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FUNCTIONAL BEVERAGES: A GROWING TREND

As consumers increasingly prioritize health, functional beverages that offer both mental and physical benefits are booming…

PepsiCo has launched a completely different type of soda: Prebiotic Cola. The product contains only 30 calories, no artificial sweeteners, and includes 3 grams of prebiotic fiber. This is seen as PepsiCo’s response to the strong growth wave of the functional beverage market in recent years.

Before launching Prebiotic Cola, in May this year, the company spent USD 1.95 billion to acquire the prebiotic soda brand Poppi. Earlier in February, Celsius Holdings – the owner of the Celsius energy drink brand – also acquired the functional nutrition beverage line Alani Nu for USD 1.8 billion.

The strong growth of functional beverages is expected to continue across the global beverage market. Currently, the functional beverage industry has reached a value of USD 149.75 billion in 2024 and is projected to grow to USD 248.5 billion by 2030.

Combining Multiple Benefits in One Beverage

The functional beverage brand AG1 is a prime example of this strategy. The brand’s annual revenue reached USD 600 million in 2024, tripling from USD 160 million in 2021.

From its launch, AG1 positioned its product as an easy addition to customers’ daily diets: vegan green powder, non-GMO, gluten-free, consumed in the morning, and marketed as boosting energy, strengthening the immune system, and supporting digestion.

Overcoming Market Saturation

The health-focused product market is growing rapidly, creating many opportunities for the functional beverage industry. However, the variety of choices makes it harder to stand out. Today’s consumers are not only concerned about quality but also pay attention to how brands present themselves on shelves and in online spaces.

According to EY’s Future Consumer Index, loyalty to consumer products, including food and beverages, is declining sharply. Consumers frequently try new products and easily switch between brands. This poses a significant challenge for businesses: even after making an impression, maintaining customer loyalty remains a difficult task. Therefore, brands need to continuously innovate, create unique experiences, and invest in communication strategies to maintain their position in the fiercely competitive market.

Source: Vneconomy
https://vneconomy.vn/do-uong-chuc-nang-tro-thanh-xu-huong.htm

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