Functional beverages Market Size to Reach USD 276.6 Billion by 2032 growing at 7.8% CAGR - Exclusive Report by Acumen Research and Consulting

Author: Acumen Research and Consulting

The global Functional Beverages Market size occupied USD 131.5 Billion in 2022 and is projected to achieve a size of around USD 276.6 Billion by 2032 rising with a CAGR of 7.8% during the forecasted years, as reported by Acumen Research & Consulting

In today's modern society, functional beverages have become increasingly important. There is a growing awareness among consumers about the significance of healthy lifestyles and the inclusion of nutritious products in their diets. Functional beverages encompass various categories such as energy drinks, sports drinks, functional water, and fortified drinks. These beverages offer a range of benefits, including improving immunity, enhancing digestive health, boosting stamina, and promoting mental well-being.

The rise of fitness centers and the popularity of yoga classes indicate widespread adoption of healthier lifestyles and an increasing interest in engaging in sports activities. This trend is observed not only at a national level but also internationally, which contributes to the growth of the functional beverages market. These beverages are formulated with a variety of ingredients, including essential vitamins, minerals, herbs, amino acids, and sometimes artificial additives. They have gained significant popularity, particularly among younger consumers.

Functional beverages are non-alcoholic in nature and are available in different categories to cater to various preferences and needs. These categories include low-calorie drinks, sugar-free options, and more. Additionally, these beverages are available in a wide range of flavors to provide diverse choices to consumers. The rising health concerns among individuals are driving the growth of the functional beverages market, and this trend is expected to continue in the coming years.

Functional Beverages Market Statistics

Functional Beverages Market Statistics

  • Global functional beverages market revenue accounted for USD 131.5 billion in 2022, with a 7.8% CAGR from 2023 to 2032
  • North American Functional beverages market share occupied around 43% in 2022
  • Asia-Pacific functional beverages market growth is projected to attain over 8% CAGR from 2023 to 2032
  • By type, the energy drinks sub-segment grabbed over 38% share in 2022
  • Among end-user, the fitness lifestyle users occupied over USD 49.9 billion in revenue in 2022
  • Rise in plant-based and natural ingredients is the recent functional beverage market trend

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Functional Beverages Market Dynamics

Increasing Number of Fitness Consumers and Adoption of Healthy Lifestyle Fuels the Functional Beverage Market Value

The increasing adoption of a healthy lifestyle among consumers is a significant driver for the growth of the functional beverage market. Consumers are becoming more conscious of their health and well-being, leading to a rise in the demand for functional beverages. This trend is not limited to a specific age group, as both youth and adults are actively participating in sports and other physical activities to maintain a healthy lifestyle.

Sports activities are experiencing growth not only at the national level but also internationally. Athletes and sports enthusiasts require beverages that provide them with the necessary energy and stamina to perform at their best. Functional beverages play a crucial role in supporting the body's needs during physical exertion, helping to enhance stamina and energy levels.

Furthermore, functional beverages offer various benefits to different aspects of the body's functioning, including heart rate management, digestive health, immune system support, and weight management. These drinks can also contribute to improving eye health, among other benefits. The increasing health consciousness among consumers is a key factor driving the growth of the functional beverage market as individuals actively seek out products that align with their wellness goals.

Increasing Dairy-Based Beverages Create More Opportunity for the Functional Beverage Market

There is a growing trend in consumer consumption of dairy-based beverages, which presents significant opportunities for the functional beverages market in the near future. Consumers are increasingly seeking beverages that are not only affordable but also contribute to their overall health and well-being. Dairy-based beverages, due to their lower cost, are likely to experience increased demand in the upcoming years.

Furthermore, consumers are becoming more concerned about weight loss, enhancing performance and stamina, and engaging in sports activities. This heightened awareness and interest in physical fitness and sports will drive beverage manufacturing companies to develop and offer healthy functional beverages. Meeting the demand for beverages that align with this health and fitness goals can lead to further growth in the functional beverages market.

These factors, including the popularity of dairy-based beverages and the increasing focus on health and sports-related activities among consumers, present promising opportunities for the functional beverages market to expand in the coming years.

Functional Beverages Market Segmentation

The global market has been categorized into type, ingredient type, function, end-user, distribution channel, and region.

  • By type segment includes energy drinks, sports drinks, dairy-based beverages, juices, nutraceutical drinks, enhanced water, and others
  • By ingredient type segment is categorized into antioxidants, minerals, amino acids, probiotics, prebiotics, vitamins, super-fruit extracts, and botanical flavors
  • The application segment categorized into health and wellness, and weight management
  • By end user segment includes athletes, fitness lifestyle users, and others
  • By distribution channel segment includes supermarket and hypermarket, specialty stores, e-commerce, online retails, health store, store based, and others
  • By region, the market is classified into Asia-Pacific, Latin America, North America, Europe, and the MEA

Functional Beverages Market Regional Outlook

North America has emerged as a significant contributor to the functional beverages industry, holding a substantial market share in recent years. It is anticipated that North America will maintain its dominant position throughout the forecast period. The growth of the functional beverages market in this region can be attributed to several factors. Firstly, there has been a surge in the popularity of beverage drinks among the younger population. Additionally, the increasing number of athletes and fitness enthusiasts, along with the rising consumption of dairy-based beverages, is expected to drive market growth in North America.

Following North America, Europe holds the second-largest market share in the functional beverages industry. The region is experiencing a growing demand for energy drinks, driven by the increasing participation in sports activities and the desire to enhance performance and stamina. This factor is poised to stimulate market growth in Europe.

Functional Beverages Market Players

Some prominent functional beverages companies covered in the industry includes Clif Bar, The Coca-Cola Company, DANONE SA, Dupont Nutrition Biosciences ApS, MaxiNutrition, MEIJI CO., LTD., Monster Beverage Corporation, National Beverage Corp., Nestlé, Otsuka Holdings Co., Ltd, PepsiCo, Red Bull GmbH, and Suntory Group.

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Mr. Frank Wilson

Acumen Research and Consulting

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