Water is great, but what if we could make it better?
Enter functional water.
Up to 60% of a human is composed of water, and it’s essential to life. From brain function to cell reproduction, from removing waste products from the body to regulating body temperature, water is a vital element we literally cannot live without. But drinking plain ol’ water, while good for us, can be a little (dare we say it?) … boring. Besides, despite its many benefits, water does not provide any food energy nor nutrients.
That’s why many consumers are increasingly turning to functional water.
So what is functional water and why should beverage companies be jumping on this opportunity?
Functional Water – Water with ‘Oomph’
Simply put, functional water is a non-alcoholic beverage designed to fulfill the role of water, but with added benefits. Functional waters often feature ingredients to improve taste and nutritional value or provide extra health benefits.
Vitamins, minerals, acids, herbs, and raw fruits or vegetables are common elements that are added to beverages in this category. Specially designed and developed to meet a wide array of needs such as improving digestion, promoting recovery, and boosting immunity, functional waters are gaining momentum, particularly among health and wellness communities.
A Market Ripe For Growth
Estimated to be $5,218 million in 2020, the functional water market is forecasted to reach $10,952 million by 2030. The compound annual growth rate (CAGR) for this market is also high, projected at over 7% in the next five to ten years.
Health-conscious consumers are shifting away from sugary and carbonated drinks. Instead, they are opting for alternatives that are nutritious and promote general well-being without compromising on taste. “Guilt-free” is a popular selling point – and this is where functional waters have a chance to shine.
The market is also fairly open in terms of innovation on different fronts such as taste, benefits, and even packaging. Additionally, the functional water market is not consolidated or dominated by a few major players – new entrants still have an opportunity to capture a sizable market share with unique propositions at this stage.
Innovation is the Name of the Game
Consumers who are looking for additional health and nutritional benefits are increasingly turning to functional waters, making it a popular choice in the beverage category. Functional water is also appealing to people from a variety of market segments – from athletes and marathoners to health-conscious folks, from those wanting to fortify their immunity to people who just want to have more energy or to cut back on sugary drinks without giving up taste.
For the innovative beverage brand, the functional water category is an exciting space to occupy. With such diverse demand in the market, possibilities are endless to cater to the ever-growing functional water segment. Research shows that vitamin B is a popular ingredient aimed to give consumers an energy boost while nootropics (supplements that improve brain health and cognitive abilities) are also gaining traction. Adaptogens derived from botanical ingredients added to water tend to draw wellness-minded people who are looking for mental and physical health benefits from natural ingredients. Functional water can also be an alcohol replacement for those looking to cut back on their consumption without missing out on the social aspect of such gatherings.
What this means for beverage companies is that there is plenty of opportunity and room for experimentation. Developing new, fresh beverages to cater to different consumer tastes and preferences is a gateway to this growing market.
Hot and Trending
- Water that promotes muscle recovery and immunity.
- Products made with 100% renewable energy.
- Twist caps that provide an instant infusion of flavor and functionality, while guaranteeing freshness.
- Beauty in a bottle with drinkable skincare that improves wrinkles, skin tone, firmness, and elasticity.
These are just a few of the hot and trending functional waters making waves in the consumer beverage market. Brands in the category of functional water are going all out to capture customers’ imagination and deliver top-notch products that cater to just about every consumer demand. For companies not afraid to get creative and rise to the challenge by going beyond the tried-and-tested, functional waters could be a great category to explore.
There’s no denying that the functional water market is a space beverage companies would do well to get in on at these early stages with innovative products. However, it’s a fine line between lucrative and ludicrous, between original and outrageous – and creative can quickly turn into catastrophe without the right nuance.
At WiseBev, we understand the beverage market; you can count on our expertise to help you develop a range of functional waters that will appeal to customers on all fronts. Book a call with us today to see how our team can help you bring your beverage to market.