Flavored water is a category of bottled mineral, spring or purified water containing flavours. The functional water is a derivative of flavored water with added functional ingredients such as botanicals, vitamins, minerals and oxygen. These types of drinks do not contain caffeine, colour, carbonation or preservatives. The growing health concern of the masses, which is making them refrains from consuming carbonated or artificial flavored drinks, acts as major driving factor for the industry. These drinks are priced similar to the carbonated drinks, which reduces the switching cost of the consumer, thus increasing the attractiveness of these drinks.
The common flavours in the flavored and functional waters market are orange, apple, cherry, lemon, peach and mixed. Asia Pacific has been emerging as a strong market registering double digit growth in 2012. Some of the major companies operating in the market are Nestle, Danone, Coca Cola and PepsiCo.
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