The functional drinks market size has grown strongly in recent years. It will grow from $46.29 billion in 2024 to $49.17 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to innovation and product development, marketing and branding strategies, increased consumer awareness, lifestyle changes, distribution channels.
The functional drinks market size is expected to see strong growth in the next few years. It will grow to $61.62 billion in 2029 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to advanced formulations, global health challenges, sustainability and ethical practices, personalization trends, increased focus on mental health. Major trends in the forecast period include health and wellness focus, natural and clean labels, innovative ingredient, digital marketing and e-commerce, functional beverages for mental well-being.
The escalating costs of healthcare are anticipated to drive the growth of the functional drink market. Health expenditures represent significant investments aimed at promoting, restoring, and sustaining health. Functional beverages, containing substances believed to offer health benefits beyond basic nutrition, have gained popularity. Some of these beverages include antioxidants, vitamins, and minerals that enhance the immune system, reduce blood pressure, and alleviate inflammation. They present a cost-effective means to address nutritional needs. As of March 2022, the Centers for Medicare & Medicaid Services projected an average annual increase in national health spending of 5.1% between 2021 and 2030, reaching an estimated $6.8 trillion by 2030. Over the same period, Medicare expenditures were anticipated to grow at a 7.2% annual rate, while Medicaid spending was expected to increase at a 5.6% annual rate.
The increasing prevalence of cardiovascular diseases is set to fuel the growth of the functional drinks market. Cardiovascular diseases encompass various conditions affecting the heart and blood vessels, posing a significant health concern. Individuals grappling with cardiovascular issues turn to functional drinks due to their inclusion of nutrients such as omega-3 fatty acids, potassium, and magnesium, known for their heart health benefits. In October 2022, the National Library of Medicine projected that, by 2035, 45.1% of the US population would experience some form of cardiovascular disease, with associated total costs reaching an estimated $1.1 trillion. Additionally, in May 2023, the World Heart Federation reported 20.5 million deaths from cardiovascular diseases in 2021.
A prominent trend in the functional drink market is the emphasis on product innovation. Leading companies in this sector prioritize the development of innovative solutions to bolster their market positions. In February 2022, Rockstar Energy Drinks, a subsidiary of PepsiCo Inc., introduced Rockstar Unplugged, a novel energy drink featuring hemp seed oil and B vitamins as key ingredients, offering a unique alternative to high-energy beverages. With 80 mg of caffeine, Rockstar Unplugged blends a distinctive combination of ingredients, including caffeine, hemp seed oil, B vitamins, spearmint, and lemon balm, creating a calorie- and sugar-free beverage.
Major companies in the functional drinks market are concentrating on product innovation, such as instant energy drinks, to secure a competitive advantage. Instant energy drinks are formulated to deliver a quick and temporary boost in physical and mental alertness by rapidly providing stimulants like caffeine and sugar. For example, in September 2024, PepsiCo, a US-based global food and beverage company, launched Gatorade Hydration Booster, an electrolyte powder intended for everyday hydration. This marks Gatorade's first electrolyte powder specifically designed for daily use, aimed at offering all-day hydration. The powder contains a blend of electrolytes derived from watermelon juice, sea salt, sodium citrate, and potassium salt. Additionally, it provides 100% of the daily value of essential vitamins A, B3, B5, B6, and C, without any added artificial flavors, sweeteners, or colors.
In May 2022, A.G. Barr plc, a UK-based soft drink manufacturer specializing in functional beverages, acquired Boost Drinks Holdings Limited. The initial consideration for the acquisition amounted to $21.88 million (Euro 20 million). Through this strategic acquisition, A.G. Barr plc aims to delve into high-growth and functional beverage categories with innovative offerings. Boost Drinks Holdings Limited, the acquired UK-based company, is a provider of functional drinks, aligning with the overarching strategy of expanding product portfolios to address evolving consumer preferences.
Major companies operating in the functional drinks market include The Coca-Cola Company, PepsiCo Inc., Red Bull GmbH, Suntory Beverage and Food Ltd., Danone S.A., Nestlé SA, Monster Beverage Corporation, Otsuka Holdings Co. Ltd., Universal Nutrition Corp., Dr Pepper Snapple Group Inc., Glanbia Plc, Kerry Group Plc, Probi AB, The Hain Celestial Group, Koios Beverage Corp., Celsius Holdings Inc., Vital Proteins LLC, Fonterra Co-operative Group Limited, The Naked Collective Limited, The Alkaline Water Company Inc., The a2 Milk Company Limited, The New Age Beverages Corporation, The Simply Good Foods Company, The Good Crisp Company, The Ginger People, The Republic of Tea.
Asia-Pacific was the largest region in the functional drinks market in 2024. The regions covered in the functional drinks market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the functional drinks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Functional drinks are nonalcoholic beverages that offer health benefits beyond basic nutrition, aiming to positively impact the body or mind to enhance overall health and well-being. These drinks typically contain unique ingredients such as fresh fruit, enzymes, minerals, herbs, protein, amino acids, probiotics, and sometimes artificial additives.
The primary categories of functional drinks include energy beverages, functional fruit and vegetable juices, sports drinks, functional water, and other specialized varieties. Energy beverages often contain elevated levels of caffeine, additional sugars, various chemicals, and legal stimulants such as guarana, taurine, and L-carnitine. These drinks are distributed through multiple channels such as hypermarkets or supermarkets, specialty stores, online platforms, and others. They find applications in various sectors such as health and wellness, as well as weight loss programs.
The functional drinks market research report is one of a series of new reports that provides functional drinks market statistics, including functional drinks industry global market size, regional shares, competitors with a functional drinks market share, detailed functional drinks market segments, market trends and opportunities, and any further data you may need to thrive in the functional drinks industry. The functional drinks market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The functional drink market consists of sales of coconut water, enhanced waters, functional sodas, and related products. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The functional drinks market size is expected to see strong growth in the next few years. It will grow to $61.62 billion in 2029 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to advanced formulations, global health challenges, sustainability and ethical practices, personalization trends, increased focus on mental health. Major trends in the forecast period include health and wellness focus, natural and clean labels, innovative ingredient, digital marketing and e-commerce, functional beverages for mental well-being.
The escalating costs of healthcare are anticipated to drive the growth of the functional drink market. Health expenditures represent significant investments aimed at promoting, restoring, and sustaining health. Functional beverages, containing substances believed to offer health benefits beyond basic nutrition, have gained popularity. Some of these beverages include antioxidants, vitamins, and minerals that enhance the immune system, reduce blood pressure, and alleviate inflammation. They present a cost-effective means to address nutritional needs. As of March 2022, the Centers for Medicare & Medicaid Services projected an average annual increase in national health spending of 5.1% between 2021 and 2030, reaching an estimated $6.8 trillion by 2030. Over the same period, Medicare expenditures were anticipated to grow at a 7.2% annual rate, while Medicaid spending was expected to increase at a 5.6% annual rate.
The increasing prevalence of cardiovascular diseases is set to fuel the growth of the functional drinks market. Cardiovascular diseases encompass various conditions affecting the heart and blood vessels, posing a significant health concern. Individuals grappling with cardiovascular issues turn to functional drinks due to their inclusion of nutrients such as omega-3 fatty acids, potassium, and magnesium, known for their heart health benefits. In October 2022, the National Library of Medicine projected that, by 2035, 45.1% of the US population would experience some form of cardiovascular disease, with associated total costs reaching an estimated $1.1 trillion. Additionally, in May 2023, the World Heart Federation reported 20.5 million deaths from cardiovascular diseases in 2021.
A prominent trend in the functional drink market is the emphasis on product innovation. Leading companies in this sector prioritize the development of innovative solutions to bolster their market positions. In February 2022, Rockstar Energy Drinks, a subsidiary of PepsiCo Inc., introduced Rockstar Unplugged, a novel energy drink featuring hemp seed oil and B vitamins as key ingredients, offering a unique alternative to high-energy beverages. With 80 mg of caffeine, Rockstar Unplugged blends a distinctive combination of ingredients, including caffeine, hemp seed oil, B vitamins, spearmint, and lemon balm, creating a calorie- and sugar-free beverage.
Major companies in the functional drinks market are concentrating on product innovation, such as instant energy drinks, to secure a competitive advantage. Instant energy drinks are formulated to deliver a quick and temporary boost in physical and mental alertness by rapidly providing stimulants like caffeine and sugar. For example, in September 2024, PepsiCo, a US-based global food and beverage company, launched Gatorade Hydration Booster, an electrolyte powder intended for everyday hydration. This marks Gatorade's first electrolyte powder specifically designed for daily use, aimed at offering all-day hydration. The powder contains a blend of electrolytes derived from watermelon juice, sea salt, sodium citrate, and potassium salt. Additionally, it provides 100% of the daily value of essential vitamins A, B3, B5, B6, and C, without any added artificial flavors, sweeteners, or colors.
In May 2022, A.G. Barr plc, a UK-based soft drink manufacturer specializing in functional beverages, acquired Boost Drinks Holdings Limited. The initial consideration for the acquisition amounted to $21.88 million (Euro 20 million). Through this strategic acquisition, A.G. Barr plc aims to delve into high-growth and functional beverage categories with innovative offerings. Boost Drinks Holdings Limited, the acquired UK-based company, is a provider of functional drinks, aligning with the overarching strategy of expanding product portfolios to address evolving consumer preferences.
Major companies operating in the functional drinks market include The Coca-Cola Company, PepsiCo Inc., Red Bull GmbH, Suntory Beverage and Food Ltd., Danone S.A., Nestlé SA, Monster Beverage Corporation, Otsuka Holdings Co. Ltd., Universal Nutrition Corp., Dr Pepper Snapple Group Inc., Glanbia Plc, Kerry Group Plc, Probi AB, The Hain Celestial Group, Koios Beverage Corp., Celsius Holdings Inc., Vital Proteins LLC, Fonterra Co-operative Group Limited, The Naked Collective Limited, The Alkaline Water Company Inc., The a2 Milk Company Limited, The New Age Beverages Corporation, The Simply Good Foods Company, The Good Crisp Company, The Ginger People, The Republic of Tea.
Asia-Pacific was the largest region in the functional drinks market in 2024. The regions covered in the functional drinks market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the functional drinks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Functional drinks are nonalcoholic beverages that offer health benefits beyond basic nutrition, aiming to positively impact the body or mind to enhance overall health and well-being. These drinks typically contain unique ingredients such as fresh fruit, enzymes, minerals, herbs, protein, amino acids, probiotics, and sometimes artificial additives.
The primary categories of functional drinks include energy beverages, functional fruit and vegetable juices, sports drinks, functional water, and other specialized varieties. Energy beverages often contain elevated levels of caffeine, additional sugars, various chemicals, and legal stimulants such as guarana, taurine, and L-carnitine. These drinks are distributed through multiple channels such as hypermarkets or supermarkets, specialty stores, online platforms, and others. They find applications in various sectors such as health and wellness, as well as weight loss programs.
The functional drinks market research report is one of a series of new reports that provides functional drinks market statistics, including functional drinks industry global market size, regional shares, competitors with a functional drinks market share, detailed functional drinks market segments, market trends and opportunities, and any further data you may need to thrive in the functional drinks industry. The functional drinks market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The functional drink market consists of sales of coconut water, enhanced waters, functional sodas, and related products. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Functional Drinks Market Characteristics3. Functional Drinks Market Trends and Strategies4. Functional Drinks Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global Functional Drinks Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Functional Drinks Market34. Recent Developments in the Functional Drinks Market
5. Global Functional Drinks Growth Analysis and Strategic Analysis Framework
6. Functional Drinks Market Segmentation
7. Functional Drinks Market Regional and Country Analysis
8. Asia-Pacific Functional Drinks Market
9. China Functional Drinks Market
10. India Functional Drinks Market
11. Japan Functional Drinks Market
12. Australia Functional Drinks Market
13. Indonesia Functional Drinks Market
14. South Korea Functional Drinks Market
15. Western Europe Functional Drinks Market
16. UK Functional Drinks Market
17. Germany Functional Drinks Market
18. France Functional Drinks Market
19. Italy Functional Drinks Market
20. Spain Functional Drinks Market
21. Eastern Europe Functional Drinks Market
22. Russia Functional Drinks Market
23. North America Functional Drinks Market
24. USA Functional Drinks Market
25. Canada Functional Drinks Market
26. South America Functional Drinks Market
27. Brazil Functional Drinks Market
28. Middle East Functional Drinks Market
29. Africa Functional Drinks Market
30. Functional Drinks Market Competitive Landscape and Company Profiles
31. Functional Drinks Market Other Major and Innovative Companies
35. Functional Drinks Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Functional Drinks Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on functional drinks market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for functional drinks ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The functional drinks market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- the market characteristics section of the report defines and explains the market.
- the market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- the forecasts are made after considering the major factors currently impacting the market. These include:
- the forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- the regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- the competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- the trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Product: Energy Beverages; Functional Fruit and Vegetable Juices; Sports Beverages; Functional Water; Other Products2) by Distribution Channel: Hypermarkets or Supermarkets; Specialty Stores; Online; Other Distribution Channels
3) by Application: Health and Wellness; Weight loss
Subsegments:
1) by Energy Beverages: Caffeinated Drinks; Herbal Energy Drinks2) by Functional Fruit and Vegetable Juices: Cold-Pressed Juices; Detox Juices; Superfood Juices
3) by Sports Beverages: Electrolyte Drinks; Protein Sports Drinks; Recovery Drinks
4) by Functional Water: Enhanced Water; Alkaline Water; Infused Water
5) by Other Products: Ready-To-Drink (RTD) Herbal Teas; Functional Smoothies; Probiotic Drinks
Key Companies Mentioned: the Coca-Cola Company; PepsiCo Inc.; Red Bull GmbH; Suntory Beverage and Food Ltd.; Danone S.A.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Functional Drinks market report include:- The Coca-Cola Company
- PepsiCo Inc.
- Red Bull GmbH
- Suntory Beverage and Food Ltd.
- Danone S.A.
- Nestlé SA
- Monster Beverage Corporation
- Otsuka Holdings Co. Ltd.
- Universal Nutrition Corp.
- Dr Pepper Snapple Group Inc.
- Glanbia Plc
- Kerry Group Plc
- Probi AB
- The Hain Celestial Group
- Koios Beverage Corp.
- Celsius Holdings Inc.
- Vital Proteins LLC
- Fonterra Co-operative Group Limited
- The Naked Collective Limited
- The Alkaline Water Company Inc.
- The a2 Milk Company Limited
- The New Age Beverages Corporation
- The Simply Good Foods Company
- The Good Crisp Company
- The Ginger People
- The Republic of Tea
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 49.17 Billion |
| Forecasted Market Value ( USD | $ 61.62 Billion |
| Compound Annual Growth Rate | 5.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 27 |
