The global functional water market size was valued at $5,220.0 million in 2020, and is projected to reach $10,954.0 million by 2030, registering a CAGR of 7.8%.
Functional water is induced with oxygen and various ingredients. Functional water can be flavored and unflavored. There are different types of functional water such as vitamin functional water, protein functional water, mineral functional water, botanical functional water, and oxygen functional water.
The functional water is gaining momentum in the market due to health benefits and nutritional properties. The consumers have started to consume beverages with additional vitamins and proteins that can keep body hydrated for long period of time. The athletes and marathoners need beverages that can keep their body hydrated for the long run by consuming small amounts of hydrated drink. This factor has increased the demand for functional water induced with various flavors, nutrients, proteins, vitamins, minerals, botanicals, and oxygen. Thus, value added hydration evolving consumer preferences is boosting the growth of functional water market during the forecast period.
The functional water packed in cans, and bottles are high in price as compared to cartons and pouches. These high-priced products cannot be afforded by low- and middle-income groups. The countries such as Bangladesh, India, Indonesia, Myanmar, Nepal, Pakistan, Philippines, and Sri Lanka have seen decline in sales of functional water. The reason is that more than 40% of people are low- and middle-income groups. The functional water acts as a premium product in these countries and is attributed as high-priced products. As a result, the high cost of functional water acts as a restraint for the growth of market during the forecast period.
The concerns about environmental degradation about packaging of functional water are growing. As a result, there is a greater emphasis on the development of recyclable and environmentally friendly bottles and cans packaging materials. This is expected to open up lucrative opportunities for various market players in the functional water market, making it a profitable business in the long term for major players in this market. For example, the Coco-Cola company has launched pet bottles which can be recycled and reused easily without harming environment. Hence, the eco-friendly packaging of functional water is creating new opportunities for the growth of functional water market.
The COVID-19 pandemic had a both positive and negative impact on global functional water market due to supply chain disruptions. But the removal of lockdowns is expected to expand the market in the coming years. The rise in adoption of functional water post-pandemic is creating new opportunities for the growth of market.
According to the functional water market analysis, the global functional water market is segmented based on product, type, packaging, distribution channel, and region. Based on the product, the market is fragmented into flavored functional water and unflavored functional water. In 2020, the flavored functional water segment accounted for the largest share in the global market, owing to the rising trend of functional water added with various flavors which is popular among all age group people.
By Product
Flavored functional water segment is expected to grow at highest CAGR of 8.8% during the forecast period
Based on the type, the global functional water market is segregated into vitamins, proteins, and others (minerals, botanicals, and oxygen). In 2020, the vitamin segment accounted for the largest share in the global market, owing to the nutritional properties and low sugar content of vitamin functional water.
By Type
Protein segment is expected to grow at highest CAGR of 11.9% during the forecast period.
Based on the packaging, the global functional water market is segregated into pet bottles, can, and others. In 2020, the pet bottles segment accounted for the largest share in the global market, as pet bottles are popular due to their better durability, minimal damage, and ease of transportation.
By Packaging
Others segment is expected to grow at highest CAGR of 9.9% during the forecast period.
Based on the distribution channel, the market is categorized into supermarkets & hypermarkets, convenience stores, specialty stores, online sales channel. In 2020, the specialty stores segment accounted for the largest share in the global market, as specialty stores provide high service quality and detail product specification & expert guidance to the consumers.
By Distribution Channel
Online sales channel segment is expected to grow at highest CAGR of 12.6% during the forecast period.
The global functional water market is segmented based on region into North America, Europe, Asia-Pacific, and LAMEA. The North American functional water market had a dominant functional water market share in the world in 2020, and is expected to maintain its dominance during the functional water market forecast period.
By Regions
Asia-Pacific dominates the market and is expected to grow at highest CAGR of 10.1% during the forecast period.
Easy availability of functional water in diversified platforms ranging from modern trade to online sales channel have resulted in expansion of global market. Moreover, increasing penetration of retail sales have augmented the functional water market growth. In parallel, availability of functional water on e-commerce platforms have resulted in convenience to buy goods without any physical constraints to the consumers.
The prominent functional water industry players include PepsiCo, Coca Cola, Dr Pepper Snapple, Nestle, Group Danone, Hind, Sunny Delight Beverages, Kraft Foods., Tata Global Beverages, Sunsweet Growers Inc., Suntory Holdings Ltd., Trimino Brands, Disruptive Beverages Inc., and Bridgepoint Group plc.
Product launch is the most important growth strategy used by market players, followed by collaboration and agreement, expansion, and acquisition. Several businesses have created innovative products to diversify their product offerings. Various companies use product launches to expand their market reach and serve global customers.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of current functional water market trends, estimations, and dynamics of the global functional water market from 2021 to 2030 to identify the prevailing functional water market opportunities.
- Porter’s five forces analysis highlights the potency of the buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis of the market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global industry. The market player positioning segment facilitates benchmarking while providing a clear understanding of the present position of the key market players.
- The report includes analyses of the regional as well as global market, key players, market segments, application areas, and growth strategies.
Key Market Segments
By Product
- Flavored functional water
- Unflavored functional water
By Type
- Vitamins
- Proteins
- Others (Minerals, Botanicals, and Oxygen)
By Packaging
- Pet bottles
- Can
- Others
By Distribution Channel
- Supermarket/Hypermarket
- Convenience Stores
- Specialty Stores
- Online Sales Channel
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Spain
- Netherlands
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- Rest of LAMEA
Functional Water Market Report Highlights
| Aspects | Details |
 By PRODUCT |
|
 By TYPE |
|
 By PACKAGING |
|
 By DISTRIBUTION CHANNEL |
|
 By Region |
|
 Key Market Players | The Kraft Heniz Company, Nestlé S.A, PEPSICO, INC., Danone, SUNTORY HOLDINGS LIMITED, Trimino Brands, Sunny Delight Beverages, KEURIG DR PEPPER INC., THE COCA-COLA COMPANY |
Analyst Review
According to the insights of CXOs of leading companies, a variety of health benefits have been linked to functional water. There are different types of functional water available in the market. Consumption of vitamin and protein based functional water may boost the body's antioxidant levels and aid in energy level of the human body.
The growing demand for fortified beverages has increased the demand for functional water. The oxygen based functional water is new trend in the market and is gaining traction at a rapid pace. The introduction of new flavors in the market is driving the growth of functional water market.
The surge in diabetic and obese population is propelling the functional water market growth. The people who are suffering from diabetes and obesity prefer food & beverages with zero calories and no or less sugar. This factor is boosting the growth of unflavored functional water segment in the market.
The growing popularity of functional water among millennials and working-class population is creating lucrative opportunities for the growth of functional water market.
The North America market for functional water is the largest. The low retail price and widespread availability of flavored functional water are fueling the growth in the North America region. The growing trend of consuming non-alcoholic beverages is also boosting the North American functional water market.
The global functional water market size was valued at $5,220.0 million in 2020, and is projected to reach $10,954.0 million by 2030, registering a CAGR of 7.8%. The functional water is gaining momentum in the market due to health benefits and nutritional properties. The consumers have started to consume beverages with additional vitamins and proteins that can keep body hydrated for long period of time.
The global functional water is projected to reach $10,954.0 million by 2030, registering a CAGR of 7.8%. The value added hydration in the functional water coupled with evolving consumer preferences is boosting the growth of functional water market during the forecast period.
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The global functional water market size is estimated to reach at around $ 56,293.1 million by the end of 2021, growing at a CAGR of 7.8% from 2021 to 2030. The growing health consciousness and increasing consumer spending on health and wellness products is fostering market growth.
The forecast period estimated in the global functional water market is 2021 to 2030. The global functional water market size is estimated to reach at around $ 56,293.1 million by the end of 2021, growing at a CAGR of 7.8% from 2021 to 2030.
The prominent functional water industry players include PepsiCo, Coca Cola, Dr Pepper Snapple, Nestle, Group Danone, Hind, Sunny Delight Beverages, Kraft Foods., Tata Global Beverages, Sunsweet Growers Inc., Suntory Holdings Ltd., Trimino Brands, Disruptive Beverages Inc., and Bridgepoint Group plc.
According functional water market analysis, the functional water market is classified on the basis of product, type, packaging, distribution channel, and region. By product, the market is segmented into flavored functional water and unflavored functional water. Based on type, the market is segregated into vitamins, proteins, and others (minerals, botanicals, and oxygen). By packaging, the functional water market is fragmented into pet bottles, can, and others. By distribution channel, the market is categorized into supermarkets & hypermarkets, convenience stores, specialty stores, and online sales channel.
Region wise, the functional water market is segmented into North America, Europe, Asia-Pacific, and LAMEA. North America contributed the highest revenue in 2020 and is expected to dominate the market during the forecast period.
The COVID-19 pandemic had a positive and negative impact on the functional water market growth. The supply chain disruption had a negative impact, while the increase in adoption of functional water owing to various health benefits had a positive impact on the functional water market.
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