South Korea Functional Water Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)
Description
The South Korea functional water market is expected to grow at a CAGR of 3.40%, during the forecast period of 2025-2034.
Key Market Trends and Insights
Functional water is gaining popularity for its added health benefits, often enhanced with vitamins, minerals, or other bioactive compounds that target specific wellness needs. It appeals to health-conscious consumers seeking convenient hydration alternatives without added sugars or calories. In South Korea, the functional water market is experiencing strong momentum, driven by rising health awareness, busy lifestyles, and increasing demand for fortified beverages. The market is supported by continuous product innovation and the expansion of premium and customized hydration solutions catering to diverse consumer preferences.
South Korea Functional Water Market Growth Drivers
Rising Diabetes Prevalence to Drive Market Growth
The increasing prevalence of chronic health conditions, particularly diabetes, is a key driver of the South Korean functional water market. According to a study by Se Eun Park et al. 2025, the diabetes rate among Korean adults aged 30 and older reached 15.5% during 2021-2022. With only 32.4% of patients achieving optimal blood glucose control, demand for health-supportive beverages such as functional water, enriched with minerals, antioxidants, and glucose-regulating ingredients, is rising. This shift in consumer preferences is significantly boosting market growth.
South Korea Functional Water Market Trends
Some of the notable trends in the market include the implementation of enhanced water safety protocols and the growing adoption of smart factory technologies.
Unique Flavours and Eco-Friendly Packaging Are Driving the Market Growth of Functional Water
Manufacturers have adopted sustainable design strategies in response to consumers' growing preference for goods with sustainable packaging. Functional drinks are kept safe and fresh from fill to usage owing to eco-friendly packaging. The aseptic technique eliminates the need for refrigeration. These products are shelf-stable and preservative-free. The young consumer base, especially Gen Z and Millennials, are more attracted to novel flavours, which fits nicely with young consumers' inclination for a taste exploration. Brands are now trying to see how customers react to bizarre variants to continue to excite consumers and reach out to new ones. Additionally, during the projected forecast period, sales of functional water may expand more rapidly through online retail channels than through conventional distribution channels like supermarkets and speciality stores. The market expansion of functional water in South Korea is fuelled by rising disposable income and high standard of living, which boosts the demand for premium products.
Adoption of Smart Technologies to Boost South Korea Functional Water Market Value
The increasing adoption of smart manufacturing is reshaping South Korea's market. For instance, in June 2025, OVIO, a major OEM/ODM water purifier manufacturer, highlighted its advanced smart factory infrastructure aimed at optimizing sustainable production and R&D efficiency. With over 70% of its products exported, OVIO’s innovation-driven model reflects Korea’s growing reputation for high-quality water purification technologies. This trend is likely to accelerate market growth by enhancing product quality, operational efficiency, and global competitiveness.
South Korea Functional Water Market Share
Flavored Waters Expected to Dominate Market Segmentation by Type
Based on type, functional water is broadly categorized into flavored and unflavored. Among these, flavored water is expected to lead the market. Flavored waters are enriched with fruit extracts, herbs, or other functional ingredients, while unflavored variants focus on health benefits without altering taste. In 2024, Perfetti Van Melle partnered with Nongshim to launch Mentos sparkling water in fruity flavors, highlighting the trend toward enjoyable, health-focused drinks. This shift is largely fueled by millennials and Gen Z consumers seeking flavorful hydration, positioning flavored functional water as the dominant segment in the evolving South Korean market.
Leading Players in the South Korea Functional Water Market
The key features of the market report comprise strategic initiatives by the leading players. The major companies in the market are as follows:
PepsiCo Inc.
PepsiCo Inc. is a global leader in the beverage industry, actively participating in the functional water market. The company’s portfolio includes innovative offerings like Gatorade Fast Twitch Energy Drink and Rockstar Unplugged™, which blend functional benefits, such as energy enhancement, hydration, and stress relief, with appealing flavors. Its functional beverages align with rising global wellness trends, reflecting its strategic focus on health-oriented hydration solutions.
Danone S.A.
Danone S.A., a global leader in the packaged water segment, plays a significant role in the market through its diversified portfolio, including brands like evian and Volvic. These natural mineral waters are enriched with minerals, light natural flavors, and offered in innovative formats such as Volvic Zest Peach. Though not specific to South Korea, Danone’s commitment to promoting healthy hydration through premium, functional water products underpins its active involvement in global hydration solutions and market growth.
Nestle S.A.
Nestlé S.A., a global leader in food and beverages, actively contributes to the functional water market through its NESTLÉ PURE LIFE product line. Offering a variety of enhanced bottled water options such as the 330 ml FIT, 500 ml, and 1500 ml bottles, the brand promotes healthy hydration with zero calories, no sweeteners, and added minerals for a crisp taste. Nestlé's continued innovation in low-calorie, mineral-enriched water supports the growing global demand for health-conscious beverages.
The Coca-Cola Company
The Coca-Cola Company, a global leader in the beverage industry, has strengthened its presence in the functional water market through its enhanced water brand, vitamin water. In 2025, the brand underwent a bold redesign and introduced new functional variants such as “elevate” (blue raspberry limeade with multivitamins) and “re-hydrate zero sugar” (pineapple passionfruit with electrolytes). These innovations reflect the company’s commitment to offering health-oriented hydration solutions and maintaining relevance in a competitive market driven by demand for functional, ingredient-enriched beverages.
Other key players in the market are The Alkaline Water Co. and others.
South Korea Functional Water Market Segmentation
"South Korea Functional Water Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Market Trends and Insights
- By type, flavored functional water is expected to lead due to higher consumer preference.
- Vitamin-based functional water dominated and accounted for around 30% in the historical period.
- Based on packaging, PET bottles are likely to lead due to convenience and cost-effectiveness.
- By distribution channel, supermarkets/hypermarkets are expected to lead the market.
- CAGR (2025-2034) : 3.40%
Functional water is gaining popularity for its added health benefits, often enhanced with vitamins, minerals, or other bioactive compounds that target specific wellness needs. It appeals to health-conscious consumers seeking convenient hydration alternatives without added sugars or calories. In South Korea, the functional water market is experiencing strong momentum, driven by rising health awareness, busy lifestyles, and increasing demand for fortified beverages. The market is supported by continuous product innovation and the expansion of premium and customized hydration solutions catering to diverse consumer preferences.
South Korea Functional Water Market Growth Drivers
Rising Diabetes Prevalence to Drive Market Growth
The increasing prevalence of chronic health conditions, particularly diabetes, is a key driver of the South Korean functional water market. According to a study by Se Eun Park et al. 2025, the diabetes rate among Korean adults aged 30 and older reached 15.5% during 2021-2022. With only 32.4% of patients achieving optimal blood glucose control, demand for health-supportive beverages such as functional water, enriched with minerals, antioxidants, and glucose-regulating ingredients, is rising. This shift in consumer preferences is significantly boosting market growth.
South Korea Functional Water Market Trends
Some of the notable trends in the market include the implementation of enhanced water safety protocols and the growing adoption of smart factory technologies.
Unique Flavours and Eco-Friendly Packaging Are Driving the Market Growth of Functional Water
Manufacturers have adopted sustainable design strategies in response to consumers' growing preference for goods with sustainable packaging. Functional drinks are kept safe and fresh from fill to usage owing to eco-friendly packaging. The aseptic technique eliminates the need for refrigeration. These products are shelf-stable and preservative-free. The young consumer base, especially Gen Z and Millennials, are more attracted to novel flavours, which fits nicely with young consumers' inclination for a taste exploration. Brands are now trying to see how customers react to bizarre variants to continue to excite consumers and reach out to new ones. Additionally, during the projected forecast period, sales of functional water may expand more rapidly through online retail channels than through conventional distribution channels like supermarkets and speciality stores. The market expansion of functional water in South Korea is fuelled by rising disposable income and high standard of living, which boosts the demand for premium products.
Adoption of Smart Technologies to Boost South Korea Functional Water Market Value
The increasing adoption of smart manufacturing is reshaping South Korea's market. For instance, in June 2025, OVIO, a major OEM/ODM water purifier manufacturer, highlighted its advanced smart factory infrastructure aimed at optimizing sustainable production and R&D efficiency. With over 70% of its products exported, OVIO’s innovation-driven model reflects Korea’s growing reputation for high-quality water purification technologies. This trend is likely to accelerate market growth by enhancing product quality, operational efficiency, and global competitiveness.
South Korea Functional Water Market Share
Flavored Waters Expected to Dominate Market Segmentation by Type
Based on type, functional water is broadly categorized into flavored and unflavored. Among these, flavored water is expected to lead the market. Flavored waters are enriched with fruit extracts, herbs, or other functional ingredients, while unflavored variants focus on health benefits without altering taste. In 2024, Perfetti Van Melle partnered with Nongshim to launch Mentos sparkling water in fruity flavors, highlighting the trend toward enjoyable, health-focused drinks. This shift is largely fueled by millennials and Gen Z consumers seeking flavorful hydration, positioning flavored functional water as the dominant segment in the evolving South Korean market.
Leading Players in the South Korea Functional Water Market
The key features of the market report comprise strategic initiatives by the leading players. The major companies in the market are as follows:
PepsiCo Inc.
PepsiCo Inc. is a global leader in the beverage industry, actively participating in the functional water market. The company’s portfolio includes innovative offerings like Gatorade Fast Twitch Energy Drink and Rockstar Unplugged™, which blend functional benefits, such as energy enhancement, hydration, and stress relief, with appealing flavors. Its functional beverages align with rising global wellness trends, reflecting its strategic focus on health-oriented hydration solutions.
Danone S.A.
Danone S.A., a global leader in the packaged water segment, plays a significant role in the market through its diversified portfolio, including brands like evian and Volvic. These natural mineral waters are enriched with minerals, light natural flavors, and offered in innovative formats such as Volvic Zest Peach. Though not specific to South Korea, Danone’s commitment to promoting healthy hydration through premium, functional water products underpins its active involvement in global hydration solutions and market growth.
Nestle S.A.
Nestlé S.A., a global leader in food and beverages, actively contributes to the functional water market through its NESTLÉ PURE LIFE product line. Offering a variety of enhanced bottled water options such as the 330 ml FIT, 500 ml, and 1500 ml bottles, the brand promotes healthy hydration with zero calories, no sweeteners, and added minerals for a crisp taste. Nestlé's continued innovation in low-calorie, mineral-enriched water supports the growing global demand for health-conscious beverages.
The Coca-Cola Company
The Coca-Cola Company, a global leader in the beverage industry, has strengthened its presence in the functional water market through its enhanced water brand, vitamin water. In 2025, the brand underwent a bold redesign and introduced new functional variants such as “elevate” (blue raspberry limeade with multivitamins) and “re-hydrate zero sugar” (pineapple passionfruit with electrolytes). These innovations reflect the company’s commitment to offering health-oriented hydration solutions and maintaining relevance in a competitive market driven by demand for functional, ingredient-enriched beverages.
Other key players in the market are The Alkaline Water Co. and others.
South Korea Functional Water Market Segmentation
"South Korea Functional Water Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
- Flavored
- Unflavored
- Vitamins
- Protein
- Electrolyte/Mineral
- Micronutrient
- Botanical Extract
- Others
- Bottles
- Cans
- Others
- Supermarkets/Hypermarkets
- Convenience/Grocery Stores
- Online Channels
- Others
- What was the South Korea functional water market value in 2024?
- What is the South Korea functional water market forecast outlook for 2025-2034?
- What major factors aid the demand for the South Korea functional water market?
- How has the market performed so far, and how is it anticipated to perform in the coming years?
- What are the market's major drivers, opportunities, and restraints?
- What are the major South Korea functional water market trends?
- Which type is expected to dominate the market segment?
- Which ingredient is projected to lead the market segment?
- Which packaging is anticipated to drive the market segment?
- Which distribution channel is likely to dominate the market segment?
- Who are the key players in the South Korea functional water market?
- What are the current unmet needs and challenges in the market?
- How are partnerships, collaborations, mergers, and acquisitions among the key market players shaping the market dynamics?
Table of Contents
133 Pages
- 1 Preface
- 1.1 Objectives of the Study
- 1.2 Key Assumptions
- 1.3 Report Coverage – Key Segmentation and Scope
- 1.4 Research Methodology
- 2 Executive Summary
- 3 Functional Water Market Overview
- 3.1 Asia Pacific Functional Water Market Overview
- 3.1.1 Asia Pacific Functional Water Market Historical Value (2018-2024)
- 3.1.2 Asia Pacific Functional Water Market Forecast Value (2025-2034)
- 3.2 South Korea Functional Water Market Overview
- 3.2.1 South Korea Functional Water Market Historical Value (2018-2024)
- 3.2.2 South Korea Functional Water Market Forecast Value (2025-2034)
- 4 South Korea Functional Water Market Landscape*
- 4.1 South Korea Functional Water Market: Developers Landscape
- 4.1.1 Analysis by Year of Establishment
- 4.1.2 Analysis by Company Size
- 4.1.3 Analysis by Region
- 4.2 South Korea Functional Water Market: Product Landscape
- 4.2.1 Analysis by Type
- 4.2.2 Analysis by Ingredient
- 4.2.3 Analysis by Packaging
- 5 South Korea Functional Water Market Dynamics
- 5.1 Market Drivers and Constraints
- 5.2 SWOT Analysis
- 5.2.1 Strengths
- 5.2.2 Weaknesses
- 5.2.3 Opportunities
- 5.2.4 Threats
- 5.3 PESTEL Analysis
- 5.3.1 Political
- 5.3.2 Economic
- 5.3.3 Social
- 5.3.4 Technological
- 5.3.5 Legal
- 5.3.6 Environment
- 5.4 Porter’s Five Forces Model
- 5.4.1 Bargaining Power of Suppliers
- 5.4.2 Bargaining Power of Buyers
- 5.4.3 Threat of New Entrants
- 5.4.4 Threat of Substitutes
- 5.4.5 Degree of Rivalry
- 5.5 Key Demand Indicators
- 5.6 Key Price Indicators
- 5.7 Industry Events, Initiatives, and Trends
- 5.8 Value Chain Analysis
- 6 South Korea Functional Water Market Segmentation (218-2034)
- 6.1 South Korea Functional Water Market (2018-2034) by Type
- 6.1.1 Market Overview
- 6.1.2 Flavored
- 6.1.3 Unflavored
- 6.2 South Korea Functional Water Market (2018-2034) by Ingredient
- 6.2.1 Market Overview
- 6.2.2 Vitamins
- 6.2.3 Protein
- 6.2.4 Electrolyte/Mineral
- 6.2.5 Micronutrient
- 6.2.6 Botanical Extract
- 6.2.7 Others
- 6.3 South Korea Functional Water Market (2018-2034) by Packaging
- 6.3.1 Market Overview
- 6.3.2 Bottles
- 6.3.3 Cans
- 6.3.4 Others
- 6.4 South Korea Functional Water Market (2018-2034) by Distribution Channel
- 6.4.1 Market Overview
- 6.4.2 Supermarkets/Hypermarkets
- 6.4.3 Convenience/Grocery Stores
- 6.4.4 Online Channels
- 6.4.5 Others
- 7 Regulatory Framework
- 8 Strategic Initiatives
- 8.1 Analysis by Partnership Instances
- 8.2 Analysis by Type of Initiatives
- 8.3 Analysis by Joint Ventures
- 8.4 Analysis by Leading Players
- 8.5 Analysis by Geography
- 9 Supplier Landscape
- 9.1 Market Share Analysis
- 9.2 PepsiCo Inc
- 9.2.1 Financial Analysis
- 9.2.2 Product Portfolio
- 9.2.3 Demographic Reach and Achievements
- 9.2.4 Company News and Developments
- 9.2.5 Certifications
- 9.3 Nestle S.A.
- 9.3.1 Financial Analysis
- 9.3.2 Product Portfolio
- 9.3.3 Demographic Reach and Achievements
- 9.3.4 Company News and Developments
- 9.3.5 Certifications
- 9.4 Danone S.A.
- 9.4.1 Financial Analysis
- 9.4.2 Product Portfolio
- 9.4.3 Demographic Reach and Achievements
- 9.4.4 Company News and Developments
- 9.4.5 Certifications
- 9.5 The Coca-Cola Company
- 9.5.1 Financial Analysis
- 9.5.2 Product Portfolio
- 9.5.3 Demographic Reach and Achievements
- 9.5.4 Company News and Developments
- 9.5.5 Certifications
- 9.6 The Alkaline Water Co.
- 9.6.1 Financial Analysis
- 9.6.2 Product Portfolio
- 9.6.3 Demographic Reach and Achievements
- 9.6.4 Company News and Developments
- 9.6.5 Certifications
- 10 South Korea Functional Water Market – Distribution Model (Additional Insight)
- 10.1 Overview
- 10.2 Potential Distributors
- 10.3 Key Parameters for Distribution Partner Assessment
- 11 Key Opinion Leaders (KOL) Insights (Additional Insight)
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
