Global Functional Beverages Market, By Product Type, By Ingredient Type, By Distribution Channel, By Region & Segmental Insights Trends and Forecast, 2024 – 2034
- Industry: Food & Beverages
- Report ID: TNR-110-1282
- Number of Pages: 420
- Table/Charts : Yes
- September, 2024
- Base Year : 2024
- No. of Companies : 10+
- No. of Countries : 29
- Views : 10078
- Covid Impact Covered: Yes
- War Impact Covered: Yes
- Formats : PDF, Excel, PPT
Functional beverages are drinks fortified with health-boosting ingredients, offering benefits beyond basic nutrition. These beverages include energy drinks, sports drinks, probiotic drinks, enhanced water, and more, designed to improve physical and mental performance, digestion, hydration, and overall wellness.
The global functional beverages market is rapidly growing due to rising consumer awareness about health and wellness. With increasing demand for products that support active lifestyles and specific health needs, the market is expanding, particularly in regions like North America, Europe, and Asia-Pacific. Functional beverages play a crucial role in maintaining health by providing essential nutrients, supporting digestion with probiotics, boosting energy levels, and aiding in hydration, making them integral to a balanced, healthy lifestyle. In Terms of Revenue, the Global Functional Beverages Market was Worth US$ 158.7 Bn in 2023, Anticipated to Witness CAGR of 6.7% During 2024 – 2034.
Trends in the Global Functional Beverages Market
- Rise in Plant-Based Functional Beverages: Consumers are increasingly seeking dairy alternatives and beverages derived from plants like almond, soy, oat, and coconut. These drinks are often fortified with additional nutrients, such as vitamins, minerals, and protein, making them appealing to health-conscious individuals and those with dietary restrictions. The plant-based trend aligns with the broader movement toward sustainable, clean-label products, driving innovation in flavors and formulations. This shift is particularly strong in regions like North America and Europe, where vegan and vegetarian lifestyles are on the rise.
- Incorporation of Functional Ingredients: Increasing incorporation of functional ingredients such as adaptogens, probiotics, and nootropics into beverages. Consumers are seeking drinks that not only satisfy thirst but also offer targeted health benefits like stress relief, cognitive enhancement, and gut health. Brands are responding by introducing beverages with ingredients like ashwagandha, turmeric, collagen, and L-theanine. This trend is fueled by growing consumer awareness of holistic health and wellness, particularly among younger demographics. The appeal of these ingredients is driving product differentiation and expanding the market for functional beverages across various regions, including Asia-Pacific and North America.
In 2023, the functional juices segment has emerged as the second-largest category in the global functional beverages market, driven by consumer demand for healthier drink options. Functional juices, enriched with vitamins, minerals, antioxidants, and probiotics, are favored for their natural ingredients and health benefits, such as boosting immunity and improving digestion. These juices appeal to health-conscious consumers seeking alternatives to sugary soft drinks and energy beverages. Their versatility, with flavors ranging from traditional fruit to exotic blends, has made them more popular than other functional beverages, as they offer a refreshing taste while promoting overall well-being. This growing preference reflects a broader shift toward natural, health-focused consumption.
The electrolytes segment, by ingredient type, is dominating the global functional beverages market and is expanding at a CAGR of 6.7% over the forecast timeline. This growth is fueled by increasing awareness of the importance of hydration and electrolyte balance, especially among athletes and fitness enthusiasts. Electrolyte-infused beverages are essential for replenishing lost minerals during physical activity, helping to prevent dehydration and maintain optimal body function. With rising consumer demand for beverages that support active lifestyles and overall health, the electrolytes segment continues to gain traction, driving innovation and market expansion globally.
In 2023, the offline segment, by distribution channel, dominated the global functional beverages market, reflecting consumer preference for purchasing these products in physical stores. Despite the rise of e-commerce, many consumers prefer buying functional beverages offline, as it allows them to see, touch, and evaluate the products before purchase. Supermarkets, hypermarkets, and specialty stores offer a wide variety of functional beverages, making it convenient for consumers to compare options and seek advice from in-store staff. Additionally, the immediate availability and lack of waiting time for delivery enhance the shopping experience, contributing to the offline segment’s strong performance in the market.
Europe is anticipated to solidify its position as the leading region in the functional beverages market, driven by increasing consumer demand for health and wellness products. The region’s focus on innovative, high-quality functional beverages, such as probiotic drinks, plant-based options, and fortified juices, aligns with growing health-consciousness and preference for clean-label products. Additionally, the presence of key market players, along with stringent regulations ensuring product safety and transparency, boosts consumer confidence and market growth. The rise in veganism and sustainability trends further drives demand for plant-based functional beverages, making Europe a critical market for innovation and expansion in the global functional beverages industry.
Competitive Landscape
The global functional beverages market is highly competitive, with key players focusing on innovation, product diversification, and strategic partnerships to capture market share and meet growing consumer demand for health-oriented drinks.
- In April 2019, The Coca-Cola Company introduced ‘Aquarius,’ a low-calorie flavored and functional beverage range. This product boasts essential minerals and is available in two flavors: lime with magnesium and lemon with zinc.
- In August 2017, JoeFroyo, a leading producer of dispensed beverages, unveiled its first ready-to-drink (RTD) functional coffee. This coffee is enriched with protein, caffeine, and probiotics, and is marketed as being gluten-free, without soy, processed sugars, or trans fats.
Some of the players operating in the functional beverages market are
- Abbott Laboratories
- Coca-Cola Company
- Danone S.A.
- Dr Pepper Snapple Group
- Fonterra Co-operative Group Limited
- Glanbia Plc.
- GlaxoSmithKline
- Keurig Dr Pepper
- Kraft Heinz Company
- Monster Beverage Corporation
- Nestle S.A.
- PepsiCo Inc.
- Red Bull GmbH
- Suntory Holdings Ltd
- The Hain Celestial Group
- Universal Nutrition
- Other Industry Participants
Global Functional Beverages Market Scope:
Report Specifications | Details |
Market Revenue in 2023 | US$ 158.7 Bn |
Market Size Forecast by 2034 | US$ 323.8 Bn |
Growth Rate (CAGR) | 6.7% |
Historic Data | 2016 – 2022 |
Base Year for Estimation | 2023 |
Forecast Period | 2024 – 2034 |
Report Inclusions | Market Size & Estimates, Market Dynamics, Competitive Scenario, Trends, Growth Factors, Market Determinants, Key Investment Segmentation, Product/Service/Solutions Benchmarking |
Segments Covered | By Product Type, By Ingredient Type, By Distribution Channel, By Region |
Regions Covered | North America, Europe, Asia Pacific, Middle East & Africa, Latin America |
Countries Covered | U.S., Canada, Mexico, Rest of North America, France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe, China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific, Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa, Brazil, Argentina, Rest of Latin America |
Key Players | Abbott Laboratories, Coca-Cola Company, Danone S.A., Dr Pepper Snapple Group, Fonterra Co-operative Group Limited, Glanbia Plc., GlaxoSmithKline, Keurig Dr Pepper, Kraft Heinz Company, Monster Beverage Corporation, Nestle S.A., PepsiCo Inc., Red Bull GmbH, Suntory Holdings Ltd, The Hain Celestial Group, Universal Nutrition |
Customization Scope | Customization allows for the inclusion/modification of content pertaining to geographical regions, countries, and specific market segments. |
Pricing & Procurement Options | Explore purchase options tailored to your specific research requirements |
Contact Details | Consult With Our Expert
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Global Functional Beverages Market
By Product Type
- Energy Drinks
- Sports Drinks
- Enhanced Water
- Functional Juices
- Dairy-based Beverages
- Others
By Ingredient Type
- Vitamins and Minerals
- Probiotics and Prebiotics
- Botanicals and Herbal Extracts
- Protein
- Amino Acids
- Electrolytes
- Antioxidants
- Fibers
- Others
By Distribution Channel
- Online
- Offline
- Supermarkets/Hypermarkets
- Specialty Stores
- Health Stores
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
Report Layout:
Table of Contents
Note: This ToC is tentative and can be changed according to the research study conducted during the course of report completion.
**Exclusive for Multi-User and Enterprise User.
Global Functional Beverages Market
By Product Type
- Energy Drinks
- Sports Drinks
- Enhanced Water
- Functional Juices
- Dairy-based Beverages
- Others
By Ingredient Type
- Vitamins and Minerals
- Probiotics and Prebiotics
- Botanicals and Herbal Extracts
- Protein
- Amino Acids
- Electrolytes
- Antioxidants
- Fibers
- Others
By Distribution Channel
- Online
- Offline
- Supermarkets/Hypermarkets
- Specialty Stores
- Health Stores
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
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