The Europe Functional Water Market is expected to register at a CAGR of 7.89% during the forecast period (2020-2025).
- With the growing trend toward health and wellness among consumers, functional waters with a blend of diverse flavors are an increasingly visible presence of market selves in the United Kingdom.
- A number of functional water companies from other regions are diversifying into European countries in organic as well as inorganic manners. This is evident with Coca-Cola’s expansion into the functional water segment with the acquisition of Glaceau, the energy brand and its fortified ranges, like Vitaminwater.
- The manufacturers are incorporating innovative ways to create awareness about the products and are communicating the health benefits of functional water.
Key Market Trends
Rising Sales in the Supermarket/Hypermarket
Supermarket and hypermarket, since they appeared, have played important roles in food and functional beverage distribution. The distribution model of this retail channel is widely accepted by both companies and consumers. The hypermarket and supermarket shelves are acquired all across by private and international brands for functional water. For European consumers, hypermarkets and supermarkets have become the preferred type of retail store for frequently purchased packaged goods, due to their lower prices and convenient one-stop shopping experiences. Due to the power of bargaining offered to the consumers and owing to their dynamism and positioning, these store formats are becoming more and more popular among the residents nearby and among people with newer lifestyles.
Germany Holds the Maximum Share in the Market
Consumer’s preference for tasty yet healthy alternatives to carbonated drinks is driving the demand for functional water in Germany. Glacéau Vitaminwater, a brand of the Coca Cola Company, has been launched in Germany, following its international success. Initially, the company is targeting Hamburg and is planning to further expand to Munich, Cologne, Berlin, and the rest of Germany. The German consumers focus more on the quality of functional water than its price while making the purchase. This indicates that the sales of well-established brands are likely to be greater when compared to private label lines because they are perceived to offer better quality. Functional water companies in Germany are launching promotional campaigns and advertisements by incorporating celebrity endorsements, TV commercials, and other communication methods.
Europe's functional water market is fragmented due to the presence of various global and regional players in the market. The key players are focusing on several strategies such as new product development, expansion, mergers and acquisitions, and partnerships to meet the demand of growing consumers. The major players are The Coca-Cola Company, PepsiCo, Vichy Catalan Corporation, Vitamin Well AB and Acqua Minerale San Benedetto S.P.A among others.
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