|Study Period:||2016 -2027|
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The global functional water market is projected to witness a CAGR of 7.06% during the forecast period 2022- 2027.
The functional water market was stable and growing during the COVID-19 outbreak as well as before. The product is witnessing high market growth as it contains healthy additives, such as vitamins, acids, minerals, herbs, and fruits or vegetables. During the COVID-19 pandemic, consumers’ focus was centered on proper nutritional intake, and a majority of consumers switched toward healthier beverage options, which included vitamin- and mineral-infused functional waters. Thus, the COVID-19 pandemic is expected to offer more opportunities for the functional water market during the forecast period. Moreover, online retail channels may attain higher growth than conventional distribution channels, such as supermarkets and specialty stores, in terms of sales of functional water during the forecast period.
Functional water is recognized as a non-alcoholic beverage similar to water with additional ingredients that increase functional benefits. It provides both refreshment and taste, enhanced by supplemental ingredients, also known as aquaceuticals, such as vitamins, minerals, acids, herbs, raw fruits, or vegetables, which improve immunity and boost energy.
The shift in preferences from carbonated and high sugar beverages may drive demand for the functional water market. The convenience of consumption and its effects on human nutrition are the factors boosting demand in the functional water market. However, with the growing popularity of functional water among the working class and millennial populations, innovative product developments are expected to enhance the market and accelerate its growth over the forecast period.
Scope of the Report
Functional water, which belongs to the non-alcoholic beverage category, offers additional health and other functional benefits. The market studied is segmented by product type, distribution channel, and geography. By product type, the market studied is segmented into protein water, vitamin water, and other product types. By distribution channel, the market is segmented into hypermarkets/supermarkets, specialist retail stores, online retail channels, and other distribution channels. By geography, the study provides key insights into the major regions, including North America, Europe, Asia-Pacific, and the Rest of the World (South America and Middle-East and Africa). For each segment, the market sizing and forecasting have been done in value terms (USD million).
|By Product Type|
|Other Product Types|
|By Distribution Channel|
|Other Distribution Channels|
Key Market Trends
Consumer Preferences Evolving Toward Value-added Hydration Propelling Market Growth
The rapid demand for fortified beverages is attributed to the inclusion of essential ingredients, such as protein, amino acids, vitamins, and minerals, in various functional beverages. The introduction of new and innovative types of functional water by beverage manufacturing companies engaged in the production of water using modified blends of protein and minerals is likely to fuel the market’s growth.
The rise in obese and diabetic populations in the United States, Canada, China, India, Australia, and the United Kingdom, among others, has shifted the focus from carbonated soft drinks to bottled water in the recent past. Research by the International Food Information Council Foundation on Food and Health revealed that 47% of their total consumers prefer food with additional nutrients. Therefore, this factor is expected to boost the growth of the market studied.
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North America Holds Largest Market Share
The consumption pattern in the North American region is shifting toward food and beverage products infused with healthy and weight management ingredients. As functional water is such a product, the region holds a prominent market share. Consumers in the United States have started to develop an interest in beverages that deliver benefits above and beyond simple refreshments, which is also contributing to the expansion of the functional water market. Moreover, due to increasing health concerns in the Canadian provinces, many domestic and international players are getting attracted to the opportunistic market, and consumers are getting an ample range of products to choose from, which is driving the overall North American market.
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The functional water market is competitive and is still growing owing to products varying across packaging formats, flavors, and sizes. The market vendors are developing new products with an emphasis on organic and taste variants to increase their market shares and gain traction in the global marketplace. Danone SA, The Coca-Cola Company, Herbal Water, PepsiCo Inc., and Dr. Pepper Snapple are some of the prominent players in the functional water market. Some of the other players include Vitamin Well AB, Triamino Brands LLC, and New York Spring, among others. Balance Water and Herbal Water have marked their position in the market with their unique product portfolio, i.e., water enhanced with wildflowers and organic herbs, respectively. Moreover, regional or domestic companies have been marketing their products with strategies, such as sponsorships and significant investments in advertisements.
· In 2021, Nestle SA signed an agreement to divest its Nestle Waters North America (NWNA) business and additionally acquired Essentia Water, Bothell, and Wash in the United States to change its product portfolio toward functional water. The company aims to increase its sales volume, which in turn, will impact the growth of the market.
· In 2021, PepsiCo Inc. launched a new product Soulboost™, which is improved sparkling water fabricated with functional ingredients. The product is available in two types, namely, Lift and Ease. The product innovation is intended to cater to consumer preferences as the demand for guilt-free and fresh fruit-flavored drinks is high.
· In 2020, Danone SA, a French food and beverage company, announced that it is ready to purchase a majority stake in UK-based Harrogate Water Brands Ltd. The company believes this move will enable it to move further with producing healthier and sustainable functional water and obtain a position in the country’s market.
Table of Contents
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Buyers/Consumers
4.3.2 Bargaining Power of Suppliers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products and Services
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.3 Other Product Types
5.2 By Distribution Channel
5.2.2 Specialty Stores
5.2.3 Online Stores
5.2.4 Other Distribution Channels
5.3 By Geography
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.3.4 Rest of the World
18.104.22.168 South America
22.214.171.124 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Share Analysis
6.2 Most Adopted Strategies
6.3 Most Active Companies
6.4 Company Profiles
6.4.1 The Coca-Cola Co.
6.4.2 PepsiCo Inc.
6.4.3 Balance Water Company
6.4.4 Danone SA
6.4.5 Dr. Pepper Snapple Group Inc.
6.4.6 Function Drinks
6.4.7 Trimino Brands Company LLC
6.4.8 Herbal Water
6.4.9 San Benedetto
6.4.10 Unique Foods (Canada)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Functional Water Market market is studied from 2016 - 2027.
What is the growth rate of Functional Water Market?
The Functional Water Market is growing at a CAGR of 7.06% over the next 5 years.
Which region has highest growth rate in Functional Water Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Functional Water Market?
North America holds highest share in 2021.
Who are the key players in Functional Water Market?
The Coca-Cola Co., Herbal Water, Danone SA, PepsiCo Inc., Keurig Dr Pepper Inc are the major companies operating in Functional Water Market.