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The Buzz Around Functional Waters

25 August 2022 by Mordor Intelligence

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The Buzz Around Functional Waters

– The global functional water market is projected to witness a CAGR of 7.06% during the forecast period 2022- 2027.

– Functional water is a non-alcoholic beverage similar to water with additional ingredients that increase functional benefits. The market is primarily driven by health and wellness trends and the exquisite product offerings by various global and regional players.

– The growing consumer demand for functional beverages has been the crucial factor driving the market’s growth. With the increasing trend of health and wellness among consumers, functional waters with a blend of diverse flavors are becoming increasingly visible in the market.

– Consumer preference for healthy hydration has been a crucial factor driving the growth of the Asia-Pacific market. The rising health consciousness among consumers has led to the demand for functional beverages.

– In May 2021, PepsiCo Inc. launched a new product Soulboost™, which is improved sparkling water fabricated with functional ingredients.

Food & Drink: Hypermarkets/Supermarkets Global Trends

– Supermarkets/Hypermarkets are considered one of the most convenient shopping mediums worldwide. They have played essential roles in the distribution channel of food and functional beverage.

– The distribution model of this retail channel is widely accepted by both companies and consumers. Private and international brands acquire the hypermarket and supermarket shelves for functional water.

– Gaining their popularity from the West, their number has staggeringly increased in the Asia Pacific region, where the countries are rapidly developing and adopting urbanization policies.

– The transforming lifestyles of the people and the increase in the buying power of the consumers in countries like China and India are posing good opportunities for the establishment of supermarkets that attract consumers due to the associated convenience of getting vivid products under one roof.

– Thus, the flourishing distribution channel of supermarkets/hypermarkets is likely to promote the sales of the different functional water products, driving the market shortly.

Read More On European Functional Beverage Market

Protein-Rich Functional Water Is Taking Over

– The rapid demand for fortified beverages is attributed to the inclusion of essential ingredients, such as protein, amino acids, vitamins, and minerals, in various functional beverages.

– The introduction of new and innovative types of functional water by beverage manufacturing companies engaged in the production of water using modified blends of protein and minerals is likely to fuel the market’s growth.

Fortification is the process of adding one or more essential nutrients to foods, whether or not they are usually contained in the food, to prevent or correct demonstrated deficiency of one or more nutrients.

– Protein is among the top trends in the food and beverage industry worldwide. Manufacturers specifically develop flavored functional waters infused with protein to help consumers meet their exercise, diet, and lifestyle goals.

– Protein-rich functional water is essential for lean muscle growth and repair and can also promote the feeling of satiety. This is expected to drive the development of the flavored protein functional water segment over the forecast period.

Why Functional Water Is the Drink of Choice for the United States

– Consumers in the United States have started to develop an interest in beverages that deliver benefits above and beyond simple refreshments, which is also contributing to the expansion of the functional water market.

– Functional water is vitamin-enriched water that has gained consumer popularity for convenience, perceived health benefits, and improved flavor over tap water.

– Multiple qualities of functional water contribute to the evident attraction evinced among US consumers for the product.

– The versatility of functional water makes it suitable for consumption at any time of the day and in just about any setting or situation.

– Compared to other RTD beverages, functional waters are comparatively inexpensive, and various packaging options, like containers and single-serve bottles, make it more popular among consumers, thereby driving the growth of the functional water market.

– In 2021, Nestle SA signed an agreement to divest its Nestle Waters North America (NWNA) business and acquired Essentia Water, Bothell, and Wash in the United States to change its product portfolio toward functional water.

This insight was contributed by knowledge partner:

 

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