Water constitutes important portion of our life. The added flavors enhance the taste of water and possess numerous health benefits such as blood regulation, weight management, and appetite control. Furthermore, it’s a good substitute for soda and other artificial beverages.
Consumers are inclining towards healthy options against use of aerated and sugary artificial drinks. The flavored and functional water market is gaining traction due to the increasing consumers’ preference towards nutrient-based drinks.
Flavored and functional water is a healthy drink that provides instant energy. Rapid urbanization and fast paced life has resulted into a noteworthy rise in health-related concerns. Thus, consumers are attracted towards products that are easily available and do not hamper their health. Flavored and functional water is available in attractive packaging and bottles and is readily available. Hence, the consumer need is catered and this factor contributes in accelerating the growth of flavored and functional water market.
Flavored and functional water is a combination of purified water and water derived from minerals, vitamins, and herbs. In addition, it constitutes micro-nutrients, which offer health benefits. Leading market brands are investing and focusing on new technologies to establish their market dominance. R & D is being consistently carrying out to offer advanced products to the consumers as per their preferences. Mass merchandizing, branding, and strong supply chains have boosted the growth of flavored and functional water market.
Various hyper markets and super markets are springing up attributing to strong distribution network. The flavored and functional water market is witnessing an exponential growth due to positive response of consumers to various marketing strategies such as bundling strategy and distribution strategy. Due to the outbreak of pandemic across the globe, leading brands are adopting online sales channels. The online presence of flavored and functional water triggered the sales and generated good revenue streams for market players.
The flavored and functional water market is growing at a steady pace. Several small companies and stand-alone brands are keen to pave their way through competition and establish themselves. Product development is the key strategy used by new entrants to compete against the existing key players.
As a result of saturation in the bottled water market, demand for functional and flavored water is growing. These belong to the latest generation of bottled water that boasts capability of improving the immune system.
Fascinated by the claims of novel H2O drinks, consumers are briskly replacing old-fashioned mineral water, briskly elevating flavored and functional water as their favorite.
Sales uptick in the functional and flavored water market is resulting from overarching consumer trend in favor of better-for-you alternatives. The demand for healthier replacements for high-sugar drinks is paving way for the market’s bright future. However, price continues to remain a primary factor, determining purchase pattern for functional water.
Despite this, brands are continuing with their premium offerings with a range of label claims, expecting to fetch improved sales and higher market revenue. Further on, innovations in bottling technologies are likely to establish a stronghold for the flavored and functional water market in the retail landscape.
Functional water is fortified with micro-nutrients and it has successfully created a niche for itself in the consumer market. Besides this, the market boasts novel ingredients, which has been a key factor helping it gain traction in the last few years. Functional water also offers better nutrient profile, which is expected to foster growth opportunities.
One thing, the market players are making impressive gains from is the mass merchandizing of their products. There is immense focus towards building a strong distribution network.
Against this backdrop, hypermarkets and supermarkets remain the preferred distribution channel for functional and flavored water.
Moreover, some companies are adopting bundling strategies to enhance availability and accessibility of functional water. To induce better sales, also as a result of increased competition, some brands are even introducing products at economic pricing. These are some of the key strategies attributing to higher sales of functional water via mass merchandizing.
Consumers were positively responding to bundling strategies, aiding expansion of the market size until the unprecedented COVID-19 outbreak. The ongoing pandemic has revealed vulnerabilities of several companies.
Indefinite lockdown imposed to contain the spread of the virus has caused supply chain disruptions around the world, compelling market players to rethink their distribution strategies.
Consequently, some of the leading brands have swiftly shifted to online forums to keeping sailing afloat even amid pandemic crisis. Functional water brands are seeing this as an incredible opportunity to penetrate deeper across high potential market. Greater visibility allowed by online presence is stoking revenue generation in the market.
The flavored and functional water market is quite established in the US and Europe.
North America for instance currently has dominance, backed by robust growth in the demand from the U.S. Sales of bottled water have already surpassed that of soft drinks in the country, prompting companies to expand their functional offerings.
The rising demand for functional water in North America is causing major shift in the beverage industry. Some of the leading brands are joining the bandwagon to offer functional hydration experience to consumers. As a result, there is higher focus on innovating compositions of beverages to lure consumers in favor of purchasing it.
Consumers in Europe too are showing a marked preference for flavored and functional water. However, consider the total population in Asia Pacific, it is highly likely that market players will target the countries in the region. As a result of increasing awareness, consumers in Asia Pacific have become more willing to spend on functional beverages.
Moreover, “better-for-you” alternative drinks are becoming a recognized category, with consumers exhibiting demand for healthier alternative to carbonated soft drinks. Driven by impressive prospects manufacturers too are expected to focus on innovating flavors and better packaging for functional and flavored water.
The global flavored and functional water market continues to grow at a steady rate. The market exhibits dominance of global brands, who are seeking consolidation to gain competitive advantage. Nonetheless, the market is not as heavily concentrated on account of the presence of several smaller companies and independent brands.
The market will continue witnessing influx of small private-label brands as they embark on the journey of carving a niche for themselves in the beverages sector. These companies offer better convenience and value for money. To compete against emerging companies, behemoths are adopting product development as their key strategy.
There is also immense focus on appeasing consumers, which is why the market is exhibiting higher adoption of bold flavors and exotic ingredients. For instance, in February 2019, one of the leading names in the beverages industry, The Coca-Cola Co. added two brand new beverages to its Smartwater brand. These were Snamtwater antioxidant and Smartwater alkaline.
There are other companies in the market that are focusing on the expansion of their global footprint. For instance, Danone S.A. is channelizing its effort to penetrate deeper across high potential markets in Asia Pacific, where it is aiming for a double-digit growth on the back of improved sales of bottled water recorded in the region.
Other prominent names such as PepsiCo. are focusing on innovation to offer advanced packaging. Its brand called LIFEWTR has announced championing the Art via technology in March last year. Adoption of strategies such as these will aid expansion witnessed in the flavored and functional water market.
In the coming years, the market is expected to gain significant as a result of increasing focus on health and wellness among consumers. The pandemic outbreak will leave a significant impact of consumers, changing their behavior pattern. Consequently, they are expected to show higher inclination of adopting healthier food and beverages items. This is expected to augur well for the flavored and functional water market.
1. Executive Summary
1.1. Market Overview
1.2. Market Analysis
1.3. TMR Analysis and Recommendations
1.4. Opportunity Matrix
2. Market Introduction
2.1. Market Definition
2.2. Market Taxonomy
3. Flavored and Functional Water Market Background
3.1. Macro-Economic Indicators
3.2. Global Economic Outlook
3.2.1. Global GDP by Region and Country
3.2.2. Global Industry Value Added
3.2.3. Global Retail Industry Outlook
3.3. Value Chain Analysis
3.3.1. Raw Material Suppliers
3.3.2. Flavored and Functional Water Market Manufacturers
3.3.3. Distributors/Suppliers/Wholesalers
3.3.4. Traders
3.3.5. End Users
3.4. Market Dynamics
3.4.1. Drivers
3.4.2. Restraints
3.4.3. Opportunities
3.4.4. Trends
3.5. Forecast Factors - Relevance and Impact
4. Global Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030
4.1. Per Capita Consumption of Flavored and Functional Water Market, by Country/Region, 2020
4.2. Market Volume (Metric Tons) and Forecast
4.3. Market Size (US$ Mn) and Forecast
4.3.1. Market Size (US$ Mn) and Y-o-Y Growth
4.3.2. Absolute $ Opportunity
5. Global Flavored and Functional Water Market Pricing Analysis
5.1. Regional Pricing Analysis (US$/MT) By Product Type
5.2. Global Average Pricing Analysis Benchmark
5.3. Pricing Influencing Factors
6. Global Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030, by Product
6.1. Introduction
6.2. Historical Market Size (US$ Mn) and Volume (MT) By Form, 2015-2019
6.3. Market Size (US$ Mn) and Volume (MT) Forecast By Form, 2020-2030
6.3.1. Flavored Water
6.3.2. Functional Water
6.4. Attractiveness Analysis by Product
7. Global Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030, by Region
7.1. Introduction
7.2. Historical Market Size (US$ Mn) and Volume (MT) By Region, 2015-2019
7.3. Market Size (US$ Mn) and Volume (MT) Forecast By Region, 2020-2030
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. MEA
7.4. Attractiveness Analysis By Region
8. North America Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030
8.1. Introduction
8.2. Historical Market Value (US$ Mn) and Volume (Metric Tons) By Market Segments, 2015-2019
8.3. Market Value (US$ Mn) and Volume (Metric Tons) Forecast By Market Segments, 2020-2030
8.3.1. By Country
8.3.1.1. U.S.
8.3.1.2. Canada
8.3.2. By Product
8.4. Market Attractiveness Analysis
8.4.1. By Country
8.4.2. By Product
8.5. Drivers and Restraints: Impact Analysis
8.6. Key Participants Market Presence Intensity Mapping
9. Latin America Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030
9.1. Introduction
9.2. Historical Market Value (US$ Mn) and Volume (Metric Tons) By Market Segments, 2015-2019
9.3. Market Value (US$ Mn) and Volume (Metric Tons) Forecast By Market Segments, 2020-2030
9.3.1. By Country
9.3.1.1. Brazil
9.3.1.2. Mexico
9.3.1.3. Rest of Latin America
9.3.2. By Product
9.4. Market Attractiveness Analysis
9.4.1. By Country
9.4.2. By Product
9.5. Drivers and Restraints: Impact Analysis
9.6. Key Participants Market Presence Intensity Mapping
10. Europe Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030
10.1. Introduction
10.2. Historical Market Value (US$ Mn) and Volume (Metric Tons) By Market Segments, 2015-2019
10.3. Market Value (US$ Mn) and Volume (Metric Tons) Forecast By Market Segments, 2020-2030
10.3.1. By Country
10.3.1.1. Spain
10.3.1.2. Germany
10.3.1.3. U.K
10.3.1.4. BENELUX
10.3.1.5. Italy
10.3.1.6. Russia
10.3.1.7. France
10.3.1.8. Rest of Europe
10.3.2. By Product
10.4. Market Attractiveness Analysis
10.4.1. By Country
10.4.2. By Product
10.5. Drivers and Restraints: Impact Analysis
10.6. Key Participants Market Presence Intensity Mapping
11. Asia Pacific Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030
11.1. Introduction
11.2. Historical Market Value (US$ Mn) and Volume (Metric Tons) By Market Segments, 2015-2019
11.3. Market Value (US$ Mn) and Volume (Metric Tons) Forecast By Market Segments, 2020-2030
11.3.1. By Country
11.3.1.1. China
11.3.1.2. Japan
11.3.1.3. South Korea
11.3.1.4. Thailand
11.3.1.5. Indonesia
11.3.1.6. Malaysia
11.3.1.7. Singapore
11.3.2. By Product
11.3.3. By Application
11.4. Market Attractiveness Analysis
11.4.1. By Product
11.5. Drivers and Restraints: Impact Analysis
11.6. Key Participants Market Presence Intensity Mapping
12. MEA Flavored and Functional Water Market Analysis 2015-2019 and Forecast 2020-2030
12.1. Introduction
12.2. Historical Market Value (US$ Mn) and Volume (Metric Tons) By Market Segments, 2015-2019
12.3. Market Value (US$ Mn) and Volume (Metric Tons) Forecast By Market Segments, 2020-2030
12.3.1. By Country
12.3.1.1. GCC Countries
12.3.1.2. South Africa
12.3.1.3. Turkey
12.3.1.4. Northern Africa
12.3.2. By Product
12.4. Market Attractiveness Analysis
12.4.1. By Product
12.5. Drivers and Restraints: Impact Analysis
12.6. Key Participants Market Presence Intensity Mapping
13. Flavored and Functional Water Market Industry Structure
13.1. Market Analysis by Tier of Companies
13.2. Market Concentration
13.3. Market Share Analysis of Top 10 Players
13.4. Market Presence Analysis
13.4.1. By Regional Footprint
13.4.2. By Product Footprint
13.4.3. By Channel Footprint
14. Competition Analysis
14.1. Competition Dashboard
14.2. Competitive Benchmarking
14.3. Competition Developments (Mergers, Acquisitions and Expansions)
14.4. Competition Deeppe (Tentative List)
14.4.1. PepsiCo, Inc.
14.4.1.1. Overview
14.4.1.2. Product Portfolio
14.4.1.3. Profitability by Market Segments (Product/Channel/Region)
14.4.1.4. Sales Footprint
14.4.1.5. Channel Footprint
14.4.1.6. Strategy Overview
14.4.1.6.1. Marketing Strategy
14.4.1.6.2. Product Strategy
14.4.1.6.3. Channel Strategy
14.4.2. Nestle SA
14.4.2.1. Overview
14.4.2.2. Product Portfolio
14.4.2.3. Profitability by Market Segments (Product/Channel/Region)
14.4.2.4. Sales Footprint
14.4.2.5. Channel Footprint
14.4.2.6. Strategy Overview
14.4.2.6.1. Marketing Strategy
14.4.2.6.2. Product Strategy
14.4.2.6.3. Channel Strategy
14.4.3. The Coca-Cola Company
14.4.3.1. Overview
14.4.3.2. Product Portfolio
14.4.3.3. Profitability by Market Segments (Product/Channel/Region)
14.4.3.4. Sales Footprint
14.4.3.5. Channel Footprint
14.4.3.6. Strategy Overview
14.4.3.6.1. Marketing Strategy
14.4.3.6.2. Product Strategy
14.4.3.6.3. Channel Strategy
14.4.4. Group Danone
14.4.4.1. Overview
14.4.4.2. Product Portfolio
14.4.4.3. Profitability by Market Segments (Product/Channel/Region)
14.4.4.4. Sales Footprint
14.4.4.5. Channel Footprint
14.4.4.6. Strategy Overview
14.4.4.6.1. Marketing Strategy
14.4.4.6.2. Product Strategy
14.4.4.6.3. Channel Strategy
14.4.5. Hint Water
14.4.5.1. Overview
14.4.5.2. Product Portfolio
14.4.5.3. Profitability by Market Segments (Product/Channel/Region)
14.4.5.4. Sales Footprint
14.4.5.5. Channel Footprint
14.4.5.6. Strategy Overview
14.4.5.6.1. Marketing Strategy
14.4.5.6.2. Product Strategy
14.4.5.6.3. Channel Strategy
14.4.6. New York Spring Water
14.4.6.1. Overview
14.4.6.2. Product Portfolio
14.4.6.3. Profitability by Market Segments (Product/Channel/Region)
14.4.6.4. Sales Footprint
14.4.6.5. Channel Footprint
14.4.6.6. Strategy Overview
14.4.6.6.1. Marketing Strategy
14.4.6.6.2. Product Strategy
14.4.6.6.3. Channel Strategy
14.4.7. Balance Water Company
14.4.7.1. Overview
14.4.7.2. Product Portfolio
14.4.7.3. Profitability by Market Segments (Product/Channel/Region)
14.4.7.4. Sales Footprint
14.4.7.5. Channel Footprint
14.4.7.6. Strategy Overview
14.4.7.6.1. Marketing Strategy
14.4.7.6.2. Product Strategy
14.4.7.6.3. Channel Strategy
14.4.8. Sunny Delight Beverages Company
14.4.8.1. Overview
14.4.8.2. Product Portfolio
14.4.8.3. Profitability by Market Segments (Product/Channel/Region)
14.4.8.4. Sales Footprint
14.4.8.5. Channel Footprint
14.4.8.6. Strategy Overview
14.4.8.6.1. Marketing Strategy
14.4.8.6.2. Product Strategy
14.4.8.6.3. Channel Strategy
15. Assumptions and Acronyms Used
16. Research Methodology
List of Tables
TABLE 1 Increasing Urbanization Rates, by Country (%, 2010-2020)
TABLE 2 Global flavored and functional water market by product, 2020-2030 (USD million)
TABLE 3 Global flavored and functional water market by product, 2020-2030 (USD million)
TABLE 4 North America flavored and functional water market by product, 2020-2030 (USD million)
TABLE 5 North America flavored and functional water market by product, 2020-2030 (USD million)
TABLE 6 The U.S. flavored and functional water market by product, 2020-2030 (USD million)
TABLE 7 The U.S. flavored and functional water market by product, 2020-2030 (USD million)
TABLE 8 Europe flavored and functional water market by product, 2020-2030 (USD million)
TABLE 9 Europe flavored and functional water market by product, 2020-2030 (USD million)
TABLE 10 The U.K. flavored and functional water market by product, 2020-2030 (USD million)
TABLE 11 The U.K. flavored and functional water market by product, 2020-2030 (USD million)
TABLE 12 France flavored and functional water market by product, 2020-2030 (USD million)
TABLE 13 France flavored and functional water market by product, 2020-2030 (USD million)
TABLE 14 Germany flavored and functional water market by product, 2020-2030 (USD million)
TABLE 15 Germany flavored and functional water market by product, 2020-2030 (USD million)
TABLE 16 Italy flavored and functional water market by product, 2020-2030 (USD million)
TABLE 17 Italy flavored and functional water market by product, 2020-2030 (USD million)
TABLE 18 Asia-Pacific flavored and functional water market by product, 2020-2030 (USD million)
TABLE 19 Asia-Pacific flavored and functional water market by product, 2020-2030 (USD million)
TABLE 20 China flavored and functional water market by product, 2020-2030 (USD million)
TABLE 21 China flavored and functional water market by product, 2020-2030 (USD million)
TABLE 22 Japan flavored and functional water market by product, 2020-2030 (USD million)
TABLE 23 Japan flavored and functional water market by product, 2020-2030 (USD million)
TABLE 24 India flavored and functional water market by product, 2020-2030 (USD million)
TABLE 25 India flavored and functional water market by product, 2020-2030 (USD million)
TABLE 26 Danone Products
TABLE 27 Nestle Products and Brands
TABLE 28 Coca-Cola Products Detail
TABLE 29 PepsiCo Products and Brands
TABLE 30 New York Spring Water Products Detail
TABLE 31 Balance Water Products Details
TABLE 32 Sunny Delight Beverages Brands and Flavors
List of Figures
FIG. 1 Global flavored and functional water market, 2020-2030 (USD Billion)
FIG. 2 Obesity rate worldwide (2020)
FIG. 3 Flavored and functional water market: Porter’s Five Forces Analysis
FIG. 4 Global Flavored Water market, 2020-2030 (USD Million)
FIG. 5 Global Functional Water market, 2020-2030 (USD Million)
FIG. 6 Global flavored and functional water market by region (2020-2030)
FIG. 7 Global flavored and functional water market: Benchmarking
FIG. 8 Global flavored and functional water market: Per Capita Expenditure v/s CAGR
FIG. 9 Groupe Danone’s Net Sales and Net profit, 2020-2030 (USD billion)
FIG. 10 Nestle’s Net Sales and Net Profit, 2020-2030 (USD billion)
FIG. 11 Coca-Cola’s Net Sales and Net Profit, 2020-2030 (USD billion)
FIG. 12 PepsiCo’s Net Sales and Net Profit, 2020-2030 (USD billion)
FIG. 13 Kraft Foods Net sales and Net profit, 2020-2030 (USD billion)
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Flavored and Functional Water Market
