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Functional Drinks Market Estimated to Reach $ 59.62 Billion by 2029, Expanding at a CAGR of 5.4% | Major Drivers, Segments, and Competitive Outlook

9 Sep, 2025

Insight by Abdul Wasay, Chief Operating Officer at The Business Research Company

In response to fluctuating tariffs and geopolitical trade developments, the Functional Drinks Market Outlook 2025 analyses how businesses are adapting through supply chain diversification and strategic sourcing.

What Are the Key Forecast Insights for the Functional Drinks Market Growth?

The Functional Drinks Global Market has experienced significant growth in the past few years. The market size is predicted to increase from $45.67 billion in 2024 to $48.25 billion in 2025, with a compound annual growth rate (CAGR) of 5.7%.

What Is the Predicted Industry Size and CAGR of the Functional Drinks Market in 2029?

The Functional Drinks Global Market is predicted to grow to $59.62 billion by 2029, with a compound annual growth rate (CAGR) of 5.4%.

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Which Factors Are Driving Growth in the Functional Drinks Market?

The key drivers in the functional drinks market are:

• Adoption of advanced formulation methods in production
• Reaction to global health issues through product development
• Focus on sustainability and ethical practices in manufacturing
• The rise of personalization trends and increased focus on mental health in product offerings

Which Segment Trends Are Covered in the Functional Drinks Market Forecast?

The functional drinksmarket covered in this report is segmented –
1) By Product: Energy Beverages, Functional Fruit And Vegetable Juices, Sports Beverages, Functional Water, Other Products
2) By Distribution Channel: Hypermarkets Or Supermarkets, Specialty Stores, Online, Other Distribution Channels
3) By Application: Health And Wellness, Weight loss

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What Are the Current Market Trends in the Functional Drinks Industry?

The key trends in the functional drinks market are:

• Health and wellness are increasingly the focus of the functional drinks market.
• The market is experiencing a trend towards natural and clean labels.
• Innovation in ingredients is a major trend being observed.
• Digital marketing and e-commerce are shaping the market's future growth.

Who are the Key Companies in the Functional Drinks Market?

Major players in the functional drinks market are:

• The Coca-Cola Company
• PepsiCo Inc.
• Red Bull GmbH
• Suntory Beverage and Food Ltd.
• Danone S.A.
• Nestlé SA
• Monster Beverage Corporation
• Otsuka Holdings Co. Ltd.
• Universal Nutrition Corp.
• Dr Pepper Snapple Group Inc.
• Glanbia Plc
• Kerry Group Plc
• Probi AB
• The Hain Celestial Group
• Koios Beverage Corp.
• Celsius Holdings Inc.
• Vital Proteins LLC
• Fonterra Co-operative Group Limited
• The Naked Collective Limited
• The Alkaline Water Company Inc.
• The a2 Milk Company Limited
• The New Age Beverages Corporation
• The Simply Good Foods Company
• The Good Crisp Company
• The Ginger People
• The Republic of Tea

What are the Regional Trends Across the Functional Drinks Market?

Asia-Pacific was the largest region in the functional drinks market in 2024

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