Functional Water Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The global functional water market is projected to grow at a CAGR of 7.06 % during the forecast period (2021 - 2026).
As the consumer focus was centred towards proper nutritional intake initially during the pandemic, they are likely to switch towards healthier beverage options and depict their preference for vitamin and mineral-infused functional waters. Thus, COVID-19 pandemic offered wider opportunities for the functional water market during the forecast period. Moreover, online retail channels will attain a higher growth rate than conventional channels of distribution such as supermarkets and specialty stores in terms of sales of functional water during the forecast period.
Functional water is recognized as aquaceutical, a non-alcoholic beverage similar to water having additional ingredients that increase functional benefits. It provides both refreshment and taste. Some common additives are vitamins, acids, minerals, herbs, and fruits or vegetables which help in improving immunity and boost energy. The shift in preference from carbonated and high sugar beverages will drive the demand for the functional water market.
The convenience of consumption and its effect on human nutrition are the factors that are increasing the demand of the market studied. The growing popularity of functional water among the working class and millennial populations is expected to improve the development of the market.
Value Added Hydration Evolving Consumer Preferences in Functional Water Market
The rapid demand for fortified beverages is attributed to the inclusion of essential ingredients, such as protein, amino acids, vitamins, and minerals in various functional beverages. The introduction of new and innovative types of functional water from the beverage manufacturing companies that are engaged in the production of water from the modified blends of protein and minerals is likely to fuel the growth of the market.
The rise in obese and diabetic populations in the United States, China, India, Australia, and the United Kingdom, among others, has shifted the focus from carbonated soft drinks to bottled water in the recent past. Research by the International Food Information Council Foundation on Food and Health revealed that 47% of the total consumers prefer food with additional nutrients, therefore this factor is expected to increase the growth of the market studied.
Prominence of Functional Water Market in the North American Market
The consumption pattern in the North American region is shifting toward healthy and weight management ingredients infused food and beverage products. As functional water contributes to the same, the region stands at a prominent position. Consumers in the United States have started to develop an interest in beverages that deliver benefits above and beyond simple refreshment, which are also contributing to the expansion of the functional water market. Moreover, due to rising health concerns in the Canadian provinces, many domestic and international players are getting attracted to the opportunistic market, and the consumers are getting an ample range of products to choose from, which is driving the North American market.
Danone SA, The Coca-Cola Company, PepsiCo, Inc., and Dr. Pepper Snapple are some of the prominent players in the functional water market. Some of the other players include Vitamin Well AB, Triamino Brands LLC, New York Spring, and others. Balance Water and Herbal Water have marked their position in the market with their unique product portfolio i.e., water enhanced with wildflowers and organic herbs respectively. Moreover, regional or domestic companies have been marketing their products with strategies, such as sponsorship and significant investment in advertisements.