Flavored and Functional Water Market Size was valued at USD 12.9 Billion in 2022. The Flavored and Functional Water market industry is projected to grow from USD 13.87 Billion in 2023 to USD 24.87 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.57% during the forecast period (2023 - 2032). The expanding consumer knowledge of the health benefits connected with the intake of flavored and functional water and the growing population are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising changing eating habits drive market CAGR for flavored and functional water. Because of their hectic lifestyles, consumers seek dietary remedies to alleviate stress, tiredness, and reduced immunity. These solutions are functional foods that provide nutritional and health benefits. Aside from eating appropriately, consumers are becoming more conscious of the need to drink well. This is seen in the increased demand for beverages containing substances with health and wellness benefits. Functional beverages, particularly those containing immune-boosting components, may continue to garner attention as consumers seek comprehensive solutions to suit their health and wellness demands.
The growing awareness of eating healthy and regular water components drives the expansion of the flavored and functional water market. Consumers prefer shifting the flavored water hydration industry towards fizzy beverages and high-sugar drinks. Flavored and functional water comprises filtered water, minerals, and vitamins. Furthermore, it is said to be humorous regarding nutritional benefits to the human body. Consumers are deprived of unquestionably available things that do not harm human health. Flavored and functional water is available in appealing packaging and bottles and is simple. As a result, the consumer's needs are met, and this component makes the flavored and functional water market a better place.
Incorporating vital nutrients such as protein, amino acids, vitamins, and minerals in diverse functional beverages has increased demand for fortified beverages. The introduction of new and creative varieties of functional water by beverage manufacturing businesses producing water utilizing modified protein and mineral mixes is expected to fuel market expansion.
Most women experience pain from edema due to salt or hormonal changes. Water aids in increasing the body's metabolism and preventing cramping, both of which are vital benefits for the human body. However, functional water has various advantages, including weight loss, improved skin complexion, regularity, and the ability to focus and concentrate on being more alert. On an empty stomach, flavored water aids in the emetic intestines and also aids in the management of the digestive tract. These considerations present a significant opportunity for the flavored and functional water market. Thus, driving the Flavored and Functional Water market revenue.
The Flavored and Functional Water market segmentation, based on type, includes flavored and functional. The functional segment dominated the market, accounting for 35% of market revenue. Flavored water is non-alcoholic bottled drinking water that is mineral-rich and flavorful. Flavored water is available in three varieties: still, sparkling, and functional water with natural flavors. Sparkling flavored water combines carbonation with added minerals, whereas functional flavored water has additional components that provide health advantages, such as protein, vitamins, botanicals, herbs, and alkaloids. Flavored water focuses on numerous health benefits, such as increased immunity and vitality. Depending on the flavor, flavored drinks can be delicious and hydrating without causing weight gain. Some cultivars have established beneficial antioxidants from plant extracts and fruit fluids. Dietary benefits are flooding the flavored water market. Product innovation and per capita water use have increased flavored water sales.
Based on distribution channels, the Flavored and Functional Water market segmentation includes store- based and non-store-based. The store-based category generated the most income (70.4%). Consumer preferences are trending towards impulsive food and beverage purchases. Supermarkets make it easier for people to buy bulk food and other supplies. This component encourages the expansion of this segment. Supermarkets and hypermarkets dominate the product distribution channels - this retail distribution is leading because of the variety, availability, and accessibility of improved water. Furthermore, the bundling strategy and competitive pricing are to blame for increased sales of functional substances in water in supermarkets.
Figure 1: Flavored and Functional Water Market, by Distribution channel, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Flavored and Functional Water market area will dominate this market, Because of its rapid expansion in the United States, bottled water sales have lately exceeded soft drink sales. As a result, the bottled water industry is a leading horse, driving companies to spend and extend their functional offers.
Hence, the main countries studied in the market report are Canada, Japan, The US, German, France, the UK, India, China, Australia, South Korea, Italy, Spain, and Brazil.
Figure 2: FLAVORED AND FUNCTIONAL WATER MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Flavoured and Functional Water market has the second-largest market share. The market is developing due to companies introducing novel products and rising consumer interest. Functional nutrients enhanced with water are a great option for people who want to stay hydrated but struggle to meet the daily recommended amount. People like the artistic and easy-to-see bottle designs and the stunning labels and elegant bottle forms that distinguish them from other water bottles they see. Furthermore, the German Flavoured and Functional Water market dominated, while the UK Flavoured and Functional Water market was the fastest expanding in the European region.
The Asia-Pacific Flavoured and Functional Water Market is estimated to develop at the quickest CAGR between 2023 and 2032. Consumers seek healthier alternatives to carbonated soft drinks (CSDs), and flavor innovation drives the growth of the functional ingredients-enriched water sector. Simultaneously, measures are being implemented across the Asia Pacific to decrease the amount of sugar in beverages. Furthermore, China's Flavoured and Functional Water market had the greatest market share, while India's Flavoured and Functional Water market was the fastest expanding in the Asia-Pacific region.
Leading industry companies are making significant R&D investments to diversify their product offerings, which will expand the Flavored and Functional Water market. Key market developments include new product releases, agreements, acquisitions and mergers, higher investments, and collaboration with other companies. Market participants also engage in several strategic actions to increase their footprint. The Flavored and Functional Water industry must provide a good price to grow and thrive in an increasingly competitive market environment.
Producing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the Flavored and Functional Water industry to serve customers and expand the market sector. In recent years, the Flavored and Functional Water industry has offered some of the most significant advantages to medicine. Major Flavored and Functional Water market players, including PepsiCo Inc, BLNCD, and others, are attempting to increase market demand by investing in research and development operations.
PepsiCo, Inc. is an American food, snack, and beverage conglomerate headquartered in Purchase, New York. PepsiCo's operations span the entire food and beverage industry. It is in charge of product manufacture, distribution, and marketing. The Pepsi-Cola Company and Frito-Lay, Inc. merged to establish PepsiCo in 1965. PepsiCo has expanded beyond its eponymous product, Pepsi Cola, to include many food and beverage brands. In May 2021, PepsiCo Inc., a renowned food and beverage corporation, has introduced Soulboost, a functionally improved sparkling water. The drink comes in two flavors: Lift and Ease. Lift has 200 mg of ginseng, which aids mental stamina, and Ease contains 200 mg of theanine, which aids relaxation.
BLNCD is a vertically integrated corporation that controls the hemp CBD supply chain from farm to table. BLNCD products are made from midwestern-grown, certified organic hemp and organic and wildcrafted premium components. In June 2019, BLNCD Naturals, Minnesota's leading CBD health and wellness firm, partnered with Big Watt Coffee to launch three tantalizing flavors of CBD sparkling water, breaking into the beverage sector.
Flavored and Functional Water Industry Developments
Coca-Cola: AHA sparkling water was launched with new flavours like pineapple, coconut and peach ginger. Furthermore, Coca-Cola has also launched Sprite Zero Sugar+ with extra vitamins and electrolytes in collaboration with Sprite.
October 2022: CENTR Enhanced, a non-CBD functional sparkling water, has been added to CENTR Brands Corporation's increasing array of health and wellness products.
July 2022: As part of Flow Beverage Corp.'s latest product launch, the Flow Vitamin-Infused Water line of products has been launched to consumers in three new organic flavors: Cherry, Citrus, and Elderberry.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 12.9 Billion |
| Market Size 2023 | USD 13.87 Billion |
| Market Size 2032 | USD 24.87 Billion |
| Compound Annual Growth Rate (CAGR) | 7.57% (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 |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Associated British Foods plc (Twinnings) (U.K.),Goodricke Group Ltd. (India),Tata Beverages Ltd. (India) |
| Key Market Opportunities | The young population is divided into functional water lovers and coffee lovers. |
| Key Market Dynamics | Rising Wave of Health-Consciousness, Increasing Application Areas |
Flavored Functional Water Market Highlights:
Frequently Asked Questions (FAQ) :
The Flavored and Functional Water market size was valued at USD 12.9 Billion in 2022.
The market is projected to grow at a CAGR of 7.57% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are Associated British Foods plc (Twinnings) (U.K.),Goodricke Group Ltd. (India),Tata Beverages Ltd. (India).
The Functional category dominated the market in 2022.
The store based had the largest share in the market.
Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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