Functional Drinks Market Size, Share and Growth Projections to 2034

Functional Drinks Market Size, Share and Trends Analysis 2034

The global functional drinks market size stood at USD 233.98 billion in 2024 and is forecasted to expand from USD 249.19 billion in 2025 to approximately USD 439.21 billion by 2034, at a compound annual growth rate (CAGR) of 6.50% during the forecast period from 2025 to 2034. The functional foods market is significantly propelling due to growing awareness about benefits of consuming functional drinks that enhances overall health, cognitive performance and support immune system.

Key Highlights

• By region, Asia Pacific accounted for the largest functional drinks market revenue in 2024. The presence of leading players in the food and beverages sector such as Coca Cola and PepsiCo are finding solutions to remove Artificial elements and to reduce sugar content from their beverages.
• By region, North America is expected to grow at the fastest growing CAGR during the foreseeable period of 2025 to 2034. The increasing demand for fortified energy and plant-based drinks among consumers is due to the increasing rate of CVDs and people becoming conscious about food/ beverage choices in the region.
• By type, the energy drinks segment contributed the largest market share of 41% in 2024. The segment is expanding due to high preference of energy drinks in leading countries like Canada and U.S as it offers high caffeine content for instant energy boost.
• By type, the sports drink segment is predicted to grow at the remarkable CAGR of 7.3% during the foreseeable period of 2025 to 2034. Growing fitness centers across the globe because of growing awareness for physical fitness, a healthy lifestyle where sports drinks provide essential stamina and energy while working out or during sports is a major driving factor for the segment.
• By distribution channel, the hypermarkets/supermarkets segment is expected to grow at the notable CAGR of 7.9% during the forecast period 2025 to 3045. This retail type offers extensive product visibility by allowing consumers to opt for specific functional drinks as per their requirement from various brands with different functionalities, prices, and flavors fueling the market’s growth.
• By distribution channel, the online segment is expected to grow at the fastest CAGR during the foreseeable year from 2025 to 2034. The online platforms are becoming popular due to their convenience and doorstep delivery option due to growing penetration of internet in the rural areas where people can easily access such drinks by using e-commerce platforms.

Industry Coverage

Market Overview

Contribution of Functional Drinks and its Popularity

The functional drinks market is expanding due to growing awareness about health benefits of consuming functional drinks with health supportive ingredients like amino acids, minerals, and vitamins. Also, marketers are launching innovative functional drinks which increase marketing further on a large scale. Certain functional drinks are designed in a way that they offer energy and mental clarity by enhancing cognitive functions without jitters related to some high caffeine drinks.

Some functional drinks are made with the intent to manage weight and support healthy sugar levels. These drinks contain such an ingredient that helps to lowers sugar absorption and carbohydrates which are major responsible factors for weight gain. In addition to this, functional drinks are widely available on many online e-commerce platforms and in grocery stores that can be easily accessed when it's needed, creating convenience for customers.

What are the Key Trends in the Market?

• One of the significant trends for the functional drinks market is, increasing inclination by masses towards prioritizing food choices as per their fitness goal and health concerns which causes surge in demand for functional beverages having health benefits. Some of the functional drinks are water with different flavors, yogurt drinks, and some herbal tea that offer improved gut health.
• These drinks can be used as a meal replacement product due to their nutritional value and convenience. Such drinks can be various shakes, powdered drinks, and others. These drinks are majorly preferred by fitness enthusiasts and people having certain health conditions like diabetes.
• Many consumers are shifting their food pattern from a non-veg diet to vegan products owing to increasing awareness about animal welfare and benefits of veg foods for the human body. The same goes for functional drinks as well; a number of people opting for vegan protein drinks and plant-based functional drinks.
• CBD based drinks are gaining hype in the market due to their properties to provide calming and anti-inflammatory effects which in turn help to manage stress.
• Increasing demand for single served and ready-to-drink packaging is again fueling the functional drinks market on a large scale. As these products are ideal options for busy corporate professionals, students and travelers help them to carry these drinks anywhere.
• One of the significant trends for the market, especially in India includes infusion of herbal and ayurvedic elements into the beverages to offer various health benefits. These ingredients could be Tulsi, turmeric, ashwagandha, giloy, aloe vera and many more herbs from an Indian origin further helps market to augment on a global level.
• Many leading brands are focusing on the develop clean labels to sustain transparency between brands and their regular consumers while emphasizing quality of drinks and its consistency.

Examples of Top Functional Drinks with their Benefits

Market Opportunity

How do Functional Beverages Help Expand the Functional Drinks market?

Functional beverages are subcategory of the broad term of functional drinks. These beverages can be made with a specific intent to offer health benefits. Various types of milk are obtained from plants such as soy, rice, coconut, oats, different nuts like almond, hazelnut, etc. The increasing demand for such functional beverages from various age group’s people creating a lucrative opportunity for the expansion of functional drinks market.

Bioactive Ingredients like phenolic compounds, minerals, vitamins, amino acids, peptides, and others can be derived from plants or probiotic microbes. According to the studies, these compounds have shown preventive effects for diseases like cancers, diabetes, CVDs with anti-inflammatory and antioxidants activity. Further, they proved to enhance gut health and immune function with cognitive clarity.

Market Challenge

Consumer's Lack of Knowledge

Despite having many benefits of the functional drinks across every age group, it is entirely possible that people may have misconception about functional drinks, innovative products due to their misleading information on social media or confusion created by different opinions even among healthcare professionals because of lack of proper research on the particular ingredients and its effects on human system or claim they have been circulating within the industry. In such a case, brands need to take initiatives for their products branding and reliability along with possible results. This can be achieved by integration of digital marketing with offline strategies for sales to reach a broader consumer base and build trustworthy connections between brands and customers.

Regional insights

Why did Asia Pacific dominate the functional drinks market in 2024?

Asia Pacific dominated the functional drinks market in 2024. The segment’s growth can be attributed to the increasing awareness about benefits of functional drinks and its proven positive impact on health along with growing incidences of various diseases like diabetes and CVDs due to poor lifestyle requires additional supportive products to combat these health issues. By recognizing this shift in consumers behavior, leading marketers that offer functional drinks such as Coca-Cola, PepsiCo are initiating to reduce sugary molecules in their drinks and removing artificial additives to offer safe functional drinks for health-conscious people.

• In March 2025, a leading marketer from the food and beverages sector, PepsiCo and Coca-Cola set to launch new sugar drink with smaller packs of 10 Rs to counter of reliance consumer's campa. (Source: The Economic Times)

Why is North America the fastest growing region in the functional drinks market?

North America is expected to grow at the fastest CAGR during the foreseeable period of 2025 to 2034. The region’s expansion is attributed to increasing sales of fortified plant-based drinks, various energy drinks owing to the growing health ailments such as cardiovascular diseases, diabetes, arthritis, and others. Growing demand for convenient drinks supportive to health along with lifestyle shifts in many consumers is a key driver for the region, leading countries like Canada, U.S. have highly aware consumer base which fuels the demand for vegan and plant-based food products including beverages and functional drinks while strictly following the food safety regulations set by authorities in the region.

Segmental Insights

Type Insights

What are the reasons for the dominance of energy drinks in the global functional drinks market?

The energy drinks segment held the largest market share in 2024. The segment's growth is attributed to the growing demand for energy drinks by every age group to sustain energy throughout the day. As energy drinks mostly contain caffeine as a main ingredient to offer stimuli for brain functions and it is also, prime component to keep heart rate stable which is playing major role to combat cardiovascular disease. Highly developed countries like U.S. and Canada shows high sales rate for energy drinks than any other regions, highlighting the segment’s dominance.

The sports drinks segment is expected to grow at the fastest CAGR in the upcoming period.

The segment is expanding due to growing trend of healthy lifestyle with fitness, increasing craze of Gym and number of people are opting to go out for any kind of workout sessions to keep their body healthy and illness free. This trend is further propelled by awareness campaigns by many healthcare professionals, influencers, and researchers. By recognizing this trend, the food and beverages sector started launching products like sports drinks specially formulated for athletes and gym goers which help the market’s expansion on a global scale.

Distribution Channel Insights 

Why did the supermarket/hypermarket segment dominate the functional drinks market in 2024?

The supermarket/hypermarket segment held the largest market share in 2024. The segment’s growth is related to the increasing number of supermarkets/ hypermarkets entering the cities to offer a wide variety of products including functional drinks with different brands and prices. They have extensive spaces which gives the best shopping experience as people can physically view and verify the products unlike products from E-commerce platforms. Consumers can opt for different brands as per their requirements. They can purchase various products in one go, which is another driver for the segment’s growth on the global scale.

The online segment is expected to grow at the fastest growth rate during the forecast period.

The segment is growing significantly due to increased adoption rate of online shopping, rising internet usage even in underserved areas because of network expansion by leading telecommunication companies like Jio, BSNL, Airtel and others with surge in demand for local broadband services. Online shopping is convenient in terms of delivery options and discounts on MRPs by e-commerce platforms. Also, increasing adoption of user-friendly online shopping applications is fueling the market’s growth.

Recent Developments in the Functional Drinks Market

Centrum

• Launch: In April 2025, a leading marketer and innovator in nutraceutical sector, Centrum brand have launched a new entrant in the energy drink mix category- Centrum Recharge in sachet form which is formulated with essential nutrients to keep energize whole day. (Source: NUFFoodsSpectrum)

28 BLACK

• Launch: In April 2025, A premium energy drink 28 Black which is popular for its unique flavors, distinctive tastes introduced in the Indian food and beverage sector to offer energy drinks as per Indian lifestyle and tastes. This brand is already popular and working in 26 more countries including U.S. Canada, Europe, Australia. (Source: BusinessWireIndia)

Functional Drinks Market Leading Companies

• The Coca-Cola Company
• Monster Beverage Corporation
• PepsiCo
• Red Bull GmbH
• Otsuka Holdings Co., Ltd.
• Suntory Group
• DANONE SA
• Nestlé

Segments Covered in the Report

By Type 

• Energy Drinks 
• Sports Drink 
• Nutraceutical Drinks 

By Distribution Channel

• Hypermarkets/Supermarkets 
• Specialty Stores
• Online 
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)
• Latin America