Flavored and functional water are emerging as healthy alternatives in the ready-to-drink market for consumers who refrain from consuming carbonated or artificial flavored drinks due to growing health concerns. Increasing obesity rate, rising aging population and increasing urbanization are the major growth drivers for the flavored and functional water market. Flavored water is a category of bottled mineral, spring or purified water containing flavors. Functional water is a derivative of flavored water with added functional ingredients such as botanicals, vitamins, minerals and oxygen. Common flavors in the flavored and functional water market are orange, apple, cherry, lemon and peach. Major growth challenges for the industry include threat of substitutes and increasing campaign against packaging bottles. Emerging markets such as countries in Asia, Latin America and the Middle East are witnessing rising urbanization and increasing disposable income, which act as an opportunity for the flavored and functional water. Increasing urbanization has increased the awareness levels of the consumer regarding the products that help in their wellbeing. The increasing income levels have also enabled the consumers to spend on premium products thus providing great opportunity for the market players to focus in these markets. The U.S., Germany, France, Italy and Japan were the top markets for flavored and functional water in 2012. Asia Pacific is emerging as a strong market registering double-digit growth in 2012.
The flavored and functional water market in 2012 saw significant contribution from multiple countries such as Japan, Italy, Germany, and the U.S. The same time frame saw the Asia Pacific region expand at an above-average growth rate, reaching into double digits. The market research report breaks the flavored and functional water market down into different sections in order to analyze the global and regional outlook of the overall market.
Each section that is included in the global flavored and functional drinks market is divided into multiple segments according to flavors and key regions. The research report also includes major market drivers and constraints along with potential areas of growth.
The report primarily includes a comprehensive analysis of the global flavored and functional water market in terms of market appeal. Various factors are used to judge the index of appeal including growth rate, areas of expansion, and overall market size. A detailed landscape of the market is also created through the use of Porter’s Five Forces Model and key players are profiled.
Overview of the flavored and functional water market
According to the research report, the global flavored and functional water market is expected to rise at a CAGR of 11.5% from 2013 to 2019. The overall market value is projected to reach US$36.7 billion towards the end of 2019. The market’s growth is attributed mainly to rising obesity rates, increasing global population, and change in consumer perception towards healthier drinks. More and more consumers are beginning to be attracted towards functional drinks that are high in vitamins, minerals, herbs, and amino acids. Functional drinks are being preferred over conventional aerated drinks due to the former being priced at a more competitive level. Common flavors in the global flavored and functional water market are peach, apple, cherry, lemon, and orange, along with mixed fruit flavor. One of the key marketing and manufacturing factors that promote the functional drinks market is the fact that they do not use preservatives or caffeine and are prepared without carbonation.
Other factors contributing towards the growth of the global flavored and functional water market are rapid urbanization and increasing disposable incomes. The former holds true especially for countries in Asia, the Middle East, and Latin America. One of the direct reactions of heavy urbanization is growing health awareness, which has caused many to be averse to aerated drinks and partial towards functional beverages. The market receives an additional boost in China due to poor water management that results in polluted water supply in agricultural and industrial areas. Key players have been quite proactive in promoting their functional drinks to a consumer base that is growing largely out of health concerns.
Providing a balanced evaluation of the flavored and functional water market, the report also presents several restraints in the market. Mounting protests against the problems caused by packaging bottles, competition brought forth by substitute drinks, and the challenge of balancing sugar quantity, function, and flavor are some of the factors that pose to threaten the growth of the market. However, the potential in emerging markets is expected to help overcome these hurdles.
Companies mentioned in the research report
The top players that operate in the global flavored and functional water market are Kraft Foods, Hint Water, PepsiCo, The Coca-Cola Company, Nestle, Group Danone, Sunny Delight Beverages, and Balance Water Company.
Major geographies analyzed under this research report are:
- North America
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments