Europe Flavored and Functional Water Market Size was valued at USD 16.8 Billion in 2022. The flavored and functional water market industry is projected to grow from USD 21.2 Billion in 2023 to USD 136.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 26.20% during the forecast period (2023 - 2032). The market drivers driving the increase in demand for flavor and functional water include aging populations, rising rates of obesity, rising levels of urbanization, rising disposable income that permits consumers to purchase high-end goods, shifting consumer tastes and preferences, and changing lifestyles.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In the European market, flavored and functional waters with a variety of flavors are becoming more and more noticeable due to the growing trend of health and wellbeing among customers. Inorganic and organic ways, a number of well-functioning water enterprises from other areas are expanding into European nations. This is demonstrated by Coca-Cola's entry into the flavored and functional water market through the purchase of the energy brand Glaceau and its line of fortified beverages, Vitaminwater. The producers are employing creative strategies to spread the word about the goods and the health advantages of flavored and functional water. The market CAGR is being driven by consumers' choice for delicious and healthful fizzy drink substitutes. Additionally, teenagers also drink a lot of energy drinks and other functional drinks because they say they increase performance, stamina, and attentiveness. In addition, consumers' need for rapid energy is pushing them toward energy drinks due to unpredictable work schedules and a rise in social events. Furthermore, customers who are health-conscious are choosing nutritious and sugar-free drinks due to growing health consciousness, awareness of the need of leading an active lifestyle, and the increased incidence of lifestyle diseases.
In addition, sales of flavored and functional water have been significantly impacted by promotions and ads since their inception. It's commonly understood by businesses and customers alike that functional beverages can be distributed through supermarket and hypermarket retail channels. Private and foreign brands supply the flavored and functional water found on the shelves of hypermarkets and supermarkets. Because of their cheaper costs and easy one-stop shopping experiences, supermarkets and hypermarkets have emerged as the preferred format of retail outlets for European consumers when it comes to packaged goods that are often purchased. Residents and those leading more modern lifestyles are favoring these store formats because of the negotiating power they offer, as well as their dynamism and placement. Furthermore, because they are more widely available in a variety of retail locations, including supermarkets and hypermarkets, and can be consumed on-the-go, canned flavored and functional water—including energy drinks—have a higher market penetration rate. These factors have contributed to the growth of the flavored and functional water industry in Europe. Thus, driving the flavored and functional water market revenue.
The Europe Flavored and Functional Water market segmentation, based on type includes Flavored and Functional. The flavored segment dominated the market mostly because consumers' desire for beverages that offer additional health advantages is growing. Additionally, a number of varieties are covered in the flavored water section, including fruit-flavored, vegetable-flavored, and herb-flavored waters. Furthermore, the functional water section is made using energy water, sports water, and vitamin-infused water.
Figure 1: Europe Flavored and Functional Water Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Europe Flavored and Functional Water market segmentation, based on distribution channel includes Store-Based and Non-Store-Based. The store-based segment dominated the market mostly. The latest trend in consumer preferences is towards spontaneous purchasing of food and beverages. The ability to purchase food and other commodities in quantity is facilitated by supermarkets. The growth of this section is encouraged by this element. Because enhanced water is readily available, has a wide variety, and is easily accessible, supermarkets and hypermarkets dominate the product distribution channels.
Throughout the projected period, a notable growth rate is expected in the European market for flavored and functional water. The market is growing as a result of businesses launching innovative products and growing customer demand. People who wish to stay hydrated but find it difficult to reach the daily necessary amount should consider functional nutrients boosted with water. Consumers find these water bottles visually appealing and easy to read, and they stand out from other bottles they see thanks to their exquisite labels and graceful bottle shapes. Moreover, in Germany, the market for flavored and functional water is being driven by customers' need for tasty and healthful substitutes for fizzy beverages. The Coca-Cola Company's Glacéau Vitaminwater brand was introduced in Germany after seeing popularity abroad. The company's initial focus is Hamburg, and it intends to grow to include Munich, Cologne, Berlin, and the rest of Germany. When making a purchase, German consumers are more concerned with the functioning water's quality than its cost. This suggests that because well-known brands are thought to deliver higher-quality products than private label lines, their sales are probably higher.
Figure 2: EUROPE FLAVORED AND FUNCTIONAL WATER MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the flavored and functional water market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, flavored and functional water industry must offer cost-effective items.
Major players in the flavored and functional water market are attempting to increase market demand by investing in research and development operations includes The Coca-Cola Company, Groupe Danone, PepsiCo Inc., New York Spring Water, Sunny Delight Beverages Company, Nestle SA., Kraft Foods., Aquafina Flavor Splash, Balance Water Company, and Cargill Inc.
March 2022: PepsiCo unveiled Gatorade Fit, a new electrolyte beverage designed for fitness that has no added sugar, artificial flavors or sweeteners, or artificial colors. The maker claims that the drink has antioxidants, vitamins A & C, and electrolytes from watermelon and sea salt.
July 2021: Danone's Volvic brand of natural mineral water has launched new fruit-flavored water variants in combismile 250 mL & 330 mL cartons for adults and children to enjoy on-the-go. The French market was where the product was first introduced.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 16.8 Billion |
| Market Size 2023 | USD 21.2 Billion |
| Market Size 2032 | USD 136.4 Billion |
| Compound Annual Growth Rate (CAGR) | 26.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Distribution Channel, and Region |
| Region Covered | Europe |
| Countries Covered | Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, and Rest of Europe |
| Key Companies Profiled | The Coca-Cola Company, Groupe Danone, PepsiCo Inc., New York Spring Water, Sunny Delight Beverages Company, Nestle SA., Kraft Foods., Aquafina Flavor Splash, Balance Water Company, and Cargill Inc. |
| Key Market Opportunities | Rising innovative product development includes adding novel tastes and useful substances Growing partnerships with celebrities or fitness and wellness influencers |
| Key Market Dynamics | Europe's obesity rate is rising Growing number of urban residents adopting healthy lifestyles |
Frequently Asked Questions (FAQ) :
The Europe Flavored and Functional Water market size was valued at USD 16.8 Billion in 2022.
The market is projected to grow at a CAGR of 26.20% during the forecast period, 2023-2032.
The key players in the market are The Coca-Cola Company, Groupe Danone, PepsiCo Inc., New York Spring Water, Sunny Delight Beverages Company, Nestle SA., Kraft Foods., Aquafina Flavor Splash, Balance Water Company, and Cargill Inc.
The flavored category dominated the market in 2022.
The store-based category had the largest share in the market.
Analyst Explore the profile of garvit vyas, one of our esteemed authors at market research future, and access their expert research contributions in the field of market research and industry analysis
Get in Touch
ยฉ 2024 Market Research Future ยฎ (Part of WantStats Reasearch And Media Pvt. Ltd.)
