Functional beverage
A functional beverage is a conventional liquid food marketed to highlight specific product ingredients or supposed health benefit.[1][2]
Functional beverages include
Health concerns
Health experts are concerned about the increased consumption and popularity of functional beverages. Although these beverages may serve to hydrate the individual, they may not mitigate health issues, such as
Use
Functional beverages are commonly consumed by people seeking health benefits from their foods and beverages. Both convenience and health have been identified as important factors in consumers' decision-making about food and beverage purchases. Functional drinks are advertised as having various health benefits. For example, some claim to improve heart health, immunity, digestion, and joint health, while others promote themselves as satiating and energy-boosting.[1][2]
Industry
The functional beverage industry is a sub-sector of the functional food and non-alcoholic beverage industry. It is the fastest-growing sector of the industry, partially due to the maturity of the carbonated soft drink sector and heavy investments by major food and beverage companies.[3] Another reason for the industry's growth may be the consumer-oriented market scheme whereby innovative ideas come from consumers. By 2008, in the U.S., the market share of functional beverages accounted for 48.9% of the non-alcoholic industry, which is worth $118 billion.[4]
Functional beverage industry players are generally categorized into four types:[5]
- Traditional non-alcoholic beverage companies, like PepsiCo, Fuze Beverage, and The Coca-Cola Company.
- Major food companies, such as Nestlé, Altria, Kraft Foods, General Mills, and the Campbell Soup Company.
- Smaller-scaled private companies and specialized companies like POM Wonderful.
- Agricultural cooperatives, such as Ocean Spray and Sunsweet Growers.
Marketing ethic issue
Although a "functional" beverage may be marketed as a panacea or a performance-enhancing substance, there is no scientific evidence for any specific health effects of such beverages or for their uniform regulation internationally, as of 2020.[1][2]
Market
The functional beverage industry generally competes using four primary strategies:[5]
- Promote their own products as healthy and unique, by clearly distinguishing their health claims from similar products, and by specifying naturally healthy ingredients.
- Consider extensions of existing brand lines. For example, Nestle extended their Boost product line by adding Kids Essentials to the line, thereby extending the adult-focused Boost line to a new market (children).
- Larger companies compete for market share by acquiring smaller companies that may own a particular market sector.[5] For example, Coca-Cola purchased Glaceau from Energy Brands, and Odwalla, and Fuze Beverage from their respective founders, in order to increase Coca-Cola's market share.
- Explore new functional brands by identifying new markets and demands.
Market segments of the functional beverage industry are divided mainly into four parts.[3] Those include hydration; energy/rejuvenation; health and wellness; and weight management.[3] Each segment has its own target market and consumers. Overlapping of target consumers does occur—not because of undefined market needs, but due to consumer acceptance of functional beverages.[5]
Energy and stimulation
Highly caffeinated, often highly sweetened "energy drinks" have become popular on the beverage market in the United States, as well as globally, in the past decade. Consumer demand has helped generate a new generation of "energy drink" brands containing similar amounts of caffeine, calories, and sugar.[6]
Various stimulants found in energy drinks may include
Sales
As of 2008, based on dollar sales, the most popular functional beverages, in order, were:[7]
- Health and wellness drinks, with 62.2% of dollar sales
- Hydration drinks (28%)
- Energy/Rejuvenation drinks (8.4%)
- Weight Management drinks (1.2%)
Consumer demographic
According to a 2006 article, the functional beverage market's
Energy drinks
In some functional beverages, particularly energy drinks, the caffeine content can range from 50 to 200 milligrams per serving.[10] According to Health Canada, beverage products with variable levels of caffeine may not be safe for children.[10]
See also
Notes
References
- ^ ISSN 1541-4337.
- ^ ISSN 1756-4646.
- ^ a b c Scholan, I. "Functional Beverages-- where next? Innovation in functional beverages market is set to continue." International Food Ingredients December 2007.
- ^ Roberts, W. "Benefiting Beverages." Prepared Foods August 2009
- ^ a b c d "Functional Foods and Beverages in US. MaryLand." Packaged Facts. May 2009
- ^ a b c Bogue, J., Seymour, C. and Sorenson, D. "Market-oriented new product development of meal replacement and meal complement beverages." Journal of Food Products Marketing, 2006 12(3): 1–18.
- EBSCOassessed 29 November 2009
- ^ Boyle, C. and Emerton, V. "Food and Drinks through the Lifecycle." Surrey:Leatherhead International. 2002
- ^ Van Trijp, H.C.M. and Van Der Lans, I.A. (2007). "Consumer perceptions of nutrition and health claims." Appetite. 2007 48(3):305–324
- ^ a b "Information for Parents on Caffeine in Energy Drinks". Health Canada. 1 October 2011. Retrieved 20 May 2022.