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Overview, Types, and Benefits of Functional Water

In the busy routine where prioritizing one's health is essential, functional water has emerged as a viable solution for various health issues that people face. Functional water is a non-alcoholic beverage incorporated with supplementary ingredients, commonly called aquaceuticals. These additives may include vitamins, minerals, acids, herbs, raw fruits, or vegetables. Functional water is designed to offer consumers a convenient and effective way to improve their health, and well-being and promote hydration. The use of aquaceuticals in functional water provides diverse health benefits such as enhanced immune function, antioxidant properties, and improved energy levels. Its popularity has surged in recent years, as more people seek natural and healthy solutions to improve their quality of life.

There are various types of functional water including Alkaline ionized water (produced for daily healthcare), small cluster water, daily hydrogen water (antioxidant water), beauty ionized water (focused on skincare), sport alkaline ionized water (for quick supply of water), and ocean alkaline ionized water. These types of water are offered to customers in the form of energy drinks, vitamin-infused water, probiotic drinks, and black bottled water that accommodates different lifestyles and dietary needs.

Functional water is used for different reasons such as sports performance, energy enhancement, stress reduction, and gut health.  It provides various benefits to the human body including improved digestion, increased energy levels, effective weight management, enhanced cognitive performance, strengthened immune system, and optimal kidney function, among others.

The consumption of functional water has been linked to the improvement of overall health and well-being. Therefore, incorporating functional water into one's daily routine is a valuable strategy for achieving and maintaining a healthy lifestyle.

Some of the Top Companies Operating in the Functional Water Market

Nestle:

Nestle is a multinational food and beverage corporation based in Switzerland. It has a presence in 191 nations and a product portfolio of over 2000 brands. In 2020, Nestle made a strategic move by acquiring Essentia Water, a notable functional water brand based in Washington. For more than two decades, Essentia has been a pioneer in the ionized alkaline water segment and has emerged as one of the top brands in the United States. This acquisition has enabled Nestle to transform its global water business and improve its portfolio by concentrating on premium and mineral water brands at the international level.

PepsiCo Inc.:

PepsiCo is a multinational food and beverage corporation that specializes in the production, marketing, and distribution of snacks, beverages, and foods. With Nestlé being the sole company ahead of PepsiCo in the food and beverage industry, it is the second largest company in this sector. One of its notable products is Soulboost, a functional sparkling water brand that is available in two variants - Lift and Ease. The Lift variant is infused with 200 mg of Panax ginseng, which is known to help improve mental stamina. This product is available in blueberry pomegranate and black cherry citrus flavors.

The Coca-Cola Company:

The Coca-Cola Company is a United States-based organization that has incorporated a range of functional water products into its beverage segment. The organization's water portfolio includes several well-known brands, such as Dasani, Smart Water, AHA, and Powerade Power Water. DASANI, a recognized water brand, leverages reverse osmosis filtration and a mineral blend ensuring a clean taste. In addition, the company's Powerade Power Water offers ION4 electrolytes and vitamins B3, B6, and B12, targeting people looking for zero-calorie and zero-sugar sports water options. Coca-Cola’s Aquarius is a functional water beverage that includes various components, such as water, glucose, fructose, mineral salts, and vitamins B3, B5, B6, B9, and B12.

Danone:

Danone is a multinational corporation based in France that specializes in offering a range of water brands, including AQUA, evian, Mizone, and Żywiec Zdrój. Each of these brands has unique features and positioning to cater to varying consumer preferences. Danone's commitment to providing quality beverages that promote both individual health and environmental sustainability is evident in its product offerings. One of Danone's product lines, Evian+, is a flavored water that contains magnesium and zinc and is designed to improve cognitive function.

Ayala’s Herbal Water:

Ayala's Herbal Water is a brand of flavored water products that was founded by Ayala Laufer-Cahana, a physician with a vision to create a refreshing and health-conscious beverage. The product is made from natural and organic ingredients and is available in a range of flavors, including Lemongrass Mint Vanilla, Lavender Mint, Cinnamon Orange Peel, and Ginger Lemon Peel. The beverage is lightly carbonated, zero-calorie, and sugar-free, and it contains herbal extracts that provide additional health benefits. Ayala's Herbal Water is free from preservatives, additives, and colorants, making it a pure and healthy choice for health-conscious consumers.

Functional Water Market Scenario:

The global market of functional water is estimated to expand at a robust CAGR in the forecast period. This is due to various factors such as growing health awareness, increasing demand for convenient, on-the-go beverages due to urbanization and changing lifestyles, and growing interest in functional water owing to its refreshing factor, nutritional benefits, and superior taste, innovation in the flavors and packaging. In addition, effective marketing strategies and branding initiatives taken by companies, growing interest in sports and fitness activities, and rising investments in developing advanced products are expected to boost global market growth during the forecast period.

However, factors such as high prices of functional water as compared to regular bottled water or other beverages, regulatory challenges related to health claims, ingredients, and labeling requirements, and skepticism about the efficacy of these products are expected to hamper the overall market growth to a certain extent going ahead.

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