Functional Water Market, By Ingredients (Micronutrients, Botanical Extracts, and Other Functional Ingredients), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, and Others), – By Region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa) – Market Trends, Analysis, and Forecast Till 2029

Functional water is a non-alcoholic beverage whose property has been altered by adding ingredients that offer impressive health benefits and other features. Ingredients such as raw fruits, vegetables, herbs, consumable acids, vitamins, and minerals are added to water before it becomes functional water. As water remains the most consumed beverage globally, the functional water market is expected to witness tremendous growth during the forecast period and aftermath. Consumers’ shift towards the consumption of healthy drinks is has a positive impact on the growth of the global functional water market. The global functional water market is anticipated to record a double-digit CAGR as health practitioners now recommend it as one of the vital beverages that must be consumed daily. Classification of water as a balanced diet is a strong force fueling the growth of the industry. With the burgeoning demand for plant-based products, the global functional water market is expected to grow significantly. Functional water contains vegetables, raw fruits, and herbs, which are plant-based, and this improves its sales as vegans spend more on dairy alternatives or non-dairy products. The functional water market is slated to record a healthy growth during the forecast period due to the change in consumers’ lifestyles especially in developed and developing nations which has fostered the demand for convenience food items globally. 

Impact of COVID19 Pandemic on Market

At the starting of 2020, COVID-19 disease began to spread around the world; many more peoples are infected with COVID-19 disease, and major countries around the world send the orders to companies for employee prohibition and work stoppage. Every organization is prepared for the loss by this pandemic. Hence the functional water also affected by the COVID-19 lockdown scenario, as it ultimately links to distribution, manufacturers, market size, marketing channels, and market factors. This report will quantify the impact of this pandemic on the functional water market.

Sustainability is one of the most vital properties of functional water anticipated to drive the industry’s growth. Functional water consumers are conscious of their environment’s safety as reports have shown that plastics are non-biodegradable pollutants whose presence has a detrimental effect on the environment. With governments’ stringent regulations regarding plastics, manufacturers in the industry are prompted to develop new and innovative materials to package their products.

Consumers are sometimes attracted to the functional water market by the type of package used by different leading companies. Furthermore, growing consumers’ demand for fortified food and beverages is estimated to foster the rise in demand for functional water in a few years. Sales are expected to increase drastically as the population of diabetes and obesity patients is rising annually, threatening the global world. Countries like the United States, United Kingdom, China, India, and Australia have increased the production of functional water as consumers have switched preference from consuming carbonated soft drinks to packaged water.

The global functional water market growth is expected to be hampered during the forecast period due to the hike in price of the PET bottles used in packaging functional water.

The global functional water market is segmented based on the ingredients, distribution channel and region. Base on the ingredients, the global market is segmented into micronutrients, botanical extracts, and other functional ingredients. The rising demand for micronutrients in functional water is expected to increase the functional water market share through the coming years. The enhanced water are generally micronutrients-fortified, hence a dominating segment in this market.

Depending upon distribution channel, the target market is segmented into Supermarkets/Hypermarkets, Convenience Stores, Online Retail, and Others. Mass merchandisers viz. supermarkets and hypermarkets hold large in the distribution channel for this market. The bundling strategy and economic pricing is responsible for highest sales of functional water among mass merchandisers.

 Regional Insights:

According to the region, market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The escalating demand for bottled water in the U.S. is contributing massively to growth in functional water market in the North American region. The sales of bottled water have recently surpassed those of soft drinks in the United States and the bottled water sector is thus a leading horse prompting companies to invest and expand their functional offerings. The functional water market in Asia Pacific is also set to experience significant growth rate as consumers are becoming increasingly aware of the benefits of functional, bottled water. Consumers look for alternatives to carbonated soft drinks (CSDs) and the innovation in flavor is driving the bottled water category’s success.

Detail Segmentation:

Segments covered in the report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2029.  For the purpose of this study, has segmented the global functional water market report based on ingredients, distribution channel and region.

Global Functional Water Market, By Ingredients

• Micronutrients
• Botanical Extracts
• Other Functional Ingredients

Global Functional Water Market, By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Others

Global Functional Water Market, By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The major key players in the market include Coca-Cola, Pepsico, Dr. Pepper Snapple Vitamin Well AB, Triamino Brands LLC, New York Spring, Herbal Water, Vichy Catalan Corporation, San Benedetto, and Unique Foods.

• Coca-Cola
• Pepsico
• Dr. Pepper Snapple Vitamin Well AB
• Triamino Brands LLC
• New York Spring
• Herbal Water
• Vichy Catalan Corporation
• San Benedetto
• Unique Foods