The Brazil flavored and functional water market has experienced tremendous growth in the past few years owing to increasing emphasis on wellbeing and health of consumers across the country. Dietary and lifestyle changes are leading to an alarming rise in the rate of lifestyle-related disorders such as diabetes and obesity. This, in turn, has translated into a growth opportunity for the market. Moreover, the growing demand for healthy, energizing, and convenient beverages is augmenting the growth of the market. According to a report by Transparency Market Research (TMR), the Brazil flavored and functional water market is poised to rise to a value of US$9.4 bn by 2024 from US$5.0 bn in 2015, exhibiting a CAGR of 7.3% from 2016 to 2024.
South-east to Witness Significant Growth Owing to Increasing Population
Geographically, the Brazil flavored and functional water market is segmented into north east, south east, south, north, and central west. South-east Brazil is anticipated to command over a large share in the market owing to rising awareness regarding the benefits of functional water and rapidly growing population. The region is expected to account for 38.2% of the overall market revenue by the end of 2024. The north east segment is estimated to expand at a CAGR of 7.8% from 2016 to 2024.
On the basis of distribution channel, the retail stores segment represented nearly 35% of the overall market revenue in 2015 and is poised to rise at a 5.9% CAGR over the forecast period. The growth of this region can be attributed to the flourishing growth of retail chains in Brazil. Moreover, factors such as one-stop shopping, variety of merchandises, convenient locations, grab-and-go services, and speedy transactions are contributing to the growth of the segment.
Rising Consumer Awareness to Stoke Growth of Vitamins and Minerals Segment
Based on ingredients, the Brazil flavored and functional water market is classified into botanical ingredients, vitamins and minerals, and amino acids. The vitamins and minerals segment is anticipated to experience substantial growth due to rising consumer awareness regarding the health benefits of minerals and vitamins along with the increasing uptake of vitamin-fortified beverages in Brazil. By nature, the non-carbonated segment is estimated to retain its leadership in terms of revenue until 2024. The increasing heath consciousness among consumers is leading to shift in preference to healthy and zero-calorie beverages from high-sugar and synthetic ingredients drinks.