by Key products include sports drinks, energy drinks, fortified juices and non-carbonated drinks, plant-based drinks, and probiotic drinks. They offer hydration, micronutrients, antioxidants, immunity boosters, digestive support, and other advantages. The rise of health-conscious consumers combined with busy lifestyles drives demand for convenient, nutritious beverage options.
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: 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.
Growing demand: Functional Beverage Market Rising health awareness and busy lifestyles are driving demand for convenient, nutritious drinks. Functional beverages offer hydration along with added nutrients and are seeing increased popularity. Elderly populations and individuals managing chronic conditions also boost demand.
Global expansion: Leading manufacturers are expanding globally through new production plants, joint ventures, and acquisitions. Regional players are also strengthening distribution networks across countries. The market is witnessing significant growth in developing regions due to rising incomes, nutrition awareness, and adapting western trends.
Market key trends
Customization and plant-based options are driving trends. Technologies enabling customized formulations according to consumer needs and health goals are gaining traction. The growing popularity of vegan, organic, low-sugar, and plant-based diets favors the rise of plant-milk-based beverages with functional benefits. Flavors incorporating superfruits and adaptogens are also trending to meet demand for holistic wellness products.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established brand loyalty in well-established markets make the threat low.
Bargaining power of buyers: Buyers have low bargaining power due to the availability of substitute products in the market.
Bargaining power of suppliers: Due to availability of substitute ingredients, the power of suppliers is moderate.
Threat of new substitutes: Substitutes present a moderate threat as consumers are attracted towards healthier options.
Competitive rivalry: High as competitors continuously invest in new ingredients, marketing, and regional expansions.
Geographical regions where market in terms of value is concentrated: North America dominates the functional beverage market due to increased consumer health awareness and demand for dietary supplements. The Asia Pacific region also holds a significant share and is expected to be the fastest growing market during the forecast period.
Fastest growing region for the functional beverage market: The Asia Pacific region is expected to be the fastest growing market for functional beverages from 2024 to 2031 driven by rising health and wellness trend coupled with growing disposable income in developing countries such as China and India.
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
