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Flavored and Functional Water is expected to expand at an impressive CAGR of 11.5% over 2013-2019

Flavored and Functional Water is expected to expand at

Rising health consciousness among consumers worldwide is uplifting the popularity of healthy alternatives to ordinary food and beverages that they usually consume. Flavored and functional water is one of such healthy alternatives; while flavored water is bottled mineral, purified, or spring water, functional water is its derivative with added functional value in form of oxygen, minerals, vitamins, and botanicals. The global flavored and functional water market has gained momentum within the recent past and is expected to expand at an impressive CAGR of 11.5% over the forecast period, 2013-2019. The market revenues will reach US$ 36.7 Bn by 2019 end, up from US$ 17.2 Bn attained in 2012.

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Key Market Dynamics

Rising prevalence of obesity and growing awareness about healthy lifestyle among urban population are expected to remain the key drivers governing the growth of the global flavored and functional water market. As health concerns of consumers are detaining them from consuming artificial flavored beverages and carbonated drinks, the popularity of flavored water is growing. Functional water is especially attractive because of its health benefits and reduced switching costs, as the price nearly equals that of the flavored water. Availability of a range of flavors and options in flavored and functional water will also boost the market growth, as consumers usually prefer to try new tastes and follow the best of them. Although flavored and functional water is a bit expensive, increasing income levels nowadays allow people to consume premium products like this water, especially in developing nations. This is anticipated to be a major factor holding a positive impact on the market growth. Manufacturing companies have been grasping the right market by linking water to health and beauty regimes. This will continue to hit developing markets over the forecast period. Exploding industrialization in China has led to polluted water supply, eventually pushing the demand for packaged drinking water. This is currently providing an uptick to flavored and functional water as well, and is foreseen to continue in the near future.

There have been several protest campaigns against packaging bottles, which may hamper the market to a great extent. Threat of substitutes is a longstanding challenge that will continue to hold a negative impact on the market growth through to 2019.

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Segment Analysis

The global flavored and functional water market is bifurcated into two key segments, flavored water and functional water. Owing to rising consumer inclination toward healthier refreshment compared to ordinary water or beverages, functional water will gain a higher sprint in sales, registering a strong CAGR over the forecast period.

Regional Analysis

The global flavored and functional water is regionally segmented into four key markets viz. North America, Europe, Asia Pacific, and rest of the world. While the U.S., Germany, France, Italy, and Japan represented the highest penetration of flavored and functional water in 2012, Asia Pacific witnessed the fastest growing market. Emerging economies in Asia are rapidly urbanizing, eventually adopting sophisticated lifestyle. In addition, Latin American and Middle East countries are also likely to represent significantly growing markets. APAC is expected to expand at a high double digit CAGR during the forecast period.

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Key Market Players

Some of the leading players operating in the global flavored and functional water market are Hint Water, Nestle Water, Herbal Water, PepsiCo, The Coca-Cola Company and Groupe Danone, New York Spring Water, Kraft Foods, Balance Water Company, and Sunny Delight Beverage Company. These companies offer multiple brands, including Aquafina Flavor Splash, Ayala’s Herbal Water, Dasani Drops, Nestle Pure Life, and Mizone.

Persistence Market Research (PMR) is a third-platform research firm. Our research model is a unique collaboration of data analytics and market research methodology to help businesses achieve optimal performance. To support companies in overcoming complex business challenges, we follow a multi-disciplinary approach. At PMR, we unite various data streams from multi-dimensional sources. By deploying real-time data collection, big data, and customer experience analytics, we deliver business intelligence for organizations of all sizes.

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