Global Functional Beverage Market Report and Forecast 2024-2032

Global Functional Beverage Market Size

The global functional beverage market reached a value of approximately USD 243.36 billion in 2023. The market is further expected to grow at a CAGR of 7.0% between 2024 and 2032, reaching a value of USD 448.97 billion by 2032.

Increasing consumer awareness of the potential of functional beverages is leading to an enhanced demand for a wide range of functional beverages, spurring the growth of the functional beverage market. With rising availability of various functional beverages and options for bulk purchasing, consumers are easily able to find suitable functional beverages that suit their health requirements and also appeal to their flavour preferences. Many consumers are purchasing functional beverages in bulk as a part of their normal grocery shopping, enabling them to incorporate various functional beverages into their daily lifestyle. The grab-and-go nature of functional beverages is also increasing their consumption as no preparation is required. The growth of the global functional food and beverage market, supported by rising health consciousness and increasing prevalence of various health conditions is also anticipated to surge the demand for functional beverages.

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Global Functional Beverage Market Growth

The dairy and dairy alternative beverages segment, by type is anticipated to possess a substantial share in the market for functional beverages. This growth can be attributed to the rising consumer demand for healthy hydration products such as milk and yoghurt drinks that are rich in probiotics. In addition, plant-based drinks, such as soy-based milk, are gaining popularity among consumers due to the growing trend of veganism.

Meanwhile, online retail stores, based on distribution channel, are anticipated to witness an increased demand in the coming years, owing to a wide range of functional beverages available online, along with the rising accessibility to internet connectivity worldwide.

Global Functional Beverage Market Share by Region

North America is projected to occupy a significant share of the global market for functional beverages in the forecast period. This growth can be attributed to the rising awareness among consumers pertaining to the health benefits associated with the intake of functional beverages. Additionally, the high consumer purchasing power and improved living standards are also anticipated to aid the functional beverage market growth in North America the coming years.

Global Functional Beverage Industry Segmentation

Functional beverage refers to conventional liquid beverages that offer additional health benefits and performance enhancement by adding substances or additives. Common functional beverages include energy drinks, dairy beverages, and sports drinks, among others. These beverages comprise of nutritional elements such as vitamins, minerals, and amino acids, among others, depending upon their type, along with bioactive compounds that are helpful in improving health and performance.

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By type, the market is divided into:

• Energy Drinks

• Sports Drinks

• Fortified Juices

• Dairy and Dairy Alternative Beverages

• Others

Based on distribution channel, the market is categorised into:

• Supermarket/Hypermarket

• Pharmacies/Health Stores

• Convenience Stores

• Online Retail Stores

• Others

The regional markets for functional beverages include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Escalating Health Consciousness to Bolster the Global Functional Beverage Market

Rising awareness among consumers regarding the nutritional benefits associated with the consumption of functional beverages, such as energy drinks, fruit juices, and probiotic drinks, is anticipated to increase the functional beverages market revenue in the forecast period. The market is further supported by the rising incidences of chronic illnesses worldwide that are leading to an increased interest in proactively improving health and immunity. The growing demand for digestive health drinks such as dairy beverages is also predicted to aid the market growth of functional beverages. Furthermore, growing investments by the leading market players in the development of functional beverages with new ingredients are projected to positively catalyse the market.

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Key Players in the Global Functional Beverage Market

The report gives a detailed analysis of the following key players in the global functional beverage market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• PepsiCo Inc.

• Red Bull GmbH

• The Coca-Cola Company

• Danone S.A

• Monster Beverage Corporation

• Nestlé S.A.

• The Hain Celestial Group

• Meiji Holdings Co., Ltd.

• Asahi Group Holdings Ltd.

• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model and SWOT analysis.

Key Highlights of the Report