Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Flavored and functional water are beverages that contain additional substances such as artificial/natural flavors, minerals, vitamins and sweeteners. Flavored water is a type of purified water with added flavors. It is a combination of minerals water with various fruit juices concentration.
The global flavored and functional water market is estimated to account for US$ 36,708 Mn in terms of value by the end of 2019.
Drivers:
Increasing obesity rate around the globe is predominantly fueling the market growth of the flavored and functional water. In 2016, more than 1.9 billion adults, 18 years and older, were overweight. Of these over 650 million were obese. Moreover, 38 million children under the age of 5 were overweight or obese in 2019. Thus, growing obesity rate around the globe is projected to propel the market growth of the flavored and functional water.
Rapid urbanization coupled with the increasing adoption of healthy lifestyle among urban people and thus they highly preferred flavored and functional water is propelling the market growth. According to the United Nations, today, 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. Projections show that rapid urbanization, the gradual shift from rural to urban areas, combined with the overall growth of the world’s population could add another 2.5 billion people to urban areas by 2050.
Figure 1. Global Flavored and Functional Water Market Share (%) in terms of Value, By Region, in 2019
Asia Pacific region dominated the global flavored and functional water market in 2019, accounting for 44.5% share in terms of value followed by Middle East and Latin America.
Market Restraints
The market of flavored and functional water is facing a challenge from substitute products such as soft and sports drinks. Also, strong distribution channel for such substitute products is hampering the demand for flavored and functional water, thereby hindering the market growth over the forecast period.
Lack of awareness regarding the health benefits of such beverages across developing countries is expected to hamper the market growth of the flavored and functional water. Also, balancing flavor and sugar quantity in the product is one of the major challenges for the functional water market.
Flavored and Functional Water Market Report Coverage
| Report Coverage |
Details |
| Base Year: |
2019 |
Market Size in 2019: |
US$ 36,708 Mn |
| Historical Data for: |
2016 to 2019 |
Forecast Period: |
2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: |
11.5% |
2027 Value Projection: |
US$ 87,446.8 Mn |
| Geographies covered: |
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East: GCC, Israel, and Rest of Middle East
- Africa: South Africa, North Africa, and Africa
|
| Segments covered: |
- By Product: Flavoured Water, and Functional Water
|
| Companies covered: |
Groupe Danone, Nestle SA, The Coca-Cola Company, PepsiCo, Hint Water, New York Spring Water, Kraft Foods, Balance Water Company, and Sunny Delight Beverages Company
|
| Growth Drivers: |
- Increasing obesity rate around the globe is predominantly fuelling the market growth of the market
- increasing adoption of healthy lifestyle among urban people drives the market growth
|
| Restraints & Challenges: |
- Wider availability of substitute products such as soft and sports drinks
|
Market Opportunities
Product innovation by manufacturers is expected to bring new market opportunities over the forecast period. For instance, in January 2019, the Canadian spring water company launched functional water. The new product is a Flow Glow, a spring water brand infused with CBD. It hydrates and nourishes the cells to the fullest with naturally occurring minerals, powerful antioxidants, and the qualities of CBD.
Expansion of retail industry due to the development of various hypermarket and supermarkets across the Asia Pacific region is expected to offer lucrative opportunities to the market of flavored and functional water. According to the India Brand Equity Foundation, retail industry touched US$ 950 billion in 2018 at CAGR of 13 percent and is projected to reach US$ 1.1 trillion by 2020. Thus, growth in the retail industry will favor market growth.
Figure 2. Global Flavored and Functional Water Market– Opportunity Analysis
Market Trends/Key Takeaways
Shifting preferences of consumer towards flavored and functional water due to growing health wellness trend is augmenting the market growth. Increasing disposable income coupled with the improving lifestyle of the consumers is propelling demand for premium products, thereby fueling the market growth of flavored and functional water. Moreover, the growing demand for this beverage among athletes as functional water possess various health benefits that are further expected to foster market growth.
Penetration of key players into a new market for business expansion is a key trend in the market and this is expected to bolster the market growth. For instance, in August 2019, Bisleri ties with US co Minerva Group to tap the flavored water market. Bottled water major Bisleri, apart from launching enhanced water in the domestic market, has announced that it is entering the US market with flavored water and vitamin water.
Figure 3. Global Flavored and Functional Water Market Share (%) in terms of Value, By Product, in 2019
On the basis of product in 2019, the flavoured water segment has accounted the largest market share of 62.3% in terms of value, followed by functional water.
Global flavored and functional Water Market - Impact of Coronavirus (Covid-19) Pandemic
The sales of bottled water is highest among all the nonalcoholic beverages as people across the world are stocking up the essential products including the bottled water. There is an increase in the consumption of packed drinking water globally due to increasing health-consciousness among the consumers. The aforementioned factors are the key reasons for the growth of the flavored and functional water market over the forecast period.
Competitive Section:
Company Names
- Groupe Danone
- Nestle SA
- The Coca-Cola Company
- PepsiCo
- Hint Water
- New York Spring Water
- Kraft Foods
- Balance Water Company
- Sunny Delight Beverages Company
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