Functional shots are non-alcoholic, ready-to-drink beverages available with various health benefits. The functional shots are available in various products depending upon the functionality and the flavors. These functional shots are altered to give the intended quality of carbohydrates, vitamins, minerals, electrolytes, dietary fibers, and others. In recent years, functional shots for wellness have become more popular as consumers are looking for simple ways to maintain and boost their health. Functional shots offer various health benefits such as general wellness, energy, protein, workout fuel, gut health, focus, antioxidants, and hangover cure.
North America held the largest share of the global functional shots market in 2022. Asia Pacific is anticipated to grow at the fastest CAGR in the functional shots market from 2022 to 2030. Asia Pacific functional shots market growth is attributed to the rising popularity of functional shots among the millennial population and increasing awareness regarding the benefits of functional shots in countries such as China, India, Japan, and South Korea. In addition, the growing demand for organic functional shots in the region is contributing to the market growth. Moreover, in North America, various strategic initiatives by key manufacturers have propelled the growth of the functional shots market. In the US, flavors linked with functional benefits have further driven the market growth. Ginger, turmeric, berry, apple cider vinegar, and beetroot are among the top flavors launched along with the functional beverages in the region.
Rising Demand for Organic Functional Shots to Provide Lucrative Opportunities to Functional Shots Market
Health has become a top priority for people across the globe, leading to a boom in demand for functional shots. Consumers are willing to pay more for products that offer nutritional health benefits. In addition, organic functional shots are rapidly evolving across the global market, which has encouraged various manufacturers to develop organic alternatives. In addition, key market players are taking strategic initiatives to launch new products to cater to the growing consumer demand. For instance, in March 2020, Vive Organics announced the expansion of its functional line with the launch of two products, namely—Electro Restore and Energy + Focus. This launch was aimed to cater to the growing demand for organic functional shots.
Functional Shots Market: Segmental Overview
Based on distribution channel, the functional shots market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The convenience stores segment holds a significant market share, and online retail is expected to grow considerably during the forecast period. Online retail stores offer a wide variety of products with heavy discounts. Also, consumers can conveniently buy desirable products remotely. Additionally, home delivery service attracts many customers to shop through e-commerce platforms.
Shopping websites offer descriptive product information and user reviews, which help buyers compare products and make informed decisions. During the COVID-19 pandemic, online retail channels gained popularity as they offered home delivery services. These factors are expected to boost the functional shots market growth for the online retail segment.
Impact of COVID-19 Pandemic on Functional Shots Market
The COVID-19 pandemic affected industries in various countries, influencing their economic conditions. Lockdowns, travel bans, and business shutdowns in leading countries in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) negatively affected the growth of various industries, including the food & beverages. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and sales of various essential and nonessential products. In 2020, various companies announced possible delays in product deliveries and a slump in future sales of their products. In addition, the bans imposed by various governments in Europe, Asia Pacific, and North America on international travel forced several companies to put their collaboration and partnership plans on a temporary hold. All these factors hampered the food & beverages industry in 2020 and early 2021, thereby restraining the growth of various markets related to this industry, including the global functional shots market.
In 2021, the governments of several countries announced relaxation in lockdown restrictions and permitted the manufacturers to operate at full capacity. Thus, the manufacturers could procure raw materials smoothly and overcome the demand and supply gap. They further plan to expand their production capabilities due to the availability of resources and laborers in abundance after the relaxation of restrictions. All these factors had a positive impact on the functional shots market growth. In addition, various health benefits offered by functional shots, such as energy shots, immunity-boosting shots, and others, gained popularity during the COVID-19 pandemic, thereby contributing to market growth.
Functional Shots Market: Competitive Landscape
Cargill Incorporated, ADM, Ingredion, DSM, J M Huber, Tate & Lyle Plc, Kerry Group Plc, Gelita AG, International Flavors & Fragrances Inc., and American International Foods Inc. are among the major players in the global functional shots market. They are focused on product innovation, expansion, merger and acquisition, and innovative marketing strategies, which are expected to open new opportunities in the coming years. For instance, in January 2021, Remedy Organics announced the launch of a new line of wellness shots. The launch was aimed to cater to the growing demand for immunity-boosting beverages. Additionally, in December 2020, Labcube announced the launch of Labcube Mana Arogya Ayush—Immunity Booster Shots—along with the other products. The launch was aimed to cater to the consumer’s growing demand for immunity-boosting products. Such initiatives by key market players further drive the growth of the functional shots market.