The global functional water market value was US$ 5,218 million in 2020. The global functional water market is forecast to reach US$ 10,952 million by 2030, with a growing compound annual growth rate (CAGR) of 7.6% during the forecast period from 2021-2030.

Functional water is a non-alcoholic beverage that contains minerals, vitamins, acids, herbs, and other additives to improve the taste of regular water and provide additional health benefits. The additional ingredients provide vitamins and minerals, which rejuvenate the body. They also help to maintain the pH level of the body. The extra electrolytes in functional water keep people's body's electrolyte levels stable when they exercise hard and sweat a lot. The low or no-calorie content of functional water makes it a healthier alternative to sugary and fizzy drinks.

Factors Influencing the Growth

The health benefits and nutritional properties of functional water are making it popular in the market. Drinks with additional vitamins and proteins that can keep the body hydrated for longer periods of time have become popular with consumers. The athletes and marathoners need to consume small amounts of hydrating drinks to keep their bodies hydrated for the long run. There is a growing demand for functional water that contains various flavors, nutrients, proteins, vitamins, minerals, botanicals, and oxygen. Therefore, value-added hydration is driving the growth of the functional water market during the forecast period.

The high price of functional water slows down the growth of the global functional water market during the forecast period.

Functional water packaging is raising concerns about environmental degradation. Thus, recycling and environmentally friendly packaging materials for bottles and cans are getting more crucial than ever before. In the long run, this will result in lucrative opportunities for various players in the functional water market, making it a profitable business for leading players. Therefore, the eco-friendly packaging of functional water is creating new opportunities for the market.

Impact Analysis of COVID-19

The COVID-19 pandemic had positively and negatively affected the global functional market.

In the wake of the pandemic, consumers turned to healthier beverages containing vitamins and minerals in order to ensure proper nutrition. Therefore, opportunities for the functional water market increased during the forecast period due to the COVID-19 pandemic. In addition, online retail channels are likely to achieve a higher growth rate than conventional distribution channels, such as supermarkets and specialty stores, for functional water sales over the forecast period.

Regional Insights

North America dominated the functional water market in 2020 and is forecast to continue dominating the market during the forecast period. Functional water is available in diversified platforms ranging from modern trade to online sales channels, contributing to the growth of the global market for this product. The functional water market has grown due to the growing penetration of retail sales. Furthermore, the ability of consumers to purchase functional water on e-commerce platforms has resulted in the convenience of buying goods without any physical constraints.

Leading Competitors

The prominent companies in the global functional water market are:

Bridgepoint Group plc
Coca Cola
Disruptive Beverages Inc.
Dr. Pepper Snapple
Group Danone
Hind
Kraft Foods.
Nestle
PepsiCo
Sunny Delight Beverages
Sunsweet Growers Inc.
Suntory Holdings Ltd.
Tata Global Beverages
Trimino Brands
Other Prominent Players
Scope of the Report

The global functional market segmentation includes Product, Type, Packaging, Distribution Channel, and Region.

Segmentation based on Product

Flavored functional water
Unflavored functional water
Segmentation based on Type

Vitamins
Proteins
Minerals
Others (Botanicals, and Oxygen)
Segmentation based on Packaging

Pet bottles
Can
Others
Segmentation based on Distribution Channel

Supermarket/Hypermarket
Convenience Stores
Specialty Stores
Online Sales Channel
Segmentation based on Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America