FUNCTIONAL BEVERAGE MARKET ANALYSIS

Functional Beverage MarketSize and Trends

The global functional beverage market size was valued at US$ 176.37 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.6% from 2023 to 2030. The functional beverage market is an important part of the overall health industry and will continue to grow in the near future. Growing consumer demand for health-enhancing products is fueling growth of the functional beverage market. In addition, a growing trend toward veganism is driving demand for plant-based beverages. Organic foods and other non-GMO products have also influenced consumer buying behavior. This in turn again fostering market growth.

Global Functional Beverage Market Trends:

Growing health and wellness trend with infusion of coffee in ready-to drink beverages

Rising health and wellness trend is augmenting demand for variety in functional beverages which is expected to augment market growth in the near future. For instance, in February 2019, also launched two new RTD coffee drinks, eyeing up a new world of texture and functionality for coffee consumers with its Cold Whipped Lattes and Coffee Protein Smoothies.

Emergence of personalized beverages is a recent trend

Some of the other trends in the functional beverage market include the proliferation of specialty products in health stores. Personalized beverages are also expected to gain traction in the future. Ultimately, the trend is expected to expand the scope of the market.

Global Functional Beverage Market Segmentation:

The global functional beverage market report is segmented into type, distribution channel, and geography

Based on type, the market is segmented into Energy Drinks, Sports Drinks, Fortified Juice, Dairy and Dairy Alternative Beverage, and Other Types. Out of which, Energy Drinks is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of healthy lifestyle among consumers. The energy drinks segment of the market studied recorded a revenue of USD 39.28 billion in 2019, and it is expected to reach USD 57.27 billion by 2025, registering a CAGR of 6.43% over the forecast period (2020-2025).

Sports Drinks segment is also expected to witness significant growth in the near future and this is owing to the growing participation of people in sports activities. These drinks are consumed by athletes to stay fit and hydrated while restoring electrolytes, carbohydrates, and other nutrients. The sports drinks segment of the market studied recorded a revenue of USD 25.77 billion in 2019, and it is expected to reach USD 37.76 billion by 2025, registering a CAGR of 6.53%, over the forecast period (2020-2025).

Based on distribution channel, the market is segmented into Supermarket/Hypermarket, Drug Stores and Pharmacies, Convenience Stores, Online Retail Stores, and Other Distribution Channels. Out of which, Supermarket/Hypermarket is expected to dominate the global market over the forecast period and this is attributed to their wide retail space catering to variety of products. The supermarkets and hypermarkets segment of the market studied recorded a revenue of USD 49.99 billion in 2019, and it is expected to reach USD 73.69 billion by 2025, registering a CAGR of 6.73% over the forecast period (2020- 2025).

Convenience Stores segment is also expected to witness significant growth in the near future as they offer great service and competitive prices. The convenience stores segment of the market studied recorded a revenue of USD 27.12 billion in 2019, and it is expected to reach USD 36.67 billion by 2025, registering a CAGR of 7.57% over the forecast period (2020-2025).