Flavored Powder Drinks Market (2022 - 2030)

Flavored Powder Drinks Market Summary

The rising popularity of ready-to-mix drinks and ready-to-eat foods is enhancing global sales. Consumers who have busy work schedules can easily mix their favorite powder flavors on the go during their breakfast and enjoy healthy snacks. Powdered beverages do not require any specific temperature to maintain quality or shelf life, which makes them suitable for traveling, camping, and similar occasions are some of the factors surging the demands in the industry.

Flavored powder drinks are the powder form of beverages which is one of the ways of preservation. It is made from the dried pulp of fruits and added preservatives for improving the shelf life of the flavors. These powders can be added with water, milk, coffee, or some other mixtures. The instant ready-to-drink formula is highly demanded among the students and working population to intake proteins, and vitamins with the requirement to hydrate body fluids. Besides these features, powdered drinks offer the convenience of transportation and storage increasing their adoption among consumers.

During the COVID-19 pandemic, the industry witnessed positive growth in terms of revenue generation. During the pandemic situation, everyone was conscious about their healthy intake which can increase the immune system as well. Hence, the consumption of flavored energy drinks and powders with added proteins and vitamins increased highly among the young generation. Moreover, consumers across the globe increased their healthy intake to combat coronavirus infections and to remain healthy during these tough times. Therefore, which increases the sales of the global flavored powdered drinks market.

Growing awareness regarding the health benefits of flavored powder drinks is a key factor contributing to revenue generation as well as driving the global industry in terms of revenue share. Moreover, factors such as the increasing demand for the enhanced taste of food & beverages are fueling the growth of the industry. In addition, some flavored powder drinks include vitamins, minerals, and other nutrients. The products are diversely marketed for children, bodybuilders, athletes, dieters, or as a vitamin supplement further enhancing revenue generation.

Apart from having numerous advantages, there are some problems associated with excessive consumption of flavored powder drinks. The high addition of sugar and calories in flavored drinks can lead to weight gain and an unhealthy spike in blood sugar which is restraining the growth of the industry in the long run. Sometimes the availability of liquids such as water, milk, or, other substances is challenging during traveling which further restrains the growth of flavored powder drinks in the long run.

The industry is undergoing rapid change, driven by exciting product innovations and developments. Key players are developing satisfying new product offerings to generate maximum sales and boost market share. Various new flavors are innovated mostly for the children who like flavored energy drinks such as mango, orange, strawberry, and other flavors are further creating opportunities in the beverage industry. Moreover, the reduced carbon emissions and environmentally friendly packaging are further attracting more consumer satisfaction and hence creating opportunities to grow in the forecast period.

Flavor Insights

The fruit-based segment led the industry in 2021 with a share of over 80%. This can be attributed due to the various antioxidants available in powdered form that can help the body to function well and reduce the risk of several health issues are the factors propelling the growth of fruit-based segmental growth.

Moreover, the powdered form of fruits can hydrate the body with the required minerals and vitamins. As fruit-flavored drinks are loaded with nutrients, they help improve immunity power and are expected to fuel the growth of the segment. Powdered fruit flavors can also retain high levels of nutrients which be easily consumed during the whole year which is again driving the global sales of fruit-based powder drinks.

The coffee-based segment is expected to grow at the second fastest CAGR of 2.5% from 2022 to 2030. The instant energy booster formula among the coffee powder is surging the segment growth among the young generation.

Moreover, coffee flavors can enhance brain function due to the availability of caffeine which is another factor propelling the growth of the coffee-based segment. In addition to that, coffee powder is rich in antioxidants and linked to reducing the risk of many diseases which is expected to promote demand for coffee-based segment growth during the forecast period.

Distribution Channel Insights

The online channel is expected to grow at the fastest CAGR of 4.2% from 2022 to 2030. Online websites offer huge discounts and coupons throughout the year which is enhancing product sales through online channels. Additionally, online platforms that display product information with detailed product ingredients play a crucial role in increasing customer knowledge about the product.

Moreover, online channels provide huge opportunities for both local and branded companies to distribute their products and increase their customer base across the globe. Hence, these factors are expected to drive the online sales of flavored powder drinks during the forecast period.

The supermarkets and hypermarkets segment captured a dominating share in 2021 with over 40% share. In supermarkets and hypermarkets, consumers get full freedom in selecting their products by comparing prices with other brands. This is the major factor in uplifting the sales of the segment. Moreover, customers can get their required products within a minute after reaching the stores during urgent requirements further enhancing the sales of the flavored powder drinks.

The supermarkets and hypermarkets stocks various brands for a single product which is attracting consumers to visit and compare their products under the same roof. Hence, these are some factors driving the supermarkets and hypermarkets channels to remain a dominating distribution channel for flavored powder drinks during the coming years as well.

Regional Insights

Asia Pacific captured a dominating share of the industry with a revenue share of over 40% in 2021. The industry in Asia Pacific is primarily driven by the emerging trends for the healthy consumption of sugar-free and low-fat powdered drinks. Innovative flavors introduced by the key players to increase their consumer base in this region are further playing a major role in promoting the growth of the industry.

In addition, the development of education and corporate culture in these regions such as India and China are further attributing to the demand for flavored drinks. Hence, these factors are expected to make Asia Pacific a dominating region in the demand for flavored powder drinks during the forecast period.

Europe is projected to expand at the second fastest CAGR of 3.1% from 2022 to 2030. The growth of the global industry in the European countries is rising due to the growing health-conscious consumers in this region. Europe has the world’s largest food & beverage industry which is contributing highly to revenue generation.

Moreover, the rising number of health-conscious consumers is subsequently increasing the nutritionally rich food products demand further driving the growth of the industry. Hence, Europe is expected to capture a significant revenue share in the global industry.

Key Companies & Market Share Insights

Key companies operating in the industry include Nestle S.A., Mondelez International, The Coca-Cola Company, Kraft Heinz, Cargill Inc., Unilever, PepsiCo, Inc., Mars, Inc., GlaxoSmithKline Plc, Abbott.

• In December 2020, True Citrus, Baltia more-based company launched a new product line named True Lemon Kids, a low-sugar, clean-label powdered drink specially designed for children. The powder contains does not contain any artificial sweeteners, flavors, or preservatives. Colors are added from natural sources such as fruits and vegetables which offers 25 percent of the daily servings of vitamins A, C, and E

• In May 2022, KT Tape, a leader in the drug-free pain relief range, announced the launch of its latest product named KTHealth+ AIM drink mix. The product is designed to help improve the body's healthy inflammatory response to the pains and aches associated with physical exertion. It is a tasty dietary supplement with 100% drug-free and healthy botanical ingredients such as ashwagandha, turmeric, zinc, organic beet root powder, vitamin D and C

• In July 2022, Danone launched a set of three healthy nutritional products via inline channels named Tmall and Douyin in China. The three products are designed for intake three times a day—breakfast, lunch, and before bed at night. The drink mix is infused with probiotics fiber to boost the immune system and gut health

Some prominent players in the global flavored powder drinks market include:

• Nestle S.A.

• The Coca-Cola Company

• Mondelez International

• PepsiCo, Inc.

• Mars, Inc.

• GlaxoSmithKline Plc

• Unilever

• Abbott

• Cargill Inc.

• Kraft Heinz

Flavored Powder Drinks Market