Boutique Food and Beverage PR Agency Showcases How Functional Beverage Trends Are Transforming The Industry

Functional beverages are fortified with vitamins, minerals, probiotics, and other healthy ingredients to help consumers maintain their physical and mental and hydration goals.  Popular functional beverages include vitamin-enriched waters, energy drinks, sports drinks, teas, and juices.

Did you know . . .
 

• “The $50 billion US functional beverage market is forecast to grow at a CAGR of 4.5% from 2022 to 2027, reaching $62 billion.1 Energy drinks lead as the largest functional beverage category at $16.0 billion (accounting for one-third of the market), followed by sports drinks at $12.2 billion.2 While energy drinks continue to show solid growth (est. CAGR +3.2%, 2022-2027), sports drinks are growing even faster (est. CAGR 5.6%)”  (Source: Glanbia Nutritionals)
• “89 percent of consumers prefer functional food and drink over supplements when it comes to supporting their health.” (Source: Prinova)
• “Consumers ages 18 to 34 were the largest demographic group purchasing functional beverages, accounting for 40 percent of sales.” (Source: Gitnux)

In this blog, Allen Marketing Communications, Inc., a boutique food and beverage PR agency based in New York City, showcases key trends in the functional beverage market.

Plant-Powered Beverages

The plant-based revolution extends to beverages. Research reveals “plant-based functional beverage segment is expected to grow a CAGR of 5.9 percent from 2021 to 2026.” (Source: Gitnux)

Plant-based milk infused with adaptogens such as Ashwagandha, Curcuma or turmeric or functional mushrooms such as Lion's Mane are gaining significant traction. In fact, many companies are employing a variety of adaptogenic components, such as medicinal mushrooms for a pure and long-lasting effect.

Probiotics - Gut Feeling Good Drinks

Probiotics and fermented beverages are on the rise as consumers discover the connection between gut health and overall well-being. Other healthy drinks such as Kombucha, Kefir, and yogurt drinks are experiencing a surge in popularity across the country.

Research reveals “the probiotic drinks segment of the functional beverages market is projected to grow at a CAGR of 8.4 percent from 2021 to 2028.” (Source: Gitnux)

Prebiotics and postbiotics are two new trends that are gaining traction as they may improve intestinal health. Prebiotics are primarily made up of non-digestible fibers and serve as food for the “good’ bacteria in our digestive systems. When gut microorganisms consume prebiotics, they produce bioactive chemicals known as postbiotics, which are a relatively novel family of nutrients.

Functional Waters

Water is getting a functional makeover! As customers look for more health benefits and hydration, functional waters loaded with vitamins, minerals, or electrolytes are becoming increasingly popular.

Research shows “functional waters made up 12 percent of the global functional beverage market,” (Source: Gitnux) There has been a surge in demand for natural and organic functional beverages, since consumers are turning away from artificial sweeteners, flavors, and additives.

Sports Drinks

Sports drinks including electrolytes, vitamins, and minerals have occupied this space and engaged the health-conscious people’s attention. According to Fortune Business Insights,” this market was valued at US$6.5 billion in 2021 and is expected to grow to US$9.4 billion by 2029.”

Here are additional benefits of hydrating functional beverages:
 

• Helps to remain hydrated all day
• Provides hydration assistance a person is sick
• Combat intense heat
• Helps with post hangover situation
• Assists with weight control
• Improves skin condition

Caffeine Alternative Drinks

Consumers are ditching all the caffeine in traditional energy drinks and opting for natural and healthy alternatives. Consumers are looking for natural ways to boost one’s energy with ingredients such as cacao beans, guarana, guayusa, coffee cherries, kola nuts, and ginseng. The lower caffeine halo is making such drinks super healthy and yet can fill your day with energy.

These are gaining popularity since they provide an invigorating and uplifting feeling without giving users the jitters.

Expand Your Business With Functional Beverages

The functional beverage market is brimming with potential and Allen Marketing Communications, Inc. is here, helping brands tap into this lucrative market.

Our food and beverage PR professionals can help companies develop their unique selling proposition and craft compelling stories to stand out in the food and beverage market. Contact us today.

​By Joanna Allen, chief executive officer, Allen Marketing Communications, Inc.