Market Size of Functional Beverage Industry
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 148.26 Billion |
| Market Size (2028) | USD 203.42 Billion |
| CAGR (2023 - 2028) | 6.53 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Functional Beverages Market Analysis
The Functional Beverage Market size is expected to grow from USD 148.26 billion in 2023 to USD 203.42 billion by 2028, at a CAGR of 6.53% during the forecast period (2023-2028).
Post-Covid-19, the market has witnessed a surge in demand for products that provide functional benefits, such as immune health, which is likely to impact the market positively. Consumers are increasingly seeking functional beverage products as they believe might aid in the body's defenses. Countries like the United kingdom have already announced a proof plan to counter rising obesity in the country with campaigns like '' better health''. Such initiatives are being considered a potential for the market that earns consumers turning to opt for a functional beverage with functional benefits. Increasing demand for innovative products, like plant-based and lactose-free beverage products, is driving market growth, while the inclusion of CBD-infused functional beverages is expected to be an opportunity for the future market.
Many functional drinks offer numerous health benefits, including hydration, fluid maintenance, and nutritional benefits. With the aging baby boom generation willing to invest in innovative products that will enhance their lives, the functional beverage industry is increasingly driven by consumers' recognition of the link between diet and health. Market players are therefore increasingly developing new products regularly to further develop the studied market.
As more consumers gain awareness and experience with the online and DTC distribution models, the market is expected to witness a transition of online channels by functional beverage manufacturers in the coming years. Additionally, energy drinks are becoming increasingly popular among college students and corporate workers as a substitute for coffee. Furthermore, these energy drinks are becoming more popular as mixers for alcoholic beverages.
