Global Functional Water Market - 2021-2028
発行: DataM Intelligence
ページ情報: 英文 180 Pages
Functional water is as an enhanced version of water, which is infused with vitamins, minerals and other infusions which benefit human health. It provides hydration which improves the skin condition as well. Based on the emerging trend of reduced sugar consumption, the functional water is now available both as flavored and non-flavored beverages. Moreover, increasing consumers preferences for nutritious drinks are shifting from soft drinks to functional beverages, which will help the industry grow. Its popularity has grown as a result of its availability in a variety of flavors and options and is anticipated to grow in the future as well, with increasing trend of reduced sugar consumption. The global functional water market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%
The growing trend of reduced sugar consumption and increasing obese population is the primary driver for the growth of the market. According to World Health Organization, consumption of sweet beverages like soft drinks are one of the leading causes for obesity especially in children and the population of obese children is expected to reach 70 million in 2025. This has led parents to adopt functional water over regular ones. Also, the increasing dehydration issues in children because of which results in 76,000 children suffering due to diarrheal disease, is supporting the growth of functional water market. As per WHO, the number of obese children is expected to rise to 70 million in 2025. Along with increasing concern for obesity and diseases associated with it, consumer preference has changed towards low calorie drinks. In present scenario, health and wellness is a new trend. Consumers are inclining towards natural, clean and organic food. Aerated drinks contain phosphoric acid and caffeine that causes digestive problems and leads to weight gain. Companies in order to increase demand have linked it to health and beauty. These factors are anticipated to boost functional water market.
Functional water is even recognized as aquaceutical, is a non-alcoholic beverage similar to water having additional ingredients that increase functional benefits. It provides both refreshment and taste. Some common additives are vitamins, acids, minerals, herbs and fruits or vegetables. It helps in improving immunity and boost energy. Shift in preference from carbonated and high sugar beverages, will drive demand for functional water market.
Major restraint for functional water market is its variation in cost. Generally, consumers prefer simple packaged or plain liquid and further, availability of numerous health drink alternatives and less demand in niche soft drink sector reduces demand of the product. Customer's bargaining power has increased due to availability of abundant alternatives and low switching costs. Increasing protests against packaged bottles along with rise in environmental conservation will negatively impact the functional water market growth.
Flavored drinks are the largest segment of functional drinks market. Growing consumer preference for healthy drinks along with new flavors has resulted in increased demand for flavored functional drinks. Moreover, these flavors are derived from organic and safe sources like fruits which makes the drinks healthier apart from its good taste. Some of the flavors popularly known include citrus and berry. Also, as children are the major target audience for the functional water market, the availability of these drinks in different flavors is gaining popularity among the age group ranging from infants to teenagers.
Based on distribution channel, functional water market is classified into supermarket stores, department stores, grocery and online retailers. Super or hypermarkets are having major share owing to growing customer's comfort to visits stores. Increase in online sale up to 10% with presence of a better online platform, discount offers and ease in delivery will drive industry demand.
North America is the largest market for functional drinks due to the customization of new drink styles for all age groups and the consistent meeting of customer tastes. As the health consciousness in the United States is increasing, the functional waters with a blend of diverse flavors are becoming increasingly popular in this region. According to data from Chicago-based Information Resources Inc., the energy drinks category saw dollar sales just north of $12.8 billion in multi-outlets and convenience stores in the United States for the 52 weeks ended May 17, a 9.3 percent improvement over the prior-year timeframe. Moreover, according to DOP International, the US functional beverage market was worth USD 33.46 billion in 2017 and is projected to grow at a CAGR of 7.73 percent between 2018 and 2023.
The Asia Pacific is estimated to be the fastest-growing market as consumers' population is on the rise. Emerging economies like China, India, and Japan have increased consumers' disposable income, which is slated to fuel the growth of the functional water market during the forecast period.
Danone SA, The Coca-Cola Company, 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 sponsorship and significant investment in advertisements. PepsiCo recently in 2020, launched a product named Driftwell, especially for relaxing purpose. The functional water contains 200 mg of L-theanine and 10% of magnesium. In February 2018, PepsiCo Inc. introduced a new brand of sparkling water. The new PepsiCo line, Bubly, comes in eight flavors, including grapefruitbubly, mangobubly, and limebubly. The cans feature a mix of pastel and bright colors to represent each flavor, along with fun quotes on the can or greetings on the pull tabs. In 2018, Pervida Inc. launched a new product line of functional water under the brand name Immune, which is available in three flavors, blue ginger, citrus and berry acai. The product was especially designed to help with digestive disorders and sensitivities.
As the consumer focus was centered toward proper nutritional intake initially during the pandemic, they are likely to switch toward healthier beverage options and depict their preference for vitamin and mineral-infused functional waters. Thus, the COVID-19 pandemic offered wider opportunities for the functional water market during the forecast period. However, the outbreak of Covid-19 pandemic, led to lockdowns, resulting in people staying at home all the time. This reduced the need for functional water, as people opted for self-made drinks rather than outsourcing bottled water amidst pandemic. So, the reduced demand from the consumers end and further delay in production due to supply chain disruptions had a negative impact on the market. Moreover, restrictions on trading activities, impacted the growth of the market during pandemic.