Flavored and Functional Water Market
Flavored and Functional Water Market (Product: Flavored Water and Functional Water) - Global & India Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030
- Food & Beverages
- 350 Pages
As a result of saturation in the bottled water market, demand for functional and flavored water is growing. These belong to the latest generation of bottled water that boasts capability of improving the immune system.
Fascinated by the claims of novel H2O drinks, consumers are briskly replacing old-fashioned mineral water, briskly elevating flavored and functional water as their favorite.
Sales uptick in the functional and flavored water market is resulting from overarching consumer trend in favor of better-for-you alternatives. The demand for healthier replacements for high-sugar drinks is paving way for the market’s bright future. However, price continues to remain a primary factor, determining purchase pattern for functional water.
Despite this, brands are continuing with their premium offerings with a range of label claims, expecting to fetch improved sales and higher market revenue. Further on, innovations in bottling technologies are likely to establish a stronghold for the flavored and functional water market in the retail landscape.
Functional water is fortified with micro-nutrients and it has successfully created a niche for itself in the consumer market. Besides this, the market boasts novel ingredients, which has been a key factor helping it gain traction in the last few years. Functional water also offers better nutrient profile, which is expected to foster growth opportunities.
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Brands are Focusing on Mass-merchandizing and Building Strong Distribution Network
One thing, the market players are making impressive gains from is the mass merchandizing of their products. There is immense focus towards building a strong distribution network.
Against this backdrop, hypermarkets and supermarkets remain the preferred distribution channel for functional and flavored water.
Moreover, some companies are adopting bundling strategies to enhance availability and accessibility of functional water. To induce better sales, also as a result of increased competition, some brands are even introducing products at economic pricing. These are some of the key strategies attributing to higher sales of functional water via mass merchandizing.
Consumers were positively responding to bundling strategies, aiding expansion of the market size until the unprecedented COVID-19 outbreak. The ongoing pandemic has revealed vulnerabilities of several companies.
Indefinite lockdown imposed to contain the spread of the virus has caused supply chain disruptions around the world, compelling market players to rethink their distribution strategies.
Consequently, some of the leading brands have swiftly shifted to online forums to keeping sailing afloat even amid pandemic crisis. Functional water brands are seeing this as an incredible opportunity to penetrate deeper across high potential market. Greater visibility allowed by online presence is stoking revenue generation in the market.
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Asia Pacific Offers Lucrative Prospects, US Continues to Remain Lucrative
The flavored and functional water market is quite established in the US and Europe.
North America for instance currently has dominance, backed by robust growth in the demand from the U.S. Sales of bottled water have already surpassed that of soft drinks in the country, prompting companies to expand their functional offerings.
The rising demand for functional water in North America is causing major shift in the beverage industry. Some of the leading brands are joining the bandwagon to offer functional hydration experience to consumers. As a result, there is higher focus on innovating compositions of beverages to lure consumers in favor of purchasing it.
Consumers in Europe too are showing a marked preference for flavored and functional water. However, consider the total population in Asia Pacific, it is highly likely that market players will target the countries in the region. As a result of increasing awareness, consumers in Asia Pacific have become more willing to spend on functional beverages.
Moreover, “better-for-you” alternative drinks are becoming a recognized category, with consumers exhibiting demand for healthier alternative to carbonated soft drinks. Driven by impressive prospects manufacturers too are expected to focus on innovating flavors and better packaging for functional and flavored water.
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Despite Presence of Leading Brands, Market Offers Ample Opportunities for New Entrants
The global flavored and functional water market continues to grow at a steady rate. The market exhibits dominance of global brands, who are seeking consolidation to gain competitive advantage. Nonetheless, the market is not as heavily concentrated on account of the presence of several smaller companies and independent brands.
The market will continue witnessing influx of small private-label brands as they embark on the journey of carving a niche for themselves in the beverages sector. These companies offer better convenience and value for money. To compete against emerging companies, behemoths are adopting product development as their key strategy.
There is also immense focus on appeasing consumers, which is why the market is exhibiting higher adoption of bold flavors and exotic ingredients. For instance, in February 2019, one of the leading names in the beverages industry, The Coca-Cola Co. added two brand new beverages to its Smartwater brand. These were Snamtwater antioxidant and Smartwater alkaline.
There are other companies in the market that are focusing on the expansion of their global footprint. For instance, Danone S.A. is channelizing its effort to penetrate deeper across high potential markets in Asia Pacific, where it is aiming for a double-digit growth on the back of improved sales of bottled water recorded in the region.
Other prominent names such as PepsiCo. are focusing on innovation to offer advanced packaging. Its brand called LIFEWTR has announced championing the Art via technology in March last year. Adoption of strategies such as these will aid expansion witnessed in the flavored and functional water market.
In the coming years, the market is expected to gain significant as a result of increasing focus on health and wellness among consumers. The pandemic outbreak will leave a significant impact of consumers, changing their behavior pattern. Consequently, they are expected to show higher inclination of adopting healthier food and beverages items. This is expected to augur well for the flavored and functional water market.
Flavored and Functional Water Market- Scope of the Report
Transparency Market Research’s recent report on the flavored and functional water market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the flavored and functional water market analyzes the scenario for the period 2020 - 2030, wherein 2020 is the base year and 2019 is historical data. The report enables readers to make important decisions with regard to their business, through a wealth of information enclosed in the study.
This TMR study on the flavored and functional water market provides data on the developments undertaken by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of strengths, weaknesses, threats, and opportunities, along with trends and restraints in the landscape. Presented in a clear sanctioned manner, the report on the global Flavored and Functional Water market gives readers an individual understanding of the market.
The study discusses the underlying trends and impact of various factors that drive the global flavored and functional water market, along with their influence on the evolution of the market.
The study also offers insights into Porter’s Five Force Analysis, value chain analysis, key trend analysis, SWOT analysis, and COVID-19 impact analysis. It also offers technology overview of the global Flavored and Functional Water market in order to highlight the crucial growth tactics and opportunities for market players.
Key Questions Answered in This Report on Flavored and Functional Water Market
- How much revenue will the flavored and functional water market generate by the end of the forecast period?
- What regions currently contribute the maximum share to the overall Flavored and Functional Water market?
- What are the indicators expected to drive the global Flavored and Functional Water market?
- Which region is likely to be a lucrative market during the forecast period?
- What are the essential strategies incorporated by key stakeholders in the global flavored and functional water market to expand their geographical presence?
- What are the major advancements witnessed in the global Flavored and Functional Water market?
The report answers these questions and more about the global Flavored and Functional Water market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
Flavored and Functional Water Market – Research Methodology
TMR report’s on the global Flavored and Functional Water market is based on a complete and comprehensive evaluation of the market backed by secondary and primary sources. The competitive scenario of the global flavored and functional water market is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the global flavored and functional water market arrive at predictions and estimations, and calculate the forecast for the market.
The report uses an analytical triangulation method to estimate the numbers and figures of the global flavored and functional water market with both bottom-up and top-down approaches.
The detailed assessment of the global flavored and functional Water market, along with an overview of the landscape is provided based on a careful examination of the avenues related to this market. Analysts’ conclusions on how the global Flavored and Functional Water market is set to grow are based on carefully vetted primary and secondary sources.
Flavored and Functional Water Market - Segmentation
The report on the global flavored and functional water market offers a comprehensive overview. It segments the market in terms of product types and region: