Functional and Regular Soda Trends and Forecast
The future of the global functional and regular soda market looks promising with opportunities in the supermarket/hypermarket, specialty store, and online store markets. The global functional and regular soda market is expected to reach an estimated $46.3 billion by 2030 with a CAGR of 5.4% from 2024 to 2030. The major drivers for this market are rising demand for functional sodas, growing urbanization rate, and advancement in in terms of ingredients, formulations, and flavors.
Lucintel forecasts that functional soda is expected to witness higher growth over the forecast period.
Within this market, online store will remain the largest segment due to increased digital shopping trends.
North America will remain the largest region over the forecast period due to presence of key players.
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Emerging Trends in the Functional and Regular Soda Market
An overall analysis of market trends in the functional and regular soda category reveals the increases in focus on wellness, sustainability and modern product development.
• Functional Ingredients: Growing presence of more health-oriented constituents like probiotics, and vitamins in sodas.
• Reduced Sugar Content: Increasing reformulation of regular sodas to cut back on sugars and calories due to rising health worries.
• Natural and Organic Options: Increase in consumption of sodas which are made up of natural and organic ingredients owing to the clean label.
• Sustainable Packaging: Use of biodegradable and recyclable packaging for the sake of consumer and legal requirements
• Novel Flavors: The enlarging range of flavor compositions that include new and unusual components to satisfy the curiosity of consumers.
• Health-Conscious Choices: Enhanced clarity of consumer needs for functional sodas with particular health benefit attributes such as energy or digestion.
New trends in the functional and regular soda market focus on health promotion, sustainability, and innovation towards the industry and individual needs shaping the beverage options and consumer behavior.
Recent Developments in the Functional and Regular Soda Market
Recent activities in the functional and regular soda market signify changes in formulation, packaging, and consumers receipt habits.
• Health-Boosting Formulations: Strategy of catering health-conscious consumers by introducing functional sodas with probiotics, vitamins, and herbal extracts being added to the existing soft drinks.
• Reformulation of Regular Sodas: Continuing attempts to reformulate regular sodas so that sugar and calorie contents are reduced in order to meet the rising health consciousness of the public and policy makers.
• Sustainable Innovations: Addressing climate issue with paper-based packaging by creating biodegradable, recyclable and other eco-friendly packaging materials.
• Expansion of Product Lines: Introduction of new flavors, limited time only products and seasonal variations of the existing products to attract more customers.
• Technological Advancements: Application of modern methods of production and technologies in order to improve the quality and storage of the product.
• Consumer Education: Growing awareness of the health impacts of functional sodas, and consumer understanding of the ingredients present in these products.
Health-Boosting Formulations: Strategy of catering health-conscious consumers by introducing functional sodas with probiotics, vitamins, and herbal extracts being added to the existing soft drinks.
Reformulation of Regular Sodas: Continuing attempts to reformulate regular sodas so that sugar and calorie contents are reduced in order to meet the rising health consciousness of the public and policy makers.
Sustainable Innovations: Addressing climate issue with paper-based packaging by creating biodegradable, recyclable and other eco-friendly packaging materials.
Expansion of Product Lines: Introduction of new flavors, limited time only products and seasonal variations of the existing products to attract more customers.
Technological Advancements: Application of modern methods of production and technologies in order to improve the quality and storage of the product.
Consumer Education: Growing awareness of the health impacts of functional sodas, and consumer understanding of the ingredients present in these products.
Strategic Growth Opportunities for Functional and Regular Soda Market
In view of these opportunities, the major area for growth for functional and regular soda is harnessing health trends, expanding the portfolio and augmenting consumer experiences.
• Health and Wellness Segment: Increase of functional sodas in respect of health and wellness trends such as with high level of nutrients, adaptogens and probiotics added.
• Premium and Craft Sodas: The value-added market has sufficient opportunities as it will have ingredients of high standards and well-tailored exotic tastes for selective consumers.
• Sustainable Packaging Solutions: The rendering of green packaging materials is to entice environmental consumers and satisfy regulatory requirements.
• Online Retail Channels: Distribution extends to include the selling of products through the internet in order to cater for the increasing use of the internet in buying goods and services.
• Localized Products: The launch of flavor and/or ingredient variants that cut across the various countries where the company sells its products.
• Collaborations and Partnerships: The consolidation with other wellness and health companies to support product credibility and promote sales share of market.
The growth strategies for functional and normal soda, fostering technology advancement and new product due to health trends and shifting towards premium and green market approaches.
Functional and Regular Soda Market Driver and Challenges
The influencing forces and driving trends in the category of functional and normal lines of soda beverages are mainly driven by health concerns as well as consumer demand. However, the challenges of formulation and competition remain.
The factors responsible for driving the functional and regular soda market include:
1. Health Trends: The growing market of health-conscious consumers is inclined towards such drinks which offer extra health components like vitamins and probiotics.
2. Product Innovation: Continuous introduction of new products serviced or existing ones repackaged in new flavor profiles to capture the attention of willing to buy customers.
3. Sustainability: The demand and trend towards the use of sustainable packaging and production systemsكنولوجe.
4. Consumer Awareness: Increasing awareness of the health to the effects of sugar and calories is spurring on reformulation initiatives.
5. E- commerce Growth: Movement towards the increase of online retail channels enabling easier and faster access for consumers.
Challenges in the functional and regular soda market are:
1. Regulatory Compliance: Dealing with regulatory policies regarding health claims, sugar content and packaging is challenging.
2. Cost of Innovation: The primary costs associated with the development and the use of new formulations and eco-friendly packing options.
3. Market Competition: Stiff competition from old players and new entrants challenges the market share and pricing of the products.
4. Consumer Skepticism: It takes time to convince consumers whether the functional ingredients really work or are safe.
5. Supply Chain Issues: Supply chain challenges include the unavailability of ingredients and other resources that may affect production lines.
• Health Trends Variability: The steady change in the consumers’ tastes and health patterns which are not constant.
The functional and regular soda market continues to get growth promoted by health trends, new product development and sustainability but faces pressure related to regulation, cost, and competition affecting further growth and development.
List of Functional and Regular Soda Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies functional and regular soda companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the functional and regular soda companies profiled in this report include-
• Olipop
• Poppi
• Culture Pop
• De La Calle
• The Coca-Cola Company
• PepsiCo
• Keurig Dr. Pepper
Functional and Regular Soda by Segment
The study includes a forecast for the global functional and regular soda by category, type, distribution channel, and region.
Functional and Regular Soda Market by Category [Analysis by Value from 2018 to 2030]:
• Regular Soda
• Functional Soda
Functional and Regular Soda Market by Type [Analysis by Value from 2018 to 2030]:
• Standard
• Diet
• Fruit Flavored
• Others
Functional and Regular Soda Market by Distribution Channel [Analysis by Value from 2018 to 2030]:
• Supermarkets/Hypermarkets
• Specialty Stores
• Online Stores
• Others
Functional and Regular Soda Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Functional and Regular Soda Market
The key players in the market are integrating, horizontal expansion and making polices that aim to place themselves on a competitive edge. Below content highlights recent developments by major players in some of the specific areas: USA, China, India, and Japan.
• USA: The functional and regular soda market in the USA keeps enjoying a widespread growth because of the dynamic changes in consumer tastes and preferences. There is a growing demand for shelf stable functional sodas that can deliver benefits such as probiotics and vitamins among other benefits that are not present in soft drinks. Leading companies in the market are on their way to changing the composition of regular sodas which are high in sugar and fortified with high fructose corn syrup to low sugar and natural sugar adding calories. The case also witnesses change of glass to plastic with the plastic being geruniform and easy for recycling or biodegradable. There is also an increasing demand against the backdrop of wider trends in health and wellbeing for low calorie or even sugar free choices in the tea category.
• China: China’s regular and functional soda market is developing at a fast pace thanks to urbanization and increase of population with higher level of incomes. Functional sodas have energy-boosting or herbal ingredients and people who care about their health tend to consume such sodas more. There have been rising trends in introducing new products in the market and young people are actively consumed unique flavors and ingredients. Regular sodas are also witnessing their formulation changes as there is more focus on health and intensifying concerns about health by consumption of more balanced regular sodas with low sugar content. The alleviation of Trade Barriers and the development of E-Commerce have also been factors in the development of the market large.
• India: Indians are also kinking to the functional and regular soda market as they are becoming health and wellness conscious. Functional sodas with electrolytes, vitamins, and herb extracts are growing in the market. Regular sodas are being reformulated in such a manner that, the amount of sugar is brought down in the product to cater to the health concerned customers. The market is also witnessing an upward shift in the inclination towards natural and locally available raw materials. Also, there is an emerging inclination of the consumers towards sustainable packaging practices. The geographical expansion of modern retailing channels and the increase in the number of available imported and premium soda brands also have an impact on the market trends.
• Japan: While in Japan, the functional and regular soda market is towards health and innovation. Containing components like collagen or amino acids functional sodas are popular because the customers believe in their health benefits. The regular sodas market is also changing but with the reduction of the sugar level and coming up with other sweeteners. Product innovations and images are one aspect of the Japanese people who always have something new leaping into their mouths. New product concepts have become a norm since there is a clear appeal for more novel flavors and more probable functional benefits. However, there is also a great deal of attention given to the quality and design of the very packaging as consumers also favor high-grade, good-looking products.
Features of the Global Functional and Regular Soda Market
Market Size Estimates: Functional and regular soda market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Functional and regular soda market size by category, type, distribution channel, and region in terms of value ($B).
Regional Analysis: Functional and regular soda market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different categories, types, distribution channels, and regions for the functional and regular soda market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the functional and regular soda market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the functional and regular soda market size?
Answer: The global functional and regular soda market is expected to reach an estimated $46.3 billion by 2030.
Q2. What is the growth forecast for functional and regular soda market?
Answer: The global functional and regular soda market is expected to grow with a CAGR of 5.4% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the functional and regular soda market?
Answer: The major drivers for this market are rising demand for functional sodas, growing urbanization rate, and advancement in in terms of ingredients, formulations, and flavors.
Q4. What are the major segments for functional and regular soda market?
Answer: The future of the functional and regular soda market looks promising with opportunities in the supermarket/hypermarket, specialty store, and online store markets.
Q5. Who are the key functional and regular soda market companies?
Answer: Some of the key functional and regular soda companies are as follows:
• Olipop
• Poppi
• Culture Pop
• De La Calle
• The Coca-Cola Company
• PepsiCo
• Keurig Dr. Pepper
Q6. Which functional and regular soda market segment will be the largest in future?
Answer: Lucintel forecasts that functional soda is expected to witness higher growth over the forecast period.
Q7. In functional and regular soda market, which region is expected to be the largest in next 5 years?
Answer: North America will remain the largest region over the forecast period due to presence of key players.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the functional and regular soda market by category (regular soda and functional soda), type (standard, diet, fruit flavored, and others), distribution channel (supermarkets/hypermarkets, specialty stores, online stores, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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