Asia-Pacific functional water market is projected to grow at a CAGR of 5.36% during the forecast period (2020-2025).
- Consumer preference for healthy hydration has been a crucial factor that is driving the growth of the Asia-Pacific market. The rising health consciousness among consumers has led to the demand for functional beverages.
- Further, owing to the large shelf space and availability of diversified product ranges across brands in one place, hypermarket/ supermarket remained the most preferred point of sale for functional beverages, contributing to the overall sales of the market.
- Regional players dominate the market share with every country having its own dominant brands.
Key Market Trends
The Growing Demand for Healthy Hydration
The progressive inclination of Asian consumers toward health-oriented products has catered to the functional water industry. The convenience factor together with healthy nutrients entices a more consumer base. The continuous demand for electrolytes, protein, and vitamin-enriched drinks is witnessed in the region especially by baby boomers and the millennial population to keep their body fit and active after hectic work schedules, gym, and other activities. In addition, manufacturers retailing their products at competitive prices further inclines consumers towards healthy hydration, nonetheless, the premium water ranges are also witnessing an upsurge in the market led by the rising income group in the region.
Supermarket/Hypermarket Drives the Market
Supermarkets/Hypermarkets are considered to be one of the most convenient mediums of shopping across the world. Gaining their popularity from the West, their number has staggeringly increased in the Asia Pacific region, where the countries are rapidly developing and adopting urbanization policies.
The transforming lifestyles of the people and the increase in the buying power of the consumers in countries like China, India, are posing good opportunities for the establishment of supermarkets that attract the consumers due to the associated convenience of getting vivid products under one roof. Thus, the flourishing distribution channel of supermarkets/hypermarkets is likely to promote the sales of the different functional water products in the region, driving the market in the near future.
The global players such as The Coca Cola Company and Danone SA dominates the market studied with their regional brands. Product innovation is the most adopted strategy by the leading players of the market with an aim to enter the functional water segment. In October 2017, PepsiCo Inc. launched vitamin-fortified water, Aquafina Vitamin Splash, making it the first vitamin-fortified water in India.
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