Functional Beverages Market is expected to reach US$ 145,146.05 million by 2028

Surging Demand for Beverages with Functional Benefits Contributes to Market Growth

According to our latest market study, titled " Functional Beverages Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product Type (Energy Drinks, Sports Drinks, Fortified Juices, Functional Water, and Others) and Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, and Others)," The market is projected to reach US$ 145,146.05 million by 2028 from US$ million 85,728.85 in 2021; it is expected to grow at a CAGR of 7.8% from 2021 to 2028.

The rising prevalence of chronic diseases, such as cancer, heart diseases, obesity, and diabetes, is prompting consumers to place a greater emphasis on their health and fitness, which has revealed significant growth opportunities for the functional beverages market players. According to the World Health Organization (WHO), ~17.9 million people died because of CVDs in 2019, accounting for 32% of the deaths worldwide; heart attacks and strokes were the cause of 85% of these deaths. Therefore, people are changing their lifestyles and dietary habits to protect themselves from these chronic diseases. They are adopting active lifestyles, and consuming foods and beverages that offer functional benefits. Functional beverages are enriched with vitamins, minerals, proteins, amino acids, and probiotics, which help in fulfilling all the nutrient requirements of the body. Thus, the growing demand for beverages that offer health benefits is driving the growth of the functional beverages market.

Key players operating in the global functional beverages market include PepsiCo, The Coca-Cola Company, Nestle, Kraft Foods, General Mills, Campbell Soup Company, Red Bull, The Wonderful Company LLC, Danone SA, and Monster Energy Company. These players are focusing on product innovation strategies to enlarge their market shares and boost their revenues.

Impact of COVID-19 Pandemic on Functional Beverages Market

The food & beverage industries across different regions suffered from severe disruption due to lockdowns, travel bans, border restrictions, manufacturing unit shutdowns, among other adversities, after the onset of the COVID-19 pandemic. However, the overall impact of the pandemic on the functional beverages market has been of a mixed type. Demand for functional beverages increased significantly as consumers became more concerned about the nutritional profile of their diet, which presented significant opportunities to the functional beverages market players. The sales of functional beverages increased with the rapid emergence of health and wellbeing trends. Moreover, the demand for immunity-boosting foods and beverages increased during the pandemic. However, due to disruptions in supply chains, functional beverage manufacturers faced the shortage of raw materials, like any other segment of the food & beverages industry, which created a demand and supply gap. However, they began overcoming this gap as they started operating with full capacity in late 2021. Moreover, the majority of the population across the US, Canada, China, India, etc., are vaccinated, which is a positive sign for the global marketplace.

Functional Beverages Market Breakdown – by Region

The report segments the functional beverages market as follows:

Based on product type, the functional beverages market is segmented into energy drinks, sports drinks, fortified juices, functional water, and others. In terms of distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. Based on geography, the functional beverages market is segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).

 
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