Functional Beverages Global Market Opportunities and Strategies to 2030: COVID-19 Growth and Change provides the strategists, marketers and senior management with the critical information they need to assess the global functional beverages market.
This report describes and evaluates the global functional services market. It covers 2015 to 2019, termed the historic period, and 2019 to 2023 termed the forecast period, along with further forecasts for the periods 2023-2025 and 2025-2030.
The global functional beverages market reached a value of nearly $128,660 million in 2019, having increased at a compound annual growth rate (CAGR) of 4.6% since 2015. The market is expected to decrease from $128,660 million in 2019 to $125,390 million in 2020 at a rate of -2.5%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 8.07% from 2021 and reach $158,280 million in 2023.
The energy drinks market was the largest segment of the functional beverages market segmented by type, accounting for 24.8% of the total in 2019. Going forward, energy drinks segment is expected to be the fastest growing segment in the functional beverages market, at a CAGR of 9.0%.
The functional beverages market is also segmented by function into health & wellness; and weight management. The health & wellness segment was the largest segment of the functional beverages market segmented by function, accounting for 80.7% of the total in 2019. Going forward, health & wellness segment is expected to be the fastest growing segment in the functional beverages market, at a CAGR of 7.6%.
The functional beverages market is also segmented by distribution channel into brick and mortar; specialty foodservice stores; and online. The brick and mortar segment was the largest segment of the functional beverages market segmented by function, accounting for 75.1% of the total in 2019. Going forward, online segment is expected to be the fastest growing segment in the functional beverages market, at a CAGR of 18.6%.
The coronavirus outbreak has given an positive impact on the global functional beverages market The disease has caused elevated health consciousness among consumers, who are increasingly look for healthy alternatives in food and beverages to boost immunity and decrease chances of contracting the virus. The demand for functional beverages has increased since the pandemic began as they offer high nutritional and health and wellness value. Substituting high sugar drinks and carbonated drinks with functional beverages has become a 'health trend' in 2020, and is viewed as a precautionary step towards curbing the effects of the virus. However, low sales from the off premise consumption channels such as restaurants impacted the overall sales of the market.
The functional beverages market is slightly concentrated, with a small number of large players holding significant market share. The top ten competitors in the market made up to 43.44% of the total market in 2019. Major players in the market include The Coca-Cola Company, PepsiCo Inc., Nestle S.A, Danone and Red Bull GmbH.
The top opportunities in the functional beverages market segmented by type will arise in the energy drinks market segment, which will gain $9,220.7 million of global annual sales by 2023. The functional beverages market size will gain the most in the China at $8,192.2 million.
Market-trend-based strategies for functional beverages market include investing in natural botanicals infused drinks, offering relaxation drinks to consumers to capture the market and increase revenues, offering CBD-infused drinks to attract more customers, investing in manufacturing protein-based beverages to attract fitness enthusiasts and health conscious customers, offering dairy-based functional beverages to cater to the needs of consumers who prefer natural ingredients over other elements in their drinks and introducing new vegan or plant-based portfolio of functional drinks in order to attack health-conscious consumers.
To take advantage of the opportunities, the publisher recommends companies should focus on providing immunity boosting beverages during covid-19, natural botanicals infused drinks, CBD-infused functional drinks, strategic acquisitions and product portfolio development, healthy hydration drinks, use of low-calorie natural sweeteners, competitive pricing, expanding in emerging markets, set up authorized distributors and sales representatives, leverage e-commerce to maximize reach and revenues, increase adoption of internet and social media, use direct-to-consumer (DTC) advertising, participate in trade shows and events, and targeting millennials.
Key Topics Covered:
1. Functional Beverages Market Executive Summary
2. Table of Contents
3. List of Figures
4. List of Tables
5. Report Structure
6. Introduction 6.1.1. Segmentation by Geography 6.1.2. Segmentation by Function 6.1.3. Segmentation by Distribution Channel
7. Functional Beverages Market Characteristics 7.1. Market Definition 7.2. Market Segmentation by Type 7.2.1. Energy Drinks 7.2.2. Sports Drinks 7.2.3. Nutraceutical Drinks 7.2.4. Dairy-Based Beverages 7.2.5. Juices 7.2.6. Enhanced Water 7.2.7. Others 7.3. Market Segmentation by Function 7.3.1. Health and Wellness 7.3.2. Weight Management 7.4. Market Segmentation by Distribution Channel 7.4.1. Brick and Mortar 7.4.2. Specialty Foodservice Stores 7.4.3. Online
8. Functional Beverages Market Customer Information 8.1. Immune System Support is the Main Driver Behind Purchase of Functional Beverages 8.2. Many Consumers Surveyed Showed Keen Interest in Functional Beverages 8.3. There Has Been Rapid Growth in Revenues of Manufacturers Who Already Exist in the Functional Beverage Market 8.4. Protein is the most Favored Ingredient Among the Young Population, an Age Group Which Has Been Increasingly Driving the Functional Beverages Market
9. Functional Beverages Market Trends and Strategies 9.1. Natural Botanicals Infused Drinks 9.2. Relaxation Drinks 9.3. CBD-Infused Functional Drinks 9.4. Protein-Based Functional Beverages 9.5. Dairy in Functional Beverages 9.6. Vegan/ Plant-Based Functional Beverages 9.7. Healthy Hydration Drinks 9.8. Introduction of Nootropic Drinks (Brain Health) 9.9. Use of Low-calorie Natural Sweeteners 9.10. Strategic Acquisitions and Product Portfolio Development 9.11. Expanding Geographical Presence
10. COVID Impact on the Functional Beverages Market 10.1. Surveys on COVID Impact on Consumers
11. Global Functional Beverages Market Size and Growth 11.1. Market Size 11.2. Historic Market Growth, 2015 - 2019, Value ($ Million) 11.2.1. Drivers of the Market 2015 - 2019 11.2.2. Restraints on the Market 2015 - 2019 11.3. Forecast Market Growth, 2019 - 2023, 2025F, 2030F Value ($ Million) 11.3.1. Drivers of the Market 2019 - 2023 11.3.2. Restraints on the Market 2019 - 2023
12. Global Functional Beverages Market Segmentation 12.1. Global Functional Beverages Market, Segmentation by Type, Historic and Forecast, 2015 - 2019, 2023F, 2025F, 2030F, Value ($ Million) 12.1.1. Energy Drinks 12.1.2. Dairy-based Beverages 12.1.3. Sports Drinks 12.1.4. Enhanced Water 12.1.5. Nutraceutical Drinks 12.1.6. Juices 12.1.7. Others 12.2. Global Functional Beverages Market, Segmentation by Function, Historic and Forecast, 2015 - 2019, 2023F, 2025F, 2030F, Value ($ Million) 12.2.1. Health & Wellness 12.2.2. Weight Management 12.3. Global Functional Beverages Market, Segmentation by Distribution Channel, Historic and Forecast, 2015 - 2019, 2023F, 2025F, 2030F, Value ($ Million) 12.3.1. Brick and Mortar 12.3.2. Specialty Foodservice Stores
13. Functional Beverages Market, Regional and Country Analysis 13.1. Global Functional Beverages Market, by Region, Historic and Forecast, 2015 - 2019, 2023F, 2025F, 2030F, Value ($ Million) 13.2. Global Functional Beverages Market, by Country, Historic and Forecast, 2015 - 2019, 2023F, 2025F, 2030F, Value ($ Million)