Market Size of Functional Water Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.97 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Market Concentration | Low |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
Functional Water Market Analysis
The functional water market size is expected to grow from USD 9.16 billion in 2023 to USD 11.68 billion by 2028, at a CAGR of 4.97% during the forecast period (2023-2028).
- Functional water is fortified with vitamins, minerals, acids, herbs, and raw fruit or vegetables. It also contains additives that offer extra nutritional value, known as aquaceuticals. Its consumption is associated with health benefits, such as boosting the immune system, cognitive function, and gut health. Due to the increasing focus on health and wellness, functional water with blended flavors is readily available in retail markets.
- Moreover, consumer inclination toward non-alcoholic beverages is another significant factor sustaining the global functional water market. The demand for functional drinks is massive compared to fruit juices and carbonated beverages. Furthermore, the increasing trend of sugar-free or natural-sweetener-based drinks with zero calories contributes to market growth. Besides this, many companies are launching functional water to cater to changing consumer tastes and preferences.
- For instance, in 2022, Flow Beverages Corp. launched vitamin-infused water in three different flavors. It has zero sugar, calories, or preservatives and is made with certified organic ingredients. Moreover, the expansion of retail industries and easy availability of functional drinks through e-commerce, retail, and grocery stores are anticipated to drive market growth during the forecast period. For instance, according to Walmart, by the end of 2022, Walmart plans to have 10,500 stores and clubs under 46 banners in 24 countries and e-commerce websites.
Functional Water Industry Segmentation
Functional water, which belongs to the non-alcoholic beverage category, is fortified with additional ingredients that offer various health benefits.
The market studied is segmented by product type, distribution channel, and geography. By product type, the market analyzed is segmented into protein water, vitamin water, and other product types. The distribution channel segments the market into hypermarkets/supermarkets, convenience/grocery stores, online retail stores, and other distribution channels. By geography, the study provides critical insights into the major regions, including North America, Europe, Asia-Pacific, South America, and Middle-East & Africa.
The market sizing and forecasts have been done for each segment based on value (in USD).
| Product Type | |
| Vitamin | |
| Protein | |
| Other Product Types |
| Distribution Channel | |
| Hypermarkets/Supermarkets | |
| Convenience/Grocery Stores | |
| Online Retail Stores | |
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Functional Water Market Size Summary
The functional water market is experiencing significant growth, driven by increasing consumer interest in health and wellness. This market segment, which includes water fortified with vitamins, minerals, and other beneficial ingredients, is gaining traction as consumers shift their preferences towards non-alcoholic beverages that offer additional health benefits. The trend towards sugar-free and naturally sweetened drinks is further propelling the market, as companies innovate to meet changing consumer tastes. The expansion of retail and e-commerce channels is also contributing to the market's growth, making functional water more accessible to a broader audience. Key players in the industry are investing in research and development, as well as strategic marketing, to enhance product offerings and capture a larger market share.
North America is a leading region in the functional water market, with a growing consumer base interested in beverages that provide health benefits beyond basic hydration. The market is characterized by a diverse range of products in terms of packaging, flavors, and sizes, with both domestic and international companies vying for consumer attention. Prominent players such as The Coca-Cola Company, PepsiCo Inc., and Flow Beverage Corp. are actively expanding their product portfolios and engaging in strategic partnerships to strengthen their market positions. The competitive landscape is marked by continuous innovation and marketing efforts, as companies aim to cater to the increasing demand for healthy hydration solutions.
Functional Water Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Consumer Preferences Toward Value-added Beverages
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1.1.2 Expenditure on Advertisement and Promotional Activities
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1.2 Market Restraints
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1.2.1 Inclination Toward Other Functional Beverages
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1.2.2 High Cost Associated With Functional Water Hampering Growth in Developing Countries
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Buyers/Consumers
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1.3.2 Bargaining Power of Suppliers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products and Services
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Vitamin
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2.1.2 Protein
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2.1.3 Other Product Types
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2.2 Distribution Channel
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2.2.1 Hypermarkets/Supermarkets
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2.2.2 Convenience/Grocery Stores
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2.2.3 Online Retail Stores
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2.2.4 Other Distribution Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 Spain
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 United Arab Emirates
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle East and Africa
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Functional Water Market Size FAQs
What is the current Functional Water Market size?
The Functional Water Market is projected to register a CAGR of 4.97% during the forecast period (2024-2029)
Who are the key players in Functional Water Market?
The Coca-Cola Co., PepsiCo Inc., Vitamin Well, Nirvana Water Sciences Corp. and Flow Beverage Corp. are the major companies operating in the Functional Water Market.
