Global functional drinks market to be worth $89.6 billion by 2016

Press Release   •   Jul 03, 2013 12:44 BST

The global functional drinks market has been forecast to increase at a compound annual growth rate (CAGR) of 8.7% for the five-year period 2011 - 2016, increasing from total revenues of $59,103.9m in 2011, to a value of $89,665.6m by the end of 2016.

According to a new report titled 'Functional Drinks: Global Industry Guide,' published on, market consumption volumes increased with a CAGR of 3.6% between 2007 and 2011, to reach a total of 17,670.9 million litres in 2011.

Of this, dairy is the largest functional drinks category by most estimates, representing approximately 40% of the global market and up to 70% of the market in the UK and Europe.

A functional beverage is a drink product that is non-alcoholic and includes in its formulation ingredients such as herbs, vitamins, minerals, amino acids or additional raw fruit or vegetables. It often claims to provide specific health benefits. Examples include sports and performance drinks, energy drinks, ready to drink (RTD) teas, enhanced fruit drinks, soy beverages and enhanced water.

Functional beverages have become popular due to its appeal to consumers who are seeking specific health benefits in their beverages with their 'healthiness-on-the-go' idea.

The functional drinks market is gaining momentum with improvements in quality and the introduction of new products in the market. The introduction of energy drinks and nutraceutical drinks have added to the growth of this market, while sports drinks, with their new and innovative flavours, are playing a vital role in the steady growth of the functional drinks industry.

Both convenience and health have been identified as important factors when consumers make decisions about purchasing foods and beverages. Functional drinks are promoted with benefits such as heart health, improved immunity and digestion, joint health, satiety, and energy-boosting.

Some health claims are couched less specifically than others and this disparity leads to some differences in how the category is measured, but from a generic standpoint it could be said that any drink which is positioned as offering some form of health benefit, other than simply being better for you by dint of its basic nutritional composition, can be described as "functional".

Key players currently dominating the functional drinks market include Kraft, Nestle, Coca Cola Enterprises, PepsiCo, Cadbury Schweppes, RushNet, Old Orchard Brands, Jivita LLC, Tata Tea, GSK, Red Bull, Energy69, and Taut.

For more information on the global functional drinks market, see the latest research: Functional Drinks Market

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