Question

what is the functional water industry in Australia and is it a worthy investment?

Answer 1

Functional water is a non-alcoholic beverage whose property has been altered by adding ingredients that offer impressive health benefits and other features.

Ingredients such as raw fruits, vegetables, herbs, consumable acids, vitamins, and minerals are added to water before it becomes functional water.

As water remains the most consumed beverage globally, the functional water market is expected to witness tremendous growth during the forecast period and aftermath.

Consumers’ shift towards the consumption of healthy drinks is has a positive impact on the growth of the global functional water market.

The global functional water market is anticipated to record a double-digit CAGR as health practitioners now recommend it as one of the vital beverages that must be consumed daily.

Classification of water as a balanced diet is a strong force fueling the growth of the industry.

With the burgeoning demand for plant-based products, the global functional water market is expected to grow significantly

Functional water contains vegetables, raw fruits, and herbs, which are plant-based, and this improves its sales as vegans spend more on dairy alternatives or non-dairy products.

The functional water market is slated to record a healthy growth during the forecast period due to the change in consumers’ lifestyles especially in developed and developing nations which has fostered the demand for convenience food items globally.

Functional Water Market Growth Drivers

Sustainability is one of the most vital properties of functional water anticipated to drive the industry’s growth.

Functional water consumers are conscious of their environment’s safety as reports have shown that plastics are non-biodegradable pollutants whose presence has a detrimental effect on the environment.

With governments’ stringent regulations regarding plastics, manufacturers in the industry are prompted to develop new and innovative materials to package their products.

Consumers are sometimes attracted to the functional water market by the type of package used by different leading companies.

Furthermore, growing consumers’ demand for fortified food and beverages is estimated to foster the rise in demand for functional water in a few years.

Sales are expected to increase drastically as the population of diabetes and obesity patients is rising annually, threatening the global world.

Countries like the United States, United Kingdom, China, India, and Australia have increased the production of functional water as consumers have switched preference from consuming carbonated soft drinks to packaged water

Functional Water Market Restraint

The global functional water market growth is expected to be hampered during the forecast period due to the hike in price of the PET bottles used in packaging functional water.

Functional Water Market: Region-wise Analysis

Geographically, Europe is expected to dominate the global functional water market as the total revenue, and market volume from this region are higher when compared with others.

Consumers in the region are on the rise, which is estimated to facilitate the industry's growth.

North America is the second-largest market as the demand from the pharmaceutical and beverage industries is on the rise.

The Asia Pacific is estimated to be the fastest-growing market as consumers' population is on the rise.

Emerging economies like China, India, and Japan have increased consumers' disposable income, which is slated to fuel the growth of the functional water market during the forecast period.

Functional Water Market: Competitive Landscape

The companies holding the largest market share in the Functional Beverage Production in Australia industry include Coca-Cola Amatil Limited and Asahi Holdings (Australia) Pty Ltd.

Market Size: $444 million

The market is expected to grow at a CAGR of 7.4% from 2018 to 2025.

Major Player in Australian Market:

Coca-Cola Amatil Limited

Asahi Holdings (Australia) Pty Ltd

Frucor Suntory Australia Pty Limited

Remedy Kombucha Pty Ltd

Nexba Beverages Pty Ltd

Tru Blu Beverages Pty Limited

Coclusion- Investment depends on your risk-profile & goals. You can invest if you expect returns of 6-10% p.a.

Sources- https://www.fortunebusinessinsights.com/industry-reports/functional-water-market-100279

https://www.futuremarketinsights.com/reports/functional-water-market