Global Functional Beverages Market Size 2024, Forecast To 2033

11 Mar, 2024

The functional beverages market has witnessed robust growth, escalating from $154.58 billion in 2023 to $165.01 billion in 2024, with a compound annual growth rate (CAGR) of 6.7%. This growth in the historic period can be attributed to strong economic growth in emerging markets, increased investments, a rise in the number of athletes, the surge in clean-label, organic, and non-GMO (genetically modified organism) products, and increased penetration of organized retail. Looking forward, the market is expected to sustain strong growth, reaching $207.77 billion in 2028 at a CAGR of 5.9%. Anticipated factors contributing to this growth include a growing number of health-conscious consumers, an increasing demand for immunity-boosting foods and beverages, and a rising population. Noteworthy trends for the forecast period involve the launch of relaxation drinks, CBD-infused functional drinks, protein-based functional beverages, vegan/plant-based functional beverages, healthy hydration drinks, the introduction of nootropic drinks, low-calorie, sugar-free drinks, and partnerships and collaborations, shaping the landscape of the functional beverages industry.

Global Functional Beverages Market Key Driver

The increasing awareness of health issues is foreseen to fuel the demand for functional beverages during the forecast period. In 2023, the market size for functional beverages is influenced by their ability to enhance various body functionalities, such as heart rate management, digestive health, immune system support, and weight management. The presence of essential components like vitamins, minerals, herbs, and amino acids positions these beverages as a popular choice for consumers striving to address specific health concerns. As of 2024, a substantial shift in the beverage industry towards functional beverages is noted, reflecting consumers' efforts to improve their health. The rise of clean-label, organic, and non-GMO products also plays a significant role in shaping consumer preferences, leading to a projected increase in demand for functional beverages over carbonated drinks and fruit juices.

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Global Functional Beverages Market Segments

The functional beverages market covered in this report is segmented –
1) By Type: Energy Drinks, Sports Drinks, Nutraceutical Drinks, Dairy-Based Beverages, Juices, Enhanced Water, Other Types
2) By Function: Health And Wellness, Weight Management
3) By Distribution Channel: Brick And Mortar, Specialty Foodservice Stores, Online
By Geography:The regions covered in the functional beverages market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain Asia-Pacific was the largest region in the functional beverages market in 2023. Western Europe was the second-largest region in the global functional beverages market. The regions covered in the functional beverages market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

Major Functional Beverages Industry Players

PepsiCo Inc., The Coca-Cola Company, Red Bull GmbH, Danone, Nestle S.A, Monster Beverage Corporation, Dr. Pepper Snapple Group, Fonterra Co-Operative Group Ltd, Kraft Heinz Company, Abbott, Dali Foods Group Co., Ltd., Hangzhou Wahaha Group Co., Ltd., Red Bull, Shenzhen Eastroc Beverage Industrial Co., Ltd., Nongfu Spring, China Haisheng Juice Holdings Co., Ltd., Beijing Huiyuan Food and Beverage Co., Ltd, Britvic, GoodMills Group GmbH, European Drinks S.A, Sokolow, Zaklady Tluszczowe Kruszwica, Penam, Metarom Group, Košík, Vitana, Cloud 9 Energy Drink, Mondelez International, the Hain Celestial Group, Campbell Soup Company, Red Bull and Rockstar Inc., Unilever, Arcor, Starbucks, Agrosuper, JBS, Ambev, Almarai Company, Arab Company for Livestock Development (ACOLID), Al-Watania Company, Herbalife Nutrition SA, Viju Industries Nigeria Ltd

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Functional Beverages Market Overview

Functional beverages are non-alcoholic drinks that contain non-traditional ingredients such as vitamins, minerals, dietary fibers, probiotics, and added fruits.

Functional Beverages Global Market Report 2023 provides data on the global functional beverages market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The functional beverages market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.