The major attributes of functional water include healthy hydration and sustainable nutrition with affordability. These attributes are acting as growth engines for the global functional water market. In a new study, titled “Functional Water Market : Global Analysis, Insights and Forecast, 2018-2025” Fortune Business Insights forecasts the market to rise at a CAGR of 7.4% between 2018 and 2025. The report has pegged the overall value of the market at US$ 10.34 Bn in 2018. Furthermore, it predicts the global functional water market to reach US$ 18.25 Bn by 2025.
The global functional water market encompasses several regional as well as private players that are present in the packaged water and functional beverages space. Moreover, the market is witnessing an influx of small-private label functional water brands, plunging to offer a good value for money and convenience. Product development remains one of the most preferred strategies in the global functional water market. Consumers across the world are more inclined towards bold flavors and exotic ingredients. With the rising shift in consumer preferences regarding nutritional value, several companies are focusing on the development of viable alternatives.
For instance, Coca Cola recently made two new additions to its Smartwater brand called Smartwater alkaline and Smartwater antioxidant. Functional water sales are thus benefitting from the overarching consumer demand for better-for-you alternatives to unnatural and high-sugar drinks. Some of the other popular functional water brands operating in the global functional water market are PepsiCo, Nestle S.A., Allure Organics, The Alkaline Water Co., Dr Pepper Snapple Group Inc., Groupe Danone, Nirvana Water, and Tata Global Beverages.
Innovation in Packaging and Hydrating Experience of Functional Water Facilitates the Global Market “Recent innovations intended to improve hydrating experiences such as water ensuring sleep quality and water for the body-detox, will stoke growth in the market,” stated a lead analyst at Fortune Business Insights. “These innovations are likely to create more demand for functional water as consumers are becoming more health-conscious,” he added. In addition to this, consumers prefer functional beverages as compared to soft drinks that contain loads of added sugar, colors, preservatives, and flavors. These functional beverages contain less amounts of sugar and their consumption is beneficial to health. Furthermore, innovation in packaging of functional water bottle is facilitating the growth of the functional water market. Fortune Business Insights predicts the above-mentioned factors to drive the functional water market throughout 2025.
North America to Emerge Dominant Owing to Growing Sales of Bottled Water
From a geographical standpoint, functional water sales are rising in the developed markets of North America. This is primarily ascribed to the robust growth of functional water sales in the U.S. Moreover, the sales of bottled water recently surpassed the sales of soft drinks in the country, thus making bottled water sector a leading segment. This further encourages companies to invest in functional water and expand their functional product offerings.
Also, the functional water market in Asia Pacific is expected to rise at a significant growth rate during the forecast period. The rising awareness regarding the benefits of functional water bottle is quickly emerging as a distinct and recognizable category. Additionally, for the rising demand for better-for-you alternatives to carbonated soft drinks (CSDs) and the innovations in flavor are driving success in the bottled water sector. This category promises the presence of functional ingredients with regards to its chemical composition and this is what makes it superior than other plain packaged water bottles. The above factors are likely to create lucrative growth opportunities in the global functional water market through 2025.