Functional Water Market

Functional Water Market Size, Growth, Forecast (2023-2028)

The Global Functional Water Market size was worth US$ 13.2 billion in 2022, and it is predicted that it will reach a valuation of US$ 21.67 billion by 2028, registering an annual expansion rate (CAGR) of 7.33% between 2023 and 2028.

Product Description:

Functional water is a non-alcoholic beverage whose properties have been altered by adding ingredients that provide impressive benefits for health and other functions. Ingredients like vegetables, raw fruits, consumable acids, vitamins, herbs and minerals are added to the water before it is functional. Since water is the most widely consumed beverage in the world, the functional water market is supposed to show tremendous growth over the forecast period and fallout. As preferences for carbonated and high-sugar beverages change, market demand for functional water will increase.

Recent Developments in Functional Water Industry:

• In January 2019, the Canadian spring water company launched a functional water. The new product is Flow Glow, a brand of CBD-infused spring water. Hydrate and nourish your cells as much as possible with the quality of natural minerals, powerful antioxidants and CBD.

Functional Water Market Growth:

Functional foods and beverages are in increasing demand in the growing health-conscious world, trying to make the most of barely available resources.

REPORT COVERAGE:

Drivers:

The development of the global functional water market is expected to improve as the popularity of functional numbers increases among the working class and millennial population. The convenience of consumption and its impact on human nutrition are factors that surge the Functional Water market demand. The increased need for fortified beverages is only a natural result, as the world's population has constantly moved from rural to urban. Millennials want a complete mix of half and flavor. So, the inclusion of essential ingredients like proteins, amino acids, vitamins and minerals in functional water products appeals to this demographic as a functional number. The global market for functional water is estimated to record a double-digit CAGR as doctors recommend it as one of the essential beverages to consume every day. The functional water market is determined to register healthy growth during the conjecture period due to changes in consumer lifestyles in developed and developing countries with increased need for prepared foods around the world. Aeration and the shift in customer preferences from alcoholic beverages to healthy beverages will support the development of the industry. It has extra oxygen and is rich in vitamins, plants and minerals. The demand has increased due to the availability of different flavors and options. Urbanization, rising income levels, and pollution have increased the requirements for packaged beverage products. These factors are expected to drive the growth of the global functional water market. The introduction of a number of new and innovative features by beverage manufacturing companies involved in the production of modified protein-mineral blends will drive market growth. The rapid demand for fortified beverages is due to the fact that many functional beverages contain essential ingredients such as amino acids, vitamins, proteins, and minerals. The demand for functional water is higher than that of soft drinks, since the former do not contain added sugars or other synthetic additives such as flavorings, preservatives and colorings.

With rapid urbanization and the increasing adoption of healthy lifestyles among the urban population, favoring functional numbers is driving market growth. Today's consumers are rapidly moving toward better or healthier alternatives to unnatural, high-sugar beverages. Existing brands on the market are launching high-quality products by offering label claims. Price is one of the important factors influencing consumer purchasing patterns, including fortified water. Apart from that, strong retail distribution scenarios and advances in bottling or packaging technology will drive the growth of the functional water market in the near future. The size of the functional water market will witness significant growth due to increased use in the food and beverage industry. An aging population and rising obesity rates are the main drivers of the product. As health and wellness trends increase, shifting consumer preferences to functional numbers is driving market growth. Increasing disposable income coupled with improving consumer lifestyles is driving the growth of the functional water market along with the call for premium products. Additionally, as a functional water, it has a number of health benefits that are foreseen to drive the Functional Water market growth as demand for this drink among athletes increases.

Restraints:

The global functional water market is foreseen to be hindered by the surge in price for PET bottles that are mainly employed in functional water packaging. The availability of rich alternatives and low switching costs have increased the client's bargaining power. Increased protests against packaged bottles coupled with increased environmental conservation will have a negative impact on the growth of the global functional water market. Lack of awareness of the health benefits of these beverages in developing countries is anticipated to hamper the growth of the functional water industry. Additionally, balancing the flavor and sugar of a product is one of the main challenges in the global functional water market.

Functional Water Market Segmentation Analysis:

On the basis of packaging, the functional water market is segmented into glass bottles, PET bottles, cans, bags, etc. PET bottles are the majority shareholder due to their versatility, attractiveness, light weight, recyclability and ease of transport. Advances in technology are expected to lower overall production costs, providing flexibility for various shapes. Glass bottles are heavy and non-recyclable, and the use of glass increases the cost of the product. Use cans and bags for small quantities of products.

On the basis of distribution channels, the functional water market is segmented into department stores, grocery stores, supermarkets/hypermarkets, and online retail stores. Supermarkets and hypermarkets occupy a large proportion as the convenience of customers visiting stores increases. An increase of up to 10% in online sales due to better online platforms, discounts and ease of delivery will drive industry demand. Department stores and grocery stores have a significant stake due to their local presence.

Impact of COVID-19 on the Functional Water Market:

The emergence of coronavirus has stopped the world. We know that this health crisis has had an unprecedented impact on businesses in all industries. Increased support from governments and various companies can help combat this highly contagious disease. Some industries are struggling, and others are prospering. In general, almost all sectors are expected to be affected by the epidemic. Since the consumer's focus was on proper nutrition in the early days of the pandemic, they are more likely to switch to healthier beverage options and reflect their preference for functional water infused with vitamins and minerals. Therefore, the COVID-19 pandemic will provide broader opportunities for the functional water market during the projection period.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

Europe is anticipated to dominate the global functional water market by gross revenue, and the market size in this region is larger compared to others. The number of consumers in the area is increasing, which is estimated to drive growth in the industry. North America is the second largest market, driven by growing call from the pharmaceutical and beverage industry. Consumption patterns in North America are shifting towards ingredients for health and weight management. Functional capital serves the same purpose, so this area is in the first position. American consumers are becoming more interested in beverages that offer more than just soft drinks, and they are also contributing to the expansion of the functional water market and international companies are fascinated by opportunistic markets, and consumers have a wide range of products to choose from, which drives the North American market. Asia Pacific is estimated to be the fastest growing market as the consumer population grows. Emerging economies such as India, China, and Japan have increased consumer disposable income, which is likely to drive growth in the functional water market during the conjecture period.

Key Players in the Market:

Major key Players in the Global Functional Water Market are

• Coca Cola
• PepsiCo
• Nestlé
• Dr Pepper Snapple
• Hind
• Sunny Delight Beverages
• Group Danone
• Kraft Foods
• Triamino Brands LLC
• Vitamin Well AB
• Herbal Water
• New York Spring
• San Benedetto
• Vichy Catalan Corporation Exist
• Unique Foods (Canada)