Global functional drinks show continued promise

Global functional drink sales increased by 3 percent in 2008 to 26.5 billion litres, 8 billion litres more than in 2003, according to the latest report from food and drink consultancy Zenith International. Average growth over the past five years has been 8 percent a year.

Consumption per person has also risen rapidly, up from 4.0 litres in 2003 to 5.5 litres in 2008.

“Functional drinks have continued expanding, despite increased price pressures due to their premium positioning,” commented Zenith Market Development Director Gary Roethenbaugh.

North America is the leading region, with 41 percent of global volume in 2008, followed by Asia Pacific on 30 percent and West Europe on 17 percent. East Europe has made significant gains in recent years and now accounts for 4 percent. Most regions experienced solid growth last year, except for North America which saw a substantial slowdown.

Among other findings in Zenith’s 2009 Global Functional Drinks report:

- Energy drinks are expected to see growth driven by the Middle East;

- enriched beverages should remain the second largest segment behind sports drinks.

- nutraceuticals are still a niche in most regions, with only a few developed economies boasting significant volumes;

North America’s dominance in sports drinks is likely to be eroded as Asia Pacific and Latin America see their sales expand.

By 2013, Zenith estimates that the global market will reach 35 billion litres, equivalent to 6.9 litres per person.