DUBLIN--(BUSINESS WIRE)--The "Functional Beverage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The global functional beverage market is projected to grow at a CAGR of 6.96% during the forecast period (2021 - 2026).
The ongoing COVID-19 pandemic is seen as a once-in-a-lifetime event and something that will have a profound impact on concerns about health, as well as eating and drinking habits. This is something that will drive demand for functional products that help boost immunity as consumers look to minimize the risk of illness. When it comes to such products, it is crucial that they are deemed affordable and credible when it comes to health claims.
Increasing demand for innovative products, like plant-based and lactose-free beverage products, drive the market studied, while the inclusion of CBD infused functional beverages is expected to be the opportunity to the future market.
Key players operating in the market are embarking on product innovation, mergers, and acquisitions as their key strategies to achieve consolidation and optimize their offerings. For instance, Glanbia acquired Body & Fit (offers energy drinks in the Netherlands), a leading direct-to-consumer (DTC), online, branded business focused on performance nutrition. This acquisition enabled GPN to have a direct presence in the rapidly growing DTC channel. Additionally, it may help the company increase its revenue, which may drive the market growth.
Key Market Trends
The Growing Demand for Healthy Hydration Products
The progressive inclination of consumers toward health-oriented beverages has involved probiotic food products as a requisite in the list. In addition, the sale promoting tag lines, such as "ready to drink", "on the go" and other convenience factors, such as favorable packaging altogether served by beverages, further augments the demand for probiotic drinks, including kombucha. Consumers have started to prefer functional drinks over fruit juices and carbonated drinks.
With consumers now increasingly aware of the health implications associated with soft drinks categories, concerned drinkers are frequently shunning vilified categories, like carbonates and juices, in favor of 'healthier' choices, such as soymilk, probiotics, and other functional drinks. Consumer education has been the key factor behind the rising demand for healthy hydration drinks. The trend of healthy hydration owes its success to the growing awareness toward fermented drinks with natural ingredients and the increasing acceptance of consuming probiotics.
Increasing Consumption of Functional Beverages from the Asia-Pacific Market
The high incidence of cardiovascular disease, osteoporosis, and arthritis coupled with the growing demand for convenience beverages and the changing lifestyle among Asian consumers are the major drivers for the growth of functional energy drinks, fortified/functional plant-based and malt-based hot drinks sales in the market.
Further, due to the high prevalence of diabetes in the countries like India and China, consumers are becoming more aware of the importance of a healthy diet and active lifestyle promoting the consumers to prefer natural sweeteners, such as stevia, in their beverages. According to the International Diabetes Federation, India was home to 77 million diabetes patients in 2019, the second-largest in the world. By 2030, the number is predicted to reach 101 million. Thus, companies like PepsiCo Inc. and Coca-Cola, are committed to remove artificial ingredients and reduce the sugar content in their products
Competitive Landscape
The global functional beverage market is a competitive market and comprises numerous regional and international competitors. Players are also extensively focusing on providing consumers with innovative offerings while including functional benefits in each of their products. Further, while engaging the consumers with innovation and expansion strategies, key players are capitalizing on the market revenue.
Some of the major players in the market studied are
- PepsiCo, Inc.
- Red Bull GmbH
- The Coca-Cola Company
- Danone S.A.
- Monster Beverage Corporation
- JAB Holdings Company
- General Nutrition Centers, Inc.
- The Hain Celestial Group, Inc.
- Fonterra Co-operative Group
- Amway Corporation
For more information about this report visit https://www.researchandmarkets.com/r/jef942
