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Functional Beverages: Market Trends and Opportunities, 3rd Edition

Publisher Packaged Facts
Published Sep 19, 2025
Length 125 Pages
SKU # LA20411465

Description

This report examines the $66.3 billion US retail market for functional beverages designed and marketed to provide small, practical upgrades to health or everyday life. Consumer demographics, perceptions, motivations, and behavior are examined as pertaining to beverage choices and consumption of functional beverage alternatives. Retail sales of functional beverages in the scope of this report are segmented by type (energy and sports drinks, functional carbonated drinks, functional coffees and teas, functional dairy and dairy alternative beverages, functional juices, functional waters, nutritional shakes, protein drinks, and meal replacements, and other functional beverages) from 2019 through 2024 and forecast from 2025 through 2029 and 2034. The reasons for and implications of shifts in consumer perception and behavior are analyzed in the context of future market opportunities. Major topics including the “sober curious” movement, attitudes about healthy foods and beverages, use of GLP-1 medications, interest in various types of ingredients or nutrients or health outcomes, with particular focus on growth opportunities for functional beverages.

The report has dozens of tables showcasing numerical survey data on consumer demographics and psychographics. This report goes in-depth on historical trends that have affected the food and beverage market.

Report Scope

Functional beverages are segmented by the following product categories:

Energy and Sports Drinks
  • Functional Carbonated Drinks
  • Functional Coffees and Teas
  • Functional Dairy and Dairy Alternative Beverages
  • Functional Juices
  • Functional Waters
  • Nutritional Shakes, Protein Drinks, and Meal Replacements
  • Other Functional Beverages
Sales include both ready-to-drink (RTD) versions that are bottled or canned and beverage powders/liquid beverage enhancers. This report also includes functional dry coffee and tea that are brewed with water to become functional beverages.

Table of Contents

125 Pages
CHAPTER 1: EXECUTIVE SUMMARY
WHAT FUNCTIONAL BEVERAGES PROMISE
OPPORTUNITIES AMONG HIGH-ENGAGEMENT SHOPPERS
DISCOVERY, INFLUENCE, & CHANNELS
LIFE STAGE & DEMOGRAPHIC DRIVERS
KEY ATTITUDINAL LENSE THAT ACCELERATE ADOPTION
NEEDS BY DAYPARTS AND WHAT CONVERTS CUSTOMERS
OPPORTUNITIES SUMMARY
SCOPE
CHAPTER 2: RECENT HISTORICAL TRENDS
HIGHLIGHTS
RISING PRICES: FROM SUPPLY CHAIN CRUNCHES TO INFLATION
Many Consumers Are Concerned about Inflation and Rising Food Prices
Table 2-1. Consumer Concerns about Rising Food Prices, 2023 – 2025 (% of consumers)
Table 2-2. Month-to-Month Changes in Consumer Price Index (CPI) for All Food Items, 2022 – 2025 (percent change)
Tariffs to Further Inflate US Food and Beverage Prices
Rising Prices Impact Consumer Behavior
Cutting Back on Household Expenses
Table 2-3. Consumer Spending on “Extras”, 2023 – 2025 (percent of consumers)
CHAPTER 3: OVERVIEW AND MARKET TRENDS
HIGHLIGHTS
GLP-1 MEDICATIONS
Figure 3-1. Use of and Feelings Regarding GLP-1 or Other Weight Loss Drugs, 2025
Figure 3-2. GLP-1 Use & Interest by Selected Age Groups, 2025
NON-ALCOHOLIC ALTERNATIVES TO ALCOHOLIC BEVERAGES
The “Sober Curious” Movement: A Catalyst for Change
Figure 3-3. Familiarity with the Term “Sober Curious”, 2024 (percent of consumers)
Figure 3-4. Considering Self to Be “Sober Curious”, 2024 (percent of consumers familiar with the term “sober curious”)
Figure 3-5. Participation in Dry January, 2024 (percent of consumers)
INCREASING LEGALIZATION AND SOCIAL ACCEPTANCE OF CANNABIS
Functional Beverages: Market Trends and Opportunities, 3rd Edition
ii September 2025 © Packaged Facts
HEALTHY CONSUMPTION
Figure 3-6. Priority of Selected Food Characteristics, 2025 (percent of consumers)
Healthy Food
Reduced or Zero Sugar
Avoiding or Limiting Sugar Intake
Figure 3-7. Avoiding or Limiting Sugars, 2024 (percent of consumers)
Table 3-1. Consumers Who Follow a Low-Sugar Diet by Gender, Age Group, Generations, Presence of Minor Children at Home, 2025 (percent of consumers)
Reasons for Avoiding or Limiting Sugar Intake
Figure 3-8. Reasons for Avoiding or Limiting Sugars, 2024 (percent of consumers)
Sugar Continues to Be Preferred Over Low/No-Calorie Sweeteners
Figure 3-9. Preferences for Sweeteners, 2024 (percent of consumers)
Processed Foods
Figure 3-10. Consideration of Processed Foods, 2024 (percent of consumers)
Figure 3-11. Familiarity With Ultra-Processed Food 2024 (percent of consumers)
MAHA’S Fight Against Ultra-Processed Foods
PERSONAL FEELINGS OF WELLBEING: ENERGY LEVELS, FOCUS, STRESS, ANXIETY
Figure 3-12. Rating Energy Levels Compared to Their “Normal” or Preferred Levels, 2025 (percent of consumers)
Figure 3-13. Rating Focus Levels Compared to Their “Normal” or Preferred Levels, 2025 (percent of consumers)
Figure 3-14. Rating Stress Levels Compared to Their “Normal” or Preferred Levels, 2025 (percent of consumers)
Figure 3-15. Rating Anxiety Levels Compared to Their “Normal” or Preferred Levels, 2025 (percent of consumers)
NUTRIENTS, INGREDIENTS, AND DESIRED HEALTH BENEFITS SOUGHT BY CONSUMERS
Table 3-2. Preferences for Functional Food and Beverage Ingredients, 2025 (percent of consumers)
MINDFUL AND INTUITIVE EATING
PLANT-BASED AND PLANT-FORWARD TRENDS
Definitions
Vegan
Vegetarian
Pescatarian
Flexitarian
Omnivore
Plant-Based Dairy Products
Plant-Based Eating and Sustainability Are Buzzwords Important to the General Public
Figure 3-16 Magazine Covers Reflect the Issues of Importance to General Consumers
Consumers With Plant-Forward Preferences
Table 3-3. Plant-Based Eating by Gender, Age Group, Presence of Children at Home, 2025 (percent of consumers)
Functional Beverages: Market Trends and Opportunities, 3rd Edition
September 2025 © Packaged Facts iii
OTHER SPECIAL EATING RESTRICTIONS OR PREFERENCES
Table 3-4. Special Diets Followed by Consumers, 2025 (percent of consumers)
FOOD & BEVERAGES AS A PATH TO HEALTH & WELLNESS
Figure 3-17. “Food & Beverages Can Function as ‘Medicine’, Preventing Poor Health or Improving Health” by Generation & Use of GLP-1s, 2025 (percent of consumers)
Figure 3-18. “Food & Beverage Choices Are a Path to Overall Health & Wellness” by Generation & Use of GLP-1s, 2025 (percent of consumers)
INTEREST IN VITAMINS OR OTHER SUPPLEMENTS
Figure 3-19. “I Take Vitamins or Supplements to Boost My Health” by Generation & Use of GLP-1s, 2025 (percent of consumers)
CHAPTER 4: MARKET SIZE AND FORECAST
HIGHLIGHTS
FUNCTIONAL BEVERAGE SALES
Sales by Product Category
Table 4-1. Functional Beverage Retail Sales by Product Category, 2019-2024 (million dollars)
Table 4-2. Functional Beverage Retail Sales by Product Category, 2024, 2025E, 2026P-2029P (million dollars)
KEY OPPORTUNITIES AND INNOVATIONS BY BEVERAGE CATEGORY
Functional Sodas
Prebiotic
Healthier-For-You
Functional Sports and Energy Drinks
Instant Mixes
Protein
Rapid Hydration
Functional Waters
Sober Curious
CBD-Infused
Functional Dairy and Dairy Alternatives
Better Dairy
Better Plant-Based
Protein
Functional Coffees
Functional Teas
CHAPTER 5: CONSUMER DEMOGRAPHICS
HIGHLIGHTS
PURPOSEFULLY SEEKING OUT FUNCTIONAL BEVERAGES, AND WILLINGNESS TO PAY MORE FOR THEM
Table 5-1. Consumers Opinions on Functional Beverages, 2025 (percent of consumers)
Functional Beverages: Market Trends and Opportunities, 3rd Edition
iv September 2025 © Packaged Facts
TRENDS BY GENDER
Table 5-2. Seeking Out and Willingness to Pay More for Functional Beverages by Gender, 2025 (percent of consumers)
TRENDS BY GENERATIONS
Table 5-3. Seeking Out and Willingness to Pay More for Functional Beverages by Age Bracket, 2025 (percent of consumers)
PATTERNS BASED ON HOUSEHOLD INCOME
Table 5-4. Seeking Out and Willingness to Pay More for Functional Beverages by Household Income Bracket, 2025 (percent of consumers)
REGIONAL DIFFERENCES
Table 5-5. Seeking Out and Willingness to Pay More for Functional Beverages by US Region, 2025 (percent of consumers)
URBAN, SUBURBAN, AND RURAL CONSUMERS
Table 5-6. Seeking Out and Willingness to Pay More for Functional Beverages by Urban, Suburban, or Rural Living, 2025 (percent of consumers)
PRESENCE OF CHILDREN IN THE HOUSEHOLD
Table 5-7. Seeking Out and Willingness to Pay More for Functional Beverages by Presence of Children in HH, 2025 (percent of consumers)
GLP-1 MEDICATIONS
Table 5-8. Seeking Out and Willingness to Pay More for Functional Beverages by Use of GLP-1 Medications, 2025 (percent of consumers)
Table 5-9. Seeking Out and Willingness to Pay More for Functional Beverages by Adherence to a Clean Label Diet, 2025 (percent of consumers)
CHAPTER 6: CONSUMER PSYCHOGRAPHICS
HIGHLIGHTS
PERCEPTIONS ABOUT HEALTH AND NUTRITION
Concerns About Health Can Be Addressed by Functional Foods and Beverages
Table 6-1 Health Concerns That Can Be Addressed by Functional Beverages, 2025 (percent of consumers)
Nutrition and Healthy Foods
Table 6-2. Opinions about Healthy Foods and Nutrition, 2025 (percent of consumers who agree)
Vitamins/Supplements and Alternative Medicine
Table 6-3. Opinions about Alternative Medicine and Vitamins/Supplements, 2025 (percent of consumers who agree)
INFLUENCES ON FOOD/BEVERAGE CONSUMPTION OR SHOPPING CHOICES
Table 6-4. Influences on Consumer Food/Beverage Consumption or Shopping Choices, 2025 (percent of consumers who agree)

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