Market Trends of Functional Water Industry
Consumer Preferences Toward Value-added Beverages
- Consumers are nowadays more inclined toward maintaining a healthy lifestyle that aids in sustaining fitness while reducing the incidence of diseases. This and other factors, such as rising healthcare expenditure and increasing urbanization rates, drive the demand for healthy hydration products, such as functional water.
- Moreover, the rise in obese and diabetic populations in the United States, China, India, Australia, and the United Kingdom has shifted consumers' focus from carbonated soft drinks to bottled water fortified with vitamins, minerals, and other functional ingredients.
- Research by the International Food Information Council Foundation in the year 2021 revealed that nearly 72% of consumers consider the presence of vitamins at least sometimes, and 22% consider it always when deciding what to eat and drink. Thus, key players are investing in R&D and advertisements/promotions to influence consumer purchasing decisions and increase the popularity of products in the retail landscape.
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North America Holds the Largest Market Share
- North America holds a prominent market share as the consumption pattern in the region is shifting toward beverages infused with healthy and functional ingredients. Consumers in the United States have started to develop an interest in beverages that deliver benefits above and beyond simple refreshments, contributing to the expansion of the functional water market.
- Functional water is cheaper than other ready-to-drink (RTD) beverages and readily available in various packaging options, including containers and single-serve bottles. Moreover, many domestic and international players are attracted to the opportunistic market and launch a variety of products, offering consumers an ample range of products to choose from.
- For instance, in 2021, to expand its product portfolio toward functional water, Nestle SA acquired Essentia Water, Bothell, and Wash in the United States as part of its strategic shift toward fuanctional water.
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