Flavored and Functional Water Market

Market Snapshot

The flavored and functional water landscape is expected to transform at a stellar pace as it cashes in on an absolute dollar opportunity of US$ 4 Bn in 2021. This updated market research report places the current market worth at around US$ 36 Bn, which is expected to escalate 3.2X by the end of 2031.

Analysts studied the global flavored and functional water market and predict it to expand at a stellar CAGR of 11.5% over the next ten years.

Key Points Covered in Flavored and Functional Water Industry Survey:

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, country-wise, and region-wise analysis
• Competition mapping and benchmarking
• Brand share and market share analysis
• Key product innovations and regulatory climate
• COVID-19 impact on demand for flavored and functional water and how to navigate
• Recommendation on key winning strategies

New Launches of Flavored and Functional Water

Essentials of a healthy lifestyle have started to branch out into being trendier and more fun, and one of the best examples of this is the functional water trend that has seen some major advancements over the last decade. Flavored water and beverages have been popular, and now, as the healthy lifestyle trend takes flight, these beverages will also see an upward growth trend.

There have been many launches of functional and flavored water in recent times, as more and more companies try to cash in on the rising popularity of this trend.

• Danone has entered the functional and flavored market with the launch of its Evian line of beverages.
• New range of beverages from Evian is available in four different flavors - raspberry & ginseng, lime & ginger, grapefruit & basil, and cucumber & mint. These drinks have zero sugar and are zero-calorie drinks enriched with zinc and magnesium, currently available in the United States.
• ShineWater, a ready-to-drink brand has now expanded its products all across the United States. The beverage is the first and only hydration beverage with 100% of the daily recommended vitamin D intake in one bottle. The drink is aimed to combat vitamin deficiency that affects as much as 70% of the population, including adults as well as teens.

Market Overview

Rising health consciousness among consumers worldwide is uplifting the popularity of healthy alternatives to ordinary food and beverages that they usually consume. Flavored and functional water is one of such healthy alternatives; while flavored water is bottled mineral, purified, or spring water, functional water is its derivative with added functional value in form of oxygen, minerals, vitamins, and botanicals.

The global flavored and functional water market has gained momentum in the recent past and is expected to expand at an impressive CAGR of 11.5% over the forecast period of 2021-2031. Market revenue will reach US$ 121 Bn by 2031-end, up from US$ 36.7 Bn attained in 2021.

Key Market Dynamics

Rising prevalence of obesity and growing awareness about healthy lifestyle among urban population are expected to remain the key drivers governing the growth of the global flavored and functional water market. As health concerns of consumers are detaining them from consuming artificial flavored beverages and carbonated drinks, the popularity of flavored water is growing.

Functional water is especially attractive because of its health benefits and reduced switching costs, as the price nearly equals that of the flavored water. Availability of a range of flavors and options in flavored and functional water will also boost the market growth, as consumers usually prefer to try new tastes and follow the best of them.

Although flavored and functional water is a bit expensive, increasing income levels nowadays allow people to consume premium products like this water, especially in developing nations. This is anticipated to be a major factor holding a positive impact on the market growth.

Manufacturing companies have been grasping the right market by linking water to health and beauty regimes. This will continue to hit developing markets over the forecast period. Exploding industrialization in China has led to polluted water supply, eventually pushing the demand for packaged drinking water.

This is currently providing an uptick to flavored and functional water as well, and is foreseen to continue in the near future.

There have been several protest campaigns against packaging bottles, which may hamper the market to a great extent. Threat of substitutes is a longstanding challenge that will continue to hold a negative impact on the market growth through to 2021.

Segment Analysis

The global flavored and functional water market is bifurcated into two key segments, flavored water and functional water. Owing to rising consumer inclination toward healthier refreshment compared to ordinary water or beverages, functional water will gain a higher sprint in sales, registering a strong CAGR over the forecast period.

By Product

• Flavored Water
• Functional Water

By Region

• North America
  • U.S.
• Europe
  • U.K.
  • France
  • Germany
  • Italy
• Asia Pacific
  • China
  • Japan
  • India

Regional Analysis

The global market for flavored and functional water is regionally segmented into four key markets, viz. North America, Europe, Asia Pacific, and rest of the world. While the U.S., Germany, France, Italy, and Japan represented the highest penetration of flavored and functional water in 2021, Asia Pacific witnessed the fastest growing market. Emerging economies in Asia are rapidly urbanizing, eventually adopting sophisticated lifestyle.

In addition, Latin American and Middle Eastern countries are also likely to represent significantly growing markets. APAC is expected to expand at a high double digit CAGR during the forecast period.

Key Market Players

Some of the leading players operating in the global flavored and functional water market 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, including Aquafina Flavor Splash, Ayala’s Herbal Water, Dasani Drops, Nestle Pure Life, and Mizone.