Rising health awareness and increased comfort buying – and trying – new products online for at-home consumption is helping the functional beverage market rebound after taking a hit in 2020, when the global compound annual growth rate of the market was expected to decline 2.54% to $125.39 billion from $128.66 billion in 2019, according to a recently published research by WiseGuyReports.
Other recently released data shows sales of functional beverages and food climbing 9% in 2020, but falling short of expectations set before the pandemic was declared.
“This decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working and closure of industries and other commercial activities,” the WiseGuyReport explains.
But, it adds, the market is expected to recover and reach $158.28 billion in 2023 with a compound annual growth rate of 8.08%.
Depending on the specific functional benefit, some sub-segments of the category may comeback sooner, while others continued to not only grow – but flourish – during the pandemic as consumers facing new challenges looked for new solutions in new channels, according to Howard Telford, head of soft drinks at Euromonitor International.
“My assumptions would have been that 2020 would have proven to be a difficult year for functional beverages” given in the impact of the pandemic on the channels in which they most often were sold, but he noted “what we’ve see, particularly in the US and in Europe as well, actually has been that this segment has done fairly well, and in fact is thriving in some instances.”
Telford shares which segments of the functional beverage segment are “thriving” and how manufacturers are pivoting their sales and marketing strategies to account for pandemic-related changes at FoodNavigator-USA’s upcoming free webinar: Functional Beverages, from Adaptogen & Nootropic Infused Water to Prebiotic Soda.
Joining Telford in the discussion this Wednesday March 17 at 10:30 central time moderated by FoodNavigator-USA Deputy Editor Elizabeth Crawford will be:
Rosa Li, the founder and CEO of wildwonder, a USDA certified organic better beverage for gut health crafted with probiotics, prebiotic plant fiber and superherbs,
Marc Washington, founder and CEO of muniq, a brand dedicated to helping people have greater control of their health through their diet,
Danny Stepper, CEO and co-founder of L.A. Libations, an emerging brand incubator specializing in brand creation and which owns nine companies grounded in health and wellness in emerging categories, such as plant-based protein, keto shakes, a better-for-you chelada and more, and
Adam Louras, vice president of brand creation at L.A. Libations, who is a founder, entrepreneur and business strategist with more than 20 years of experience creating, formulating, launching and building brands in the CPG industry.
During the conversation, our expert panel will discuss where the functional beverage market is currently, where it is heading, how best to reach and educate consumers, and how to improve access through strategic channel selection. They also will share action-oriented tips for successful growth and point out red flags to avoid.
Learn more and register today for this week’s free webinar on Functional Beverages, from Adaptogens & Nootropic Infused Water to Prebiotic Soda. And if you can’t make it March 17 at 10:30 CT, register anyway so that you receive a link and can listen to the session on demand at your convenience.