Functional Drinks Market Size, Share & Trends Analysis Report By Type (Sports Drinks, Energy Drinks, Nutraceutical Drinks), By Region (US., Canada, Mexico, U.K.), And Segment Forecasts, 2010 - 2019

Industry Insights

The global functional drinks market size was valued at USD 69.68 billion in 2014. Functional drinks are non-alcoholic beverages that comprise vitals such as vitamins, minerals, herbs, and some fruit or vegetable juices. Availability of a wide variety of functional drinks has supported the growth of the market.

Functional drinks are more expensive than common substitutes such as carbonated beverages. However, with increasing spending power of consumers, this is becoming a less limiting factor for the market. Improving economic conditions in several parts of the world is also benefiting the growth of the market. Besides this, increasing health awareness in many countries is encouraging consumers to shift from sugary soft beverages to healthier alternatives in the functional drinks segment, which is expected to boost the demand for the product.

Moreover, market players are investing significant funds in R&D activities in order to introduce new products and flavors. Thus, their introduction and constant product innovation are anticipated to provide a fillip to the market. Companies are also allocating considerable budget to marketing of their products, which will help them in enhancing visibility and in turn, sales.

Technological advancements play an important role in the development of the market. Introduction of novel ingredient formulation technologies is estimated to stoke the growth of the market over the forecast period.

Type Insights

Based on type, the market has been segmented into energy drinks, sports drinks, and nutraceutical drinks. Rising commercialization of sports events in developing countries such as India and China are anticipated to provide growth opportunities to the functional drinks market over the forecast period.

In 2014, energy drinks formed the most significant segment in the global market, accounting for 55.8%. Energy drinks are usually consumed to overcome tiredness, while sports drink are helpful in restoring energy during sporting activities. Consumption of nutraceutical drinks provides health benefits and nutrient value to consumer. High caffeine content in energy drinks make them the preferred functional beverage type in developed economies such as the U.S. and Canada. Sports drink are more popular in emerging economies, thanks to growing prominence of sports and physical games.

Regional Insights

The market in the United States has posted noteworthy growth since 2010. The market will register healthy growth during the forecast period despite the maturity of the market. The market of Canada had a valuation of USD 0.629 billion in 2014.

The overall sales of soft drinks in Mexico were harmed by tax on sugar-sweetened beverages applied in 2014, but it also gave potential to improve sales of functional drinks as customers could turn to relatively cheaper and healthier alternatives. Demand for functional beverages in the U.K. has been boosted in recent years by product diversification from some leading brands, such as Red Bull and Lucozade.

Functional Drinks Market Share Insights

Key participants include The Coca-Cola Company, Monster Beverage Corporation, PepsiCo, Red Bull GmbH, OtsU.K.a Holdings Co., Ltd, Suntory Group, Danone SA, and Nestlé. These companies are engaged in strategic initiatives such as new product development and acquisition in order to expand their business with new technologies and products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global and country levels and provides an analysis of the industry trends in each of the sub-segments from 2010 to 2019. For the purpose of this study, Grand View Research has segmented the global functional drinks market report based on type and region:

• Type Outlook (Revenue, USD Billion, 2014)

  • Energy drinks

  • Sports drinks

  • Nutraceutical drinks

• Regional Outlook (Revenue, USD Billion, 2010 - 2019)

  • The U.S.

  • Canada

  • Mexico

  • The U.K.