Market Trends of Functional Beverage Industry
Inclination Toward Dairy and Dairy Alternative Beverages
The rising demand for probiotic drinks by health-conscious consumers primarily drives the market. The growing trend of veganism further increases the demand for plant-based functional milk products. Plant-based milk analogs may lack some of the nutritional benefits of dairy. Hence, manufacturers incorporated micronutrients such as vitamins B12 and D and calcium to enhance the product's nutritional value.
The market is fueled by the availability of numerous flavors and packaging variants, the growing consumer indulgence for exotic flavors, and significant investments by manufacturers. For instance, in June 2022, Danone North America launched the Activia+ multi-benefit probiotic yogurt drink, which includes billions of active and live probiotics to support gut health. The product is a good source of zinc and vitamins D and C.
Asia-Pacific is the Largest Market
Due to the high prevalence of diabetes in countries like India and China, consumers are becoming more aware of the importance of a healthy diet and active lifestyle. Thus, several companies are committed to removing artificial ingredients and reducing the sugar content in their products. For instance, in 2023, Monster Energy launched Monster Energy Zero Sugar globally. It is claimed to contain 100% Monster and 0% sugar and primed with 160 mg of caffeine. It is further stated that Monster Energy Zero Sugar consumption helps fight fatigue and improve mental performance and focus.
Australia is one of the significant markets for functional beverages in Asia-Pacific. Consumer preference for low-sugar beverages is growing as they become more conscious of their food and drinks. Players also heavily emphasize bringing consumers novel options while incorporating valuable ingredients into each of their items. For instance, in August 2023, Straight Up Energy, operating in Australia, launched its new energy drink product in three flavors: Green Apple, Mango and Passionfruit, and Watermelon and Pineapple.
