by Functional beverages contain added ingredients and nutritional supplements such as vitamins, minerals, amino acids, herbs, and botanicals which provide additional health benefits beyond basic nutrition. These beverages promote hydration, immunity, cardiovascular health, energy, weight management and other functions. The global functional beverage market offers ample opportunities for product innovation as consumers are increasingly adopting healthy lifestyles and seeking beverages that provide specific health advantages.
The Global functional beverage market is estimated to be valued at US$ 220.66 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the functional beverage market are Teva Pharmaceutical Industries Ltd, Novo Nordisk A/S, OPKO Health Inc., Lilly, Hanmi Pharm.Co., Sanofi, Circle Pharma, Pfizer Inc., Novartis AG, PeptiDream Inc., Amgen Inc., AstraZeneca, Bachem Holding AG, CordenPharma International, Ipsen Pharma, Merck KGaA, PolyPeptide Group, Bayer AG. These companies are focused on expanding their product portfolios through mergers and acquisitions to strengthen their market presence.
The growing demand for fortified beverages containing immunity boosters, protein, vitamins, minerals, and other micronutrients is expected to drive the functional beverage market during the forecast period. Consumers are increasingly adopting preventive healthcare and seek beverages that provide specific health benefits.
Asia Pacific region is witnessing high growth in the Functional Beverage Market Demand owing to growing health consciousness, rising purchasing power, and willingness to pay premium prices for specialized beverages. Several international players are expanding their footprint in Asia’s developing markets to leverage new opportunities.
Market key trends
Customization is a key trend in the functional beverage market. Products with unique flavors, nutritional compositions tailored to specific health conditions and clean label ingredients without artificial additives are gaining popularity. Brands are exploring botanical and superfood ingredients to offer differentiated products. Beverage categories such as energy drinks, yogurt drinks, plant-based drinks are becoming more functional with focus on additional wellness attributes. Sustainable packaging with reduced environmental footprint is also an important consideration for brands seeking mindful consumers. Protein-enriched beverages continue to witness strong demand from health-conscious consumers and amateur/professional athletes due to diverse protein sources and convenient formats.
Porter’s Analysis
Threat of new entrants: Functional beverages are relatively easy to produce with minimal investment barrier to entry for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and choice of products from different brands.
Bargaining power of suppliers: Suppliers of raw materials have low to moderate bargaining power due to the availability of substitutes.
Threat of new substitutes: There is a constant threat from new substitutes entering the market such as nutritional supplements.
Competitive rivalry: Highly competitive with many established players competing on the basis of branding, innovation and distribution.
Geographical Regions
North America holds the largest share of the global functional beverage market in terms of value due to rising health consciousness among consumers. The US functional beverage market is expected to grow at a CAGR of 6.8% during the forecast period.
Asia Pacific is projected to be the fastest growing region for the functional beverage market led by countries like China and India. Rising disposable incomes, growing millennial population and changing lifestyles are driving the demand for functional beverages in Asia Pacific. The region exhibits a CAGR of 7.2% during 2024 to 2031.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
