Functional Water Market

Functional Water Market Overview 2024-2032:

The global functional water market size reached USD 16.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 28.1 Billion by 2032, exhibiting a growth rate (CAGR) of 6.1% during 2024-2032. The growing development of new variants with different flavors, functional ingredients, and health claims to appeal to a broad consumer base, rising concerns about the impact of plastic waste on the environment, and increasing number of online channels, are some of the factors impelling the market growth. At present, North America leads the market due to a highly health-conscious population, robust retail infrastructure, and strong digital sales channels.

Functional water is a specialized water-based beverage that is altered at the molecular level through mechanical, electrical, or optical processes. It offers both refreshment and taste and is enhanced with additional nutrients or minerals that provide specific health benefits beyond simple hydration. Functional water contains numerous added ingredients such as vitamins, minerals, antioxidants, electrolytes, or herbal extracts that can improve digestion, boost immunity, enhance cognitive function, and promote overall health and wellness. Some of the standard functional water products include alkaline water, protein water, botanical water, hydrogen water, oxygenated water, and mineral water.

Functional Water Market Trends:

Rising Environmental Consciousness

More people are becoming conscious about the impact of plastic waste on the environment and they are opting for products that reflect their values, especially those that come in recyclable or biodegradable packaging. Numerous functional water brands are reacting by transitioning to sustainable alternatives, such as aluminum bottles or plant-based packaging, in order to decrease plastic usage. This emphasis not only attracts eco-friendly buyers but also enhances brand loyalty. People are more inclined to support brands that prioritize environmental responsibility, especially in regions where green practices are highly advocated. Governments and organizations are encouraging reduced plastic usage, which is driving the demand for functional water with sustainable packaging. In 2024, Water Almighty launched two eco-functional waters, Mighty Pure and Mighty Minerals, in 500ml aluminium bottles. These sustainably packaged drinks aim to reduce plastic usage, offering infinitely recyclable, reusable options. This innovation aligns with the commitment of the brand to combining health, convenience, and environmental responsibility.

Product Innovation and Variety

Companies are constantly introducing new versions with various tastes, beneficial components, and health declarations to attract a wide range of customers. This advancement includes improvements such as electrolytes for better athletic performance, probiotics for digestive health, and collagen for skincare advantages. The variety of formulations allows manufacturers to cater to various consumer preferences, including those looking for energy boosts, immune support, or enhanced focus. Packaging innovations, such as eco-friendly bottles and portable options, also play a role in attracting environmentally-conscious buyers. The constant introduction of fresh and diverse offerings helps maintain consumer interest and expands the market by reaching new user segments. Essentia Water introduced Essentia Hydroboost in 2024, which is their initial flavored, functional water containing B-complex vitamins and 400 mg of electrolytes. Hydroboost comes in Lemon Lime, Peach Mango, and Raspberry Pomegranate flavors to improve hydration for on-the-go individuals.

Growing Number of E-Commerce Channels

With online platforms becoming more prominent, consumers have easier access to a wide variety of functional water products, ranging from basic hydration solutions to those enhanced with vitamins, minerals, and other health-boosting ingredients. This shift is allowing brands to directly engage with their target audiences, promoting their offerings through targeted ads, social media, and influencer partnerships. The convenience of home delivery and subscription services, which provides products on a regular basis without visiting physical stores, is further supporting the functional water market growth. Additionally, the lower overhead costs of selling online are enabling smaller, niche functional water brands to compete effectively with larger companies, expanding the diversity of products available. In 2023, the worldwide e-commerce market size hit USD 21.1 Trillion. In the coming years, IMARC Group anticipates that the market will achieve USD 183.8 Trillion by 2032.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global functional water market report, along with forecasts at the global, regional and country level from 2024-2032. Our report has categorized the market based on product, ingredient, type, packaging types and distribution channel.

Product Insights:

• Flavored Functional Water
• Unflavored Functional Water
   

The report has provided a detailed breakup and analysis of the functional water market based on the product. This includes flavored and unflavored functional water. According to the report, flavored functional water represented the largest segment.

Ingredient Insights:

• Micronutrients
• Botanical Extracts
• Others
   

A detailed breakup and analysis of the functional water market based on the ingredient has also been provided in the report. This includes micronutrients, botanical extracts, and others. According to the report, micronutrients accounted for the largest market share.

Type Insights:

• Vitamins
• Proteins
• Others
   

The report has provided a detailed breakup and analysis of the functional water market based on the type. This includes vitamins, proteins, and others. According to the report, vitamins represented the largest segment.

Packaging Types Insights:

• PET Bottles
• Cans
• Others
   

A detailed breakup and analysis of the functional water market based on the packaging types has also been provided in the report. This includes PET bottles, cans, and others. According to the report, PET bottles accounted for the largest market share.

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
   

The report has provided a detailed breakup and analysis of the functional water market based on the distribution channel. This includes supermarkets and hypermarkets, convenience stores, specialty stores, and online stores. According to the report, supermarkets and hypermarkets represented the largest segment.

Regional Insights:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for functional water. Some of the factors driving the North America functional water market included rising health consciousness among consumers, easy product availability, and the development of innovative product variants.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global functional water market. Detailed profiles of all major companies have also been provided. Some of the companies covered include:

• Ayala's Herbal Water
• Balance Water Company
• Danone S.A.
• Function Drinks
• Hint Inc.
• Keurig Dr Pepper Inc.
• Nestlé S.A.
• PepsiCo Inc.
• The Coca-Cola Company
• Trimino Protein Infused Water
• Unique Foods (Canada) Inc.
• Vichy Catalan Corporation
   

Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Functional Water Market News:

• September 2023: PepsiCo announced the launch of Gatorade Water, marking its entry into the functional water segment. The alkaline, electrolyte-infused water was designed for all-day hydration and packaged in 100% recycled plastic bottles, addressing both performance and sustainability needs for active consumers.
• January 2024: BetterYou introduced a new range of functional magnesium-infused drinks, designed to support hydration, energy, and focus. These drinks, containing a blend of three magnesium types, aim to help address widespread magnesium deficiencies.
• February 2023: CENTR Brands Corp. announced that its CENTR Enhanced functional sparkling water, featuring Cognizin Citicoline, had been named a finalist for the NEXTY Awards at Natural Products Expo West. This nootropic-infused water was designed to support brain health and became available through CENTR's e-commerce channel.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative functional water market analysis of various segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global functional water market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the functional water industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.