Commonly available flavored and functional water products have mixed, cherry, guava, lemon, peach and apple flavors. Preservatives, colors, caffeine and carbonation are not contained in flavored and functional water. As a result, flavored and functional water products are increasingly gaining importance among consumers. Aerated drinks such as cola, fizzy drinks, soda and others contain carbondioxide and have various side effects such as weight gain due to high calories, diabetes, high glycemic load on blood glucose and others. Whereas, non-aerated drinks, such as flavored and functional water, are not carbonated and have various nutritional benefits. Polluted water supply in industrial and various other sectors had led to rise in demand for bottled water including flavored and functional water. Cargill Inc., a manufacturer of food and beverages products, has a range of functional water ingredients such as natural zero calorie sweetener and cholesterol reducers. Further, the functional water ingredients reduces cholesterol, addresses heart and calcium absorption.
Based on product, global flavored and functional market can be divided as flavored water and functional water. Functional water has various health benefits as it improves immunity and boosts energy and is expected to be witness higher growth compared to flavored water.

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Some of the drivers behind the growing demand of flavored and functional water include growing aging population, changing consumer preferences and taste, growing awareness among consumers towards healthy alternatives and wellbeing, increasing urbanization and rising disposable income which allows consumers to spend on premium products, growing obesity rates and changing lifestyles.

Growing demand from emerging markets and increasing disposable income will provide further growth opportunities for global flavored and functional water market.

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Some of the major competitors of flavored and functional water market include The Coca-Cola Company, Groupe Danone, Sunny Delight Beverages Company, PepsiCo Inc., New York Spring Water, Nestle SA., Balance Water Company, Kraft Foods., Aquafina Flavor Splash and Cargill Inc.

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