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The flavored and functional water market offers abundant product options ranging from nutritionally enhanced beverages fortified with minerals, vitamins, herbs and fruits to naturally flavored refreshing drinks. These innovative water products provide great taste along with functional benefits.
Global flavored and functional water is estimated to be valued at US$ 50.03 Billion in 2022 and is expected to exhibit a CAGR of 11.91% over the forecast period 2023-2030.
Key Takeaways
Key players operating in the flavored and functional water market are Danone, Nestle, PepsiCo, The Coca-Cola Company and Dr Pepper Snapple Group.
Flavored And Functional Water Market Growth health consciousness among consumers is driving the demand for healthy beverage alternatives like flavored and functional water. People are increasingly switching to nutrient-enriched water products for their daily hydration needs.
Technological advancements are allowing manufacturers to enhance water beverages with probiotics, nutrients and natural flavors extracted through innovative methods like cold-pressing. New variants with benefits like immunity-boosting and digestive health are gaining popularity.
Market Trends
Customization and premiumization is a key trend in the market. Customers like the option of blending their own flavors and adding ingredients of their choice. Manufacturers are introducing customizable bottles, mobile apps for blending and premium variants.
Sustainability is another area of focus. Companies are emphasizing on eco-friendly packaging solutions like light-weighted bottles, recyclable cartons and PET bottles from recycled plastic waste.
Market Opportunities
Emerging economies offer significant headroom for market expansion given their fast-growing middle class and increasing health awareness. Penetration of flavored and functional water can be scaled up in these regions.
E-commerce channels provide a lucrative avenue for product visibility and sales. Strategic partnerships and exclusive e-store launches can aid brands in boosting online revenues.
How COVID-19 impacted Flavored and Functional Water Market growth?
The COVID-19 pandemic significantly affected the flavored and functional water market globally. During the initial months of lockdowns, there was a substantial decline in consumption at restaurants, cafes and workplaces as people were confined to their homes. However, retail sales saw considerable growth as more people stocked up on essential supplies and beverages for in-home consumption. Several players expanded their e-commerce operations and last-mile deliveries to meet the rising demand from online shoppers. They promoted the immunity-boosting and hydrating properties of functional waters through digital campaigns. Gradually, as restrictions eased, sales rebounded across retail stores and e-commerce platforms. New product innovations focused on immune health and stress relief also aided the market recovery. While away-from-home consumption is still recovering, the at-home segment is expected to sustain elevated demand levels post-pandemic, supporting overall market growth in the coming years.
The North American region accounts for the major share of the global flavored and functional water market in terms of value. This is attributed to factors like increasing health consciousness among consumers, rising obesity rates leading to demand for low-calorie beverages and presence of leading brands aggressively marketing their products. The Asia Pacific region is projected to grow at the fastest rate during the forecast period. Rapid urbanization, rising disposable incomes, growing millennial population and their preference for healthy drinks are fueling market expansion across developing countries like China and India. Further boost will come from companies adapting their product offerings to local tastes, increased distribution reach and rising health awareness in the region.
While Western Europe has a developed market, Central and Eastern European countries are displaying high growth potential. This can be attributed to a catch-up effect from evolving consumer lifestyles and increasing consumption of functional beverages. Latin America and the Middle East are also exhibiting steady growth opportunities on the back of hot weather conditions which increase demand for flavored waters, expanding retail landscape and improving economic conditions. With rising health and wellness trends globally, the future outlook for the flavored and functional water market remains positive across major regions worldwide.
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About Author:
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
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