Global Functional Beverages Market by Type (Energy Drinks, Sports Drinks, Fortified Juice, Dairy and Dairy Alternative Beverage); by Distribution channels (Online Channel, Offline Channel Supermarket/Hypermarket, Pharmacies/Health Stores, Departmental Stores); by Ingredients (Antioxidants, Minerals, Amino acids, Prebiotics, Probiotics, Vitamins, Others) by Regions (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa): Opportunity Analysis and Industry Forecast, 2020-2027

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 (2021-2027).

Functional beverages include non-alcoholic and non-traditional drinks with added nutritional value like probiotics, vegan and plant-based beverages, herbal teas, fortified water, etc.

The desire to remain fit has created several health-conscious consumers around the globe who are expected to drive the functional beverages market during the forecast period. With new diets and a rise in fitness training and gyms, consumers are looking to maintain healthy lifestyles and have a balanced diet. Hence, many consumers prefer convenience food and beverages that offer umpteen nutrition profile, thereby, driving the functional beverages market scope during the forecast period. Growing awareness of health benefits amongst consumers, consumers’ willingness to spend on new trends in functional beverages and an increase in sporting events are some of the key factors of the functional beverages market growth. With an increase in sporting activities and sporting enthusiasts, the functional beverages industry demand is likely to soar in the coming years.

There are constant experiments by emerging players and drink manufacturers with new ingredients which are high in nutritional value and promote wellbeing. This will lead to a transformation in the global functional beverage market in the future. Some factors that are restraining the functional beverages market growth are the availability of cheaper substitute products and this impeding the growth of the functional beverage market. High cost of ingredients can be a challenge in developing countries.

By Type	Energy Drinks Sports Drinks Fortified Juice Dairy and Dairy Alternative Beverage
By Ingredients	Antioxidants Minerals Amino acids Prebiotics Probiotics Vitamins Others
By Distribution Channels	Online Channel Offline Channel Supermarket/Hypermarket Pharmacies/Health Stores Departmental Stores
By Region	North America Europe Asia Pacific Latin America Middle East & Africa

Based on type, the energy drinks segment is expected to be the fastest-growing in the global functional beverage market

The energy drinks market was the largest segment of the functional beverages market size, segmented by type, contributing 25% of the total market share in the year 2020. The new trends in the functional beverages market has witnessed rising number of athletes as well as sports fans with high preference for these beverages. Alternatively, the functional fruits and vegetable juices segment can intensify at a rate of 7% during the forecast period.

Based on Distribution Channel, online channels are expected to accelerate the global functional beverage market growth

The online channel is expected to grow with a high CAGR during the forecast period owing to the pandemic the prominence of functional beverages has increased, particularly in online stores and well-being and health store online sites. The pandemic is expected to accelerate the online market for functional beverages in 2021 as consumers become accustomed to buying their products online. Social distancing guidelines are likely to remain in effect for part of 2021, so online sales are expected to remain high.

Based on Regions, the Asia Pacific region was dominating the global functional beverage market in the year 2020

Asia Pacific was dominating the functional beverage market and was holding approximately 30% of market share in the year 2020 and is expected to show similar trends over the forecast years. The improvement in quality of life among Asia-Pacific consumers are the major drivers for the growth of functional energy drinks, fortified water, plant-based and malt-based hot drink sales in the market. In countries like India and China, consumers are becoming more aware of a healthy diet and proactive lifestyle. Rising cases of diabetes in India and China are also one of the major drivers for the growth of functional beverages as the consumers to prefer natural sweeteners in their beverages. According to the International Diabetes Federation, India was home to 78 million diabetes patients in 2019, the second largest in the world. By 2035, the number is predicted to reach 110 million. Thus, companies like PepsiCo Inc. and Coca-Cola, are committed to remove artificial ingredients and reduce the sugar content.

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.

Company Profiles and Competitive Intelligence:

Danone, The Coca Cola Company, Monster Beverage, Nestle, Cloud 9, Clif Bar & Company, Arla Foods, and Universal Nutrition, PepsiCo Inc., Red Bull GmbH, Red Devil NV, Rockstar Inc, Shenzhen Eastroc Beverage Industrial Co., Ltd, The Kraft Heinz Company, WNWM Ustronianka are the major players in the functional beverages market. The key players operating in this market are focusing on collaborating with various stakeholders and innovating new products.

The report also provides in-depth analysis of market dynamics such as drivers, restraints opportunities and challenges

Drivers

• Growing awareness of health benefits amongst consumers
• Preference of convenience food and beverages
• High number of product launches

Restraints

• High cost of ingredients in developing countries
• Availability of cheaper substitute products

Opportunities

• Increase in sporting activities and sporting enthusiasts

The report also provides in-depth analysis of key market trends

	Trends	Impact
1	Constant experiments by emerging players and drink manufacturers with new ingredients which are high in nutritional value and promote well being	Positive
2	Rising cases of diabetes in some countries are also one of the major drivers for the growth of functional beverages as the consumers to prefer natural sweeteners in their beverages	Positive

The report also provides an in-depth analysis of recent News Developments and Investments

• October 2020: Crave has launched a natural energy beverage, with three new flavors: Passionfruit and Vanilla, Pineapple and Coconut, and Mint and Lime. Top-quality organic and natural ingredients have been used which are derived from vitamin B and C. This helps build the immunity system and also keep the energy levels bolstered.
• A new sugar-free energy drink was introduced by 7-Eleven, with L-Theanine, called Triton in 2019. The drink comprises of caffeine and the amino acid L-theanine which are both obtained from the leaves of green tea. Additionally, Vitamin B, ginseng, taurine, and amino acids are also incorporated.

Company Profiles and Competitive Intelligence

The key players operating in the market are:

• Danone
• The Coca Cola Company
• Monster Beverage
• Nestle
• Cloud 9
• Clif Bar & Company
• Arla Foods
• Universal Nutrition
• PepsiCo Inc.
• Red Bull GmbH
• Red Devil NV
• Rockstar Inc
• Shenzhen Eastroc Beverage Industrial Co., Ltd
• The Kraft Heinz Company
• WNWM Ustronianka

The unique insights provided by this report also includes the following:

• In-depth value chain analysis
• Opportunity mapping
• Sector snapshot
• Key Players Positioning Matrix
• Regulatory scenario
• Strategies Adopted-Benchmarking Heat Map
• Market trends
• Covid-19 impact analysis
• Product comparison
• Pre & Post COVID 19 impact on Functional Beverages Industry
• Competitive Landscape

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