Rising Consumer Demand In The Functional Beverage Market Spurring Its Growth
Monday, April 13th, 2020 | 1491 Views
Research and Markets: The functional beverage market is projected to grow at a CAGR of 8.66 percent to reach , 208.13 billion by 2024, according to a report by Research And Markets. The global functional beverage consumption is driven by the consumer’s inclination toward non-alcoholic beverages. Furthermore, consumers have started to prefer functional drinks over fruit juices and carbonated drinks. Consumers are ready to pay a premium for its various functional advantages and manufacturers are embracing innovation for gaining position in the market.
Growing Demand for Healthy Hydration
Healthy hydration refers to the ability of functional beverages like RTD tea, to provide instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee. Thus, consumers are developing an affinity for functional beverages, due to its ready-to-drink version that offers enhanced convenience, thereby providing suitable, convenient, and healthy alternative to soft drinks.
The organoleptic versatility associated with RTD tea makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in the North American market. RTD tea and enhanced water are becoming popular among consumers all around the world, as a result of which the demand for functional beverages is growing.
Energy Drink Market
The energy drink market has grown phenomenally in the recent years. These drinks are believed to enhance energy levels, physical alertness, and performance. Energy drinks outperformed the growth of conventional carbonated beverages a long time ago, as they are considered healthy substitutes to sugary carbonated drinks. The main constituents of energy drinks are vitamins, minerals, natural ingredients (caffeine, guarana, ginseng), amino acids, and antioxidants. About 31 percent of the 12-17 year-olds and 34 percent of the 18-24 year-olds are reported to consume energy drinks regularly. Popular energy drinks include Monster Energy, Red Bull, and Rockstar.
The growth of a company in the functional beverage industry in the future depends on their distribution channel and innovation in their product list with lucrative packaging style. The major companies are located in all regions and the major countries of those regions. However, the players are expanding into countries they are currently not present in. The most active companies in the functional beverage market include PepsiCo, followed by Suntory Holdings, Fonterra, Nestle, Danone, Coco Cola, and Glanbia PLC.
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