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U.S. Functional Beverage MarketsPublished by: Frost & Sullivan Published: Mar. 1, 2001 Table of Contents
AbstractNiche Products Driving Mainstream MarketThe increasing awareness of improving one 's health has driven demand for functional beverages, and drinks that not only quench thirst, but have added nutritional benefits. Those market participants that can differentiate their products from the competition through proven health benefits and eye-catching packaging can expect significant increases in market share and revenues. This Frost &Sullivan research is one of the most comprehensive studies on the functional beverage markets and the five fastest-growing segments: herb- enhanced fruit drinks, ready-to-drink (RTD)teas, sports drinks, energy drinks, and single-serve (SS)fresh juice. The report highlights market drivers and restraints, and identifies challenges faced by many companies. It is an excellent resource for investors who want to take advantage of key market opportunities. Endorsements By Large Beverage Manufacturers Spur Growth For the past few years the functional beverage market was slow to establish itself and find a target audience. Recent endorsements from large, brand-name beverage manufacturers should validate these functional drink products and contribute to the overall growth of the U.S. beverage industry. "The year 2000 witnessed big beverage companies joining the functional beverage market by extending their product lines, acquiring companies in the market, or forming alliances. Therefore, a higher growth rate is expected in 2001,"states the author of this research. While mergers with large manufacturers may lead to a more consolidated marketplace, smaller participants can also increase their revenues by gaining access to bigger, national distribution networks. Product Differentiation Crucial for Market Dominance Beverage makers that can create products that stand out, either through attractive or functional packaging, or by proving added health benefits, are poised to become industry winners. "Market participants should put an extra effort to differentiate existing products, come up with more innovations, and expand distribution," states the author. "With so many fruit flavors, herbs, levels of sweetness, vitamins, and nutrition to choose from, functional beverage manufacturers can come up with virtually unlimited combinations."
This Frost &Sullivan report offers the most in-depth analysis available of the
key issues in functional beverage markets. By providing the latest information,
this report can help you fully evaluate the market 's potential and make
informed decisions for your company 's future success.
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