-ai.png)
Functional beverages used to be synonymous with hydration.
Today, it's a $175 billion industry far beyond adding vitamins to water.
The most popular functional beverages boost energy without the crash, improve brain function, relieve stress, and support gut health. And that’s not all.
Health-minded consumers want their wellness in ready-to-drink beverage products that support their busy lifestyles while supporting their aspirational health goals.
The name of the game is convenient performance enhancement.
And while big name beverage brands, including Monster, Gatorade, and Propel were quick to capitalize on the growing demand for functional beverages, there is still time for new beverage brands to formulate before the market is oversaturated.
This guide on how to formulate functional beverages is for innovative drink companies who want to create a drink health-minded consumers want to buy.
By the end, you’ll learn how to formulate a drink that shakes up the functional beverage industry from a beverage manufacturer with 20 years of know-how.
Functional Beverage Industry Overview
The pandemic changed the way people drink. Alcohol consumption skyrocketed during lockdown, but that has shifted dramatically in the other direction in the years since.
Young people in particular are swapping drinks that drain their vitality in favor of beverages that make them feel good. The proof is in the numbers.
The functional beverage industry is projected to exceed $200 billion by 2028.
Alcoholic Beverage Market vs. Functional Beverage Market
In contrast, the alcohol industry, while still massive, faces a different landscape.
It’s grappling with a growing interest in moderation and health concerns associated with excessive alcohol consumption, driving new product development.
The latest trend is functional alcoholic beverages attempting to bridge the gap between the two worlds. These hybrid drinks aim to offer the social and enjoyment aspects of alcohol while incorporating functional ingredients to potentially mitigate some of its negative effects.
It’s yet to see how this plays out.
One thing is for sure: Functional beverages are no longer niche products.
6 Popular Types of Functional Beverages
The good news from this shifting consumer preference is innovation.
The functional drinks market is welcoming to new beverage brands with big ideas. Here are some of the most popular categories and specific examples trending:
1. Energy Drinks: Traditionally relying on caffeine, B vitamins, and other stimulants, the functional energy drinks are evolving. While Red Bull, Monster Energy, Celsius, Reign, and Bang remain popular, there's a growing shift towards natural caffeine sources like green tea and yerba mate. Additionally, nootropics, compounds that enhance cognitive function, are being incorporated to provide mental clarity and focus alongside energy. The demand for healthier options is also driving a surge in sugar-free and low-calorie energy drinks.
2. Sports and Performance Drinks: These drinks enhance athletic performance and maintain hydration levels through a combination of electrolytes, carbohydrates, and sometimes protein. Current trends in this category reflect a growing emphasis on natural ingredients, with a shift towards plant-based components and natural sweeteners. Additionally, there's a growing interest in tailoring drinks to specific sports and activities, providing targeted nutritional support. The inclusion of BCAAs (branched-chain amino acids) is also on the rise, as these essential amino acids are believed to aid in muscle recovery and reduce exercise-induced fatigue. Popular brands like Gatorade, Powerade, BodyArmor, and BioSteel lead this market category.
3. Enhanced Waters: Waters target offering targeted benefits for specific needs like immunity or sleep are the most popular right now. Emerging trends include alkaline and hydrogen-infused waters, believed by some to offer additional health benefits, as well as sparkling options. Popular brands like Vitaminwater, Propel, Essentia, and Hint lead the market, providing hydration along with added vitamins, minerals, electrolytes, or antioxidants.
4. Gut Health Drinks: Gut health drinks are gaining popularity as consumers increasingly recognize the importance of a healthy gut microbiome for overall well-being. These beverages typically incorporate probiotics, beneficial bacteria that aid digestion and boost immunity, or prebiotics, which nourish those bacteria. Fermented drinks like kombucha and kefir are popular choices, but the market is expanding beyond these staples. We're seeing a wider variety of fermented beverages, a greater focus on specific probiotic strains tailored to address particular health concerns, and the emergence of synbiotics – products that combine prebiotics and probiotics for a synergistic effect.
5. Relaxation and Sleep Drinks: Relaxation and sleep drinks are specifically designed to soothe the mind and body, promoting restful sleep and easing stress. These beverages often include ingredients like magnesium, L-theanine, melatonin, and calming herbs known for their relaxing properties. As the category evolves, we're seeing a rise in non-alcoholic "mocktails" that deliver functional benefits without the buzz, as well as increased use of adaptogenic herbs like ashwagandha and rhodiola, which help the body manage stress. In regions where it's legal, CBD-infused drinks are also gaining traction. Popular brands in this space include Dream Water, Recess, VYBES, and Calm.
6. Protein Drinks: These functional beverages typically contain protein derived from whey, casein, or plant-based sources like pea, rice, and hemp. Current trends in the protein drink market include a growing demand for plant-based protein sources, ready-to-drink formats, and the addition of functional ingredients like collagen for joint health and probiotics for gut health. Leading brands in this category include Premier Protein, Muscle Milk, and OWYN, a plant-based option.
Functional Drink Flavor Trends
Flavor preferences can vary across demographics. For example, younger consumers are more adventurous with their flavors, while older generations may prefer more traditional options. Here's what's hot right now:
Popular Flavors:
Fruity and exotic combinations (e.g., pomegranate blueberry, mango passionfruit)
Herbal and botanical infusions (e.g., lavender lemonade, ginger turmeric)
Spicy notes (e.g., jalapeño lime, pineapple habanero)
Emerging Flavor Trends:
Dessert-inspired flavors (e.g., chocolate protein shake, vanilla bean latte)
Nostalgic flavors (e.g., birthday cake, cotton candy)
Cross-cultural flavors (e.g., yuzu, matcha)
Formulating for Flavor and Function
The biggest pitfall to functional drink formulation is taste.
Functional ingredients often come with undesirable aftertastes, but it doesn’t mean people don’t want them! An expert beverage manufacturer like BevNutra balances flavor and function for a cost-effective formula that scales with demand.
Here are some beverage manufacturing strategies for that perfect balance:
Masking: Use natural or artificial sweeteners, flavor enhancers, and other ingredients to mask bitter or unpleasant tastes.
Complementary Flavors: Pair ingredients with complementary flavors that enhance the overall taste profile (e.g., combining bitter matcha with sweet vanilla).
Taste Testing: Conduct taste tests throughout the development process to gather valuable feedback and refine your recipe.
Ready To Drink Functional Beverage
In the context of functional beverages, "RTD" (ready-to-drink) simply refers to the fact that these beverages are pre-packaged and ready for immediate consumption.
This makes them appealing to consumers who want the benefits of functional ingredients without the hassle of mixing or preparing their own drinks.
Convenience is a big reason why RTD functional beverages are growing so quickly in popularity. There are a few ways to package RTD functional beverages.
The most classic are cans, bottles (glass or plastic), and cartons. Each format offers different benefits in terms of convenience, portability, and brand image.
For example, cans are lightweight and recyclable, making them popular for on-the-go consumption. Bottles, on the other hand, offer a wider range of sizes and can be resealable for multi-serving options.
There are innovative packaging options too, like pouches and Tetra Paks that offer flexibility, lightweight design, and extended shelf life without refrigeration.
Formulate a Functional Beverage
Creating a successful functional beverage requires expertise in flavor development, ingredient selection, and regulatory compliance.
At BevNutra, we offer a comprehensive suite of services to guide you through every step of the formulation process.
Are you ready to create a functional beverage that delights consumers and meets regulatory standards? Contact us for a complimentary beverage manufacturing consultation to discuss how we can help bring your vision to life.
Comments