Functional Drinks Market Witness Significant Growth 6.46% in Upcoming Years

Published Date : 05 Apr 2023

The functional drink market growth is driven by an increase in the number of exercise enthusiasts and a growing consumer preference for healthy living. The functional drinks market size will be around USD 385.94 by 2032 from accounted for USD 206.41 in 2022 and is poised to grow at a CAGR of 6.46% between 2023 and 2032.

Market Overview:

"Functional drink" is a term used to describe a traditional liquid food meant to draw attention to specific product elements or purported health benefits. Products made from milk, energy drinks, teas that are ready to drink, sports and performance drinks, vitamin-fortified fruit drinks, plant milk, and enhanced water are among the beverages that are deemed functional. Beneficial drinks contain unusual components like uncooked fruit, minerals, herbs, microorganisms, and some synthetic ones. It has positive effects on the body and the brain in addition to being nutritious.

Demand for functional drinks is anticipated to increase with growing health consciousness. Many biological functions, such as weight control, immune system strength, and digestive health, are improved by functional beverages. This is due to the minerals, vitamins, amino acids, and herbs they contain. As more individuals participate in local, national, and international sports, it is projected that there will be more athletes.

Through the course of the forecast period, this will in turn fuel market growth for functional beverages. In response to the rise in the number of casual consumers of sports and energy drinks, functional beverage production companies are developing beverages with fewer calories and fats and adding fruit and vegetable flavoring ingredients to appeal to refined tastes.

Functional Drinks Market Report Scope:

Report Coverage Details
Market Size in 2022 USD 206.41 Billion
Projected Forecast Value in 2032 USD 385.94 Billion
Growth Rate 6.46% from 2023 to 2032
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
By Type
  • Energy Drinks
  • Dairy-based Beverages
  • Sports Drinks
  • Juices
  • Others
By Distribution Channels
  • Specialty Stores
  • Supermarket/ Hypermarket
  • E-Commerce
  • Others
By End-User
  • Fitness Lifestyle Users
  • Athletes
  • Others
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Report Highlight:

  • By Type, The energy beverage category is predicted to experience the highest CAGR between 2023 and 2032. Trends in fitness and healthy living, an upsurge in gyms and fitness centers, and an increase in the commercialization of sporting events in countries like China and India are all factors that have contributed to the growth of this market.
  • The sports drink market is projected to grow astonishingly between 2023 and 2032, depending on the type. As more people in industrialized nations engage in sports and games, the market is growing. The sector is also expected to grow as a result of the growing athlete community and the rising number of athletes in developing nations.
  • By Distribution Channel, The industry of supermarkets and hypermarkets is predicted to see the fastest CAGR between 2023 and 2032. The availability of numerous functional drinks under one roof with significant discounts is one of many reasons why the market is expanding. Due to the availability of a wide range of specialty items at wellness stores and the rising popularity of online channels, it is anticipated that the supply of functional beverages through e-commerce will increase quickly over the projected period.
  • By End-User, The fitness lifestyle user segment is predicted to develop at the quickest rate in the worldwide functional drink market, with a CAGR from 2023 to 2032. The category is expanding as more people become concerned about their physical fitness and overall health. Other significant factors aiding the development of the functional drink market include the rise in the popularity of yoga and the fitness lifestyle. Functional beverages improve physical performance and help with the treatment or prevention of some illnesses. Accordingly, professional athletes are subjected to harder and longer workouts depending on a variety of variables including the type of physical training, the quantity, and length of sessions, the environment, etc.

Regional Insight:

The market for functional beverages is expected to grow the fastest in the North American region between 2023 and 2032. However, it is growing quickly and raising consumer awareness of workplace safety, leading an active lifestyle, and good health. Although there is a growing demand for natural ingredients, changes in consumer attitudes have little effect on the North American product market.

Also, the market is growing in this sector due to an increase in demand from young adults and sportsmen. The endurance and performance of athletes and fitness enthusiasts are also improved by functional drinks like sports and energy drinks, which increase the demand for these beverages.

On the other hand, Asia is the region that is growing the fastest because of the growing need for beverages among consumers in countries like Japan, China, and India. This desire is what fuels the expansion of functional drinks. The market growth for functional energy drinks, fortified/functional plant-based drinks, and malt-based hot drinks is primarily being driven by the high prevalence of cardiovascular disease, osteoporosis, and arthritis, as well as the rising demand for convenience drinks and Asian consumers' changing lifestyles.

Additionally, as diabetes rates rise in countries like China and India, consumers are choosing natural sweeteners like stevia in beverages because they are more aware of the importance of a balanced diet and an active lifestyle.  According to the World Diabetes Federation, one of the seven nations that will make up Southeast Asia in 2022 is India. In Southeast Asia, 90 million people have diabetes, and by 2045, that number is projected to increase to 151.5 million.

Market Dynamics:


Rising demand for products that promote proper hydration

Probiotic foods had to be added to the list due to the increased customer preference for health-focused beverages. The demand for functional drinks has increased, and ready-to-drink beverage consumption has also increased, which has led to an expansion of the global electrolyte mix market.

The market for electrolyte mixes has grown as a result of rising health awareness and demand for beverages that boost immune system performance. Customers are frequently replacing stigmatized categories, such as juices and carbonates, with "healthier choices," like probiotics, soymilk, and other functional beverages, as they become more aware of the health risks associated with these soft drink groups. Consumer awareness has played a significant role in the increase in interest in hydrating beverages that are healthy.

During the forecast period, several additional factors are anticipated to propel the growth of the global functional drinks market, including an increase in the number of health-conscious consumers globally, effective marketing tactics, and a greater focus on introducing electrolyte mixes with cutting-edge packaging.


The growing concerns regarding obesity

Consumers' top priority when it comes to their health and wellness is weight control. Consumers require foods and beverages with low sugar and calorie contents to maintain a healthy weight. Fruit juices and energy drinks are the two main sources of added sugars in functional beverages.

Around 26.5 grams of added sugar are found in an energy drink can on average, although large cans have twice as much. Together with caffeine, artificial sweeteners, and carbohydrates, energy drinks also have a high-fat content. Due to this, many people refrain from drinking functional beverages. According to research by the American Academy of Pediatrics (APP), those who routinely engage in vigorous exercise in hot, muggy weather only have a small number of sports drinks.


The rising acceptance of e-commerce

The development of e-commerce websites and the spread of smartphones have made it possible for vendors to offer functional drinks online. In big cities in developing nations like China and India, online grocery stores that deliver items on demand, including functional drinks, are becoming more common.

Online sales of functional drinks are rising as a result of the advantages of e-commerce websites, including simple access to product information and improved shopping. All of this supports market growth.


The high price of functional drinks

A nonalcoholic beverage known as a "functional drink" contains uncommon nutrients with nutritional value, such as raw fruits, dietary fibers, probiotics, minerals, vitamins, and amino acids. They are more expensive than other drinks despite using only natural ingredients. Dry beverage mixes, for example, can be transported easily and provide a high level of nutrition, eliminating the need for functional liquids. Manufacturing and business aspects of functional drinks are incredibly challenging, unreliable, and expensive.

Recent Development:

  • August 2022, Limca Sportz, a new beverage in the n-fizz line from Coca-Cola India, is based on glucose and electrolytes. Rehydrating athletes, exercisers, and anyone performing strenuous activities are done with water-based Limca Sportz.
  • March 2021, Nestlé S.A. bought the company Essentia Water, LLC. Nestlé S.A. acquired a market leader through this deal and solidified its position as a major player in the functional water sector.

Major Key Players:

  • Monster Beverage Corporation
  • The Coca-Cola Company
  • Red Bull
  • Coif Bar
  • MaxiNutrition
  • Meiji Co., Ltd
  • Dupont Nutrition Biosciences ApS
  • Pepsico, Inc.
  • Nestlé S.A.
  • National Beverage Corp.

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