Market Trends of Europe Functional Beverages Industry
This section covers the major market trends shaping the Europe Functional Beverages Market according to our research experts:
Flavor Innovations Leading to Market Growth
Consumers are increasingly drawn to the health benefits available through functional beverages. People are more concerned about their health and fitness, which in turn increases the demand for functional beverages. Although the gut health and functional foods phenomenon has impacted all aspects of the menu, the beverage category holds the largest opportunity for flavor innovation. Beverages can be incorporated with vitamins and supplements, allowing nutrient-dense ingredients, such as kale and turmeric, to find a natural home. Innovations in the flavor industry have made flavor ingredients, such as natural isojasmone and natural hibiscus extract liquid, possible, which provide a much more accurate and flavorful version of floral flavor for use in products ranging from functional juice blends and enhanced waters to energy drinks. Also, the rising trend of zero-calorie, zero-sugar, and low-carb content soft drinks is rising across the region, boosting the market growth. Natural flavors are gaining traction due to their health benefits and refreshing tastes.
Germany Holds the Major Market Share
The functional beverage market in Germany is benefited from the strong economy and consumers' increasing health consciousness. The aging population is fueling the demand for functional beverages to prevent or overcome adverse health conditions. They consider functional beverages as the 'meal bottle.' Consumers in Germany tend to buy less often. However, they demand high-quality products, including organic and health and wellness food products. The increasing number of single households and a growing mobile society are changing the food and beverage consumption patterns in favor of the convenience food industry.
Thus, there has been a rise in the demand for convenient foods, including ready-to-eat products, fruit juices, and coffee. Also, the penetration of online grocery stores is increasing in European countries such as Germany helps vendors save operating and overhead costs compared to the physical store format. The movement towards organic food products has long since achieved mainstream status in Germany. More and more consumers are seeking to improve their sense of well-being, health, and even their performance levels through the consumption of functional beverages.
