MEA Functional Beverages Market Size (2024 - 2029)

MEA Functional Beverages Market Analysis

The MEA Functional Beverages Market size is expected to grow from USD 8.22 billion in 2023 to USD 10.08 billion by 2028, at a CAGR of 4.17% during the forecast period (2023-2028).

• Functional beverages are becoming increasingly popular among millennials due to rising advertising and promotional spending, largely because of aggressive marketing initiatives aimed at this demographic. Additionally, ads for energy drinks portray them as beverages that energize the intellect, revive the body, and improve performance and stamina. For Instance, in 2021, the consumption of packaged beverages in Africa and the Middle East totaled nearly 118 billion liters, according to Krones.
• The functional beverage market in the Middle East and Africa is embracing a growth phase with new flavor formulations, reduced sugar, calories, and ingredients innovations such as botanicals and herbs. For Coca-Cola, South Africa offers an energy drink called Coca-Cola Energy. The drink, available in a 300ml can, contains caffeine, guarana extracts, B vitamins, and no taurine.
• Moreover, consumers are becoming increasingly health-conscious and interested in trying new, better food options as worries about obesity, chronic illnesses, and other health problems increase. Incorporating functional drinks into one's daily routine is a simple and easy approach to increasing one's intake of essential nutrients, vitamins, and minerals. In addition, functional beverages frequently contain all-natural and plant-based components, which are becoming increasingly appealing to consumers.
• Also, reduced-sugar beverages are likely to gain popularity as people make a consumption-pattern shift to avoid diabetic symptoms. The probiotic drinks segment is also expected to witness many new buyers due to the growing concern about strengthening immunity. Manufacturers of functional beverages are predicted to increasingly shift towards online channels as more customers grow familiar and comfortable with the online and DTC distribution methods in the coming years. In addition, students and office employees are increasingly substituting energy drinks for coffee. Additionally, these energy drinks are gaining popularity as alcoholic cocktail mixers.

MEA Functional Beverages Industry Segmentation

Functional beverages are non-alcoholic drinks containing vitamins, minerals, probiotics, dietary fibers, etc. They offer health benefits to consumers, such as boosting energy and fighting stress.

The Middle East and African functional beverage market is segmented into product type, distribution channel, and geography. By product type, the market is segmented into energy drinks, fortified juice, sports drinks, dairy-based drinks, and other drinks. Based on the distribution channel, the market is classified through supermarkets/hypermarkets, pharmacies and health stores, convenience stores, online retail stores, and other distribution channels. Also, the study analyzes the functional beverages market in the emerging and established markets across the Middle East and African region, including South Africa, Saudi Arabia, and the Rest of the Middle-East and Africa.

The market sizing has been done in value terms in USD for all the abovementioned segments.