The functional water market is estimated to expand at a 6.2% CAGR from 2023 to 2033, from USD 15,234.39 million in 2023 to USD 27,281.72 million in 2033. The increased preference for flavored functional water due to its qualities, such as its refreshing flavor, improved nutritional profile, and superior taste, is driving the segment's rise. This type comes in a variety of flavors, including lemon, berry, and lime.
Innovations in flavor and packaging are favorably bolstering the market growth. Furthermore, flavored functional water improves mental stamina by reducing stress and providing relaxation. The growing desire of health-conscious customers for flavored functional water can also be ascribed to market participants' initiatives to provide flavored water with fewer calories.
Furthermore, prominent players' increased spending in product marketing to promote their goods is expected to boost market expansion throughout the forecast period.
Some of the primary growth pillars in the worldwide industry include healthy hydration, affordably nutritional, and pleasantly thirst-quenching qualities of functional ingredient-infused water. There has been significant growth in the hydration experience; water for sleep quality and water for body detox are two interesting improvements in this category.
Because of their decreased sugar level and lack of synthetic ingredients such as colors, tastes, and preservatives, functional beverages have notably emerged as a preferred drink over soft drinks.
The growing demand for fortified beverages containing vital elements such as vitamins, minerals, amino acids, and proteins is expected to drive the market for functional ingredient-enhanced water. As individuals become more conscious of obesity and diet-related problems, the food and beverage industry is focusing more on adding fiber to beverages to achieve benefits such as calorie reduction, weight control, and digestive health.
The growing public interest in health and wellness has shifted the focus to functional nutrition. Consumers are increasingly interested in fortified food and beverage items that provide functional benefits, such as energy, relaxation, mental focus, and health support. Manufacturers are capitalizing on the popularity of enriched waters by releasing products with promises that go beyond vitamin-enhanced hydration.
PepsiCo Inc., for example, Drift Well, a new drink designed to help consumers relax before night. The enhanced water provides 200 mg of L-theanine and 10% of the daily magnesium requirement.
| Report Attribute | Details |
|---|---|
| Functional Water Market Value (2023) | USD 15,234.39 million |
| Functional Water Market Anticipated Value (2033) | USD 27,281.72 million |
| Functional Water Market Growth Rate (2023 to 2033) | 6.2% CAGR |
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The functional water market is expected to be worth USD 14.84 billion by 2022, recording a 7.57% CAGR from 2017 to 2022.
Functional ingredient-enhanced water sales are thus benefiting from the broader consumer trend toward healthy alternatives to artificial and high-sugar drinks. Price is still the most influential element in the purchasing patterns of all functional beverages, including enhanced water; nevertheless, businesses that justify their premium offers with a slew of label claims are projected to earn better sales margins.
The advancement of bottling (packing) technology, combined with a growing retail distribution environment, helps the market for beneficial ingredient-enriched water even further. It contains healthful ingredients such as vitamins, acids, minerals, herbs, and fruits or vegetables, functional water, which is experiencing significant market expansion.
Following the pandemic, customers' focus shifted to correct nutritional consumption, and most consumers shifted to healthy beverage options, such as vitamin- and mineral-infused functional drinks.
In terms of functional water sales, online retail channels are growing prominently than traditional distribution channels, such as supermarkets and specialty stores, and are likely to rise during the forecast period. Furthermore, a shift away from carbonated and high-sugar beverages is further boosting the demand for the functional water industry.
| Historical CAGR (2017 to 2022) | 7.57% |
|---|---|
| Forecast CAGR (2023 to 2033) | 6.2% |
As per the FMI analysts, a valuation of USD 27,281.72 million by 2033 end is estimated for the market.
| 2016 | USD 8.63 million |
|---|---|
| 2021 | USD 14.21 billion |
| 2022 | USD 14.84 billion |
| 2023 | USD 15,234.39 billion |
| 2033 | USD 27,281.72 million |
Manufacturers' development of innovative products and the introduction of new flavors are estimated to boost the global functional water market forward. Portfolio expansion, or new product development, is still one of the most popular tactics among significant industry participants globally.
Consumers are increasingly interested in exotic ingredients and robust flavors that not only appeal to the palate, but are also functional in terms of the whole nutritional profile. B1U has introduced a line of functional infused water that has no sugar or artificial sweeteners.
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The introduction of sports drinks, energy drinks, and health drinks cleared the way for the entire movement of function-specific beverages. They provide additional health advantages ranging from improved energy to hydration and probiotic energy. The widespread availability of replacements, such as plant-based waters, which give the same health benefits as functional component enriched water, is expected to stymie the market's expansion.
Following hectic lifestyles, consumers are looking for dietary remedies to alleviate stress, tiredness, and reduced immunity. These solutions take the shape of functional foods, which also serve the purpose of giving nutritional and health benefits. Aside from eating appropriately, consumers are becoming more conscious of the need of drinking correctly.
This is seen in the increased demand for beverages containing substances with health and wellness benefits. Functional beverages, particularly those containing immune-boosting components, may continue to garner attention as consumers seek comprehensive solutions to suit their health and wellness demands.
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Increasing Awareness About Healthy Beverages to Drive the Growth of the Market.
The growing prevalence of obesity and growing awareness about healthy lifestyles among the urban population is expected to remain the key drivers governing the growth of the global functional water market. Functional water consumers are conscious about their environment’s safety, as reports have shown that plastics are non-biodegradable pollutants whose presence has a detrimental effect on the environment.
With governments’ stringent regulations regarding plastics, manufacturers in the industry are prompted to develop new and innovative materials to package their products. Consumers are sometimes attracted to the functional water market by the type of package used by different leading companies. Furthermore, growing consumers’ demand for fortified food and beverages is estimated to foster the rise in demand for functional water in a few years.
Sales are expected to increase drastically, as the population of diabetes and obesity patients is rising annually, threatening the global world. Countries like the United States, the United Kingdom, China, India, and Australia have increased the production of functional water, as consumers have switched their preference from consuming carbonated soft drinks to packaged water.
The global functional water market growth is expected to be hampered during the forecast period due to the hike in the price of the PET bottles used in packaging functional water. Also, the stringent regulations related to food safety are expected to limit the growth of the functional water market.
The Presence of Leading Market Players in the Region Arise Opportunities for the Market
North America dominated the global functional water market in 2022. North America accounts for a market share of 33.7% in the global functional water market. North America for instance currently has dominance, backed by robust growth in the demand from the United States. Sales of bottled water have already surpassed that of soft drinks in the country, prompting companies to expand their functional offerings.
For instance, a new range of beverages from Evian is available in four different flavors - raspberry & ginseng, lime & ginger, grapefruit & basil, and cucumber & mint. These drinks have zero sugar and are zero-calorie drinks enriched with zinc and magnesium, currently available in the United States.
The rising demand for functional water in North America is causing a subsequent shift in the beverage industry. Various leading brands are joining the bandwagon to offer a functional hydration experience to consumers. As a result, there is a high focus on innovating compositions of beverages to lure consumers in favor of purchasing it.
Growing Spending Power of Consumer Base in the Region to Drive Market Growth
According to Future Market Insights, Europe is expected to provide immense growth opportunities for the functional water market, consumers in the region are on the rise, which is estimated to facilitate the industry's growth. Europe's functional water market accounts for a 40.6% share of the total global market.
The increased consumers' disposable income is slated to fuel the growth of the functional water market during the forecast period. Also, increasing health concerns of consumers are detaining them from consuming artificially flavored beverages and carbonated drinks, and the popularity of functional water is growing in the region.
Growing E-commerce Sector in the Region Boosts the Functional Water Market in the Coming Years
The functional water market in the Asia Pacific is projected to expand at a significant pace during the forecast period, due to the presence of emerging economies in Asia like China and India, and rapid urbanization in the region eventually leads to the adoption of a sophisticated lifestyle.
The prevalence of e-commerce platforms in the APAC is attracting huge stakeholders’ attention. Moreover, booming digitization, coupled with the convenience of e-Commerce platforms in developing countries such as India is offering a conducive ground for functional water manufacturers. However, considering the total population in Asia Pacific, it is likely that market players are going to target the countries in the region highly.
As a result of increasing awareness, consumers in Asia Pacific have become eagerly willing to spend on functional water. For instance, Danone S.A. is channelizing its effort to penetrate deep across high-potential markets in the Asia Pacific, where it is aiming for double-digit growth on the back of improved sales of bottled water recorded in the region.
The new entrants in the functional water market are continually indulging in several collaborations and highly investing in research and development activities to provide more convenient solutions to industry verticals.
Some of the key start-ups that are leading the development of the market are, Funkthedrink, Ugly Drinks, Focus Water, OSHEE, Diva’s Drink, Viwa Vitamine Water, Herbal Water, and Miami Bay Beverage LLC
Prominent Players in the market
| Attribute | Details |
|---|---|
| Market Size Value in 2023 | USD 15,234.39 million |
| Market Size Value in 2033 | USD 27,281.72 million |
| Market Analysis | USD million for Value |
| Key Region Covered | North America; Latin America; Europe; Asia Pacific; The Middle East and Africa |
| Key Segments | By Type, By Distribution Channel, By Region |
| Key Companies Profiled | Danone; Coca-Cola; Pepsico; Dr. Pepper Snapple Vitamin Well AB; Triamino Brands LLC; New York Spring; Herbal Water; Vichy Catalan Corporation; San Benedetto; Unique Foods (Canada) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The functional water market registers USD 15,234.39 million in 2023.
The global functional water market revenue is projected to exceed USD 27,281.72 million by 2033.
Sales of functional water are anticipated to upsurge at a 6.2% CAGR through 2033.
North America solidifies its position as a key functional water hub, capturing a market share of 33.7% in 2022.
The functional water market secured USD 14.84 billion in 2022, registering a 7.57% CAGR.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Vitamin 5.2. Protein 5.3. Other 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 6.1. Supermarkets/Hypermarkets 6.2. Convenience Stores 6.3. Specialty Stores 6.4. Online Stores 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Ayala's Herbal Water 15.2. Balance Water Company 15.3. Danone S.A. 15.4. Function Drinks, Hint Inc. 15.5. Keurig Dr Pepper Inc. 15.6. Nestlé S.A. 15.7. PepsiCo Inc. 15.8. The Coca-Cola Company 15.9. Trimino Protein Infused Water 15.10. Unique Foods Inc. 15.11. Vichy Catalan Corporation 16. Assumptions & Acronyms Used 17. Research Methodology
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Functional Water Market
