Collagen beverages market is primed for strong growth
Coffee and collagen powder. Image: Shutterstock
Perhaps ‘a collagen drink a day keeps the wrinkles away’ is an appropriate update to the old ‘apple a day’ axiom as collagen seems to be the newest ‘it’ ingredient in terms of functional beverages. There is a rise in demand for collagen drinks as people have become better aware of the benefits of health drinks on beauty and personal care.
Fuelled by consumers’ strong desire for healthy beverages, the global collagen drinks market is expected to experience growth at a CAGR of 9.8%, and is anticipated to reach a valuation of around USD $255.4 million by 2032, according to new report from Future Market Insights. Collagen drinks sales are likely to account for ~1% of the overall dietary supplements market, which is anticipated to be valued at USD $68.3 billion by 2022 end.
Consumers are increasingly aware about health benefits of the foods they consume, resulting in an increase in the overall market for collagen drinks. According to FMI analysis, the collagen drinks market is in its early stages of development and is thus experiencing significant growth as a result of the growth of the cosmetic and personal care industries.
Collagen supplements provide an excellent nutritional profile, proven health benefits, and overall cost-effectiveness. Collagen drinks are high in hydroxyproline, amino acids glycine, arginine, and proline, which are associated with energy supply, cell regeneration, and metabolism. Collagen drinks that provide advanced health benefits have historically grown at a rate of around 8.4%, per the report.
Collagen-based products are in high demand among many in the younger generation for beauty and slimming purposes, and among some in the older population for anti-aging effects because they generate low levels of collagen. (FMI also reports that various studies have shown collagen peptides to reduce pain levels in osteoarthritis patients.)
Collagen is suitable for use in a variety of hot beverages, which is paving the way for innovative products with health benefits. Hence, consumption of collagen-enhanced hot beverages such as coffee, hot chocolate and infusions is increasing at a high pace.
FMI finds that in the United States, collagen-based drinks are gaining popularity in the beauty drinks industry because they contain protein, which is important in skincare products. They defend the dermis and aid in the preservation of healthy skin.
Although North America is a prominent market for collagen-based drinks the report reveals that the South Asia market is anticipated to generate a higher growth rate over the forecast period (2022 – 2032) due to increased consumer awareness of the beauty and health benefits of collagen in India. Furthermore, the sale of collagen drinks in European countries, particularly Germany, is expected to skyrocket due to rising occurrences of hair loss issues, skin problems, and the impact of the fashion industry.
Female end users are dominating the global collagen drinks market, but male end users are expected to witness a lucrative growth rate over the forecast period. The convergence of developments in female end-users, lifestyle, and beauty propels the market’s growth, according to FMI. Of course, the millennial and Gen-Z populations are expected to provide prominent opportunities for the collagen drinks market.
On the basis of application, cosmetics, and personal care industries are expected to hold a dominant share in 2022, but the nutraceutical industry is expected to record a lucrative growth rate over the forecast period. “Collagen drink manufacturers are aiming to sell more exclusive flavours to draw an increasing number of consumers. Focus towards fitness among consumers is expected to result in high sales of collagen drinks. Thus, producing fresh and tasty collagen drink items will help companies expand their business,” said research analyst, Nandini Roy Choudhury, author of the report.
FMI also finds that collagen drinks launched by big brands are more preferred by customers as they find them more trustworthy compared to new brands that have just arrived on the market. Additionally, big companies have stronger networks of distribution, and the potential to invest is high. Hence, increasing customer demand for famous brands would help expand new products businesses launch, notes Choudhury in the report.
The FMO report also finds that the growing demand for convenient packaging is one of the primary factors driving the collagen drinks market. Fast-paced lifestyles and time scarcity across the globe have resulted in many people preferring on-the-go food items. “This leads to the increased sales of handy small packaging of collagen drinks which can be carried easily in the hands,” writes Choudhury, adding, “This is supported by innovative packaging which enables the longer storage of collagen drinks.”
To capitalise on the collagen opportunity, coffee and tea brands might want to strongly consider expanding their brand portfolios and their assortments to include collagen-enhanced beverages and make certain that the health benefits of their collagen products are well-publicized to increase accessibility and drive growth.
- Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
Keep in touch via email: [email protected] Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal