Functional Beverages Market Research Report- Forecast to 2023

Functional Beverages Market Research Report- Forecast to 2023

ID: MRFR/F-B & N/1331-CRR | October, 2018 | Region: Global | 110 pages | Cooked Research Reports

Global Functional Beverages Market Information: by Type (Energy Drinks, Sports Beverages), Distribution Channel (Store Based, Non-store Based), Function (Health & Wellness, Weight Management), and Region – Global Forecast Till 2023


Market Synopsis


The rise in health-consciousness among consumers has led to them shunning carbonated beverages for a sounder option. Functional beverages contain ingredients such as amino acids, minerals, vitamins, herbs, nootropics, and other vital ingredients which can revitalize drinkers. The global functional beverages market is projected to exhibit a 6.63% CAGR from 2018 to 2023 (forecast period) owing to various benefits accorded to these drinks. Innovation in terms of packaging, research and development of flavors, and new product launches are factors expected to spur market growth over the forecast period. Furthermore ,the demand for functional beverages to cater to the elderly populace can open up new opportunities for the market.


Report Overview


The report provides an accurate overview of the market by correlating the historical data with key market dynamics. Our analysts make astute predictions regarding the scope of the market and its future prospects. MRFR’s report includes a thorough analysis of the global functional beverages market segmented according to type, distribution channel, function, and region. Numerous growth strategies undertaken by companies as well as the latest trends driving the market are outlined in the report. The market share of all prominent players and their current position in the market is discussed in minute detail. It analyzes new revenue sources for players and emphasize on the various strategies implemented by players.


Segment Overview


By type, the functional beverages market is segmented into energy drinks, sports beverages, prebiotic and probiotic drinks, functional fruits and vegetable juices, functional dairy products, dairy alternative beverages, and others. ‘Others’ is sub-segmented into teas & coffee and water. Distribution channels discussed for expansion plans of key players include store-based and non-store based. Functional beverages are segmented on the basis of function into hydration, weight management, energy and rejuvenation, and health and wellness.


The segments covered in the functional beverages market report are analyzed with respect to four main regions – North America, Europe, Asia Pacific (APAC), and the Rest-of-the-World (RoW), with respective country-level market sizing. The report discusses in detail the various players residing in these regions and their respective strategies to climb up the market ladder.


Competitive Landscape


Notable players in the functional beverages market include Nestle S.A. (Switzerland), The Coca-Cola Company (U.S.), PepsiCo Inc. (U.S.), Fonterra Co-operative Group Ltd. (New Zealand), Mondelez International Inc. (U.S.), Hain Celestial Group (U.S.), Monster Beverage Corporation (U.S.), Kraft Heinz Company (U.S.), Campbell Soup Co. (U.S.), and Danone (France).


The report offers comprehensive profiles on these market players and assesses their current standing in the market. Company history coupled with annual turnover, profit margins, segmental share, SWOT analysis, growth strategies, expansion techniques, and latest R&D initiatives are discussed in minute detail.


Research Methodology


At MRFR, our research analysts conduct a thorough objective analysis of the market while creating market reports by adhering to a rigorous set of standards which allow a truly comprehensive view of the market. Use of primary research strategies such as interviews with top executives of prominent beverage manufacturing companies. Secondary research entails a thorough analysis of past and present trends in a forward-looking manner.


In addition, market size estimation and validation use both top-down & bottom-up approaches to obtain data from the value and supply chain. The balanced number of buyers and suppliers will result in a negligible demand-supply gap. Credible resources are accessed and verified by analysts to understand the nuances of market factors with consistency. Competent data analysts use strong analytical tools to ascertain accurate analysis of very relevant parameters in an effort to provide clients with a conclusive and dependable view of the future.


Analysis Period



  • Base Year - 2017

  • Projection Period - From 2018 to 2023

  • Market Denomination - USD Billion

  • Conversion Rate - Considered as per the respective financial years


Intended Audience



  • Global Functional Beverage Manufacturers

  • Healthy Drink Manufacturers

  • Non-alcoholic Beverage Manufacturers

  • E-commerce Companies

  • Raw Material Suppliers

  • Traders, Importers, and Exporters


For the scope of research, the report offers a comprehensive analysis of the global functional beverages market.


Type



  • Energy Drinks

  • Sports Beverages

  • Prebiotic and Probiotic Drinks

  • Functional Fruits and Vegetable Juices

  • Functional Dairy Products

  • Dairy Alternative Beverages

  • Others

    • Water

    • Teas & Coffee




Distribution Channel



  • Store Based

  • Non-store Based


Function



  • Health & Wellness

  • Energy & Rejuvenation

  • Weight Management

  • Hydration


Region



  • North America

    • The U.S.

    • Canada

    • Mexico





  • Europe

    • Germany

    • France

    • Italy

    • Spain

    • K.

    • Rest of Europe





  • Asia Pacific

    • Japan

    • China

    • India

    • Australia & New Zealand

    • Rest of Asia Pacific





  • Rest-of-the-World

    • Latin America

    • The Middle East

    • Africa



Global Functional Beverages Market – Summary


Food quality, over the years, has improved a lot but intake of nutritional foods has plummeted. This can be termed as a side-effect of fast-tracked lifestyle that allows almost no time for preparation of nutritious foods. Hence, a need for functional beverages spurred. These beverages help in maintaining the overall nutrition of the human body and keeping the body hydrated. Makers endeavor to address health issues of all and bring in holistic development. The global functional beverages market can expect a substantial 6.63% CAGR during the forecast period (2018-2023) with an estimated scaling of USD 234.48 billion valuation. Market Research Future’s (MRFR) detailed report includes segments, competitions, and drivers for better predictive analysis of the future market.


Functional beverages are gaining traction owing to its benefits regarding ingredients such as minerals, vitamins, herbs, amino acids, antioxidants, and bacteria. It can help people achieve a better immune system, improved heart rate, sound digestive health hydration, and enhanced electrolyte replenishing. Furthermore, to get more momentum, makers of functional beverages are developing new products. Such as variants based on sugar-free technology or caloric formulations. High investments are also being made in research & developments (R&D) which could assist in market expansion.


The organized retail sector is also growing by leaps and bounds. Earlier it used to be available only in drugstores and fitness stores. However, its availability chart has expanded and taken in supermarkets, hypermarkets, and specialty stores. With a broader spectrum, the sale has also increased. In addition, e-commerce channels are revamping functional beverage market sales structure.


On the downside, stringent government policies are making it hard for the sector to work smoothly. The cumbersome permit process is a major factor. On the other hand, high-calorie content in many beverages along with sugar can find their appeal among the populace going down. Individuals are now showing great concern for their diabetes level, and additionally, weight is an aspect to worry about. The functional beverages market can suffer owing to these drawbacks.


Segmentation:


By type, the functional beverage market can be segmented into energy drinks, functional fruit and vegetable juice, sports beverages, prebiotic & probiotic drinks, functional dairy products, dairy alternative beverages, and others. Among these, sports beverages are presently covering the maximum market share which is going to remain the same during the forecast period as well. The market can easily scale USD 63.88 billion market. Energy drinks sub-segment would follow the lead closely by aspiring for a USD 52.58 billion market valuation.


Based on distribution channels, the functional beverages market can be segmented into store-based and non-store based. Store-based segment is leading with an overwhelming margin and can easily reach USD 185.2 million by 2023.


By function, the functional beverage market can be segmented into hydration, energy & rejuvenation, health & wellness, and weight management. Health & wellness currently leads the market with USD 63.44 billion and is expected to leap to USD 91.25 billion by 2023. Energy & rejuvenation segment is also following the lead closely and can reach a valuation of USD 87.38 billion.


Regional Analysis:


Region-wise, the functional beverage market covers actions of namely North America, Europe, Asia Pacific (APAC), and Rest-of-the-World (RoW).


Europe has the largest market share. With a predicted total valuation of USD 74.26 billion during the forecast period, the region is going to escalate further. Its projected CAGR of 6.22% during the review period can be attributed to Germany, France, Spain, and Italy’s major contribution. France can register the maximum regional growth of 6.98% CAGR.


North America has the second largest market. It can scale a market value of USD 68.12 billion at a CAGR of 6.42% during the forecast period. Mexico is expecting the fastest regional CAGR of 6.97% during the forecast period, whereas, the U.S. will have the largest market share of USD 49.51 billion.


The APAC will register the fastest CAGR of 7.29% during the forecast period, and India, Japan, and China will cement their position with substantial market growth. China’s expected market share would be of USD 19.96 billion of the total expected regional value USD 59.79 billion.


Market Insight:


The intense market experiences strategical implementations made by market influencers. Common tactics such as mergers, collaborations, acquisitions, and new product launch are tested methods but contribute significantly to the global market expansion. For instance, the Coca-Cola Company acquired Ades from Unilever recently to use plant-based beverages in their portfolio. Danone set up a new unit in Mt. Crawford, Virginia to expand their business.


Prominent market players are PepsiCo Inc., The Coca-Cola Company, Nestle S.A., Danone, Kraft Heinz Company, Fonterra Co-operative Group Ltd., Mondelez International Inc., Monster Beverage Corporation, Campbell Soup Co., Hain Celestial Group, and others.     

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TABLE OF CONTENTS

2.1 Definition 18

2.2 Scope of the Study 18

2.3 Assumptions 19

2.4 Market Structure 19

2.5 Key Takeaways 20

2.6 Key Buying Criteria 20

3.1 Research Process 22

3.2 Primary Research 23

3.3 Secondary Research 24

3.4 Market Size Estimation 25

3.5 Forecast Model 25

4.1 Introduction 27

4.2 Drivers 28

4.2.1 Health Attributes Associated with Functional Beverages 28

4.2.2 New Product Development 28

4.2.3 Mounting Growth in the Organized Retail Sector 28

4.2.4 Rising Demand for Functional Products Among Ageing Population 28

4.2.5 Drivers Impact Analysis 29

4.3 Restraints 29

4.3.1 High Calorie Content in Functional Beverages 29

4.3.2 Stringent Government Regulations & Guidelines 29

4.4 Opportunities 30

4.4.1 Manufacturers Focus Towards Product Differentiation 30

4.4.2 Shifting Trend Towards Health and Wellness 30

4.4.3 Increasing Demand for “clean-label and natural ingredients” in Functional Beverages 30

4.5 Challenges 31

4.5.1 Misleading Product Labels 31

4.5.2 Adverse Health Effects of Certain Ingredients 31

5.1 Value Chain Analysis 33

5.1.1 Raw Material Procurement 33

5.1.2 Processing 33

5.1.3 Packaging 34

5.1.4 Distribution & Sales 34

5.1.5 Post Sales Services 34

5.2 Supply Chain Analysis 34

5.3 Porter’s Five Forces Analysis 35

5.3.1 Threat of New Entrants 36

5.3.2 Bargaining Power of Suppliers 36

5.3.3 Threat of Substitutes 37

5.3.4 Bargaining Power of Buyers 37

5.3.5 Competitive Rivalry 37

6.1 Overview 39

6.1.1 Energy Drinks 39

6.1.2 Functional fruit and vegetable juices 39

6.1.3 Sports Beverages 39

6.1.4 Prebiotic and probiotic drinks 39

6.1.5 Functional dairy products 40

6.1.6 Dairy Alternative Beverages 40

6.1.7 Others (water, teas & coffee) 40

7.1 Overview 46

7.1.1 Store Based 46

7.1.2 Non-Store Based 46

8.1 Overview 49

8.1.1 Hydration 49

8.1.2 Energy & Rejuvenation 49

8.1.3 Health & Wellness 49

8.1.4 Weight Management 49

9.1 Introduction 53

9.2 North America 54

9.2.1 U.S. 56

9.2.2 Canada 58

9.2.3 Mexico 60

9.3 Europe 62

9.3.1 U.K 64

9.3.2 Germany 66

9.3.3 France 68

9.3.4 Italy 69

9.3.5 Spain 71

9.3.6 Rest of Europe 72

9.4 Asia Pacific 75

9.4.1 China 77

9.4.2 India 79

9.4.3 Japan 80

9.4.4 Australia & New Zealand 82

9.4.5 Rest of Asia Pacific 84

9.5 Rest of the World 86

9.5.1 Latin America 88

9.5.2 Middle East 90

9.5.3 Africa 91

11.1 PepsiCo Inc. 99

11.1.1 Company Overview 99

11.1.2 Financial Overview 99

11.1.3 Products Offerings 100

11.1.4 Key Developments 100

11.1.5 SWOT Analysis 101

11.1.6 Key Strategy 101

11.2 The Coca-Cola Company 102

11.2.1 Company Overview 102

11.2.2 Financial Overview 102

11.2.3 Products Offerings 103

11.2.4 Key Developments 104

11.2.5 SWOT Analysis 104

11.2.6 Key Strategy 105

11.3 Nestle S.A. 106

11.3.1 Company Overview 106

11.3.2 Financial Overview 106

11.3.3 Products Offerings 107

11.3.4 Key Developments 107

11.3.5 SWOT Analysis 108

11.3.6 Key Strategy 108

11.4 Danone 109

11.4.1 Company Overview 109

11.4.2 Financial Overview 109

11.4.3 Products Offerings 110

11.4.4 Key Developments 110

11.4.5 SWOT Analysis 111

11.4.6 Key Strategy 111

11.5 Kraft Heinz Company 112

11.5.1 Company Overview 112

11.5.2 Financial Overview 112

11.5.3 Products Offerings 113

11.5.4 Key Developments 113

11.5.5 SWOT Analysis 114

11.5.6 Key Strategy 114

11.6 Fonterra Co-operative Group Ltd. 115

11.6.1 Company Overview 115

11.6.2 Financial Overview 115

11.6.3 Products Offerings 116

11.6.4 Key Developments 116

11.6.5 SWOT Analysis 116

11.6.6 Key Strategy 117

11.7 Mondelez International Inc. 118

11.7.1 Company Overview 118

11.7.2 Financial Overview 118

11.7.3 Products Offerings 119

11.7.4 Key Developments 119

11.7.5 SWOT Analysis 119

11.7.6 Key Strategy 120

11.8 Monster Beverage Corporation 121

11.8.1 Company Overview 121

11.8.2 Financial Overview 121

11.8.3 Products Offering 122

11.8.4 Key Development 122

11.8.5 SWOT Analysis 123

11.8.6 Key Strategy 123

11.9 Campbell Soup Co. 124

11.9.1 Company Overview 124

11.9.2 Financial Overview 124

11.9.3 Products Offerings 125

11.9.4 Key Developments 125

11.9.5 SWOT Analysis 125

11.9.6 Key Strategy 126

11.10 Hain Celestial Group 127

11.10.1 Company Overview 127

11.10.2 Financial Overview 127

11.10.3 Products Offerings 128

11.10.4 Key Development 129

11.10.5 SWOT Analysis 129

11.10.6 Key Strategy 129

12.1 Key Findings 131

12.1.1 CEO’s Viewpoint 131

12.1.2 Key Companies to Watch 131

12.1.3 Prediction 131

TABLE 1 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY REGION, 2016-2023 (USD BILLION) 13

TABLE 2 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 14

TABLE 3 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 15

TABLE 4 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 16

TABLE 5 LIST OF ASSUMPTIONS 19

TABLE 6 GLOBAL FUNCTIONAL BEVERAGES (BY ENERGY DRINKS) MARKET, BY REGION, 2016-2023 (USD BILLION) 41

TABLE 7 GLOBAL FUNCTIONAL BEVERAGES (BY FUNCTIONAL FRUITS & VEGETABLES JUICES) MARKET, BY REGION, 2016-2023 (USD BILLION) 41

TABLE 8 GLOBAL FUNCTIONAL BEVERAGES (BY SPORTS BEVERAGES) MARKET, BY REGION, 2016-2023 (USD BILLION) 42

TABLE 9 GLOBAL FUNCTIONAL BEVERAGES (BY PREBIOTIC & PROBIOTICS DRINKS) MARKET, BY REGION, 2016-2023 (USD BILLION) 42

TABLE 10 GLOBAL FUNCTIONAL BEVERAGES (BY FUNCTIOANL DAIRY PRODUCTS) MARKET, BY REGION, 2016-2023 (USD BILLION) 43

TABLE 11 GLOBAL FUNCTIONAL BEVERAGES (BY DAIRY ALTERNATIVE BEVERAGES) MARKET, BY REGION, 2016-2023 (USD BILLION) 43

TABLE 12 GLOBAL FUNCTIONAL BEVERAGES (BY OTHERS) MARKET, BY REGION, 2016-2023 (USD BILLION) 44

TABLE 13 GLOBAL FUNCTIONAL BEVERAGES (STORE BASED) MARKET, BY REGION, 2016-2023 (USD BILLION) 46

TABLE 14 GLOBAL FUNCTIONAL BEVERAGES (NON-STORE BASED) MARKET, BY REGION, 2016-2023 (USD BILLION) 47

TABLE 15 GLOBAL FUNCTIONAL BEVERAGES (BY HYDRATION) MARKET, BY REGION, 2016-2023 (USD BILLION) 50

TABLE 16 GLOBAL FUNCTIONAL BEVERAGES (BY ENERGY & REJUVENATION) MARKET, BY REGION, 2016-2023 (USD BILLION) 50

TABLE 17 GLOBAL FUNCTIONAL BEVERAGES (BY HEALTH & WELLNESS) MARKET, BY REGION, 2016-2023 (USD BILLION) 51

TABLE 18 GLOBAL FUNCTIONAL BEVERAGES (BY WEIGHT MANAGEMENT) MARKET, BY REGION, 2016-2023 (USD BILLION) 51

TABLE 19 NORTH AMERICA: FUNCTIONAL BEVERAGES MARKET, BY COUNTRY, 2016-2023 (USD BILLION) 54

TABLE 20 NORTH AMERICA: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 55

TABLE 21 NORTH AMERICA: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 55

TABLE 22 NORTH AMERICA: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 56

TABLE 23 U.S.: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 57

TABLE 24 U.S.: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 57

TABLE 25 U.S.: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 58

TABLE 26 CANADA: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 58

TABLE 27 CANADA: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 59

TABLE 28 CANADA: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 59

TABLE 29 MEXICO: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 60

TABLE 30 MEXICO: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 60

TABLE 31 MEXICO: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 61

TABLE 32 EUROPE: FUNCTIONAL BEVERAGES MARKET, BY COUNTRY, 2016-2023 (USD BILLION) 62

TABLE 33 EUROPE: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 63

TABLE 34 EUROPE: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 63

TABLE 35 EUROPE: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 64

TABLE 36 U.K: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 64

TABLE 37 U.K: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 65

TABLE 38 U.K: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 65

TABLE 39 GERMANY: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 66

TABLE 40 GERMANY: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 67

TABLE 41 GERMANY: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 67

TABLE 42 FRANCE: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 68

TABLE 43 FRANCE: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 68

TABLE 44 FRANCE: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 69

TABLE 45 ITALY: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 69

TABLE 46 ITALY: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 70

TABLE 47 ITALY: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 70

TABLE 48 SPAIN: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 71

TABLE 49 SPAIN: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 71

TABLE 50 SPAIN: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 72

TABLE 51 REST OF EUROPE: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 73

TABLE 52 REST OF EUROPE: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 73

TABLE 53 REST OF EUROPE: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 74

TABLE 54 ASIA PACIFIC: FUNCTIONAL BEVERAGES MARKET, BY COUNTRY, 2016-2023 (USD BILLION) 75

TABLE 55 ASIA PACIFIC: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 76

TABLE 56 ASIA PACIFIC: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 76

TABLE 57 ASIA PACIFIC: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 77

TABLE 58 CHINA: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 77

TABLE 59 CHINA: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 78

TABLE 60 CHINA: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 78

TABLE 61 INDIA: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 79

TABLE 62 INDIA: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 79

TABLE 63 INDIA: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 80

TABLE 64 JAPAN: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 81

TABLE 65 JAPAN: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 81

TABLE 66 JAPAN: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 82

TABLE 67 AUSTRALIA & NEW ZEALAND: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 82

TABLE 68 AUSTRALIA & NEW ZEALAND: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 83

TABLE 69 AUSTRALIA & NEW ZEALAND: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 83

TABLE 70 REST OF ASIA PACIFIC: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 84

TABLE 71 REST OF ASIA PACIFIC: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 85

TABLE 72 REST OF ASIA PACIFIC: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 85

TABLE 73 REST OF THE WORLD: FUNCTIONAL BEVERAGES MARKET, BY REGION, 2016-2023 (USD BILLION) 86

TABLE 74 REST OF THE WORLD: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 87

TABLE 75 REST OF THE WORLD: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 87

TABLE 76 REST OF THE WORLD: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 88

TABLE 77 LATIN AMERICA: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 88

TABLE 78 LATIN AMERICA: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 89

TABLE 79 LATIN AMERICA: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 89

TABLE 80 MIDDLE EAST: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 90

TABLE 81 MIDDLE EAST: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 90

TABLE 82 MIDDLE EAST: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 91

TABLE 83 AFRICA: FUNCTIONAL BEVERAGES MARKET, BY TYPE, 2016-2023 (USD BILLION) 92

TABLE 84 AFRICA: FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL, 2016-2023 (USD BILLION) 92

TABLE 85 AFRICA: FUNCTIONAL BEVERAGES MARKET, BY FUNCTION, 2016-2023 (USD BILLION) 93

TABLE 86 COMPETIVE LANDSCAPING: GLOBAL FUNCTIONAL BEVERAGES MARKET: BY STRATEGY (2014-2018) 97



FIGURE 1 GLOBAL FUNCTIONAL BEVERAGES MARKET SHARE (%), BY REGION (2017 & 2023) 13

FIGURE 2 GLOBAL FUNCTIONAL BEVERAGES MARKET SHARE (%), BY TYPE (2017 & 2023) 14

FIGURE 3 GLOBAL FUNCTIONAL BEVERAGES MARKET SHARE (%), BY DISTRIBUTION CHANNEL (2017 & 2023) 15

FIGURE 4 GLOBAL FUNCTIONAL BEVERAGES MARKET SHARE (%), BY FUNCTION (2017 & 2023) 16

FIGURE 5 GLOBAL FUNCTIONAL BEVERAGES MARKET: MARKET STRUCTURE 19

FIGURE 6 KEY TAKEAWAYS OF THE FUNCTIONAL BEVERAGES MARKET 20

FIGURE 7 KEY BUYING CRITERIA OF FUNCTIONAL BEVERAGES 20

FIGURE 8 RESEARCH PROCESS OF MRFR 22

FIGURE 9 TOP DOWN & BOTTOM-UP APPROACH 25

FIGURE 10 MARKET DYNAMICS OF GLOBAL FUNCTIONAL BEVERAGES MARKET 27

FIGURE 11 DRIVERS IMPACT ANALYSIS: FUNCTIONAL BEVERAGES MARKET 29

FIGURE 12 RESTRAINTS IMPACT ANALYSIS: FUNCTIONAL BEVERAGES MARKET 30

FIGURE 13 VALUE CHAIN ANALYSIS: FUNCTIONAL BEVERAGES MARKET 33

FIGURE 14 SUPPLY CHAIN ANALYSIS: FUNCTIONAL BEVERAGES MARKET 34

FIGURE 15 PORTER'S FIVE FORCES ANALYSIS OF THE GLOBAL FUNCTIONAL BEVERAGES MARKET 35

FIGURE 16 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY TYPE 2017 & 2023 (USD BILLION) 40

FIGURE 17 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY DISTRIBUTION CHANNEL 2017 & 2023 (USD BILLION) 46

FIGURE 18 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY FUNCTION 2017 & 2023 (USD BILLION) 49

FIGURE 19 GLOBAL FUNCTIONAL BEVERAGES MARKET, BY REGION 2017 & 2023 (USD BILLION) 53

FIGURE 20 NORTH AMERICA FUNCTIONAL BEVERAGES MARKET, BY COUNTRY 2017 & 2023 (USD BILLION) 54

FIGURE 21 EUROPE FUNCTIONAL BEVERAGES MARKET, BY COUNTRY 2017 & 2023 (USD BILLION) 62

FIGURE 22 ASIA PACIFIC FUNCTIONAL BEVERAGES MARKET, BY COUNTRY 2017 & 2023 (USD BILLION) 75

FIGURE 23 REST OF THE WORLD FUNCTIONAL BEVERAGES MARKET, BY REGION 2017 & 2023 (USD BILLION) 86

FIGURE 24 GLOBAL FUNCTIONAL BEVERAGES MARKET: MAJOR PLAYER MARKET DEVELOPMENT SHARE 2014-2018 95

FIGURE 25 GLOBAL FUNCTIONAL BEVERAGES MARKET: STRATEGY ANALYSIS 96

FIGURE 26 GLOBAL FUNCTIONAL BEVERAGES MARKET: MARKET DEVELOPMENT (2013-2017) 97



 Report Infographic image

Escalating demand for functional food & beverages among the increasing health conscious population is encouraging the key players of functional beverage industry to expand their business portfolio in the global market


Major key players listed in the functional beverages market include Danone (France), The Coca Cola Company (US), PepsiCo Inc. (US), Kraft Heinz Company (US), Hain Celestial Group (US), Nestle S.A (Switzerland), Monster Beverage Company (US), Fonterra Co-operative Group Ltd. (New Zealand), Mondelez International Inc. (US), Campbell Soup Co. (US), and others. Functional beverage has an established market throughout the globe owing to shifting consumer demand towards healthy diet. Also, the growth in the marketing strategies adopted by the key players is a major driver in the global functional beverage market. These listed players account for the major share in the global functional beverage market. To compete with the new players entering the functional beverage market, the established players follow certain strategies to sustain their consumer base.


Danone accounted for the highest market share in terms of development and is projected to constitute 19% of the developmental share in the global functional beverages market. The company is majorly focusing on new product launches which are more healthy and nutritious for the consumers. For instance, in the first two quarters of the year 2018, the company launched about 4 functional beverages in different regions. Moreover, the company is also undergoing geographical expansion to make their presence prominent. Acquisition and joint-ventures are also witnessed to be a part of their strategic development in past few years.


The Coca Cola Company is anticipated to account for a share of 17% of the overall development in the global functional beverages market. This company is highly involved into diversified strategic developments. The company is focusing into new product launches offering a wide range of products to the consumers and is also undergoing strategic acquisitions to have a sustainable growth. It is highly involved into R&D and launch of new products widening their product portfolio. The company is also undergoing acquisition of small firms to increase its presence in the developing market. For instance; Xiamen Culiangwang, maker of plant-based protein beverages in China was acquired by Coca-Cola Company to expand their portfolio of beverages in China.


PepsiCo Inc. also holds a prominent place in the market with strong focus on product launch followed by expansion of their production capacity and geographical reach. The company is also focusing on launching new products frequently to increase their product offerings and compete in the market. For instance, in 2017, as a part of its expansion in functional beverages segment, PepsiCo India launched vitamin -fortified water product, the Aquafina Vitamin Splash.


Major manufacturers also are found to have a high focus on strategic product launch to seek consumers’ attention towards their product range. They are also involved in the strategic agreement which will further support the company to expand and reach out to consumers across the regions. Acquisitions are also made to mark the company’s presence and expand their business line. In the strategy analysis, product launch dominated the market accounting for a share of 45%. Product innovations and introduction of new flavors is what the players are focusing upon. They tend to increase their product offerings in the market to compete against their competitors. They are also inclined towards expanding their geographical presence and expanding their production capacity to fulfil the growing consumer demands. Moreover, acquisition is holding 21% of share in strategy market for functional beverages.


Additionally, the companies are inclined towards product promotions and strengthening their marketing base. The promotional strategy aids in retaining the existing customers and to regenerating new customer base.