FLAVORED AND FUNCTIONAL WATER MARKET ANALYSIS

Market Challenges And Opportunities

Global Flavored and Functional Water Market - Restraints

• Wider availability of substitute products such as soft and sports drinks

The market of flavored and functional water is facing a challenge from substitute products such as soft and sports drinks. Also, the strong distribution channel for such substitute products is hampering the demand for flavored and functional water, thereby hindering the market growth over the forecast period. In addition Shifting preferences of consumers toward flavored and functional water  is expected to witness the market growth in the upcoming forecast period.

• Lack of awareness regarding the health benefits 

Lack of awareness regarding the health benefits of such beverages across developing countries is expected to hamper the market growth of flavored and functional water. Also, balancing flavor and sugar quantity in the product is one of the major challenges for the functional water market. Inaddition the increasing healthy lifestyle among the urban people is expected to witness the market growth in the upcoming forecast period.

Market Opportunities

• Product innovation by manufacturers 

Product innovation by manufacturers is expected to bring new market opportunities over the forecast period. For instance, to offer health and wellness-focused hydration options in the ready-to-drink market in India, Tata Global Beverages Limited and PepsiCo India Holdings Private Limited collaborated to create NourishCo. It has also made a move into the flavoured water sector.

• Expansion of retail industry due to the development of various hypermarkets and supermarkets

Expansion of the retail industry due to the development of various hypermarkets and supermarkets across the Asia Pacific region is expected to offer lucrative opportunities to the market players of flavored and functional water. According to the India Brand Equity Foundation, the retail industry touched US$ 950 billion in 2018 at a CAGR of 13 percent and is projected to reach US$ 1.1 trillion by 2020. Thus, growth in the retail industry will favor market growth. For instance, in January 2019, the Canadian spring water company launched functional water. The new product is Flow Glow, a spring water brand infused with CBD. It hydrates and nourishes the cells to the fullest with naturally occurring minerals, powerful antioxidants, and the qualities of CBD