Functional Beverage Business is Booming

$2 Billion+ Category Grows as Consumers Thirst for Nutrition Enhanced Beverages

Oct. 1, 2008 — Drinking nutrient-rich beverages is gaining popularity in the general public as a convenient way to boost energy, endurance, and overall health. The adult nutritional beverage market is now booming as younger adults are recognizing the benefits of easy nutritional solutions in the form of a convenient and portable ready-to-drink product. In fact, recent data shows the adult nutritional beverage market is now a $2 billion+ category among retailers. Here are the latest industry data pointing toward a major long-term consumption trend among Americans.

Research Shows Healthy Eating Trend Among All Americans

• Mintel reports that the number of Americans trying to eat healthier rose by 30 million from 2002 to 2006.
• 2005 – 2006 Morgan Stanley research shows a one year increase of an additional 10 million consumers who consider their health when making a beverage choice. The research shows that 70 percent of consumers now pay attention to health when making a beverage choice, and that half of all consumers have heightened health awareness.
• Consumption trends will continue to evolve, but the demand for authentic and truly healthy products is expected to increase exponentially.

Nutrition Business Journal Reports Category Growth

• Sports nutrition and weight loss product sales increased to more than $17 billion in 2006 and are expected to grow an additional $700 – $900 million per year through 2013.
• Wellness and functional beverage growth rate is eight times that of other non-alcoholic refreshment beverage (NARB) categories.

Beverage Marketing Corporation (BMC) Shows Growth Rates

• Nutrient enhanced drinks grew by 24 percent from 2000 – 2005. By the end of 2006, the growth rate accelerated to 30 percent.
• More than 80 percent of NARB growth over the last decade was driven by wellness and function foods and beverages.
• Between 2000 – 2006 the share of the health and wellness beverage market increased by 50 percent, while protein based nutrition drinks are expected to lead the pack in growth for the next two years.

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