MEA Functional Beverages Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.17 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
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MEA Functional Beverages Market Analysis
The MEA Functional Beverages Market size is expected to grow from USD 8.22 billion in 2023 to USD 10.08 billion by 2028, at a CAGR of 4.17% during the forecast period (2023-2028).
- Functional beverages are becoming increasingly popular among millennials due to rising advertising and promotional spending, largely because of aggressive marketing initiatives aimed at this demographic. Additionally, ads for energy drinks portray them as beverages that energize the intellect, revive the body, and improve performance and stamina. For Instance, in 2021, the consumption of packaged beverages in Africa and the Middle East totaled nearly 118 billion liters, according to Krones.
- The functional beverage market in the Middle East and Africa is embracing a growth phase with new flavor formulations, reduced sugar, calories, and ingredients innovations such as botanicals and herbs. For Coca-Cola, South Africa offers an energy drink called Coca-Cola Energy. The drink, available in a 300ml can, contains caffeine, guarana extracts, B vitamins, and no taurine.
- Moreover, consumers are becoming increasingly health-conscious and interested in trying new, better food options as worries about obesity, chronic illnesses, and other health problems increase. Incorporating functional drinks into one's daily routine is a simple and easy approach to increasing one's intake of essential nutrients, vitamins, and minerals. In addition, functional beverages frequently contain all-natural and plant-based components, which are becoming increasingly appealing to consumers.
- Also, reduced-sugar beverages are likely to gain popularity as people make a consumption-pattern shift to avoid diabetic symptoms. The probiotic drinks segment is also expected to witness many new buyers due to the growing concern about strengthening immunity. Manufacturers of functional beverages are predicted to increasingly shift towards online channels as more customers grow familiar and comfortable with the online and DTC distribution methods in the coming years. In addition, students and office employees are increasingly substituting energy drinks for coffee. Additionally, these energy drinks are gaining popularity as alcoholic cocktail mixers.
MEA Functional Beverages Market Trends
Growing Demand for Plant-based and Lactose-free Products
- With the growing population with lactose intolerance, the demand for lactose-free beverages has surged in past years. Hence the demand for lactose-free functional beverages in this section of customers has increased from time to time. The best alternative for these products was sourced and manufactured from plants.
- Functional beverages are often offered along with drinkable yogurts, milkshakes, and other dairy-related products. These beverages include energy drinks, sports drinks, and other types of juices. The majority of plant-based products are offered in dairy-based beverages like milkshakes, drinkable yogurts, and other drinks. Also, rising per capita income in Middle Eastern countries may contribute to the growth of the functional beverages market. The demand for lactose-free beverages has increased recently due to the expanding population with lactose sensitivity.
- According to the article published by the National Centre For Biotechnology Information in June 2022, on 'Awareness of Lactose Intolerance Disorder in Saudi Arabia Population,' one out of three people in Saudi Arabia is said to be lactose intolerant. Because of this, the demand for lactose-free functional beverages among the consumer base has been increasing consistently. These drinks include juices of various kinds, sports drinks, and energy drinks.
- The bulk of plant-based foods and goods are available in dairy-based drinks, including milkshakes and drinkable yogurts. Also, due to the tax imposition on carbonated and energy drinks in 2017, more functional beverages are coming up, as consumers prefer beverages with no added sugar, high juice content, and fortified with vitamins and minerals.
- Additionally, regulatory changes in the declaration of synthetic colorants like allura red AC (INS 129), sunset yellow (INS 110), etc., would contain on-pack labeling. Thus, to impart competitiveness, manufacturers were replacing synthetic dyes with natural solutions, such as natural colors made exclusively from fruits, vegetables, and herbs.
Health Issues like Obesity Driving the Demand for Healthy Drinks
- As people adopt a mindset of indulging more in physical activities and other health benefits, functional beverages are becoming increasingly popular in the region. Because many products with various tastes and forms are being introduced into the market. Drinkable yogurt, kefir, buttermilk, and other fermented and functional probiotic beverages are popular among consumers in the region, while fortification of probiotic cultures in fruit and vegetable juice is one of the primary elements propelling the market.
- Drinkable yogurt is still the most popular choice among Middle Eastern consumers. Manufacturers are also attempting to incorporate probiotics into classic items like labneh. With an increasing awareness of fitness and a healthy lifestyle, as well as a desire to participate in sports, sports drinks and energy drinks were also seen to increase in demand among the young population.
- Moreover, drinking beverages containing artificial sweeteners can also lead to weight gain and other health issues, including type 2 diabetes, heart disease, and others. It's for this reason that natural drinks, such as fruit juices without added preservatives, are becoming increasingly popular.
- The Organic Trade Association claims that GCC consumers are becoming more health-conscious due to the high prevalence of obesity in various GCC nations. This was especially true in the United Arab Emirates, where 40% of the population was obese as of 2022, according to the World Obesity Federation. Almost everything in the region now levies a levy on sodas and other sugary drinks to get consumers to choose healthier options. There is a growing demand for organic, sugar-free functional beverages in the region due to these considerations.
- Several probiotic beverages are available in the South African market, including health drink mixes and beverages linked with digestive health, such as kefir and kombucha. For instance, in December 2021, the FENIX CXT energy drink mix was launched in South Africa. This product is infused with Lactospore Bacillus coagulans, which support gut and brain function, promote digestive health, strengthen the stomach lining, and boost immune health, as claimed by the company.
MEA Functional Beverages Industry Overview
The market of functional beverages in the region is fragmented to an extent due to the restricted approach of players toward the diversely categorized beverages in terms of functionality. However, some of the major players have estimated the caliber of the market and have come up with innovations that might attract a large consumer base, regulating the overall market of functional beverages in the region. Alternatives to dairy-based functional beverages are one segment whose demand is increasing due to the consumer shift toward veganism. Nestle SA, Coca-Cola Company, and PepsiCo are the region's market leaders. Functional beverage manufacturers are increasing their focus on innovation and new product development to fulfill changing demands of the public.
MEA Functional Beverages Market Leaders
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Nestle SA
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PepsiCo Inc.
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The Coca Cola Company
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Red Bull GmbH
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Monster Beverage Corporation
*Disclaimer: Major Players sorted in no particular order
MEA Functional Beverages Market News
- October 2022: iPRO launched a range of sports drinks in Carrefour stores across the United Arab Emirates. The company claims that it contains 100% of the daily recommended vitamin C intake, along with added B vitamins.
- February 2022: PepsiCo launched its new hemp-based energy drink lineup in the Middle East named "Rockstar Energy." It comes in three different flavors and contains less caffeine than other Rockstar products. Each 12-ounce can of Rockstar Energy contains 80 mg of caffeine in it.
- March 2021: Perrier launched its first-ever carbonated energy beverages with Perrier Energize in Saudi Arabia. It is made of coffee and yerba mate extracts, is organic certified, low-calorie, and does not contain artificial sweeteners. It comes in three different flavors pomegranate, grapefruit, and tangerine.
MEA Functional Beverages Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Energy Drinks
- 5.1.2 Fortified Juice
- 5.1.3 Sports Drinks
- 5.1.4 Dairy-based Drinks
- 5.1.5 Other Product Types
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5.2 Distribution Channel
- 5.2.1 Supermarket/Hypermarket
- 5.2.2 Pharmacies and Health Stores
- 5.2.3 Convenience Stores
- 5.2.4 Online Retail Stores
- 5.2.5 Other Distribution Channels
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5.3 Geography
- 5.3.1 South Africa
- 5.3.2 Saudi Arabia
- 5.3.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Nestle SA
- 6.3.2 PepsiCo Inc.
- 6.3.3 The Coca-Cola Company
- 6.3.4 Red Bull GmbH
- 6.3.5 Monster Beverage Corporation
- 6.3.6 Mutalo Group
- 6.3.7 Herbalife International of America Inc.
- 6.3.8 Viju Industries Nigeria Ltd.
- 6.3.9 Sapporo Holdings
- 6.3.10 Dr Pepper Snapple
- 6.3.11 iPRO Sport Distribution Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityMEA Functional Beverages Industry Segmentation
Functional beverages are non-alcoholic drinks containing vitamins, minerals, probiotics, dietary fibers, etc. They offer health benefits to consumers, such as boosting energy and fighting stress.
The Middle East and African functional beverage market is segmented into product type, distribution channel, and geography. By product type, the market is segmented into energy drinks, fortified juice, sports drinks, dairy-based drinks, and other drinks. Based on the distribution channel, the market is classified through supermarkets/hypermarkets, pharmacies and health stores, convenience stores, online retail stores, and other distribution channels. Also, the study analyzes the functional beverages market in the emerging and established markets across the Middle East and African region, including South Africa, Saudi Arabia, and the Rest of the Middle-East and Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | Energy Drinks |
| Fortified Juice | |
| Sports Drinks | |
| Dairy-based Drinks | |
| Other Product Types | |
| Distribution Channel | Supermarket/Hypermarket |
| Pharmacies and Health Stores | |
| Convenience Stores | |
| Online Retail Stores | |
| Other Distribution Channels | |
| Geography | South Africa |
| Saudi Arabia | |
| Rest of Middle-East and Africa |
MEA Functional Beverages Market Research FAQs
What is the current MEA Functional Beverages Market size?
The MEA Functional Beverages Market is projected to register a CAGR of 4.17% during the forecast period (2024-2029)
Who are the key players in MEA Functional Beverages Market?
Nestle SA, PepsiCo Inc., The Coca Cola Company, Red Bull GmbH and Monster Beverage Corporation are the major companies operating in the MEA Functional Beverages Market.
What years does this MEA Functional Beverages Market cover?
The report covers the MEA Functional Beverages Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the MEA Functional Beverages Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
MEA Functional Drinks Industry Report
Statistics for the 2024 MEA Functional Drinks market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. MEA Functional Drinks analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
