South Korea Functional Water Market to Grow at a CAGR of 3.40% During 2026-2035, Aided by the Increasing Demand for Fortified Health Beverages

The South Korea functional water market growth is driven by the growing awareness about health benefits of consuming functional water. Functional water is a specialised beverage crafted to enhance refreshment and taste while delivering targeted health benefits through added nutrients or minerals. Enriched with vitamins, minerals, antioxidants, and herbal extracts, functional water supports digestion, immunity, cognitive function, and overall wellness. These non-alcoholic beverages are infused with natural or artificial flavours to elevate the drinking experience.

Fig: Convenience Store Outlets in South Korea 2013-2018

Health-conscious consumers seeking alternatives to caffeinated, carbonated, and sugary beverages are fueling the growth of the functional water market. Athletes and fitness enthusiasts prioritize hydration, refreshment, taste, and sustained energy, driving the demand for functional beverages. The trend towards body detoxification and increased spending on health and wellness further stimulates the market growth, prompting manufacturers to innovate and expand their offerings to meet evolving consumer preferences.

South Korea's demand for immunity-boosting and performance-enhancing products is driving growth. Fortified drinks offering essential nutrients and health benefits like improved gut health and weight management are particularly fueling market expansion, indicating a resurgence in consumer interest post-pandemic.

The market for functional water is propelled by unique flavours and eco-friendly packaging, aligning with consumers' sustainability preferences. Eco-friendly packaging ensures freshness and shelf stability without refrigeration, appealing to environmentally conscious buyers. Novel flavours cater to Gen Z and Millennial preferences for taste exploration. Online retail sales are expected to increase, supported by rising disposable income, increased internet penetration, and demand for premium products in South Korea.

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Market Breakup by Product, Type, Packaging, Distribution Channel, and Province:

• Based on product, the market can be divided into flavored functional water and unflavored functional water.
• The market is segmented based on type into vitamins, and proteins, among others.
• By packaging , the market is segmented into pet bottles and can, among others.
• Based on distribution channels, the market is divided into supermarket/hypermarket, convenience stores, specialty stores, and online sales channel.
• On the basis of province, the market is categorised into North Chungcheong, South Chungcheong, Gangwon, Gyeonggi, North Gyeongsang, South Gyeongsang, North Jeolla, South Jeolla, and Jeju.

Key Findings of the Report:

• The South Korea functional water market is driven by the increasing consumer demand for fortified health beverages.
• The increasing demand for alternatives to caffeinated, carbonated, and sugary beverages is driving the market.
• The market benefits from the introduction of unique flavours and eco-friendly packaging and the increasing investments in product marketing by market players.

Key Offerings of the Report:

• The EMR report gives an overview of the functional water market in South Korea for the periods (2019-2025) and (2026-2035). 
• The report also offers historical (2019-2025) and forecast (2026-2035) market information for the product, type, packaging, distribution channel, and province of the South Korea functional water market.
• The report analyses the market dynamics, covering the key demand and price indicators in the market, along with providing an assessment of the SWOT and Porter’s Five Forces models.

Top Players

• PepsiCo Inc
• Nestle S.A.
• Danone S.A.
• The Coca-Cola Company
• The Alkaline Water Co.

The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

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