Europe Functional Beverages Market Size (2024 - 2029)

Europe Functional Beverage Market Analysis

The Europe Functional Beverages Market size is estimated at USD 30.77 billion in 2024, and is expected to reach USD 42.71 billion by 2029, growing at a CAGR of 6.78% during the forecast period (2024-2029).

Functional beverages such as energy drinks offer various health benefits due to the presence of carbohydrates, electrolytes, and minerals such as calcium, magnesium, and sodium. They keep the body hydrated during activities that require excessive energy such as sports, exercises, and workouts. Similarly, the consumption of probiotic drinks helps prevent bowel diseases and strengthen the immune system. These benefits coupled with rising consumer awareness are driving the growth of the market. For example, in the United Kingdom, 21% of functional beverage consumers show an interest in sports or energy drinks that support brain function. In addition, the growing popularity of e-commerce is anticipated to further boost the growth of the functional beverage market in Europe during the forecast period. However, increasing concerns about obesity will reduce the demand in the market.

Consumer trends in the health and wellness market are influenced by multiple factors such as the rising demand for healthier drinks. The aging population is fueling the demand to overcome or prevent adverse health conditions, as they consider these functional beverages as 'meal bottles'. Consumers demand high-quality products including organic and natural products due to rising health consciousness. Moreover, the change in consumption patterns in favor of the convenience food industry is supporting market demand. Consumers are looking for healthy alternatives to carbonated drinks such as functional water. German consumers focus more on the quality of functional water as compared to its price while making a purchase and usually prefer well-established brands to private label lines. Manufacturing companies in energy drinks, sports drinks, and functional water in Germany are launching promotional campaigns and advertisements through the use of celebrity endorsements, TV commercials, and other communication methods to gain consumer attention.

Moreover, increasing demand for innovative products, like plant-based and lactose-free beverage products, drives the market study, while the inclusion of CBD-infused functional beverages is expected to be an opportunity for the future market.

Europe Functional Beverage Industry Segmentation

A functional beverage is a conventional liquid food marketed to highlight specific ingredients or supposed health benefits. The European functional beverage market is segmented by type, distribution channel, and country. By type, it is segmented into energy drinks, fortified juice, sports drinks, dairy and dairy alternative drinks, and other types. By distribution channel, the market is segmented into supermarkets/hypermarkets, health stores, convenience stores, online retail stores, and other distribution channels. By country, the market is segmented into Germany, the United Kingdom, France, Italy, Spain, Russia, and the Rest of Europe. For each segment, the market sizing and forecasts have been done based on value (in USD Million).