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Asia Pacific (ASPAC) is the largest functional beverage market in the world and continues to grow. Here we share the functional beverage trends and consumer insights that are creating new growth opportunities for beverage companies.
The ASPAC functional beverage market is a $74.5 billion market, representing 40% of functional beverage sales globally.1 The market is forecast to grow at a compound annual growth rate (CAGR) of 5.4% from 2021 to 2026 to reach $97 billion.2
Yogurt beverages are the top-selling functional beverage category in the ASPAC market, with sales of $27.2 billion, followed by energy drinks at $15.6 billion.3 While both categories have high growth ahead, with a forecast CAGR of 7.0% from 2021 to 2026, the sports protein ready-to-drink/meal replacements category is growing even faster at 7.9%.4 Consumer awareness of the benefits of protein is increasing, leading to an expansion from traditional core users to mainstream healthy and active lifestyle consumers.
| Functional Beverage Category | Sales in USD Billions (2021) |
|---|---|
| Yogurt beverages | $27.2 |
| Energy drinks | $15.6 |
| Dairy alternative beverages | $9.0 |
| Sports drinks | $6.3 |
| Functional juices | $5.9 |
| Sports protein RTD and meal replacements | $4.9 |
| Functional waters | $3.1 |
| Functional carbonates | $2.1 |
| Functional RTD coffees and teas | $0.4 |
Also growing is the demand for better-for-you drinks, such as those with low sugar and high protein, and beverages that offer healthy indulgence. Nutritional drinks with immune benefits continue to do well, with 90% of consumers in China saying COVID has increased their awareness of the importance of immunity.5 Today’s consumers want a variety of functional benefits from beverages and are seeking them in many different beverage categories, with protein playing a major role.
High protein claims are capturing today’s market, expanding well beyond the traditional realm. New product launches of nutritional drinks with high protein or added protein claims have grown at a 3.5% CAGR in the past four years, with 24% of these launches in South Korea and 20% in Japan.6 China is currently not yet a highly penetrated market for protein drinks but has huge potential for growth, with Chinese consumers showing a strong interest in these beverages.
One recent study shows that Chinese active lifestyle consumers would prefer to get their protein from a ready-to-drink beverage than from a protein bar, snack, powder, or whole food.7 On average, the consumers in the study said protein is “important” to their diet.8 Across Asia, consumers rate beverages with added protein, such as protein water and protein shakes, as healthier than other beverages, such as energy drinks and soft drinks.9
Today, protein functional beverages are not only consumed to support exercise. Consumers use protein ready-to-drink beverages to meet many different needs: for example, for energy and nutrition, to take a mental break for stress relief, or to have a healthy treat.
For consumers who drink protein ready-to-drink beverages regularly, the main reasons are:10
However, for consumers who drink them sometimes, the top reasons are:11
As consumers drink protein beverages to address more of their needs, the consumption occasions are expanding. In the past, Asian consumers mainly drank protein beverages before or after exercising. Now, they also consume protein beverages to replace a meal (especially breakfast) and during outdoor leisure activities, such as cycling and walking with family or friends.12
When beverage companies want to fortify their nutritional drinks with protein, they can choose from many different types of protein, including animal proteins (like dairy and egg) and plant proteins (like soy and pea). They must consider cost and consumer preference, plus other factors like how the protein impacts a beverage’s taste and texture.
Research shows that in China consumers are more likely to pay the most for whey protein.13 The second most popular choice is milk protein.14 This indicates Chinese consumers perceive these dairy proteins as the highest quality proteins, possibly because of the health benefits associated with dairy. Dairy proteins also work well in beverages, producing a creamy texture and pleasant taste.
Other emerging functional beverage trends in the ASPAC market are fortified and functional dairy drinks. These ready-to-drink beverages are available in a variety of flavors and are being marketed in many countries, ranging from China to Japan to Vietnam.
Some of these dairy drinks have added protein, and many of them are fortified with vitamins and minerals. The most common health claims in recent launches of these beverages are bone health (16.6%), energy (8.5%), brain and nervous system (6.0%), eye health (5.5%), immunity (5.0), and digestion (4.6%).15
Glanbia Nutritionals holds expertise in nutritional drinks development. From ideation to prototyping, we work side by side with you to create better functional beverages that stay ahead of the trends. Our wide range of functional beverage ingredients – including functional protein and custom premix solutions - lets you formulate beverages with the nutrition and health benefit that are most important to consumers.
Contact Glanbia Nutritionals to learn more.
