Europe Functional Water - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Europe Functional Water - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Europe Functional Water Market size is estimated at USD 1.25 billion in 2024, and is expected to reach USD 1.74 billion by 2029, growing at a CAGR of 6.77% during the forecast period (2024-2029).

Functional water products usually contain vitamins, minerals, acids, and herbs, which are associated with supporting the immune system, cognitive function, and gut health. They also contain additives, known as aquaceuticals, that offer extra nutritional value. Therefore, with the growing trend toward health and wellness among consumers, functional water is gaining popularity and is increasingly being sold in global markets. Consumers' inclination toward non-alcoholic beverages leads to the consumption of functional beverages.

The demand for functional drinks is massive compared to fruit juices and carbonated beverages. Furthermore, the increasing trend of sugar-free or natural-sweetener-based functional water with fewer calories is anticipated to drive market growth during the forecast period. Moreover, the expansion of retail industries and the ease of availability of functional drinks through e-commerce, retail, and grocery stores contribute to market growth. Companies are launching products to cater to changing consumer tastes and preferences. For instance, in April 2023, Coca-Cola launched Glacéau Vitaminwater, the low-calorie drink, in Switzerland. It contains a variety of vitamins and minerals and is available in three flavors, which are "Blueberry and lavender," "Raspberry and apple," and "Citrus and guava".

Europe Functional Water Market Trends

Supermarkets/Hypermarkets are the Most Preferred Channel for Distribution

Strategic product positioning on dedicated shelves for products, including functional water bottles, influences impulse purchase behavior among potential consumers. The significant factors behind this popularity are attractive discount offers, loyalty program schemes, and cashback schemes. Business expansion and the proliferation of supermarkets and hypermarkets bolster sales of functional water further. Supermarkets/hypermarkets increase shelf visibility through display and assortment strategies. Additionally, they feature various brands' availability to cater to consumers' diverse needs. Thus, the sales of functional water through these channels have increased in the past few years. Intense competition exists among prominent manufacturers, inducing strong competition among brands to differentiate products on their shelves, reposition their products, cater to particular consumer needs, and target audiences effectively.

Functional Water is Popular in the United Kingdom

Due to the hectic lifestyle and the rise in the number of working people, there is an increase in the consumption of functional water as it is a convenient way to incorporate vitamins and minerals into the diet. As a substantial number of people residing in the United Kingdom have diabetes, these customers tend to avoid sugary drinks in beverages. According to Public Health England, in 2021/22, around 3.3 million people in England were registered with Type 2 diabetes. Moreover, with the increasing health consciousness, consumers are opting for healthy alternatives for sodas, juices, and other sugary beverages, thereby propelling market growth.

Europe Functional Water Industry Overview

The European functional water market is concentrated due to the presence of various global and regional players in the industry. The key players are focusing on several strategies, such as new product developments, expansions, mergers and acquisitions, and partnerships, to meet the increasing demand from consumers and expand their market share. Some of the key players in the market include The Coca-Cola Company, PepsiCo Inc., Danone SA, Vitamin Well AB, and Nestle SA.

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