The global functional water market is expected to witness impressive growth during the forecast period. This was observed in a report, titled “Functional Water Market: Global Market Analysis, Insights and Forecast, 2018-2025”. In the report, Fortune Business Insights predicts the global functional water market to exhibit a CAGR of 7.4% between 2018 and 2025. The market was valued at US$ 10.34 Bn in the year 2017 and is estimated to account for a value of US$ 18.24 Bn by 2025.
Mushrooming supermarkets and hypermarkets worldwide is expected to increase the sales of functional water in the coming years. Hence, increasing number of mass merchandizers will facilitate various functional water brands, subsequently enabling growth in the functional water market. Various bundling strategies done at economic pricing are positively impacting the sales of popular functional water brands. In addition to this, sales in online, retail, and convenience stores are projected to gain momentum in the forthcoming years. This is primarily due to their greater penetration worldwide and personalized purchasing experience that they offer. Impressive performance exhibited across distribution channels is identified as a chief growth driver.
Among ingredients, micronutrients are anticipated to emerge dominant as enhanced waters are generally micronutrients-fortified. However, in the coming years the market is expected to witness increasing inclination towards plant-based ingredients. These ingredients offer numerous health benefits and are accepted across the world.
Rising Prevalence of Diabetes and Obesity Impels Consumers to Buy Low-Calorie Drinks
According to a study conducted by the World Health Organization (WHO), obesity is likely to affect nearly 70 million children by 2025. The rising prevalence of obesity and the risks associated with it have impelled consumers to shift to low-calorie drinks. This is projected to boost the functional water market during the forecast period, 2018-2025. Furthermore, the rising geriatric population across the world and increasing prevalence of diabetes are the major driving forces for the functional water market. Consumers are actively shifting their preferences from alcoholic drinks to healthy and nutritional drinks as they are becoming more health-conscious. This will further offer support expansion of the market
“The demand for functional water is increasing in response to the rise in income levels, especially among the urban population,” said a lead analyst at Fortune Business Insights. “The wider availability of packaged drinking water in different flavors is expected to further increase the demand among consumers,” he added. The functional water or aquaceutical is rich in minerals, vitamins, and botanicals offering several functional benefits. It helps to boost energy and improves immunity. Considering the above factors, the demand for functional water is expected to increase, driving the global functional water market between 2018 and 2025.
Among regional markets, North America is expected to emerge dominant on account of rising prevalence of obesity, especially among young generation in the U.S. Other regions are projected to grow substantially during the forecast period.
Mounting Cost of Functional Water May Hamper the Growth of the Market
The high cost associated with the functional water may restrict the growth of the functional water market. A major section of people among consumers in emerging and underdeveloped nations prefer simple or plain packaged water. This, coupled with the availability of alternatives in health drinks may lower the demand for functional water. The bargaining power of customers has increased owing to the high availability of other packaged waters and their low switching costs. Fortune Business Insights predicts that these factors may inhibit the growth of the functional water market in the coming years.
Functional Water Market is Highly Concentrated with the Presence of International and Domestic Players
The global Functional Water Market is currently witnessing intense competition with the presence of several players. Moreover, renowned functional water brands are continuously focusing on improving the quality of functional water products they offer. For instance, Danone S.A. is channelizing its efforts towards developing markets of Asia Pacific. The company expects double-digit growth in their functional water sales, particularly in countries such as China, India, and Indonesia. Such strategies are expected to have a positive impact on the market. Some of the other companies present in the global functional water include Nestle S.A., Nirvana Water, Allure Organics, Dr. Pepper Snapple Group Inc., and Tata Global Beverages.
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