The Sparkling Rise of Functional Beverages

Consumers want more from their drinks, and they’re looking at functional beverages as a way to reach their health and wellness goals. Here are three insights into the beverage ecosystem as we head into 2020.

Energy, gut health, and antioxidant top the functional drinks charts

There is increasing interest in beverages with ingredients that can promote, protect and recover health in specific categories. Energy, gut health, and antioxidant wellness top the charts for trending functions, driving growth of drinks that offer targeted benefits in each category. Over the next five years, the functional beverage industry is forecasted to grow at an annual rate of over 8.5%.

Consumer choices are driven by an ongoing mentality switch.

Consumer tastes are changing and becoming increasingly health-oriented; reports show that consumers prefer drinks that serve a functional purpose over fruit juices and carbonated drinks. This change in preferences reflects a larger consumer inclination toward non-alcoholic beverages and the general popularity of functional beverages that highlight hardworking health ingredients like kombucha, matcha, turmeric, etc.

Collaborations between beverages and CBD brands are a big deal.

Cross-industry brand partnerships are nothing new; F&B companies have been developing relationships with hospitality, fashion, and exercise brands (and more!) for years. However, the sustained boom of the CBD industry has produced innovative, interesting collaborations with F&B brands. It has become standard to see new, CBD infused products at the grocery store; from cold brew coffee (up 150% in social mentions this year) to tea (up 271%) to fruit water (up 191%), beverages are benefitting from the addition of the relaxation-inducing compound.

The trend is starting to capture the functional beverages market, too. New collaborations include CBD brands and functional health drinks like kombucha, that cater to consumers interested in promoting gut health from multiple angles. The CBD – Kombucha combo is up over 240% in social mentions over the past 12 months.