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Functional Water Market Size - By Product (Vitamin-enhanced Water, Electrolyte-enhanced Water, pH-balanced Water, Antioxidant-infused Water, Energy-enhanced Water, Others), Flavor, Packaging, Distribution Channel, End Use & Global Forecast 2023 – 2032

  • Report ID: GMI6168
  • Published Date: Jul 2023
  • Report Format: PDF

Functional Water Market Size

Functional Water Market size was valued at USD 4.2 billion in 2022 and is estimated to grow at over 6.8% CAGR from 2023 to 2032. Rising consumer awareness as well as the growing interest in health & wellness are propelling the market growth to a significant degree. The growing consumer inclination for healthier beverage alternatives, such as vitamins, minerals, antioxidants, and other functional ingredients, can be attributed to the need for additional benefits beyond hydration.
 

Functional Water Market

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Functional beverages including functional water are gaining popularity due to their ability to address specific health concerns or provide targeted benefits. Consumers are also looking for beverages that can support specific functions such as energy, mental focus, digestion, and immune health, thereby propelling the demand for functional water.

 

Functional water offers convenience & portability, making it an attractive option for on-the-go consumers. The ready-to-drink functional water products are easy to carry, allowing consumers to access the desired benefits from any location.
 

The added functional ingredients & health claims of functional water products may subject the product to regulatory scrutiny. Meeting regulatory requirements such as labeling, health claims, and ingredient safety may be complex & time-consuming for companies operating in the functional water market. Some consumers may be skeptical about the efficacy & legitimacy of functional water products. It can be challenging to build trust and educate consumers regarding the benefits & science pertaining to functional water.
 

Thus, it is crucial to overcome the consumer perception barriers as well as address the skepticism through transparent communications and credible research. The premium pricing associated with functional water products can also be attributed to their added functional ingredients. However, price sensitivity among consumers can lead to challenges for companies, especially in a highly competitive market. Balancing pricing strategies while ensuring profitability can be a delicate task. The risks associated with functional water may hinder the acceptance rate of the product, thereby hampering business growth.
 

COVID-19 Impact

The pandemic heightened consumer awareness pertaining to the importance of maintaining good health. This led to greater emphasis on wellness as well as the consumption of health-enhancing products including functional water. Consumers prefer products that can support the immune system, hydration needs, and overall well-being. The reduction in COVID-19 cases as well as the implementation of subsequent strategies by government & non-government organizations are estimated to augment the market demand.
 

Functional Water Market Trends

The incorporation of a wide range of functional ingredients, such as vitamins, minerals, electrolytes, antioxidants, probiotics, adaptogens, and plant extracts, in functional water products can lead to the offering of targeted health benefits. The focus lies in the delivery of specific health benefits such as hydration, immune support, stress reduction, improved cognitive function, and sports performance enhancement. Functional water brands are focusing on specific consumer lifestyles as well as consumer demographics such as athletes, fitness enthusiasts, busy professionals, and wellness-focused individuals.
 

Functional Water Market Analysis

Global Functional Water Market Size, By Product, 2021 - 2032 (USD Billion)

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The functional water market from vitamin-enhanced water segment held over USD 3 billion revenue in 2022. The demand for functional water products that can support immune health and overall human wellness has surged in recent years. There is a rising consumer inclination toward products enriched with immune-boosting ingredients including vitamins (such as vitamin C), antioxidants, and herbal extracts.
 

The growing demand for functional water products, which are formulated to provide an energy & performance boost, can be attributed to the increasing need for natural & convenient energy sources. These products, which often contain ingredients including caffeine, vitamin B, or natural energy boosters to promote alertness, focus & stamina, are highly sought after by active individuals, professionals, and students seeking a quick energy pick-me-up.
 

Global Functional Water Market Revenue Share, By Flavor, (2022)

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The fruit-flavored segment accounted for 40% of the functional water market share in 2022, led by the demand for functional water flavors is consumer taste preference. The varied taste preferences of different individuals as well as the availability of a wide range of flavors appeal to a broader consumer base. Brands are offering diverse flavor options including classic fruit flavors, such as berry, citrus & tropical, as well as unique flavor combinations, thereby attracting consumers seeking specific taste experiences. The demand for natural & organic products extends to functional water flavors.
 

The functional water market size from bottles segment is set to register a CAGR of 5.6% through 2032. Convenience is a key factor propelling the demand for functional water packaging solutions. Consumers often search for portable & easy-to-carry packaging options to fit their on-the-go lifestyles. The preference for functional water products wrapped in lightweight & compact bottles or pouches can be attributed to the fact that they can be easily carried in bags, purses, or gym accessories. Thus, high-quality services and the rising use of functional water are estimated to augment business growth.
 

The functional water market from retail segment is poised to show tremendous growth during the forecast period. There is a high demand for functional water products that cater to the needs of sports & fitness enthusiasts. Consumers engaged in physical activities often seek hydration options that provide added benefits such as electrolytes, vitamins, or performance-enhancing ingredients. Functional water products offering hydration, muscle recovery, or energy-boosting properties are quite popular among athletes, gym-goers, and individuals leading an active lifestyle.
 

The functional water market from supermarkets & hypermarkets segment will gain a significant momentum till 2032. Traditional brick-and-mortar supermarkets & hypermarkets are still important distribution channels for functional water products. These retail establishments offer a wide range of products under one roof, thereby augmenting consumer convenience in finding & purchasing functional water along with their regular grocery shopping items. The rising demand for functional water in supermarkets & hypermarkets can be attributed to factors such as product visibility, promotional activities, brand presence, as well as the ability to physically examine & select products.
 

U.S. Functional Water Market Revenue, 2021 - 2032 (USD Billion)

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The U.S. functional water market was reached USD 3.1 billion revenue in 2022, due to the growing consciousness of consumer health & wellness in North America. There is rising awareness regarding the importance of hydration and the desire for beverages that offer additional health benefits. Health-conscious consumers are rapidly seeking functional water products that promote hydration as well as provide vitamins, minerals, antioxidants, or other functional ingredients.
 

Functional Water Market Share

Some of the major companies operating in the functional water market are:

  • The Coca-Cola Company
  • PepsiCo Inc
  • Danone S.A
  • Nestlé Water
  • Bai Brands LLC
  • Karma Culture LLC
  • Essentia Water LLC,
  • Neuro Brands LLC.

These companies focus on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner maximum revenue in the market.

Functional Water Industry News

  • On 15th February, 2023, Biotechnology company Kyowa Hakko USA and sparkling beverage company Centr debuted Centr Enhanced, a sparkling water that features a blend of nootropic and adaptogenic ingredients. The launch of Centr Enhanced marks the first time Centr is stepping outside of the CBD-related category. Centr Enhanced sparkling water includes Kyowa Hakko’s Cognizin citicoline, which is a nutrient that supports “comprehensive brain health,” according to the company.
     

This functional water market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2018 to 2032, for the following segments:

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Market, By Product

  • Vitamin-enhanced water
  • Electrolyte-enhanced water
  • pH-balanced water
  • Antioxidant-infused water
  • Energy-enhanced water
  • Others

Market, By Flavor

  • Fruit-flavored
  • Herb-infused
  • Tea-infused
  • Other flavors

Market, By Packaging

  • Bottles
  • Cans
  • Tetra packs
  • Pouches
  • Others

Market, By End Use

  • Retail
  • Hotels, Restaurants, and Cafes (HoReCa)
  • Fitness & wellness centers
  • Others

Market, By Distribution Channel

  • Supermarkets & hypermarkets
  • Convenience stores
  • Online retail
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Russia
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Indonesia
    • Malaysia 
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE

 

Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of functional water was reached USD 4.2 billion in 2022 and is estimated to account for USD 12 billion by the end of 2032, owing to the rising consumer awareness as well as the growing interest in health & wellness.
The fruit-flavored segment held a market share of around 40% in 2022 and is estimated to grow at a lucrative pace by 2032, backed by the varied taste preferences of different individuals as well as the availability of a wide range of flavors.
The U.S. market with a value of USD 3.1 billion in 2022 and is estimated to expand at a significant pace over 2023-2032, backed by the growing consciousness of consumer health & wellness.
The Coca-Cola Company, PepsiCo, Inc., Danone S.A, Nestlé Water, Bai Brands LLC, Karma Culture LLC, Essentia Water LLC, and Neuro Brands LLC.

Functional Water Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 8
  • Tables & Figures: 303
  • Countries covered: 20
  • Pages: 230
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