West Europe Functional Soft Drinks near 4.5 billion litres in 2006
West Europe's functional soft drinks market grew by 6% in 2006 to an estimated 4,453 million litres, up an impressive 40% on the category's 3,173 million litres in 2001, according to the 2007 West Europe Functional Soft Drinks report from leading drinks consultancy Zenith International. The UK and Germany clearly held the lion's share of 2006 volume, accounting for a combined 66% of the total. Italy, Spain and France follow to complete the top five.
"The main driving forces behind functional soft drinks growth are consumers' increasingly proactive attitudes towards health, in the context of rising concerns about obesity and an ageing population," commented Zenith Research Director Gary Roethenbaugh. "The sector is now attracting the interest of beverage multinationals, entrepreneurs and small businesses alike, all of which are increasingly recognising added functionality as a means of enlivening mainstream products and responding to changing demand, while simultaneously boosting profit margins," he added.
Zenith's report tracks four main functional soft drinks segments: enriched beverages, such as juices and waters with added vitamins and minerals; sports drinks; energy drinks; and nutraceuticals, with targeted ingredients considered to provide specific medical or health benefits.
Nutraceuticals are the fastest growing segment, albeit still from a relatively low base, with volume up 17% in 2006. Sports and energy drinks also demonstrated double digit growth, up 11% on average in the year. Enriched beverages are by far the largest group, accounting for over 70% of combined volume in 2006. Sports drinks came second on 15%, followed by energy drinks on 10% and finally nutraceuticals on 4%.
Other key findings of Zenith's 2007 West Europe Functional Soft Drinks report include:
- In value terms, the market rose from 8,500 million euros in 2001 to around 13,600 million euros in 2006.
- Average consumption across all 16 countries rose to 11.2 litres per person in 2006, up from 8.1 litres in 2001.
- The specific target health functions leading new product development across the emerging nutraceutical sector in 2006 were those of immune, heart and gut health as well as weight management; these accounted for 26%, 21%, 17% and 14% of new product activity respectively.
Many challenges remain, such as new European health claims regulations, effective marketing communication, the need for further consumer education and intense competition to secure distribution. But the fundamental importance of health and wellbeing should pave the way for continued category growth. By 2011, Zenith anticipates that functional soft drinks volumes across West Europe will have risen by a further 30%, equating to at least an extra 1,300 million litres.
The 2007 Zenith Report on West Europe Functional Soft Drinks contains 233 pages including 150 tables and charts, over 230 new product launches, details on the new European as well as national regulations and a comprehensive market commentary. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail firstname.lastname@example.org
For further information, please contact:
Gary Roethenbaugh or Jenny Foulds, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901