The global functional shots market size was valued at USD 445.6 million in 2020 and is expected to raech USD 980.1 million at a compound annual growth rate (CAGR) of 13.0% from 2020 to 2027. Over the past few years, consumers have emphasized the taste, ingredients, and functionality of the modern-day beverage. This trend has led to rapid growth in the production and development of concentrated nutritional concoctions. These shots generally include ginger, onion, garlic, horseradish, black pepper, habanero peppers, spirulina, reishi mushrooms, moringa, and seaweed. The demand for effortless, convenient, and affordable wellness is expected to expand the scope of functional shots over the next few years.
Initially, the product was in demand among a group of niche natural shoppers who were aware of the product's health benefits and value compared to fresh-pressed juice shots. Price also played a crucial role in influencing customers to buy functional shots over regular fruit juices that are sold for a much higher price at boutique stores. The spread of COVID-19 has acted as a game-changing phenomenon for the industry. A large number of consumers have been seeking immunity-boosting products amid the ongoing coronavirus pandemic, leading to the rapid adoption of the product.
Energy shots dominated the market and accounted for a revenue share of more than 40.0% in 2019. This is attributed to a large number of product launches leading to wider penetration among consumers. In March 2020, Vive Organic launched two varieties of 100% organic functional shots under the brand names, Electro Restore and Energy + Focus. The company claims that these shots contain more electrolyte as compared to the premium sports drinks. Furthermore, such products are considered to be rich in magnesium and trace minerals. The Electro Restore shot contains apple juice, lemon juice, blue spirulina, Hibernian kelp, organic Ginseng, pink Himalayan sea salt, and ginger root. It is free of all kinds of additives and sugar.
Convenience stores led the market and accounted for a revenue share of more than 35.0% in 2019. In most convenience and drug stores, these products are either placed along with body supplements or placed next to the cash counter to leverage impulse buying.
The Functional Shots Market is segmented on the basis of product, distribution channel and region. On the basis of product market is segmented into Energy, Immunity, Detox, Others. On the basis of distribution channel Hypermarkets & Supermarkets, Convenience Stores, Online, Others.
North America held the largest revenue share of over 35.0% in 2019. The region has been experiencing several strategic movements from the manufacturers of functional shots to leverage market growth boom. For instance, in March 2020, ATAQ Fuel launched the Functional Performance (RTD) Boosters line. The product line features RTD Shots in three different flavors, including pineapple, mango, and lime berry. The pineapple flavor is meant to boost power and endurance. The mango flavor increases energy and focus. Lastly, lime berry boosts immunity.
Asia Pacific is expected to register the fastest CAGR of 14.7% from 2020 to 2027. The large millennial population, increasing household income, and growing awareness regarding physical wellness in countries, including China, Japan, India, and South Korea, are expected to drive the regional market.
Key companies are: Living Essentials Marketing, LLC; EBOOST; KuliKuli, Inc.; Royal Pacific Foods; PepsiCo, Inc.; AriZona Beverages USA; Kudu Energy LLC; Hawaiian OLA; LXR Biotech, LLC; Hardcell LLC.
Initially, the product was in demand among a group of niche natural shoppers who were aware of the product's health benefits and value compared to fresh-pressed juice shots. Price also played a crucial role in influencing customers to buy functional shots over regular fruit juices that are sold for a much higher price at boutique stores. The spread of COVID-19 has acted as a game-changing phenomenon for the industry. A large number of consumers have been seeking immunity-boosting products amid the ongoing coronavirus pandemic, leading to the rapid adoption of the product.
Energy shots dominated the market and accounted for a revenue share of more than 40.0% in 2019. This is attributed to a large number of product launches leading to wider penetration among consumers. In March 2020, Vive Organic launched two varieties of 100% organic functional shots under the brand names, Electro Restore and Energy + Focus. The company claims that these shots contain more electrolyte as compared to the premium sports drinks. Furthermore, such products are considered to be rich in magnesium and trace minerals. The Electro Restore shot contains apple juice, lemon juice, blue spirulina, Hibernian kelp, organic Ginseng, pink Himalayan sea salt, and ginger root. It is free of all kinds of additives and sugar.
Convenience stores led the market and accounted for a revenue share of more than 35.0% in 2019. In most convenience and drug stores, these products are either placed along with body supplements or placed next to the cash counter to leverage impulse buying.
The Functional Shots Market is segmented on the basis of product, distribution channel and region. On the basis of product market is segmented into Energy, Immunity, Detox, Others. On the basis of distribution channel Hypermarkets & Supermarkets, Convenience Stores, Online, Others.
North America held the largest revenue share of over 35.0% in 2019. The region has been experiencing several strategic movements from the manufacturers of functional shots to leverage market growth boom. For instance, in March 2020, ATAQ Fuel launched the Functional Performance (RTD) Boosters line. The product line features RTD Shots in three different flavors, including pineapple, mango, and lime berry. The pineapple flavor is meant to boost power and endurance. The mango flavor increases energy and focus. Lastly, lime berry boosts immunity.
Asia Pacific is expected to register the fastest CAGR of 14.7% from 2020 to 2027. The large millennial population, increasing household income, and growing awareness regarding physical wellness in countries, including China, Japan, India, and South Korea, are expected to drive the regional market.
Key companies are: Living Essentials Marketing, LLC; EBOOST; KuliKuli, Inc.; Royal Pacific Foods; PepsiCo, Inc.; AriZona Beverages USA; Kudu Energy LLC; Hawaiian OLA; LXR Biotech, LLC; Hardcell LLC.
- Aerospace and Defense
- Agriculture
- Automotive and Transportation
- Business and Finance
- Chemical and Materials
- Consumer Goods and Retails
- Electronics and Semiconductor
- Energy and Power
- Food and Beverages
- Machinery and Equipment
- Manufacturing and Construction
- Medical Devices
- Pharmaceuticals and Healthcare
- Service and Software
- Technology, Media and Telecommunications
- Travel and Tourism
