The global functional water market is set to gain traction from their possession of several benefits. They have refreshingly thirst-quenching properties, are affordably nutritional, and provide healthy hydration. This information is given by Fortune Business Insights™ in a recent report, titled, “Functional Water Market Size, Share and Industry Analysis By Ingredient (Micronutrients, Botanical Extracts, Other Functional Ingredients), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, Others), and Regional Forecast 2018-2025.” The report further states that the functional water market size was USD 10.34 billion in 2017 and is projected to reach USD 18.24 billion by the end of 2025, thereby exhibiting a CAGR of 7.4% in the forecast period.
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This Report Answers the Following Questions:
- What are the market trends, opportunities, and challenges?
- Which strategies are being followed by companies to bolster the sales of functional water?
- How will the market be affected in the near future?
- Which segment is likely to lead the market in terms of share?
Drivers & Restraints:
Increasing Demand for Healthy Alternatives to Drive Growth
The demand for functional water is higher than soft drinks as the former does not contain added sugar or any other synthetic additives, such as preservatives, flavors, and colors. Consumers nowadays are inclining rapidly towards better-for-you or healthy alternatives from high-sugar and unnatural drinks. The pre-existing brands in the market are launching their high-quality products by providing label claims. It is helping them in gaining more sales. Price is one of the crucial factors that is set to impact the purchasing pattern of the consumers, including that of enhanced water. Apart from that, the robust retail distribution scenario and advancements in bottling or packaging technology would propel the functional water market growth in the near future.
Micronutrients Segment to Lead Stoked by Their Rising Usage in Functional Water
In terms of ingredients, the market is fragmented into botanical extracts, micronutrients, and other functional ingredients. Out of these, the micronutrients segment held the maximum functional water market share in 2017 and is likely to lead in the coming years. This growth is attributable to their increasing usage in enhanced water. The usage of numerous other unique ingredients is also gaining momentum. The market is experiencing a surging shift of the masses towards plant-based and all-natural ingredients. These are easily accepted and recognizable backed by their health benefits.
Innovations in Flavours to Accelerate Growth in Asia Pacific
The market is regionally divided into Asia Pacific, Europe, North America, and the rest of the world. Out of these, Asia Pacific procured USD 3.043 billion revenue in 2017. The region is anticipated to exhibit considerable growth during the forecast period owing to the increasing awareness regarding the advantages of functional water amongst the consumers. They are looking for specialty offerings in the products. Therefore, enhanced water is becoming a recognizable and distinct category in this region. In various countries, consumers are moving from carbonated soft drinks (CSDs) towards healthy alternatives. Innovations in flavours in also set to boost growth in this region.
North America, on the other hand, houses a well-developed market and is set to dominate throughout the forthcoming years. The U.S. tops the list in terms of sales of functional water. The sales of soft drinks in the country have reduced as compared to the sales of bottled water. Hence, several renowned companies are investing a hefty amount of money to expand their product offerings in this region. They are luring consumers either by creating a context or by refining the composition of the product.
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Key Players Focus on Introducing Products with Exotic Ingredients
The market houses a large number of companies that are striving to cater to the rising needs of their consumers. Thus, they are investing huge sums on developing state-of-the-art packaging to create greater aesthetic appeal. Some of them are also taking into account the trend of consuming beverages infused with bold flavors and exotic ingredients to launch new functional waters.
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