Europe Functional Beverage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Europe Functional Beverage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The European functional beverage market is projected to record a CAGR of 8.42% during the forecast period 2022-2027.

The COVID-19 pandemic was regarded as a once-in-a-lifetime event that would have a profound impact on concerns about health, as well as eating and drinking habits. It is expected to drive demand for functional products that help boost immunity as consumers look to minimize the risk of illness. It is crucial that these products are deemed affordable and credible in terms of their health claims.

Increasing demand for innovative products, like plant-based and lactose-free beverage products, along with the inclusion of CBD-infused functional beverages, is expected to offer opportunities to the market over the forecast period.

The growing number of health-conscious consumers and their demand for healthy ingredient-containing products are fueling the European functional beverage market.

Consumers are increasingly drawn to the health benefits available through functional beverages. Although the gut health and functional foods phenomenon has impacted all aspects of the menu, the beverage category holds the largest opportunity for flavor innovation. Beverages can be incorporated with vitamins and supplements, allowing nutrient-dense ingredients, such as kale and turmeric, to find a natural home. Innovations in the flavor industry have made flavor ingredients, such as natural isojasmone and natural hibiscus extract liquid, possible, which provide a much more accurate and flavorful version of floral flavor for use in products ranging from functional juice blends and enhanced waters to energy drinks.

The functional beverage market in Germany is benefited from the strong economy and consumers’ increasing health consciousness. The aging population is fueling the demand for functional beverages to prevent or overcome adverse health conditions. They consider functional beverages as the ‘meal bottle.’ Consumers in Germany tend to buy less often. However, they demand high-quality products, including organic and health and wellness food products. The increasing number of single households and a growing mobile society are changing the food and beverage consumption patterns in favor of the convenience food industry. Thus, there has been a rise in the demand for convenient foods, including ready-to-eat products, fruit juices, and coffee.

The European functional beverage market is a fragmented market with various players operating across segments. Major recognized players include PepsiCo, Coca-Cola, Red Bull, Fonterra Co-operative Group, and Monster Energy. Due to the high growth potential in the region, most companies are trying to expand their presence in the market. Few major players dominate the market due to their extensive distribution channels. Merging is the second most preferred strategy. Major players are merging with local ones to gain dominance in local markets. Product pricing is another strategy adopted by companies.

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