Market Trends of Asia-Pacific Functional Beverages Industry
This section covers the major market trends shaping the APAC Functional Beverages Market according to our research experts:
Growing Consumer Inclination Toward Low-Sugar/Sugar-free Beverages
Healthier food and beverage choices are on consumers' minds owing to their huge interest in holistic well-being. Product launches with significant functional claims due to the impact of innovation in the food and beverage sector support market demand. Moreover, consumers are searching for products that are low in sugar and contain other health-enhancing ingredients. Manufacturers in the market are effectively communicating their products to live up to consumers' expectations and are delivering the functionality demanded by them. Also, private-label companies are getting into the market to compete with the best-known brands and meet the demand for healthier beverage options.
According to the International Diabetes Federation, India was home to 74 million diabetes patients in 2021, the second-largest number in the world. By 2030, the number is predicted to reach 101 million. According to the same source, around 141 million adults in China will have diabetes in 2021. Due to the high prevalence of diabetes worldwide, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle. Consumers are opting for low-calorie, low-sugar, or sugar-free dietary patterns in foods and beverages due to rising health concerns and increased measures to prevent the occurrence of lifestyle diseases. Consumers prefer natural sweeteners, such as stevia, in their beverages. Companies like PepsiCo Inc. and Coca-Cola are committed to removing artificial ingredients and reducing the sugar content in their products.
China Holds the Major Share in the Market
Due to increasing consumer demand and new product launches by domestic and international companies seeking to gain market share in a highly competitive sector, the functional beverage market in China is expanding. Sales are also being boosted by the country's busy lifestyle and expanding urban middle class.Companies are launching new products in the market as a result of finding China to be a promising market for functional beverages. For instance, Tonino Lamborghini Energy Drink Sugar-Free was introduced by New Awaken Limited in China in April 2021 as part of their relationship with Tonino Lamborghini. It comes in 330-ml bottles. Additionally, people who seek out specific health benefits from their food or drink are becoming more and more accustomed to drinking energy drinks.
Chinese customers are being persuaded to take supplements and make significant health investments. According to the World Bank, health expenditure as a share of China's GPD (gross domestic product) has been rising over the years. Therefore, the rising consumption of convenience products, such as ready-to-drink products with recognizable components and healthy formulations, is set to boost market growth during the forecast period.
