The global functional beverage market was valued at USD 129.5 million in 2020 and is estimated to reach USD 208.2 billion by 2027, with a CAGR of around 8.1% during the forecast period.
The desire to remain fit has created numerous health-conscious consumers across globe and these consumers are expected to drive the functional beverages market growth during the forecast period.
The global functional beverages market is anticipated to witness substantial growth because functional drinks are becoming a more vital part of people's diets, especially among people who are health conscious. The growth of the functional beverages market is further stimulated by the increasing customer understanding of health, rising demand for improved beverage goods, and innovation of key players. Growing awareness of health benefits amongst consumers, consumers’ willingness to spend on new innovations of functional beverages and increase in sporting events are some of the key factors of the growth of the market.
High cost of ingredients in developing countries and food safety issues and legislation, would limit the growth of the functional beverages market during the forecast period. Experiments with new innovations in ingredients will lead to transformations in the global functional beverages market in the near future. With an increase in sporting activities and sporting enthusiasts, the functional beverages market is like to soar. Diverse health benefits will boost the growth of this market. product innovation, and evolving consumer patterns will influence the growth strategies of market players. The global functional beverages market analysis has witnessed that taxing sugary drinks will cause restraints in the global functional beverages market growth.
The functional beverages industry is based on the health benefits associated to the use of functional beverages. The primary reason for the functional beverages market growth are the rising health worries like obesity, diabetes, etc. Rising domestic and international sporting events around the globe are providing new opportunities for the growth of the market. However, lack of awareness, hesitation to try new flavours and efficiency of the product may hinder the functional beverages market growth. High cost of the functional beverages and taxes on functional beverages may restrain the functional beverages market growth.
The Asia-Pacific functional beverage market is projected to grow with a CAGR of 8% during the forecast period (2021-2027). The functional beverages market scenario of the Asia Pacific region is expected to boom owing to the availability of a variety functional beverages to fulfil the demand of millennials. Due to the lack of nutrients, low immunity problems, and inadequate diet amongst the urban population in the Asia Pacific region are the trends in the functional beverage market. The rise in demand from Chinese and Japanese markets are the reason for a boom in this region.
Market experiences and strategically designed performances made by market influencers, mergers, acquisitions, and new product launch are tested methods and contribute considerably to the global market expansion. For instance, the Coca-Cola Company acquired Ades from Unilever recently to use plant-based beverages in their portfolio.
2020: According to PepsiCo, Driftwell, a new functional beverage, is proposed to facilitate customers to calm, unwind, and de-stress. It has a spa-water-inspired taste with a slight taste of blackberry and lavender and contains L-theanine, an amino acid normally contained in tea leaves which encourages relaxing without drowsiness. Additionally, it has magnesium too