North America Functional Beverage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Functional Beverage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America functional beverage market is forecasted to grow at a CAGR of 7.02% during the forecast period (2021-2026).

The COVID-19 has given a positive impact on the functional beverage market in the North American region. The COVID impact had caused an alarm among consumers, who were looking for healthy alternatives in food and beverages to boost immunity. The functional beverage offers high nutrients value which increases the demand in the pandemic. This is something that will drive demand for functional products that help boost immunity as consumers look to minimize the risk of illness. When it comes to such products, it is crucial that they are deemed affordable and credible when it comes to health claims.

Increasing demand for innovative products, like plant-based and lactose-free beverage products, drive the market studied, while the inclusion of CBD-infused functional beverages is expected to be the opportunity to the future market.

Manufacturers are embracing innovation to gain cost-leadership and fixed suppliers in the early development stage. One of the major advantages of a functional beverage is that consumers are ready to pay a premium for its various functional and health advantages.

Key Market TrendsFlavor Innovations Leading to the Growth of Market

Consumers are increasingly drawn to the health benefits available through functional beverages. Although the gut health and functional foods phenomenon has impacted all aspects of the menu, the beverage category holds the biggest opportunity for flavor innovation. This blends the beverage industry with vitamins and supplements, allowing nutrient-dense ingredients, such as kale and turmeric, to find a natural home. Consumers, especially millennials, in the developed economies, such as the United States, are spending more on flavored water. The trend of zero-calorie, zero-sugar, and low-carb content soft drinks is rising across the region, which is also boosting the market growth. Citrus and berry flavors are gaining traction among consumers due to their refreshing tastes. The natural flavors are gaining traction due to their health benefits and refreshing tastes.

United States Holds the Major Share in the Market

Due to the high prevalence of diabetes in-country, consumers are becoming more aware of the importance of a healthy diet and active lifestyle, promoting the consumers to prefer natural sweeteners, such as stevia beverages. According to the Division of Diabetes Translation (CDC), there are some 34 million people living with diabetes in the United States as of 2018. Thus, companies like PepsiCo Inc. and Coca-Cola are committed to remove artificial ingredients and reduce the sugar content in their products. The incidence of cardiovascular disease and osteoporosis, coupled with the growing demand for convenience beverages and the changing lifestyle among consumers, is the major driver for the growth of functional energy drinks, fortified/functional plant-based, and malt-based hot drinks sales in the United States.

Competitive Landscape

The North American functional beverage market is a competitive market with the presence of various players in each category. Players are also extensively focusing on providing consumers with innovative offerings while including functional benefits in each of their products. Furthermore, while engaging the consumers with innovation and expansion strategies, key players are capitalizing on the market revenue. Some of the major players in the market studied are PepsiCo, Red Bull GmbH, Coco-Cola, and Monster Beverage Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Nestle SA
Pepsico, Inc.
Danone S.A
Monster Beverage Corporation
The Coca
Cola Company
Campbell Soup Company
General Nutrition Centers Inc.
Red Bull GmbH
Glanbia Plc
The Hain Celestial Group, Inc.

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