Growth of the functional beverage market is driven by its adaptability to diverse consumer preferences and dietary needs, catering to various proiles, including plant-based, low-sugar, caffeine-free, and customised nutritional demands

The functional beverage market size is projected to surpass USD 164,058 million in 2023 and is likely to attain a valuation of USD 277,744 million by 2033. The functional beverage market share is expected to rise at a CAGR of 5.4 % from 2023 to 2033.

Functional drinks have firmly established themselves in the sports and fitness market, providing great performance enhancers, post-workout recovery aids, and pre-activity nourishment. These items have become essential components of fitness programs, effortlessly harmonising with the desire for optimum physical performance and adequate nutritional consumption.

The functional beverage industry is benefiting from increased public awareness of health issues. These beverages address a wide range of conditions, including stress management, anxiety, inflammation, and digestive health. As consumers seek solutions to these problems, the market seizes the chance to solve real-world health issues with focused, practical solutions.

Effective marketing and branding initiatives significantly impact the growth of the functional beverage sector. Engaging narrative, eye-catching packaging, and targeted endorsements all captivate customers’ attention and allegiance. Branding is critical for establishing long-term consumer relationships and differentiating items in this crowded industry.

The advent of e-commerce platforms and direct-to-consumer sales channels is substantially propelling the functional beverage market’s expansion. These channels enable manufacturers to reach a larger audience while incurring fewer distribution expenses and providing consumers with quick access to a bigger range of product selections.

Personalisation is emerging as an increasingly important motivator. Customisation possibilities are available from functional beverage providers, allowing customers to customise their beverages to specific health requirements or flavour preferences. This increases brand loyalty and customer engagement.

CBD (cannabidiol) and hemp-based compounds have been gaining popularity in the functional beverage industry. These substances are linked to possible health benefits and relaxing effects, attracting a niche audience interested in holistic well-being.

“The functional beverage market is undergoing a substantial shift, which is being driven by innovation, scalability, strategic alliances, and a greater emphasis on sustainability. This shifting landscape confronts organisations with both problems and possibilities, forcing them to adapt to changing customer demands and regulatory needs while promoting development and resilience in a highly competitive market”, – Nandini Roy Choudhury, Client Partner at Future Market Insights (fmi)

The global NFC (not from concentrate) juice market is experiencing significant changes in consumer preferences, with a strong shift towards healthier and more natural beverage options. This trend is driving notable advancements in the food and beverage industry as consumers seek out less processed and more wholesome juice choices.

The global NFC juice market value is estimated to rise from USD 2.6 billion in 2023 to USD 3.8 billion by 2033. Over the assessment period, global sales of NFC juices are predicted to increase at a CAGR of 8.2 %. Demand in the market is expected to remain high for organic NFC juices. This is due to rising end-user preference for natural and organic fruits and juices. The target segment is projected to hold a market share of 58.1 % during the forecast period.

The NFC juice market is set to witness a robust growth trajectory during the forecast period. This is due to increasing consumer demand for healthy and sustainable food options. Today, consumers are willing to pay a premium for NFC juices. This is because they perceive them as healthier, and more nutritious than traditional juices made from concentrates or other processed sources.

NFC juices are often seen as a way to support local farmers and reduce carbon footprints, as they require less transportation and storage than imported concentrate products. This is also encouraging their adoption and fueling market demand. In a new development that is sure to shake up the beverage industry, the NFC (Not from Concentrates) juice market is poised to redefine consumer expectations when it comes to fruit juice. This innovative approach to juice production promises a fresh, unadulterated taste experience that rejuvenates the market.

Consumers are increasingly seeking authenticity and transparency in their food and beverage choices, and the NFC Juice market is perfectly poised to meet these demands. NFC juices offer a purer and more wholesome alternative to traditional juices which are often made from concentrate and mixed with additives. Companies are diversifying their product lines to meet changing consumer preferences and cater to different tastes and dietary needs. For example, some companies now offer functional NFC juices fortified with probiotics, protein, or fiber, while others offer lower sugar or low-acid varieties.

Certain NFC juice brands are also prioritising sustainability by sourcing fruits from local, eco-friendly farms and using environmentally responsible packaging. This is anticipated to bode well for the market.

Key takeaways from the NFC Juice Market Report:

• The global NFC juice market is expected to reach USD 3.8 billion by 2033.
• Global demand for NFC juices is likely to soar at 8.2 % CAGR over the forecast period.
• Based on product type, the fresh fruit NFC juices segment is estimated to reach a valuation of USD 577.5 million by 2033.
• By product claim, the organic segment is expected to hold a market share of 58.1 % during the projection period.
• The United States market is expected to register a CAGR of 5.0 % through 2033.
• Germany NFC juice industry is projected to thrive at 10.0 % CAGR during the forecast period.

“The global NFC (not from concentrate) juice market is witnessing a refreshing trend towards pure, unadulterated juice options. Consumers now seek transparency, traceability, and a connection to the source of their beverages. This market’s commitment to natural flavours and sustainability aligns perfectly with evolving consumer preferences for healthier, more authentic choices. It’s a positive shift that reflects the growing demand for genuine and eco-conscious products, Nandini Roy Choudhury, Client Partner at Future Market Insights”

Please find more information under https://www.futuremarketinsights.com/reports/sample/rep-gb-18027

As might be expected, there are high levels of concern among Asian consumers about the impact COVID-19 is having, both directly on their own lives and also on a global scale. According to Innova’s COVID-19 Consumer Survey (conducted in March 2020), in China, India and Indonesia, personal concerns center on health, personal income and the availability of healthcare and products to buy.

Personal health, and the health of family and friends, tops the list of concerns across all three countries, with impact on personal income/finances ranked as second. Indian consumers were the most concerned. 73 % of Indian consumers say that they were very concerned about their own and that of their family’s/friends’ health. This is compared with 58 % in China and 52 % in Indonesia.

Concerns over more global issues are led by healthcare and financial/economic uncertainty. Healthcare ranks the highest in India, with 79 % of respondents very concerned. Financial/economic uncertainty came out first in China and Indonesia, with 55 % and 68 % of respondents, respectively, saying that they were very concerned. Consumers in all three countries were also concerned about the impact on food and job security.

Changes in behavior driven by the pandemic include more working from home, more social media and online entertainment and even exercising inside the home, with lower levels of leaving the house, visiting cafes/bars and restaurants, travelling for business and pleasure and using public transportation.

Health considerations have become more influential on purchasing decisions, with consumers trying to eat more healthily and consuming products in a bid to boost immunity. These include ingredients such as turmeric in India, chrysanthemum and cordyceps flower in China and royal jelly, ginger and mint in Indonesia. Familiarity, comfort and improving mood are also seen as increasingly important factors for food and beverage choices during the crisis. Health, shelf-life and cost are taking on a greater significance with regard to purchasing decisions, while factors such as flavor and indulgence appear to be declining in importance. Innova Market Insight’s research indicated that the main changes in attitude/behavior in India and China included more cooking/preparing of homemade food, more healthy eating and more eating/drinking products to boost immune health.

Fresh fruit and vegetables and juices and nectars are some of the top categories benefiting from this trend, as consumers look to them as a means of boosting health. At the same time, consumers claimed to be purchasing lower levels of less healthy, indulgent and highly processed options, such as ice cream, pizza and cakes and pastries.

There has also been an acceleration in the growth of online grocery shopping as movements are restricted and physical stores cannot easily be accessed. The rise in grocery apps in China, for example, encompasses developments in supermarkets, dedicated grocery apps and food delivery platforms. Restaurants have been quick to offer home delivery, but many consumers are also willing to order online and go out and pick up takeout. In China, 37 % of consumers claimed to be ordering more restaurant/café food online, while 34 % were picking up takeout food and meals more often.

Many of today’s busy consumers are juggling their careers, families and social lives while striving to maintain healthy lifestyles, both physically and mentally. Food and diet plays an essential role in this, with innovation increasingly looking to support consumer choices as many endeavor to balance the benefits and costs of these hectic lifestyles. This, in turn, raises the demand for nutritious foods that are easy to prepare, convenient and portable, while indulgent treats also play a role in relaxation and enjoyment.

The Right Bite was one of Innova Market Insights Top Trends for 2020 , reflecting how food and drinks supporting lifestyle choices can fall into a number of areas. These all aim to help those wishing to embrace healthy lifestyles, balance busy schedules and/or reject their current lifestyles and search for change.

Consumers embracing a healthy lifestyle tend to love having many things do and are dedicated (working long hours, exercising, etc.), but need to plan their time efficiently to get the best benefits. Healthy snacks, energy-boosting food/drinks and on-the-go food and beverages are all of interest, with high protein and energy claims of particular significance. According to Innova Market Insights data, global snacking launches featuring high protein claims had a CAGR of 16.8 % between 2015 and 2019, while the use of energy/alertness claims rose 13.7 % over the same period.

Those seeking healthier lifestyles also looked to find a balance between health and indulgence, while also looking for individual needs and preferences to be met, including the development of more balanced and complete concepts in terms of their nutritional needs.

Balancing busy lifestyles is necessary as consumers live life to the full (holidays, dining out etc.) and benefit from this, but feel that it also takes a toll on them, with ‘fast’ lifestyles also necessitating compromise and rebalancing. Convenience is key in this area, prompting a demand for meals that are easy to prepare and cook, which in turn provides opportunities for ready meals and meal kits. The demand for home cooked food has boosted interest in meal kits, with 28 % growth in the number of launches tracked globally by Innova Market Insights (CAGR 2015-2019).

On the other hand, consumers looking for a change in lifestyle are likely to increasingly distract and distance themselves from their busy lives and try to wind down. Emotional comfort is key here, with interest in comforting, relaxing and sleep-inducing food and drinks, particularly carrying mood, energy and sleep improving claims.

Stress and anxiety are key concerns in modern life as awareness of their negative impact on mental and physical health grows. In a 2019 Innova Consumer Survey 32 % of UK consumers and 39 % of US consumers claimed to experience stress at least once a day, rising to over half in India. The industry response has included more products targeted at improving low mood, tiredness and fatigue and sleep.