Flavored and Functional Water Enjoying Spotlight: TMR

The global functional and flavored water market is expected to report impressive growth as consumers show higher inclination towards adoption of healthier lifestyle. Prevalence of various health maladies due to unhealthy choices in food and drinks has compelled people from around the world to opt for healthy diet. Consumers are thus swaying away from carbonated drinks to “better-for-you” alternatives.

Transparency Market Research (TMR) highlights this as a chief factor fuelling the demand for functional and flavored water. Product launches witnessed over the last few years besides influx of new entrants will drive the flavored and functional water market. In its recent study, TMR offers exclusive insights into the market, detailing various factors enabling growth as well as key restraints.

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Competition to Get Fiercer with Entry of New Players

The report uncovers hidden opportunities and analyzes investment feasibility across key segments. According to the report, the flavored and functional water market has a highly fragmented vendor landscape, which is attributable for the fierce competition among key players. While behemoths account for substantial market share, they are constantly reeling under the threat of the entry of new players and product launches.

As a result, TMR observes high focus on innovation within the market. Because the market exhibits limited scope for differentiation, key players are looking to incorporate advanced packaging and exotic flavors for luring consumers. Some of the leading companies operating in the market are Hint Water, Groupe Danone, The Coca-Cola Company, PepsiCo, and New York Spring Water.

Some of these companies are partnering with other brands to enhance their innovation capability and product portfolio. For instance, Nestle has an agreement with Yinlu Food Group based in China. The association has helped Nestle to capitalize on Yinlu’s consumer knowledge and entrepreneurship. It has also helped Nestle to offer affordable products to consumers across China.

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In the Rest of the World, the market will continue witnessing increasing demand especially on account of the rising prevalence of obesity, diabetes, and other diseases. Obesity is associated with various health hazards. It is also linked to heart ailments. The rising cases of chronic illnesses have compelled consumers to opt for healthy living.

Rising Focus on Health and Fitness Creates Growth Opportunities

The focus on fitness is higher than ever before. This, coupled with better access to information, has rendered consumers cautious about their food choices. They are adopting various changes in lifestyle, which also is reflecting on their choice of beverages. The demand for exotic flavors is on a rise and so is the sales of functional and flavored water.

Public campaigns targeting the indiscriminate use of plastic also will have immense impact on the market. As a result of rising focus on environmental sustainability, manufacturers are likely to experiment with various packaging materials. Those still using plastic and PET bottles could however ne at a loss.

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Nonetheless, the market will soon witness overhaul as companies aim at keeping pace with dynamic consumer preferences. On the downside though low cost carbonated drinks will continue posing threat to the market. The presence of sugar in some functional beverages too will act as a hindrance to growth.

To counter potential threats, companies are expected to shift their focus towards expansion across high potential markets in Asia Pacific, Latin America, and the Middle East and Africa. Consumers across these regions are exhibiting willingness to spend on exotic flavors, which will augur well for the flavored and functional water market.

The report segments the global flavored and functional water market as:


  • Europe
  • North America
  • Asia-Pacific
  • Rest of the World


  • Flavored Water
  • Functional Water

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