Dublin, March 30, 2023 (GLOBE NEWSWIRE) -- The "Functional Beverages Global Market Opportunities And Strategies To 2032" report has been added to ResearchAndMarkets.com's offering.
The functional beverages market reached a value of nearly $147,472.5 million in 2022, having grown at a compound annual growth rate (CAGR) of 6.2% since 2017. The market is expected to grow from $147,472.5 million in 2022 to $208,698.6 million in 2027 at a rate of 7.2%. The market is then expected to grow at a CAGR of 5.8% from 2027 and reach $276,086.4 million in 2032.
Growth in the historic period resulted from strong economic growth in emerging markets, increased investments, increase in number of athletes, increase in clean-label, organic and non-GMO (genetically modified organism) products and increased penetration of organized retail. Factors that negatively affected growth in the historic period were legal actions against misinformation and false advertising, tax increases, complexity of acceptance and purchase intentions of consumers.
Going forward, growing number of health-conscious consumers, growing demand for immunity boosting foods and beverages and increasing population will drive the growth. Factors that could hinder the growth of the functional beverages market in the future include risks associated with energy drink consumption and Russia-Ukraine war impact.
The functional beverages market is segmented by type into energy drinks, sports drinks, nutraceutical drinks, dairy-based beverages, juices, enhanced water and other types. The energy drinks market was the largest segment of the functional beverages market segmented by type, accounting for 25.8% of the total in 2022. Going forward, the energy drinks segment is expected to be the fastest growing segment in the functional beverages market segmented by type, at a CAGR of 8.6% during 2022-2027.
The functional beverages market is segmented by function into health and wellness and weight management. The health and wellness market was the largest segment of the functional beverages market segmented by function, accounting for 80.8% of the total in 2022. Going forward, the health and wellness segment is expected to be the fastest growing segment in the functional beverages market segmented by function, at a CAGR of 7.2% during 2022-2027.
The functional beverages market is segmented by distribution channel into brick and mortar, specialty foodservice stores and online channels. The brick and mortar market was the largest segment of the functional beverages market segmented by distribution channel, accounting for 64.7% of the total in 2022. Going forward, the online segment is expected to be the fastest growing segment in the functional beverages market segmented by distribution channel, at a CAGR of 7.5% during 2022-2027.
Asia Pacific was the largest region in the functional beverages market, accounting for 38.0% of the total in 2022. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the functional beverages market will be Asia Pacific and Middle East where growth will be at CAGRs of 9.6% and 7.7% respectively. These will be followed by Western Europe and Africa where the markets are expected to grow at CAGRs of 6.6% and 6.4% respectively.
The functional beverages market is slightly concentrated with a few large players holding significant share. The top ten competitors in the market made up to 42.79% of the total market in 2021 The market concentration can be attributed to the strong product offerings catering to changing taste and preference of consumers, availability of strong distribution channels among the major players in the market.
PepsiCo Inc. was the largest competitor with 7.35% share of the market, followed by The Coca-Cola Company with 7.10%, Red Bull GmbH with 5.77%, Danone with 4.55%, Nestle S.A with 4.32%, Monster Beverage Corporation with 4.05%, Dr. Pepper Snapple Group with 3.83%, Fonterra Co-Operative Group Ltd with 2.15%, Kraft Heinz Company with 1.91% and Abbott with 1.76%.
Market-trend-based strategies for the functional beverages market includes launch of relaxation drinks, cannabidiol (CBD) -infused functional drinks, protein-based functional beverages, vegan/plant-based functional beverages, healthy hydration drinks, introduction of Nootropic drinks, low-calorie, sugar-free drinks and partnerships and collaborations.
Player-adopted strategies in the functional beverages market includes enhancing business operations through strategic investments and acquisitions, expanding nutritional drinks portfolio and energy drinks business through new product launches and focus on children health development through the launch of new products and supporting toddlers' development through the launch of new products.
To take advantage of the opportunities, the publisher recommends the functional beverages companies to focus on protein-based functional beverages, offer vegan/plant-based functional beverages, focus on introduction of nootropic drinks, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, focus on premium pricing, participate in trade shows and events, target millennials, increase focus on online consumers and target working population.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 310 |
| Forecast Period | 2022 - 2032 |
| Estimated Market Value (USD) in 2022 | $147472.5 Million |
| Forecasted Market Value (USD) by 2032 | $276086.4 Million |
| Compound Annual Growth Rate | 6.5% |
| Regions Covered | Global |
Opportunity Analysis
- The top opportunities in the functional beverages market segmented by type will arise in the energy drinks segment, which will gain $19,553.1 million of global annual sales by 2027.
- The top opportunities in the functional beverages market segmented by function will arise in the health and wellness segment, which will gain $49,705.6 million of global annual sales by 2027.
- The top opportunities in the functional beverages market segmented by distribution channel will arise in the brick-and-mortar segment, which will gain $38,946.9 million of global annual sales by 2027.
- The functional beverages market size will gain the most in China at $15,801.2 million.
Major Market Trends
- Relaxation Drinks
- Cannabidiol (CBD) - Infused Functional Drinks
- Protein-Based Functional Beverages
- Vegan/Plant-Based Functional Beverages
- Healthy Hydration Drinks
- Introduction Of Nootropic Drinks
- Low-Calorie, Sugar-Free Drinks
- Partnerships And Collaborations
Competitive Landscape And Company Profiles
- PepsiCo Inc
- The Coca-Cola Company
- Red Bull GmbH
- Danone S.A
- Nestle
For more information about this report visit https://www.researchandmarkets.com/r/aecr6w
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