Global Market Study on Flavored and Functional Water: Asia Pacific to Witness Highest Growth by 2019

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Published Date: 2014-08-28

Flavored water is a category of bottled mineral, spring or purified water containing flavors. It contains natural mineral water, fruit juice from concentrate (apple, strawberry, blackberry and orange), natural flavors and natural or artificial sweetener. Functional water is a derivative of flavored water with added functional ingredients such as botanicals, vitamins, minerals and oxygen. 


Emerging markets such as countries in Asia, Latin America and the Middle East have witnessed rising urbanization and increasing disposable income, which act as an opportunity for the overall flavored and functional water market. The U.S., Germany, France, Italy and Japan were the top flavored and functional water markets in 2012. Asia Pacific is emerging as a strong flavored and functional water market registering double-digit growth in 2012. 


Increasing obesity rate, rising aging population and changing consumer preferences are the major growth drivers for the global flavored and functional water market. Growing health concerns is restraining the masses from consuming carbonated or artificial flavored drinks and compelling them to opt for flavored and functional water. Flavored and functional water are generally priced similar to carbonated drinks, which reduces the switching costs for the consumers, thus increasing their attractiveness. Major growth challenges for the industry include threat of substitutes and increasing campaigns against packaging bottles. 


Increasing urbanization has increased the awareness levels of the consumer regarding the products that help in their wellbeing. The increasing income levels have also enabled the consumers to spend on premium products thus providing great opportunity for the flavored and functional water market players to focus in these markets. Currently, obesity is a major issue for adults. With growing awareness about obesity and obesity-linked diseases, people have started to choose low calorie drinks over high calorie drinks. Flavored and functional water provide a healthy option to the health conscious consumers. This is also one of the key reasons, which help to increase the overall flavored and functional water market.


The report covers in-depth analysis flavored and functional water market, by product segment (Flavored Water and Functional Water) for the period from 2010 to 2019. In addition, the current market dynamics including the drivers, restraints, trends and recent developments have been captured throughout the report in industry overview section. The flavored and functional water market for the major countries in each of the four geography, North America, Europe, Asia Pacific and Rest of the World includes historical and forecasted market sizes (2010-2019), in terms of value. North America covers the scenario in the U.S. Europe region covers the scenario of the U.K., Germany, Italy and France. Asia-Pacific region highlights the flavored and functional water market in Japan, India and China. The competitive scenario section of the flavored and functional water market report includes the positioning of different companies on the basis of their geographical presence and number of brands they offer in the flavored and functional water market. It also includes the positioning of major markets (countries) on the basis of their per capita expenditure on flavored and functional water and expected growth rates.


Some of the major companies operating in Flavored and Functional water are Hint Water, Nestle Water, Herbal Water, PepsiCo, The Coca-Cola Company and Groupe Danone, New York Spring Water, Kraft Foods, Balance Water Company and Sunny Delight Beverage Company. These companies offer multiple brands in the market such as Aquafina FlavorSplash, Ayala’s Herbal Water, Dasani Drops, Nestle Pure Life and Mizone.

Table of Content


Chapter 1 Preface 9

1.1 Report Description 9

1.2 Scope and Definition 9

      1.2.1 Product segments covered in the report 9

      1.2.2 Regions covered in the report 9

1.3 Research Methodology 9


Chapter 2 Market Synopsis 10


Chapter 3 Porter’s Five Forces Analysis 11

3.1 Porter’s Five Forces Analysis 11

      3.1.1 Bargaining Power of Suppliers 11

      3.1.2 Threat of new entrants 12

      3.1.3 Threat of substitute 12

      3.1.4 Bargaining power of buyer 12

      3.1.5 Intensity of rivalry 13


Chapter 4 Industry Overview 14

4.1 Introduction 14

4.2 Drivers 14

      4.2.1 Increasing obesity rate drives the market for flavored and functional water 14

      4.2.2 Increasing urbanization drives the demand for flavored and functional water 15

      4.2.3 Changing lifestyle drives the demand for flavored and functional water 16

      4.2.4 Rising aging population drives the demand for flavored and functional water market 17

4.3 Restraints 17

      4.3.1 Increasing campaigns against packaging bottles is acting as a major challenge for the flavored and functional water industry 17

      4.3.2 Flavored and functional water market is facing challenges from the substitute products 18

      4.3.3 Balancing flavor, function and sugar quantity is one of the challenges for flavored and functional water market 18

4.4 Opportunities 19

      4.4.1 Wellbeing offers opportunity for the flavored and functional water industry 19

      4.4.2 Emerging markets offers opportunity for the flavored and functional water manufacturers 19


Chapter 5 Market Size and Forecast by Product 20

5.1 Flavored Water 21

5.2 Functional Water 22


Chapter 6 Market Size and Forecast by Geography 24

6.1 North America 24

      6.1.1 U.S. 26

6.2 Europe 27

      6.2.1 U.K. 29

      6.2.2 France 30

      6.2.3 Germany 31

      6.2.4 Italy 33

6.3 Asia Pacific 34

      6.3.1 China 35

      6.3.2 Japan 37

      6.3.3 India 38


Chapter 7 Competitive Scenario 40


Chapter 8 Company Profile 43

8.1 Groupe Danone 43

      8.1.1 Company Overview: 43

      8.1.2 Products & Services: 43

      8.1.3 Financial Performance: 44

      8.1.4 Recent Developments: 45

8.2 Nestle SA 47

      8.2.1 Company Overview: 47

      8.2.2 Products & Services: 47

      8.2.3 Financial Performance: 48

      8.2.4 Recent Developments: 48

8.3 The Coca-Cola Company 50

      8.3.1 Company Overview: 50

      8.3.2 Products & Services: 50

      8.3.3 Financial Performance: 51

      8.3.4 Recent Developments: 51

8.4 PepsiCo 53

      8.4.1 Company Overview: 53

      8.4.2 Products & Services: 53

      8.4.3 Financial Performance: 55

      8.4.4 Recent Developments: 55

8.5 Hint Water 57

      8.5.1 Company Overview: 57

      8.5.2 Products & Services: 57

      8.5.3 Financial Performance: 57

      8.5.4 Recent Developments: 57

8.6 New York Spring Water 58

      8.6.1 Company Overview: 58

      8.6.2 Products & Services: 58

      8.6.3 Financial Performance: 59

      8.6.4 Recent Developments: 59

8.7 Kraft Foods 60

      8.7.1 Company Overview: 60

      8.7.2 Products & Services: 60

      8.7.3 Financial Performance: 61

      8.7.4 Recent Developments: 61

8.8 Balance Water Company 62

      8.8.1 Company Overview 62

      8.8.2 Products & Services: 62

      8.8.3 Financial Performance: 62

      8.8.4 Recent Developments : 62

8.9 Sunny Delight Beverages Company 63

      8.9.1 Company Overview: 63

      8.9.2 Products & Services: 63

      8.9.3 Financial Performance: 64

      8.9.4 Recent Developments: 64

Flavored and functional water are emerging as healthy alternatives in the ready-to-drink market for consumers who desist from consuming artificial flavored drinks or carbonated drinks due to growing health awareness. Increasing obesity rate, rising aging population, changing consumer preference and increasing urbanization are the some of the major growth drivers for the flavored and functional water market. Flavored water is a category of bottled mineral, spring or purified water containing flavors. Functional water is a derivative of flavored water with added functional ingredients such as vitamins, botanicals, minerals and oxygen. Some of the common flavors in the flavored and functional water market are orange, apple, cherry, lemon, strawberry and peach. Major growth challenges for the industry include threat of substitutes and increasing campaign against packaging bottles. Emerging markets such as countries in Asia, Latin America and the Middle East are witnessing rising urbanization and increasing disposable income, which act as an opportunity for the flavored and functional water. Increasing urbanization has increased the awareness levels of the consumer regarding the products that help in their wellbeing. The increasing income levels have also enabled the consumers to spend on premium products thus providing great opportunity for the market players to focus in these markets. The U.S., Germany, France, Italy and Japan were the top markets for flavored and functional water in 2012. Asia Pacific is emerging as a strong market registering double-digit growth in 2012. 


Some of the major companies operating in Flavored and Functional water are Hint Water, Nestle Water, Herbal Water, PepsiCo, The Coca-Cola Company and Groupe Danone, New York Spring Water, Kraft Foods, Balance Water Company and Sunny Delight Beverage Company. These companies offer multiple brands in the market such as Aquafina Flavor Splash, Ayala’s Herbal Water, Dasani Drops, Nestle Pure Life and Mizone.


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