market growth. Furthermore, the rising demand for healthy hydration diverted the consumers towards health-oriented probiotic food products. Consumers have started preferring healthy drinks like kombucha rather than carbonated drinks and fruit juices. This is due to the evidence-based health benefits of kombucha tea, such as help in managing type-2 diabetes, contains antioxidants, and protects against cancer.

Besides, major players are focusing on expanding their product portfolio through acquisition and mergers. For example, in 2017, Glanbia officially acquired Body & Fit, a leading branded business focused on performance nutrition. This acquisition supported GPN to have a strong presence in the region. This has also helped the company to generate more revenue, thus raising the demand of the functional beverage market size.

Restraint in the Functional Beverages Industry

However, lack of clarity and product efficiency among the consumers are the factors that will hamper the growth for the global functional beverages market share.

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Type – Segment Analysis

Based on the type, the probiotic drink segment is expected to dominate the global functional beverage market over the forecast period, owing to the numerous advantages offered by the probiotics, such as help in managing the friendly bacteria present in the gut, helps in the prevention and treatment of diarrhea, and boosts immunity systems.  Also, with the rising awareness among the population regarding health concerns, the demand for the probiotics market has increased, thus pushing the growth of the global functional beverages market.

Packaging – Segment Analysis

On the basis of packaging, the tetra-pack segment is expected to grow at a higher CAGR over the forecast period. The government supports tetra packaging as it reduces distribution costs, minimizes waste, and maintains its quality. Companies like Nestlé, Indofood, and others have co-founded “PRAISE”, an association that aims to support the development of sustainable and integrated packaging waste management solutions. This supports tetra packaging by eradicating plastic packs, which has driven the growth of the market.

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Regional – Segment Analysis:

Based on the region, the Asia-Pacific is expected to dominate the market over the forecast period. The growing burden of chronic disease has led to the high demand for functional beverages like Yakult, kombucha, which help prevent the disease and offer numerous health benefits. According to WHO, diabetes is a challenging factor for India and boosting factor for a functional beverage. According to IDF, 463 million people have diabetes in the world, with 88 million people in the SEA region. India has a prevalence rate of diabetes in adults, which amounted to 8.9%, and the total cases of diabetes in adults amounting to 77,005,600. Thus, the rising cases of diabetes have encouraged people to shift towards functional beverages in India.

Top Market Players

Some of the leading players operating in the market include PepsiCo, Inc., Nestlé, Kraft Foods, General Mills, Campbell Soup Co., Monster Beverage Corporation, The Coca-Cola Company, Red Bull GmbH, Archer Daniels Midland Co., and DuPont Nutrition & Health, among others. 

Key Developments:

• • In 2020, Nestlé officially launched the powdered dairy beverage consisting of milk-based ingredients, which helps in formulating bone health. This launch has helped the company to meet the requirement of the consumers.

Segments covered in the Report:

The global functional beverages market has been segmented based on type, packaging, functions, and regions. Based on type, the market is segmented into probiotic drinks, energy drinks, fruit & vegetable juices, herbal and fruit teas, fortified water, rehydration solutions, dairy beverages, non-dairy beverages and others. Based on packaging, the market is segmented into bottle, tetra pack, sachet, tin can, and others. Based on functions, the market is segmented into hydration, energy & rejuvenation, health & wellness, weight management and others. 

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Key questions answered in this research report:

• • At what pace is the global functional beverages market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the global functional beverages market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global functional beverages market?
  • Which type generated maximum revenues in 2019 and identify the most promising type during the forecast period?
  • What are the various packaging areas of global functional beverages market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2019
Market Forecast Period	2020-2027
Market Revenues (2027)	USD 188 Billion
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Type, By Packaging, By Functions, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	PepsiCo, Inc., Nestlé, Kraft Foods, General Mills, Campbell Soup Co., Monster Beverage Corporation, The Coca-Cola Company, Red Bull GmbH, Archer Daniels Midland Co., and DuPont Nutrition & Health, among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Functional Beverages Market Segmentation

Global Functional Beverages Market by Type

• • Probiotic Drinks
  • Energy Drinks
  • Fruit & Vegetable Juices
  • Herbal and Fruit Teas
  • Fortified Water
  • Rehydration Solutions
  • Dairy Beverages
  • Non-Dairy Beverages
  • Others

Global Functional Beverages Market by Packaging

• • Bottle
  • Tetra Pack
  • Sachet
  • Tin Can
  • Others

Global Functional Beverages Market by Functions

• • Hydration
  • Energy & Rejuvenation
  • Health & Wellness
  • Weight Management
  • Others

Global Functional Beverages Market by Region

• • North America Functional Beverages Market (Option 1: As a part of the free 25% customization)
    • North America Functional Beverages Market by Type
    • North America Functional Beverages Market by Packaging
    • North America Functional Beverages Market by Functions
    • US Functional Beverages Market All-Up
    • Canada Functional Beverages Market All-Up
  • Europe Functional Beverages Market (Option 2: As a part of the free 25% customization)
    • Europe Functional Beverages Market by Type
    • Europe Functional Beverages Market by Packaging
    • Europe Functional Beverages Market by Functions
    • UK Functional Beverages Market All-Up
    • Germany Functional Beverages Market All-Up
    • France Functional Beverages Market All-Up
    • Spain Functional Beverages Market All-Up
    • Rest of Europe Functional Beverages Market All-Up
  • Asia-Pacific Functional Beverages Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific Functional Beverages Market by Type
    • Asia-Pacific Functional Beverages Market by Packaging
    • Asia-Pacific Functional Beverages Market by Functions
    • China Functional Beverages Market All-Up
    • India Functional Beverages Market All-Up
    • Japan Functional Beverages Market All-Up
    • Rest of APAC Functional Beverages Market All-Up
  • RoW Functional Beverages Market (Option 4: As a part of the free 25% customization)
    • RoW Functional Beverages Market by Type
    • RoW Functional Beverages Market by Packaging
    • RoW Functional Beverages Market by Functions
    • Brazil Functional Beverages Market All-Up
    • South Africa Functional Beverages Market All-Up
    • Saudi Arabia Functional Beverages Market All-Up
    • UAE Functional Beverages Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Functional Beverages Market All-Up

Major Players Operating in the Functional Beverages (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • PepsiCo, Inc.
  • Nestlé
  • Kraft Foods
  • General Mills
  • Campbell Soup Co.
  • Monster Beverage Corporation
  • The Coca-Cola Company
  • Red Bull GmbH
  • Archer Daniels Midland Co.
  • DuPont Nutrition & Health