The global functional beverages market is anticipated to grow at a CAGR of around 6% during the forecast period. Functional beverages usually constitute of ingredients such as herbs, vitamins, minerals, amino acids, or raw fruit or vegetables with other performance-enhancing substance. Functional beverages are intended to provide various health benefits. The availability of functional beverages in various flavours and other options such as no-calorie and sugar will significantly enhance its adoption across the globe, which in turn, will drive the growth of the functional beverages market during the forecast period. However, the consumption of functional beverages above the prescribed limit have some adverse health effects which will significantly hamper the functional beverages market growth during the forecast period.

Segmental Outlook 

The global functional beverages market is segmented based on the type and distribution channel. Based on the type, the market is sub-segmented into energy drinks, sports drinks, dairy &dairy alternative beverages, and others. Based on the distribution channel the market is bifurcated into retail& supermarket and online platform. The online platform is estimated to exhibit considerable growth during the forecast period owing to the increasing growth in the e-commerce industry coupled with the increasing internet penetration.

Global Functional Beverages Market Share by Type, 2019 (%)

The Energy Drink Segment to Exhibit Considerable Growth

The energy drink segment is anticipated to grow with considerable CAGR in the functional beverages market owing to its increasing adoption across the globe. Energy drinks popularity is rising significantly as an alternative to alcoholic drinks among the population. Additionally, the easy availability of energy drinks in various flavoured options will also drive the energy drink segment in the functional beverages market. Moreover, the increasing market players is also anticipated to drive the growth of the energy drink segment during the forecast period.

Regional Outlooks

The global functional beverages market is further segmented based on geography into North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to hold the largest market share in the functional beverages market during the forecast period. The growth of the market in the region is attributed to the strong presence of large chain stores such as Walmart that sells the wide range of functional beverages across the region. In addition, due to the easy availability of functional beverages owing to the large number of supermarkets and hypermarkets, these are available at affordable prices across the region. This will also fuel the market growth in the region during the forecast period.

Global Functional Beverages Market Growth by, Region 2020-2026

Asia-Pacific will Augment with the Fastest Growth Rate in the Functional Beverages Market

Asia-Pacific is anticipated to exhibit the fastest growth rate in the functional beverages market owing to the increasing international sports events across the region. In addition to this, the popularity of domestic sports is also raising which will impact the adoption of functional drinks. Moreover, changing lifestyle coupled with the growing health awareness will also impact the functional beverages market growth. Besides, the increasing number of global functional beverages manufactures across the Asia-Pacific region will also drive the shares of the functional beverages market during the forecast period. Additionally, the increasing demand for ready to drink beverages will provide new opportunities for the growth of the functional beverages market across the region.

Market Players Outlook

Some of the key players operating in the global functional beverages market include Danone SA, Nestle S.A, PepsiCo, Inc., The Coca-Cola Co., The Kraft Heinz Co., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including new product launch, merger, and acquisition, collaborations to stay competitive in the market.

Recent Activities

• In March 2020, PepsiCo, Inc. announced the purchase of Rockstar Energy Beverages in a deal of $3.85 billion. This will aid the company in expanding its presence in the energy drink category.
• In June 2019, World Waters, LLC announced the launch of WTRMLN SportWTR across the globe. It is an electrolyte-filled beverage that is intended for healthy hydrating and performance enhancing in any kind of sports.
• In June 2019, The Coco-Cola Co. diversify its portfolio with the launch of its sports beverage Powerade in India. With this launch the company has entered into the nascent sports hydration market
• In February 2019, Hormel Foods Corp. announced that it has entered into a definitive agreement to sell its CytoSport business to PepsiCo, Inc.

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Functional beverages market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.