Global Functional Beverages Market Size is valued at USD 260.2 Billion in 2024 and is predicted to reach USD 618.8 Billion by the year 2034 at a 9.4% CAGR during the forecast period for 2025-2034.
A Functional Beverage is a non-alcoholic drink product. It contains essential nutrients and bioactive compounds, including minerals, vitamins, antioxidants, amino acids, herbs, raw fruits, or vegetables. They help boost the immune system and improve the physical and mental health of the body. These beverages include energy drinks, dairy beverages, ready-to-drink tea and coffee, sports drinks, plant milk, fortified fruit drinks, and enhanced water. By region, North America controlled the global market with a share of 42 % in 2021.
The rising health awareness among the population and heavy investments by significant food and beverage companies are the primary driver of the functional beverage market. Additionally, the advances in scientific research, low consumption of convenience foods, rising demand for sports & performance drinks, availability of wide varieties of energy drinks and fruit juices, easy product distribution and storage, increasing consciousness about fitness and diets, and changing lifestyle patterns further increasing the demand for functional beverage products, thereby driving the market growth.
Consumers' preference is shifting toward more healthy and nutritious food and drink products due to the increasing awareness about fitness, diet, and health. So, the manufacturers are focusing more on research and development of new products, such as vegan, probiotic, and plant-based drinks. Such advances in beverage products are expected to enhance the global functional beverage market over the forecast years (2020-2030). Furthermore, the current COVID-19 outbreak has accelerated the demand for functional beverages that support the immune system.On the other hand, food safety problems, strict government regulations, and a lack of awareness about the benefits of functional beverages are expected to restrain the market growth over the forecast period.
Market Segmentation
The functional beverages market is segmented into products, functions, distribution channels, and region. The products segment is classified into energy drinks, sports drinks, cannabis-infused beverages, kombucha, non-alcoholic aperitif, nutraceutical drinks, functional fruit and vegetable juices, enhanced water, dairy-based beverages, and other products. The energy drinks segment is expected to hold the largest share of the global market over the forecast years due to the increasing demand for energy beverages. The sports drinks segment is also growing pidly due to the rising awareness about fitness.
By Functions, the market is divided into health & wellness and weight management. By distribution channel, the market is grouped into convenience stores, online retail, pharmacies, and supermarket/hypermarket. The online retail segment dominated the functional beverages market in 2020 and is expected to continue the trend over the forecast period due to the increasing customer preference towards online shopping. Regionally, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America region is anticipated to dominate this market over the forecast years.
Competitive Landscape
Some Major Key Players In The Functional Beverages Market:
- Archer Daniels Midland Company (US)
- Arla foods (Denmark),
- Æcorn Aperitifs (UK),
- Campbell Soup Co. (US),
- Clif Bar & Company (US),
- Danone S.A. (France),
- DuPont Nutrition & Health (Denmark),
- Fonterra Co-operative Group Limited (New Zealand),
- General Mills, Inc. (US),
- Glanbia PLC,
- Kraft Foods Group, Inc. (Ireland),
- LycoRed Ltd. (Israel),
- Monster Energy Company (US),
- Pepper SnappleGroup (US),
- National Beverage Corp (US),
- Nestlé S.A. (Switzerland),
- PepsiCo, Inc. (US),
- Red Bull Gmbh (Austria),
- Suntory Holdings Limited (Japan),
- Tata Global Beverages (Bengaluru),
- The Coca-Cola Company (US),
- The Kraft Foods Group (US),
- Thomson &Scott Ltd. (UK),
- Seedlip (Australia),
- Domaines Pierre Chavin (France),
- others
Functional Beverages Market Report Scope
Report Attribute |
Specifications |
Market Size Value In 2024 |
USD 260.2 Billion |
Revenue Forecast In 2034 |
USD 618.8 Billion |
Growth Rate CAGR |
CAGR of 9.4% from 2025 to 2034 |
Quantitative Units |
Representation of revenue in US$ Mn,and CAGR from 2025 to 2034 |
Historic Year |
2021 to 2024 |
Forecast Year |
2025-2034 |
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
Segments Covered |
By Products, By Functions, By Distribution Channel |
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico ;The UK; France; Italy; Spain; China; Japan; India; South Korea; South East Asia; South Korea; South East Asia |
Competitive Landscape |
Archer Daniels Midland Company (US) , Arla foods (Denmark), Æcorn Aperitifs (UK), Campbell Soup Co. (US), Clif Bar & Company (US), Danone S.A. (France), DuPont Nutrition & Health (Denmark), Fonterra Co-operative Group Limited (New Zealand), General Mills, Inc. (US), Glanbia PLC, Kraft Foods Group, Inc. (Ireland), LycoRed Ltd. (Israel), Monster Energy Company (US), Dr. Pepper SnappleGroup (US), National Beverage Corp (US), Nestlé S.A. (Switzerland), PepsiCo, Inc. (US), Red Bull Gmbh (Austria), Suntory Holdings Limited (Japan), Tata Global Beverages (Bengaluru), The Coca-Cola Company (US), The Kraft Foods Group (US), Thomson &Scott Ltd. (UK), Seedlip (Australia), Domaines Pierre Chavin (France), and others |
Customization Scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |