Global Functional Shots Market Grows at a Staggering CAGR of 13.3%

Introduction

The global market for functional shots was valued at USD 367.1 million in 2019 and is expected to reach USD 2071.61 in 2030 expanding at a compound annual growth rate (CAGR) of 13.3% from 2020 to 2027.

Onion, ginger, black pepper, garlic, habanero pepper, horseradish, spirulina, moringa, reishi mushrooms, and seaweed are the ingredients that go into functional shots. The development of new technologies in the fields of microbiology, food engineering, nutrition, and biochemistry has made it possible for manufacturers to create novel drinks such as functional shots. The energy and immune system support that you get from functional injections are only two of the many health advantages they offer. Shots that provide a functional purpose are gradually turning into an essential component of the diet of customers who are health aware.

Market Dynamics

The rising preference for ready-to-drink (RTD) drinks

The rising preference for ready-to-drink (RTD) drinks and the increase in the general population's awareness of the need of maintaining a healthy lifestyle are two of the most important reasons that are predicted to drive growth in the functional shots market over the next few years. In addition, it is projected that the shift in consumer choice away from fizzy beverages and toward concentrated nutritional concoctions would further fuel the growth of the functional shots market. In addition, it is anticipated that the expanding demand for functional shots that are bolstered with a variety of natural components would provide additional support for the development of the functional shots market.

The increase in the general population's awareness of the need

In the beginning, the product was in demand among a certain subset of natural consumers who were aware of the product's health advantages and value in comparison to fresh-pressed juice shots. These shoppers formed the first demand for the product. Customers were also heavily influenced by the price when making their decision to purchase functional shots rather than normal fruit drinks, which are often sold at substantially higher prices at boutique stores. The emergence of COVID-19 has been a phenomenon that has fundamentally altered the industry. During the ongoing coronavirus pandemic, a significant number of customers have been looking for goods that will improve their immunity, which has led to the quick acceptance of the product.

The increasing demand for functional beverages and the accompanying increase in the number of product advancements, such as the introduction of vegan and plant-based functional shots in exclusive flavours and appealing packaging, will further provide potential opportunities for the growth of the functional shots market in the coming years.

Regional Overview of Functional Shots Market

In 2019, North America maintained the greatest revenue share, which was greater than 35.0 percent. The area has been going through a number of strategic shifts as a result of the makers of functional shots trying to take advantage of the increasing boom in the industry. As an illustration, ATAQ Fuel introduced their Functional Performance (RTD) Boosters product line in March of 2020. RTD Shots come in three different flavours, including pineapple, mango, and lime berry, and are included in the product range.

From the years 2020 to 2027, it is anticipated that Asia Pacific would have the highest CAGR, which will be 14.7 percent.

Key Highlights

• The global functional shots market was valued at USD 367.1 million in 2019 and is expected to reach USD 2071.61 in 2030 expanding at a compound annual growth rate (CAGR) of 13.3% from 2020 to 2027.
• Rising preference for ready-to-drink (RTD) drinks are going to drive the market.
• Increase in the general population's awareness of the need of maintaining a healthy lifestyle is also going to drive the market.
• Shift in consumer choice away from fizzy beverages and toward concentrated nutritional concoctions would further fuel the growth of the functional shots market.
• Increasing demand for functional beverages and the accompanying increase in the number of product advancements, such as the introduction of vegan and plant-based functional shots in exclusive flavours and appealing packaging, will further provide potential opportunities for the growth of the functional shots market.
• In 2019, energy shots had the lion's share of the market and were responsible for more than 40.0 percent of the market's revenue.
• Between 2020 and 2027, the internet sector would record the highest CAGR, which will be 14.7 percent.
• In 2019, North America maintained the greatest revenue share, which was greater than 35.0 percent.

Competitive Players

Competitors in Functional Shots Market

PepsiCo, Inc., AriZona Beverages Company LLC, Kuli Kuli, Inc., Living Essentials Marketing LLC (5-hour ENERGY), EBOOST, Dragononi, Inc. (Hawaiian OLA), Royal Pacific International, LXR Biotech, LLC, Hardcell LLC, and Kudu Energy LLC are some of the significant firms highlighted in the research.

Recent Developments

Recent Developments by key Players

In May 2021, PepsiCo introduced soulboost, their newest invention. It is a sparkling water beverage with certain useful additives & a dash of genuine juice. This product, Soulboost, offers a light, guilt-free sparkling water refreshment with all the excitement of a fruity beverage.

Arizona Beverages introduced Arizona Sunrise Hard Seltzer in October 2020. This newest product includes a hint of genuine fruit and comes in Cherry Punch, Mucho Mango, Lemon, and Grapefruit flavours.

In August 2020, AriZona Beverages added pineapple to its selection of fruit juice cocktails, therefore extending its product portfolio. The brand's juice cocktail line, which already includes popular flavours including Mucho Mango, Fruit Punch, and Watermelon, has added a pineapple flavour as its sixth variation.

In June 2020, AriZona Beverages released the SANTA FÉ sparkling water range. The first and only effervescent Arnold Palmer is included in its list of genuine fruit ingredients. Every 16-ounce can of SANTA FÉ has less than 20 calories, making it a low-carb and gluten-free beverage.

In April 2020, PepsiCo and Vital Pharmaceuticals, a maker of sports and energy drinks, inked a contract. This arrangement will help PepsiCo sell Bang Energy in the United States and is crucial to the company's overall energy beverage strategy. It will also enable them to dramatically increase Bang Energy distribution to meet rising customer demand.

Segmentation

Segmentation of Functional Shots Market

By Product

• Energy
• Immunity
• Detox

By Distribution channel

• Hypermarkets & Supermarkets
• Convenience Stores
• Online

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East