In 2020, the global functional beverages market value was $110,148.5 million. The global functional beverages market will grow at a compound annual growth rate of 5.3% during the forecast period from 2021-2027. 

The ingredients of functional beverages can include raw fruit, minerals, herbs, probiotics, and sometimes artificial additives. These health benefits extend beyond their nutritional value, and they have a positive influence on both body and mind. Functional beverages solve food and beverage deficiencies, which require wide-area distribution from the retail sector. Increasing numbers of large retail stores in developing economies, including supermarkets, hypermarkets, and specialty stores, have made functional beverages more readily available. Also, retailers are contributing to the increase in sales of functional drinks.

Factors Affecting the Global Functional Beverages Market

• Functional beverages are forecast to experience strong growth due to the rising number of fitness enthusiasts and the growing inclination of consumers towards a healthy lifestyle.
• Increasing numbers of athletes participating in sports at a national and international level are likely to boost the market growth throughout the forecast period for functional beverages.
• Due to the trend of casual users for sports and energy drinks, beverage manufacturers are now creating drinks with low calories and fats and adding flavors from fruits and vegetables. Moreover, the role of distribution channels in the functional beverage market is crucial. Therefore, the growth of the market is due to specialty stores, supermarkets, and hypermarkets. 
• During the forecast period, energy drink consumption and availability of healthy substitutes are likely to restrain the growth of the functional beverages market.

Regional Analysis of the Global Functional Beverages Market 

During the forecast period, North America is forecast to maintain its market dominance as the leading functional beverages market in 2020. Consumer preferences for more natural ingredients have had little effect on the product market in North America, despite an increase in demand for natural products. Additionally, this region's market growth is fueled by the surge of young adults and athletes. In addition, functional beverages, such as sports and energy drinks, increase athletic performance and endurance, driving the demand for dairy-based beverages and sports drinks. Thus, all these factors are forecast to promote the growth of the functional beverage market in this region. Among the leading sports and energy functional beverages companies in North America are Monster Beverage Corp., Red Bull GmbH, and Dr. Pepper Snapple Group Inc. These companies drive the market growth for functional drinks.

Key Players in the Global Functional Beverages Market

The leading competitors profiled in the global functional beverages market are:

• The Coca-Cola Company
• Red Bull
• Pepsico, Inc.
• Nestlé S.A.
• Dupont Nutrition Biosciences ApS
• MaxiNutrition
• Clif Bar
• Monster Beverage Corporation
• Meiji Co., Ltd
• National Beverage Corp.
• Other Players

Segmentation Analysis of the Global Functional Beverages Market

The global functional beverages market segmentation is based on Distribution Channel, End-User, Type, and Region.

Segmentation based on Distribution Channel

• Supermarket and Hypermarket
• Specialty Stores
• E-Commerce
• Others 

Segmentation based on End-User

• Athletes
• Fitness Lifestyle Users
• Others

Segmentation based on Type

• Energy Drinks
• Sports drinks
• Dairy-based beverages
• Juices
• Others 

Segmentation based on Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America