Global Functional Water Market - 2022-2029

Market Overview

Functional Water Market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 8.12% during the forecast period (2022-2029).

Functional water is recognized as a non-alcoholic beverage similar to water with additional ingredients that increase functional benefits. It provides both refreshment and taste, which is enhanced by supplemental ingredients, also known as aquaceuticals, such as vitamins, minerals, acids, herbs, raw fruits, or vegetables, which improve immunity and boost energy. Furthermore, the shift in preferences from carbonated and high sugar beverages may drive demand for the functional water market. The convenience of consumption and its effects on human nutrition are the factors boosting demand in the functional water market. However, with the growing popularity of functional water among the working class and millennial populations, innovative product developments are expected to enhance the market and accelerate its growth over the forecast period.

Market Dynamics: Increasing health demand for sustainable products is driving the growth of the functional water market

The increase in demand for functional water owning to its sustainability, the growth in awareness among consumers regarding plastics being non-biodegradable pollutants causing detrimental effect on the environment and technological advancements in packaging of products are the major factors driving the functional water market.

The rise in the demand for functional foods, high popularity of holistic mix of health and taste among millennials and the increasing demand for functional water due to the inclusion of essential ingredients such as amino acids, vitamins, minerals and protein accelerate the growth of functional water market.

The implementation of stringent regulations related to plastic use, consumer inclination towards the functional water because of package used by different leading companies and growing consumers demand for fortified food and beverages influence the functional water market. Additionally, the initiatives taken by government, growing population of diabetes and obese patients, increasing investment in research and development activities and surge in the disposable income positively affect the functional water market.

Furthermore, technological advancements, new product launch and innovations in packaging material products extend profitable opportunities to the functional water market players in the forecast period.

Market Segmentation: Vitamin segmented accounted for the highest share in global functional water market

In 2021, the vitamin segment had the highest revenue share of more than YY percent. Vitamin water has been the most preferred choice of consumers due to the growing demand for vitamin and chemical free food products globally, coupled with a rise in demand for highly nutritious products along with good taste.

In 2021, the supermarkets/hypermarkets segment had the highest revenue share of more than YY percent. This is due to the easy availability of products on direct channels and availability of various discount offers. The key manufacturing companies focus on establishing the online product availability. Various companies also offer products on their own websites and through various channels.

Geographical Penetration: North America is the dominating region during the forecast period

In 2021, North America had the highest revenue share of almost YY percent as functional water is produced extensively in North America. Increased consumption of functional food products in U.S. is driving the growth of the market. The increased consumers' disposable income, which 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 artificial flavored beverages and carbonated drinks, and the popularity of functional water is growing in the region.

Competitive Landscape:

The global functional water market is competitive and comprises players such as Danone, The Coca-Cola Company, PepsiCo, Keurig Dr Pepper, Inc., Trimino Protein Infused Water, NYSW Beverage Brands, Inc., Disruptive Beverages Inc., Vichy Catalan Corporation, AGUA MINERAL SAN BENEDETTO, S.A.U., Unique Foods (Canada) Inc. among others. The functional water market competitiveness is estimated to increase over the forecast period as the key players focus on various strategies such as agreements and product innovation for various applications. Moreover, rising research and development activities of product innovation according consumers' preference for natural forms of products are also expected to propel market growth.

COVID-19 Impact: Negative impact on the global functional water market

The COVID-19 pandemic has adversely affected the economies of various countries due to lockdowns, business close, and travel bans. Food and beverages is among the major industries suffered from intense disruptions such as restrictions on the supply chain and the shutdown of warehouse plants.

In addition, the shutdown of companies, warehouses, factories production facilities in various countries has disrupted the global supply chains. It has negatively impacted manufacturing activities, delivery schedules, and various goods sales. Multiple companies have already announced possible delays in product deliveries and a decline in future sales of their products.

Furthermore, the import-export restrictions imposed by governments in various regions such as North America, South America Asia, and Europe are hindering geographical expansion, business collaboration and partnership opportunities. Thus, these factors are hindering the growth of the functional water market in the food and beverage industry.

The global functional water market report would provide an access to approximately 45 market data tables, 31 figures and 172 pages.