Dublin, Oct. 21, 2024 (GLOBE NEWSWIRE) -- The "US Functional Drinks Market: Analysis By Type (Energy Drinks, Sports Drinks, and Nutraceutical Drinks), By Distribution Channel, Size and Trends and Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.
The US functional drinks market in 2023 stood at US$48.99 billion, and is forecast to reach US$78.17 billion by 2029, while in terms of volume, the US functional drinks market is forecast to reach 16.57 billion liters by 2029. The US functional drinks market is projected to grow at a CAGR of 8.1% during the forecast period of 2024-2029.
Market Segmentation Analysis:
By Type: In 2022, the energy functional drinks category dominated the market due to its versatility. Its widespread use stems from the instant energy uplift, physical performance enhancement, and concentration boost it provides.
By Distribution Channel: Based on the distribution channel, the US functional drinks market can be segmented into four segments: supermarkets & hypermarkets, specialty stores, online, and others. In terms of distribution, the online channel is projected to be the fastest-growing channel. This trend is spurred by escalating digital penetration, consumer inclination towards online shopping owing to its convenience and extensive options, and a surge in home delivery services. The latter especially spiked during the pandemic, as lifestyles shifted dramatically towards home-based activities. These changes, along with the ease and efficiency of online shopping, make e-commerce an increasingly popular channel for purchasing a broad spectrum of products, including functional drinks.
US Functional Drinks Market Dynamics:
Growth Drivers: The functional drinks market in the US has been largely propelled by Millennials and Gen Z's heightened focus on health and wellness. This demographic, accounting for nearly 40% of the population, prefers drinks with specific health benefits. These groups significantly influenced market trends, leading to product innovation and marketing strategies aligned with their preference for healthier, purposeful drinks. Therefore, the health-centric values of Millennials and Gen Z have profoundly shaped the functional drinks industry, driving demand and spurring innovative development. Furthermore, the market is expected to grow, owing to rapid urbanization, aging population, social media influence, rise of e-commerce, athletic performance and recovery, increased awareness of health risks, etc. in recent years.
Challenges: Regulatory compliance presents a notable challenge to the US functional drinks market. As these beverages often contain innovative ingredients and assert health benefits, the FDA closely scrutinizes their claims for accuracy and scientific substantiation, creating a complex regulatory landscape. Companies must dedicate resources to ensure compliance, including ingredient transparency and traceability. Non-compliance risks include heavy fines, product recalls, and reputational damage, hence emphasizing the importance of regulatory adherence in maintaining consumer trust and legal risk mitigation. Additionally, factors like consumer trust and education, etc. are other challenges to the market.
Market Trends: Functional beverage sector is innovating with new delivery formats and distribution strategies. Novel ways of consuming beneficial ingredients, like Jelly Drinks, Functional Drink Powders, Effervescent Tablets, and Edible Films, offer intriguing alternatives to traditional forms. Concurrently, subscription-based distribution models have gained prominence, offering regular, personalized deliveries to consumers, fostering customer loyalty and ensuring recurring revenue for businesses. These advancements in delivery and distribution methods are redefining the industry, providing competitive advantage and potentially driving industry revolution.
More trends in the market are believed to grow the functional drinks market during the forecasted period, which may include increasing penetration of artificial intelligence and machine learning, health and wellness focus, mental health awareness, innovation in packaging, ingestible sensors, flavor innovation, branding and merchandising, market consolidation, etc.
Competitive Landscape and Recent Developments:
The US functional drinks market emerged as a dynamic hub of innovation, rivalry, and strategic alliances, featuring a consolidated landscape. Dominated by industry giants like PepsiCo and Coca-Cola, holding major market shares, the market is also bustling with numerous regional and international players. The market's competitiveness is fueled by a relentless drive for innovation, a focus on healthier beverage options, and strategic collaborations. Companies compete on various fronts, including price, quality, packaging, reputation, and distribution channels, which are increasingly moving towards online and direct-to-consumer models.
Key players in the US Functional Drinks market include:
- The Coca-Cola Company
- PepsiCo
- Glanbia
- Nestle
- Keurig Dr Pepper
- Campbell Soup Company
- Suja Life (Suja Organic)
- Red Bull
- GT's Living Food
The pursuit of uniqueness and larger market share in the US functional drinks industry has spurred significant mergers and acquisitions, with non-alcoholic beverages making up 11% of food and beverage transactions in 2022. Concurrently, a growing consumer preference for clean-label, organic, and non-GMO products has been shifting the market towards functional beverages and away from traditional carbonated drinks. This market dynamics has led to significant industry-wide changes. For instance, when a major player like PepsiCo acquired The Marley Beverage Company, known for its natural drinks, it not only increased its market share but also diversified its product offerings.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 93 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $52.96 Billion |
| Forecasted Market Value (USD) by 2029 | $78.17 Billion |
| Compound Annual Growth Rate | 8.1% |
| Regions Covered | United States |
Key Topics Covered:
Market Analysis
- The US Functional Drinks Market Analysis
- The US Functional Drinks Market Type Analysis
- The US Functional Drinks Market Distribution Channel Analysis
Market Dynamics
Growth Drivers
- Rapid Urbanization
- Aging Population
- Influenced Millennial and Gen Z
- Rising Social Media Influence
- Rise of E-commerce
- Athletic Performance and Recovery
- Increased Awareness of Health Risks
Challenges
- Regulatory Compliance
- Consumer Trust and Education
Market Trends
- Increasing Penetration of Artificial Intelligence and Machine Learning
- Innovative Delivery Formats and Subscription-Based Distribution
- Health and Wellness Focus
- Mental Health Awareness
- Innovation in Packaging
- Ingestible Sensors
- Plant-Powered Beverage
- Flavor Innovation
- Branding and Merchandising
- Market Consolidation
Competitive Landscape
- US Functional Drinks Market Competitive Landscape
- US Functional Drinks Players by Market Share
- US Energy Functional Drinks Players by Market Share
- US Functional Drinks Market Players - Brand Offerings by Category
Company Profiles
- The Coca-Cola Company
- PepsiCo
- Glanbia
- Nestle
- Keurig Dr Pepper
- Campbell Soup Company
- Suja Life (Suja Organic)
- Red Bull
- GT's Living Food
For more information about this report visit https://www.researchandmarkets.com/r/qsquv1
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