Beverage Market Trend 2018

Source: Mellentin, 2017. Market Insights

• The global functional beverage market was valued at USD 26.2 billion in 2015, at an expected CAGR of 6.5% during the forecast period, 2017-2022.

• Functional beverages are non-alcoholic drinks which provide specific health benefits and contains non-traditional ingredients like minerals, vitamins, amino acids or added raw fruits.

Source: Mordor Intelligence, December 2017. Market Demands

• A big demand is coming from the millennials. Rising health care & wellness awareness together with busy lifestyles have led to the growing demand for convenience beverages. These factors along with the idea of “healthiness-on-the-go” and innovations in the drink flavors have led to surge in demand for health associated functional drinks and beverages ; which are considered alternatives to traditional supplements.

• The incorporation of natural ingredient & technological advancements in functional beverages become the focus areas of major players in the market.

• Besides, the consumer demands for clean label have been on the rise.

Source: Mordor Intelligence, December 2017. Market Segmentations

• Energy drinks, sports drinks and nutraceutical drinks are the major segments of the global functional beverages market.

• The market is forecasted to be the fastest growing segment due to the steadily growing demand from active consumers.

• Functional beverages are the emerging class of natural products which helps in reducing the risk of chronic diseases beyond basic nutritional functions.

• The functional beverages market is one of the fastest emerging markets due to the minerals and herbs content in the drinks。

• Additionally, it is also used to keep blood levels under control leading to increased demand. Source: Mordor Intelligence, December 2017. Market Segmentations

• Consumers are now looking for variations in daily drinks which include hydration along with performance & even preventive measures taken for specific health conditions.

• The major ingredients used are vitamins, amino acids and omega-3 fatty acids - used to slow fatigue and vitamins are added to boost the metabolism and generate energy in functional beverages.

• Omega-3 is widely used and its market is forecasted to grow as it controls inflammation.

• Prebiotics and are another ingredients widely used in these drinks to ensure proper functioning of digestive system.

Source: Mordor Intelligence, December 2017. Targeted Population

• Asia-Pacific is forecasted as the fastest growing market.

• The major driver factors including the trending of health awareness amongst all age group consumers, athletic regime, work culture, and busy lifestyle.

• Economic growth, changing lifestyle, health awareness are the major factors for the market attractiveness.

Source: Mordor Intelligence, December 2017. Major Players

• The functional beverage industry is highly concentrated with top ten companies accounting for more than 50% of the market share.

• The leading players in the market including:- Nestle, PepsiCo, Mondo laze and Fonterra among others.

Coca-cola Coke Ginger Series Nestea Iced Tea Nestlé Health Science Compleat Source: Mordor Intelligence, December 2017. Market Examples New Innovations 2018

Peach Coca-Cola Diet Coke Darigold Salted Caramel Milk The world’s first Peach Coca-Cola New flavors: Ginger Lime, Feisty New salted caramel flavor that in Japan for a limited time is Cherry, Zesty Blood Orange and made with fresh whole milk and is released by Japan Twisted Mango. available in a resealable pint-sized Ingredients: Carbonated Water, bottle. Caramel Colour, Natural Flavour, Phosphoric Acid, Aspartame (Contains Phenylalanine), Potassium Benzoate, Potassium Citrate, Acesulfame-Potassium and . New Innovations 2018

Metabrew Nut-Buttered Harmless Harvest Coconut Fanta Green Apple Coffee Water Made with a Granny Smith apple flavor profile - equally sweet and A cold-brewed, single-origin Contains naturally occurring sour - Fanta Green Apple is made Nicaraguan coffee blended up variations in levels of antioxidants, with 100 percent natural flavors with organic raw cashew butter, such as polyphenols. and is caffeine free. MCT Oil, and organic raw superfoods from all over planet earth like Baobab, Carob and a dash of Yacon syrup. Digestive Wellness

Organic Suja Drinking Vinegar ProNourish low Pillars Drinkable Greek FODMAP Nutritional Drink Yogurt Organic apple cider, cold-pressed A snack or mini-meal formulated Available in four varieties: mixed fruits, vegetables & more than 4 to avoid certain ingredients that berry, plain, strawberry and billion cfu of live vegan probiotics may trigger digestive discomfort. banana, and vanilla. which contains puree and stevia Contains 15 g of high-quality Contains 18g protein, live and leaf extract powder. protein, 3g of fiber and 27 active cultures and 3g essential vitamins and minerals fibre (prebiotic fibre). Digestive Wellness

VIVA Detox Natural Sugar Chi Coconut Milk Drinks Nestle Bliss Go Kids Features inulin for digestive Free Functional Drink With added chicory fiber (known health, calcium for bone health A refreshing and cleansing drink as inulin) making this prebiotic and vitamin C to enhance the which aid digestion and fight which aids in digestion. absorption of iron. toxins. Contains Coconut Cream (8%), Crafted mixture of Milk Thistle, Unrefined Sugar, Fat Reduced Inulin, Prickly Pear Extract, Cocoa Powder 1%, Inulin, Natural Lemongrass, and Dandelion, Flavouring. fused together to offer you a detoxing effect on the body, to make you feel refreshed and awakened. Plant-based

New Age Marley Yerba Mate Robinsons Fruit Creations No Tenwow Vit C + Vit E Drink Ya Mon Mint Added Sugar Available in lemon + peach, Contains Yerba Mate Leaf Extract Contains Fruit juices from lemon + pomegranate, lemon + and Raspberry Juice from concentrate (orange, passion fruit, grapefruit. concentrate. mango, pineapple), sweeteners Help to enhance beauty with (sucralose, acesulfame k), Vitamin C and Vitamin E, as well antioxidant (ascorbic acid), as contains at least 10% of fruit stabiliser (cellulose gum), natural juice content. colour (carotenes) and emulsifier. Plant-based

Minute Maid Nutriforce Gardu Muti Soda Drinks Just Bee Spring Water Available in Orange and Mango Natural lemonade sodas with juice, Contains honey (5%), blueberry flavors. in all products rhubarb, lingonberry Puree (3%), lemon juice Contains vitamin A, B1, B3, B9, cranberry and quince. (1%), natural flavouring/ colouring B12, C, E, calciun, iron and zinc. and vitamin C. Protein

UFIT High Protein Health The Protein Water Co Sneakz Vegan Protein Powder Drink Shake Muscle Maintenance and Skin Available in Vanilla/Strawberry/ Maintenance. Chocolate flavors. 22g essential protein, 3.2g fibre, New flavour varieties: Grapefruit Provides 14g of protein, vitamins & minerals (sodium & Yuzu/ Cranberry & Raspberry/ probiotics, 10 essential amino ascorbate, vitamin E acetate, Coconut & Mango acids and ½ serving of daily sodium selenite and vitamin D3) vegetables Protein

Koia Protein Drinks Bolthouse Farms® Plant SoFresh Oat (Unsweetened Contains plant protein blend packs Protein Milk Original/ Vanilla) with 16-19g of rice, hemp and pea Contains 10 grams of pea protein proteins. per 8 oz. Made with 100% Canadian Whole A protein-packed, delicious Grain Gluten Free Oats. alternative that appeals to both With no added sugar, 4 grams of traditional dairy and alternative protein, and 7 essential nutrients dairy milk drinkers. including Calcium and Vitamin D. Sugar

Coca-Cola Zero Sugar Zeo Sparkling Drinks Carabao Original Low Sugar A sugar free, low calorie Naturally blended with natural Energy Drink with the great taste of original sourced ingredients, fruit juice Contains Carbonated Water, Coca-Cola. and botanicals. Sucrose, Citric Acid, Contains sweeteners (Aspartame, Low-calorie natural flavours with (0.3%), Flavourings, Aspartame, Acesulfame K) and natural no added sugar contains an Stevia (Sweeteners), Caffeine flavourings average of just 10-12kcal per (0.032%), Inositol, Niacin, 100ml. Pantothenic Acid, Vitamin B6, Vitamin B12, Riboflavin, Caramel (Colour), Sodium Benzoate (Preservative) Sugar

So Delicious Unsweetened Sugar Free Purple/ AloeCure, Sugar Free Aloe Almond Milk Lime/ Green Edition Vera Juice with Pulp Ingredients: Almond/Cashew Offering the wings of Red Bull Aloe Vera is packed with good Milk, Pea Protein, Rice Protein, with the tastes of Açaí Berry, things for your body including Calcium Phosphate, Magnesium Limeade and Kiwi Apple. malic calcium, polysaccharides, Phosphate, Flavorings, Contains Taurine, Sodium Citrate, amino acids, vitamins, and Carrageenan/ Locust Bean Gum/ Magnesium Carbonate, Caffeine, minerals. Gellan Gum/ Guar Gum, Sea Salt, Acesulfame K, Aspartame, Vitamin A Palmitate, Vitamin D-2, Inositol, Niacinamide, Calcium L-Selenomethionine (Selenium), Pantothenate, Pyridoxine HCI, Zinc Oxide, Folic Acid, Vitamin Vitamin B12, Xanthan Gum, B12. Flavors and Colors Inflammation

Arya’s Curcumin Beverage Steaz Cactus Water Mr. Mak's Ginbao Ginger- Made with Turmeric extract A blend of cactus water with Based Health Beverage ready-to-drink tea with new Contains Ginger Puree, Lemon flavors combinations: green tea, Juice, Ginger Extract, Green Tea cucumber & green tea; starfruit & Extract and Asian green tea. Inflammation

Fairlife® SuperKids™ Ultra- Temple Turmeric White Honeydrop Turmeric Raw Filtered Milk (Reduced Turmeric Dark Cherry Honey Fat/Chocolate) Contains Dark Cherry Puree, Contains turmeric, the powerful With 125mg of DHA Omega-3 per Dark Cherry Concentrate, anti-inflammatories that help serving, 12 grams of protein, 35% Coconut Nectar, Ginger, White regulate insulin response and of the daily value of calcium and Turmeric, Lime Juice, Lemon curb joint pain in athletes and no lactose.* Juice, Apple Cider Vinegar, arthritics. Orange Extract, Sea Salt Ingredients: Lemons, Raw Local Cardamom. Honey, Turmeric. References

• Mellentin, J. (2017). Key Trends in Functional Foods & Beverages for 2018. Nutraceuticals World. • Mordor Intelligence. (December 2017). Global Functional Beverage Market - Growth, Trends and Forecasts (2017 - 2022). Industry Reports.

• Calder, P. C. (2010). Omega-3 Fatty Acids and Inflammatory Processes. Nutrients, 2(3), 355-74.