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