Functional Beverage Market Fueling Uptake by Health Benefits

Functional Beverage Market Fueling Uptake by Health Benefits

Functional beverages are non-alcoholic drinks that provide health and wellness benefits beyond basic nutrition. Products in this category include energy drinks, nutrition drinks, functional juices, bottled water, and plant-based drinks. Energy drinks are gaining popularity among young adults for their stimulant properties. Nutrition drinks are designed to fill micronutrient gaps and support immune health. Functional juices contain vitamins, minerals, antioxidants and adaptogens derived from various fruits and herbs to promote overall wellbeing. Plant-based drinks made from soy, almond or oats are high in proteins and adopted as milk substitutes by vegans and the lactose intolerant population.

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.

Functional drinks address the increasing consumer focus on preventive healthcare and active lifestyles. With growing health consciousness, people look for beverages that provide functional benefits beyond hydration. Product innovation and customized offerings to suit regional preferences further drive the uptake.

Key Takeaways

Key players operating in the Functional Beverage Market are Teva Pharmaceutical Industries Ltd, Novo Nordisk A/S, OPKO Health Inc., Lilly, Hanmi Pharm.Co., Sanofi, Circle Pharma, Pfizer Inc., Novartis AG, PeptiDream Inc., Amgen Inc., AstraZeneca, Bachem Holding AG, CordenPharma International, Ipsen Pharma, Merck KGaA, PolyPeptide Group, Bayer AG.

The growing demand for functional beverages stem from increasing health awareness and preventive healthcare approach of consumers. Rising prevalence of lifestyle diseases and pandemic related health issues further boost the functional drinks industry.

The market witnesses strong global expansion driven by multinational launches of popular products and geographic expansion into emerging markets. Rising disposable incomes in developing regions support this growth. Local players also enter this space by offering region-specific formulations.

Market key trends

A notable trend gaining ground in the Functional Beverage Market Size is customization and personalized nutrition. Players target specific health goals through tailored product offerings designed for weight management, muscle growth, brain health, beauty from within etc. Ingredients backed by scientific research and quantifiable benefits see more demand. Brands leverage technologies to recommend personalized routines and formulations based on individual profiles. Sustainability also grows in focus with use of environment-friendly packaging and natural, organic ingredients without artificial preservatives or colors gaining traction.

Porter's Analysis

Threat of new entrants: Functional Beverage Market Size And Trends  requires high investment for R&D, production process and marketing. Established brands have strong brand loyalty and distribution networks.

Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitutes and price sensitivity. However, demand for functional beverages is growing steadily.

Bargaining power of suppliers: Major players control production and supply of raw materials. Suppliers have moderate bargaining power.

Threat of new substitutes: New healthier substitutes are emerging constantly. However, functionality and convenience give an edge to established beverages.

Competitive rivalry: Market is dominated by global giants with strong brands and differentiated products.

Geographical Regions

North America accounts for the largest share in the functional beverage market owing to high health consciousness and growing adoption of healthy lifestyles. Rising awareness about preventive healthcare and growing geriatric population drive the growth.

Asia Pacific is poised to be the fastest growing regional market during the forecast period. This is attributed to changing consumer preferences, growing middle class, and rising health expenditure in leading country markets like India and China. Increasing Western influence and busy lifestyles fuel the demand.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)