Top Growth Categories and Trends in Europe’s Functional Beverage Market
The €25 billion functional beverage market in Europe, the Middle East, and Africa (EMEA) is experiencing strong and steady growth with an estimated CAGR of 6.4% between 2019 and 2024.1 Energy drinks lead the category at 44% market share with a forecast CAGR similar to the functional beverage market as a whole.2
While energy drinks are a clear favorite among European functional beverage consumers, forecast growth is much higher for functional RTD coffees and teas (at 13.9%), functional waters (at 12.2%), and dairy alternatives (at 10.8%).3 Consumer trends in personalization and sustainability, along with a renewed focus on health due to COVID-19, are also shaping opportunity in the functional beverage market.
Opportunities for European Functional Beverage Manufacturers
1. Functional Coffees and Teas
RTD coffees and teas have traditionally been positioned as a clean label energy source for more health-conscious consumers, offering the benefits of an energy drink in a different format. Recent innovations including cold brew, plant-based dairy blends, and new flavors have broadened their appeal even further. The growing interest in these formats makes them the perfect vehicle to deliver in-demand functional ingredients ranging from MCTs to botanicals to immune-supporting vitamins.