IMPULSE convenience Functional Beverage Market Trends

Functional beverages are increasingly becoming essential to diets, especially among healthconscious consumers. The functional beverages market is projected to record a compound annual growth rate of six percent from 2022 to 2032.

Functional beverages are carefully crafted, ready-to-drink (RTD) products distributed in varied flavours. Many manufacturers use packaging and labelling to advertise ingredients and nutritional value by marketing their products as healthy, vegan, or plant-based.

Consumers' inclination towards maintaining good health despite a hectic lifestyle makes RTD beverages popular. Health-conscious consumers are gravitating towards various strict diets, including vegan and keto. The global functional beverages or wellness drinks market will exhibit an impressive compound annual growth rate over the coming years.

Millennial consumers are showing a preference for convenience food and beverages that promise umpteen nutrition profiles. Moreover, gyms and fitness training trends are flourishing, from accessories and diets to training services. Manufacturers are leveraging these trends by innovating product offerings, for instance, vegan and plant-based beverages.

Moreover, nootropic drinks are also gaining prominence among health-conscious consumers. Such innovations will transform the global functional beverage market.

North America continues to lead the pack in the global functional beverages market.

Growing awareness of nutrition-focused diets, especially among millennials, significantly contributes to regional market growth. Furthermore, the prevalence of e-Commerce platforms in the Asia Pacific was attracting huge stakeholders’ attention.

“Due to the increase in consumption of healthy and nutritious drinks, there has been an emergence of products such as functional tea, functional juice, functional soda and even functional sparkling water.”

Booming digitisation and the convenience of e-Commerce platforms in developing countries such as India offer a conducive ground for functional beverage manufacturers.

Many manufacturers use packaging and labelling to advertise ingredients and nutritional value by marketing their products as healthy, vegan, or plant-based.

The functional beverages market is highly fragmented, with many small- and medium-sized enterprises (SMEs). Players strive to gain a competitive edge by developing functional beverages with varied nutritional value. Hence, significant players in the market are investing heavily in research and development and mergers and acquisitions.

The functional food and beverage market has recently seen many new entrants. The proliferation of niche brands backed by intensive digital marketing is successfully paving the way for new product categories, thus stiffening the market competition.

Initiatives such as the Amazon Accelerator Program and Springboard from Kraft Heinz and General Mills’ 301 INC scout new and upcoming retail brands and guide businesses towards a positive trajectory.

Major players are acquiring such start-ups and small enterprises through such initiatives. Kraft Heinz’s acquisition of Primal Kitchen resulted from diligent scouting by Springboard, the giants’ incubation initiative.

Furthermore, PepsiCo also acquired Health Warrior, a US-based nutrition-centred company. However, governments are taking legal action against misrepresenting the nutritional value of functional food and beverages.

For instance, drinks containing cannabinoids cannot be marketed as medicinal products. Lenny and Larry’s nutritious cookies have been subjected to such lawsuits as the protein value of the product was wrongly represented.

Functional beverage manufacturers are striving to avoid such lawsuits and enhance product transparency. Leading manufacturers are employing dedicated teams to strategise law-abiding marketing plans that ensure the proper representation of functional beverage products.

Further regulatory approvals for unique ingredients, packaging & labelling laws issued by statutory authorities such as the US Food and Drug Administration (FDA) favour the functional beverages market.

Companies that understand consumers’ preferences in different regions will fare well in the marketplace. For instance, energy shots, small quantities of nutritious drinks, are prevalent in Japan, whereas in India and China, large value packs attract more customers. As such, product innovation and evolving consumer patterns will influence the growth strategies of market players. n

No Ordinary Ice Tea

Ice tea is ordinary no more! Market trends and research have shown consumers are seeking refreshing but functional beverages to suit their healthier lifestyle choices. No Ordinary Ice Tea delivers on this and differs from other teas - it is low in sugar, free from plastic, naturally flavoured and has the added benefits of Vitamin B, C and E and Antioxidants! No Ordinary Ice Tea comes in three delicious natural flavours representing NZ provenance; Hawkes Bay Peach, Bay of Plenty Raspberry and Passionfruit. n

Gut Love

The Wild Fermentary, Supreme Winner of the NZ Food Awards 2021, is serving up gut-loving ferments of the future. Their probiotic ‘Kefir Soda’ range, available in three popular flavours (Ginger Root, Berry Blush, Beet & Berry) is an ancient living tonic with billions of probiotics to help revive and rewild your earth suit. Share the gut-love with 750ml bottles or grab-and-go wellness in a 330ml size. But the microbial mixology doesn’t stop there! The bacteria baristas of Aotearoa have also launched a new hot and spicy ‘Bloody Mary Mixer’ flavoured with juice from their kimchi and smoky kapeti kraut – winning gold at the Outstanding NZ Food Awards 2023! The Wild Fermentary has also opened a ‘Soda Door’ and rolled out a Refill Friday service from their new Clevedon fermented food factory, so customers can join the refill revolution sweeping Aotearoa. Living drinks of the past, are the functional drinks of the future. www.thewildfermentary.co.nz E: hello@ thewildfermentary.co.nz M: 021883562