Functional Water Market by Product, Type, Packaging, Distribution Channel

List of Tables

[190 Pages Report] The Functional Water Market size was estimated at USD 18.71 billion in 2023 and expected to reach USD 20.74 billion in 2024, at a CAGR 11.42% to reach USD 39.91 billion by 2030.

Functional water is an enhanced beverage modified to provide additional benefits beyond basic hydration with added vitamins, minerals, and herbs to support specific health claims and improve overall well-being. The demand for functional water is increasing to address particular health concerns, boost energy levels, improve mental performance, aid in weight loss, and support various other aspects of a healthy lifestyle. Functional waters have increasingly become the preferred hydration choice for athletes and sportspersons for multiple reasons, including improved athletic performance, enhanced recovery, targeted nutrient delivery, and overall health benefits. Functional water is often fortified with vitamins and minerals essential for maintaining energy levels and combating oxidative stress caused by intense workouts. Using premium components such as vitamins, minerals, electrolytes, antioxidants, botanical extracts, and probiotics causes higher prices of functional water due to limited sources or complex extraction methods. In addition, the inefficient recycling processes, pollution from the manufacturing and transportation of plastic bottles, and contamination issues during recycling poses environmental concerns related to recycling functional water bottles, negatively impacting the growth of the functional water market. However, introducing eco-friendly materials and biodegradable plastics with minimalistic packaging designs has expanded customer preference toward functional water portfolios. Moreover, functional water manufacturers are increasingly focusing on deploying their offerings on eCommerce platforms to enhance brand visibility, customer reach, and overall business performance, further improving the availability of novel products worldwide.

KEY MARKET STATISTICS
Base Year [2023]	USD 18.71 billion
Estimated Year [2024]	USD 20.74 billion
Forecast Year [2030]	USD 39.91 billion
CAGR (%)	11.42%

Product: Ability of various flavored water products to cater to diverse consumer preferences

Flavored functional water is fortified with nutrients and infused with natural or artificial flavors to enhance its taste profile. The flavors available in flavored functional water include fruits such as lemon, strawberry, and coconut; herbs and botanicals such as mint, lavender, and rosemary; and even spices including ginger or cinnamon. On the other hand, unflavored functional water is fortified with nutrients and does not contain any added flavors. This type of functional water appeals to consumers preferring a more neutral taste profile or those who wish to avoid artificial sweeteners or flavorings commonly found in flavored options. Unflavored functional water can offer a range of health benefits by including various vitamins, minerals, electrolytes, and other functional ingredients. However, these products rely on their nutrient content rather than their flavor profile to attract consumers.

Type: Nutritional benefits of functional water driving consumption of various functional water products

Botanicals are plant-derived substances often used for their therapeutic properties to provide antioxidants and anti-inflammatory or stress-relieving properties. Botanicals include herbs, roots, and flowers such as ginseng, chamomile, and hibiscus to deliver health benefits in a convenient and refreshing form. On the other hand, calcium, magnesium, potassium, and sodium are essential minerals required for various functions, including maintaining strong bones or regulating nerve transmissions. In functional water, minerals are added for their electrolyte capabilities, which help keep proper hydration levels during physical activities or replenish lost minerals through perspiration. Consumers can target particular health goals or address deficiencies by including specific minerals in functional water formulations. Oxygen-enriched functional waters contain higher levels of dissolved oxygen than regular tap water to boost energy levels by enhancing oxygen delivery to the body's tissues, particularly during exercise when increased metabolic demands require more oxygen consumption. Some functional water products incorporate protein-derived components, including branched-chain amino acids (BCAAs), which are particularly popular among athletes and sports enthusiasts as they help stimulate muscle protein synthesis while reducing muscle soreness post-workout. Vitamin C, D, or B-complex can be added to functional water to address deficiencies or target specific health goals.

Packaging: Various packaging materials to support the storage requirements of flavored water

Cans are preferred for packaging functional water due to their durability, portability, and recyclability. Cans are made of aluminum or steel and serve as a reliable barrier against external elements such as light and oxygen, which helps maintain the functional water's taste profile, freshness, and nutrient content. In addition to their protective qualities, cans are highly customizable in size and shape, making them suitable for various products across different target markets. On the other hand, polyethylene terephthalate (PET) bottles have gained prominence within the functional water sector due to their versatile properties and cost-effective manufacturing processes. The inherent transparency of PET bottles can showcase the water's color and clarity, adding visual appeal for consumers. The lightweight nature of PET bottles reduces transportation costs and contributes to lower carbon footprints compared to heavier packaging materials. In addition, PET bottles are shatter-resistant, making them safer to handle during the production, distribution, and consumption stages.

Distribution channel: Availability of various flavored water products through rising number of distribution channels

Convenience stores play an integral role in the distribution channel of functional water due to their widespread presence and accessibility for consumers seeking instant refreshments. These stores stock single-serving bottles emphasizing grab-and-go options suitable for busy individuals. On the other hand, online sales channels have experienced an exponential boost in recent years due to the rise in eCommerce platforms and consumers' increasing reliance on digital shopping. Functional water brands can benefit from this trend by establishing a strong online presence through their websites or partnering with popular eCommerce platforms. Specialty stores serve as a niche distribution channel that targets health-conscious consumers seeking high-quality products tailored to their wellness needs. Functional water brands demonstrate a commitment to quality ingredients and cater directly to customers by placing the products prominently within specialty stores, prioritizing elite nutritional profiles over traditional hydration alternatives. Supermarkets/hypermarkets are essential for reaching mass-market consumers as they deliver a comprehensive range of products under one roof. Supermarket chains have considerable influence over product assortment decisions and supplier relationships, which is crucial for functional water manufacturers to maximize their market penetration and sales potential.

Regional Insights

The increasing consumer awareness toward energy-boosting capabilities and vitamin content, penetration of convenient on-the-go beverages, and ongoing novel product development have expanded the demand for functional water products in the Americas. The government standards in the Americas ensure the safety and efficiency of functional water. The rapid growth in sport participation activities, significant penetration of eCommerce platforms, and introduction of botanicals in the product portfolios have supported the development and distribution of functional water in the Asia-Pacific region. The functional water market in Europe, the Middle East, and the African region is evolving due to the increasing customer preference for healthier beverages and manufacturers' focus on developing innovative functional beverages. Government standards ensuring nutrient levels, labeling, and safety assessment procedures for novel ingredients have standardized the functional water market in the EMEA.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Functional Water Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Functional Water Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Functional Water Market, highlighting leading vendors and their innovative profiles. These include Actiph Water Ltd, Agropur cooperative, Alkaline88, LLC, Bisleri International Pvt. Ltd., CENTR Brands Corp., Cloud Water Brands, Danone S.A., Disruptive Beverages, Inc., EARI Group, Flow Beverage Corp., Function Drinks, Gujarat Ion Exchange And Chemicals Limited, Hint Inc., HOW Water Houston, LP., JUST Goods, Inc., Karma Culture LLC, Keurig Dr Pepper, Inc., Kure Ltd., Langenburg Oxygen Water, Miami Bay Beverage Company LLC, Nestle S.A., Nirvana Water Sciences Corp., Nongfu Spring Co., Ltd., NYSW Beverage Brands, Inc., OHMG Brands Ltd, Oxigenesis, Inc., PepsiCo, Inc., Petal Beverage, LLC, Protein2o Inc., San Benedetto S.p.A., Tata Consumer Products Limited, The Coca-Cola Company, The Lemon Perfect Company, Unique Foods Canada, Waterman Engineers Australia, and WET Holdings (Global) Ltd..

Market Segmentation & Coverage

This research report categorizes the Functional Water Market to forecast the revenues and analyze trends in each of the following sub-markets:

Product
- Flavored Functional Water
- Unflavored Functional Water

Type
- Botanicals
- Minerals
- Oxygen
- Proteins
- Vitamins

Packaging
- Can
- PET Bottles

Distribution Channel
- Offline
  - Convenience Stores
  - Specialty Stores
  - Supermarket/Hypermarket

Online

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Functional Water Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Functional Water Market?

3. What are the technology trends and regulatory frameworks in the Functional Water Market?

4. What is the market share of the leading vendors in the Functional Water Market?

5. Which modes and strategic moves are suitable for entering the Functional Water Market?

Product Code: MRR-742BD517F020

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising health consciousness among the consumers worldwide
  - 5.1.1.2. Increased consumption by athletes and fitness enthusiasts
- 5.1.2. Restraints
  - 5.1.2.1. High cost of functional water and incidences of product recall
- 5.1.3. Opportunities
  - 5.1.3.1. Celebrity endorsements and advancements in packaging material
  - 5.1.3.2. Increasing availability on eCommerce platforms
- 5.1.4. Challenges
  - 5.1.4.1. Environmental concerns associated with recycling of bottles
5.2. Market Segmentation Analysis
- 5.2.1. Product: Ability of various flavored water products to cater to diverse consumer preferences
- 5.2.2. Type: Nutritional benefits of functional water driving consumption of various functional water products
- 5.2.3. Packaging: Various packaging materials to support the storage requirements of flavored water
- 5.2.4. Distribution channel: Availability of various flavored water products through rising number of distribution channels
5.3. Market Trend Analysis
- 5.3.1. Growing customer preference for premium and health-beneficial water products in the Americas
- 5.3.2. Development of novel functional water products coupled with increasing availability on eCommerce platforms across the Asia-Pacific region
- 5.3.3. Well-established standards and collaborative strategies to expand the consumer base of functional beverages in the EMEA region
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis

6. Functional Water Market, by Product

6.1. Introduction
6.2. Flavored Functional Water
6.3. Unflavored Functional Water

7. Functional Water Market, by Type

7.1. Introduction
7.2. Botanicals
7.3. Minerals
7.4. Oxygen
7.5. Proteins
7.6. Vitamins

8. Functional Water Market, by Packaging

8.1. Introduction
8.2. Can
8.3. PET Bottles

9. Functional Water Market, by Distribution Channel

9.1. Introduction
9.2. Offline
9.3. Online

10. Americas Functional Water Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Functional Water Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Functional Water Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Lurgan's Classic Mineral Water to Invest GBP 3.4 Million, Creating 16 Jobs
- 13.3.2. Lemon Perfect Introduces Refreshing Twist to Lineup with New Watermelon Flavor
- 13.3.3. vitaminwater Introduces Two New Flavors and Innovative Reformulation of Zero Sugar Lineup
- 13.3.4. Centr and Kyowa Hakko Launch Functional Water
- 13.3.5. CENTR Brands Announces New Online Store & Launch of CENTR Enhanced Functional Sparkling Water
- 13.3.6. Karma Water Debuts Direct-To-Consumer Hydration Kits
- 13.3.7. Smart Soda Announces Global Launch Mergers and Acquisitions
- 13.3.8. EARI Beverage Group Acquires Blossom Botanical Water Brand
- 13.3.9. Flow Beverage Corp. Launches Vitamin-Infused Water in Three Delicious Flavors
- 13.3.10. The Alkaline Water Company Expands Production with AZ Custom Bottled Water, LLC
- 13.3.11. Nirvana Water Sciences Introduces New Functional Water
- 13.3.12. OHMG Revamps Functional Water Range to Contain Three Types of Magnesium
- 13.3.13. Liquid Death Raises USD 75 Million in Funding Round that Values Water Brand at More Than USD 500 Million

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio