The functional water market is projected to grow at a considerable CAGR of around 7% during the forecast period (2020-2026). The growing preference of consumers towards better-for-you or healthy alternatives from high-sugar and unnatural drinks is a key factor contributing to the high market share of the functional water market. The functional water is composed of high vitamin, protein, minerals, and is having extra-oxygen properties which make it suitable to be taken as a healthy drink. According to the WHO, obesity is expected to affect nearly 70 million children by 2025. The rising prevalence of obesity and the risks regarding it has provoked consumers to shift to low-calorie drinks, which in turn is promoting market growth. 

In addition, the rising geriatric population along with the high obese population is anticipated to drive the functional water market across the globe. The increasing preference of consumers towards the non-alcoholic beverages over the alcoholic beverage for refreshing purposes is again boosting the growth of the market across the globe. Moreover, a higher level of advertisement and packaging of functional water bottles to attract new customers is again making a huge contribution to the growth of the global market. The new launches of high-quality products by providing label claims are further fuelling the market growth. However, the high price of the functional water is the crucial factor that is anticipated to hinder the growth of the market across the globe. 

Segmental Outlook  

The functional water market is segmented on the basis of product type and distribution channels. Based on type the market is sub-segmented into vitamin, protein, and others. Vitamin is anticipated to hold considerable market share based on the product type. The high demand for the drinks containing multi-vitamins and vitamin C is a major contributor towards the high share of this market segment. Based on the distribution channel, the market is segmented into supermarkets, specialty stores, online stores, and others. 

Super Market to be considerable segment based on Distribution Channel

The supermarket is anticipated to hold considerable market share based on the distribution channel. The easy availability of the high quality packaged functional water in this supermarket along with the reasonable price is a key factor contributing towards the growth of this market segment. Moreover, the high visiting of consumers at these stores to purchase drinks is further anticipated to promote the growth of this market.  

Global Functional Water Market Share by Distribution Channel, 2019 (%)

Regional Outlook 

The global functional water market is further segmented on the basis of geography including North America, Europe, Asia-Pacific and Rest of the World. North America is anticipated to hold a considerable market share during the forecast period. The US held a major market share in terms of sales of functional water. Further, the presence of key market players such as PepsiCo, Inc., hint Inc., and Dr. Pepper Snapple Group Inc. among others in the region is making a considerable contribution to the market share. These market players are luring their consumers by creating a context or by refining the composition of the product which in turn is anticipated to make a contribution towards the high share of the functional water in the region.

Global Functional Water Market Growth, by Region 2020-2026

Asia-Pacific to exhibit considerable growth during the forecast period 2020-2026

Asia-Pacific is anticipated to showcase considerable growth in the global functional water market during the forecast period. The increasing awareness among the consumers regarding the advantages of functional water is expected to be a major factor contributing to the growth of the functional water market in the region. The increasing preference of consumers for the specialty offerings in the offered products is further anticipated to drive the demand of the functional water which in turn is promoting the growth of the functional water market in the region. Consumer preference for carbonated soft drinks (CSDs) as a healthy alternative along with innovations in flavors of functional water is expected to offer immense growth opportunity for the market in Asia-Pacific.

Market Players Outlook

The key players of the functional water market include Disruptive Beverages Inc., The Coca-Cola Co., Pepsi Co Inc., Balance Water Co., Danone Group, Dr. Pepper Snapple Group Inc., Trimino Brands Company LLC, Nestle S.A., Hint Inc., and so on. The new product launch and product development are the core focus of these major market players. Moreover, the key players of the functional water market are actively adopting organic or inorganic market activities to increase their market share. For instance, in January 2020, Voss USA Inc. had launched VOSS Plus,one-of-a-kind functional water enhanced with Aquamin. Aquamin is a unique, marine-sourced multi-mineral complex, including Calcium, Magnesium & Potassium. The bottle is made with 100% recycled PET and features a recyclable food-grade cap.

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 water market. Based on the availability of data, information related to the products, 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.