Sleep and Relaxation Drinks Market Forecasts to 2032 – Global Analysis By Product Type (Herbal Sleep Aids, Relaxation Drinks, Functional Beverages, Melatonin-Based Drinks, Adaptogenic Blends and Other Product Types), Type, Ingredient Type, Consumer Type,

According to Stratistics MRC, the Global Sleep and Relaxation Drinks Market is accounted for $4.4 billion in 2025 and is expected to reach $5.8 billion by 2032 growing at a CAGR of 4.1% during the forecast period. Sleep and relaxation drinks are functional beverages formulated to promote calmness, reduce stress, and support restful sleep. Typically infused with natural ingredients such as melatonin, L-theanine, chamomile, valerian root, or magnesium, these drinks help regulate circadian rhythms and ease mental tension. They are often marketed as non-caffeinated, low-sugar options suitable for evening consumption. Designed for wellness-conscious consumers, sleep drinks offer a convenient alternative to supplements, aligning with growing demand for holistic, non-pharmaceutical solutions to improve sleep quality and relaxation.

Market Dynamics:

Driver:

Increasing mental health awareness and sleep disorders

Sleep and relaxation drinks offer a convenient, natural alternative to prescription medications, aligning with the growing preference for wellness-oriented lifestyles. The market is benefiting from increased consumer education, social media advocacy, and integration of calming ingredients such as melatonin, L-theanine, and chamomile. Additionally, the rise in remote work and digital fatigue has amplified demand for functional beverages that support rest and recovery. This shift is particularly evident among millennials and Gen Z, who prioritize mental well-being and holistic health.

Restraint:

Lack of standardized efficacy data and regulatory approvals

Many formulations rely on botanical extracts and adaptogens that lack universally accepted dosage guidelines, making efficacy claims difficult to substantiate. Regulatory ambiguity across regions where products may be classified as supplements, beverages, or functional foods complicates labeling, marketing, and distribution. This lack of harmonization can hinder international expansion and reduce consumer trust. Moreover, manufacturers must navigate complex approval processes to ensure compliance with food safety and health claims regulations.

Opportunity:

Ready-to-drink (RTD) formulations with enhanced bioavailability and flavor profiles

Innovations in emulsification and nanoencapsulation technologies are improving bioavailability of sleep-inducing compounds, enhancing product efficacy. Flavor optimization using natural sweeteners, fruit infusions, and herbal blends is attracting health-conscious consumers who seek enjoyable wellness experiences. RTD formats also enable precise dosing and consistent quality, making them ideal for retail and e-commerce channels. Brands are leveraging this opportunity to launch premium SKUs and expand into travel, hospitality, and fitness sectors.

Threat:

Misinformation and overpromising

Some brands promote sleep drinks as cure-alls for complex disorders without sufficient scientific backing, risking backlash and reputational damage. Social media amplification of anecdotal benefits may distort public perception, leading to unrealistic expectations. Inaccurate labeling, undisclosed ingredient interactions, and lack of transparency further contribute to consumer hesitancy. Regulatory bodies are increasingly monitoring functional beverage claims, and non-compliant brands may face penalties or product recalls.

Covid-19 Impact:

The COVID-19 pandemic reshaped consumer behavior, accelerating demand for wellness products that support immunity, stress relief, and sleep hygiene. Lockdowns and remote work heightened anxiety and disrupted sleep patterns, prompting individuals to explore natural remedies. Sleep and relaxation drinks gained traction as part of self-care routines, especially among urban populations. However, supply chain disruptions and ingredient shortages temporarily affected production and distribution.

The melatonin-based drinks segment is expected to be the largest during the forecast period

The melatonin-based drinks segment is expected to account for the largest market share during the forecast period owing to their clinically supported role in regulating sleep-wake cycles and improving sleep onset. These formulations are widely accepted across age groups and are often fortified with synergistic ingredients such as valerian root, magnesium, and L-theanine to enhance relaxation and reduce anxiety. The segment benefits from growing consumer preference for natural sleep aids over synthetic pharmaceuticals, especially in wellness-conscious demographics.

The powdered mixes and drink sticks segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the powdered mixes and drink sticks segment is predicted to witness the highest growth rate driven by their convenience, extended shelf life, and adaptability to personalized wellness routines. These formats are particularly popular among frequent travelers, fitness enthusiasts, and digital consumers who value portability and ease of use. The ability to customize dosage and flavor profiles adds to their appeal, especially in subscription-based and direct-to-consumer models. Technological advancements in solubility and nutrient preservation are enabling manufacturers to deliver potent formulations in compact packaging.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share attributed to rising disposable incomes, rapid urbanization, and a strong cultural inclination toward herbal and traditional remedies. Countries such as China, Japan, South Korea, and India are witnessing increased demand for functional beverages that promote sleep and stress relief, driven by hectic lifestyles and growing mental health awareness. Local players are actively launching sleep drinks infused with native herbs like ashwagandha, jujube, and ginseng, while international brands are expanding through strategic partnerships and tailored formulations.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR fueled by a combination of high insomnia prevalence, strong wellness trends, and a mature retail ecosystem that supports rapid product adoption. Consumers in the U.S. and Canada are increasingly turning to functional beverages as part of their daily self-care routines, with sleep and relaxation drinks gaining traction in both mainstream and niche segments. The region’s regulatory transparency and emphasis on clean-label products enable brands to make substantiated claims and build consumer trust.

Key players in the market

Some of the key players in Sleep and Relaxation Drinks Market include PepsiCo, The Coca-Cola Company, New Age, Inc., Dream Water, Som Sleep, NeuroBrands, LLC, Tranquini GmbH, Kin Euphorics, Boisson Slow Cow, Inc., iChill Beverages, Inc., Liquid I.V., Celestial Seasonings, Yogi Products, Natural Calm, Hiyo, Ghia, Cove Water Co., Afterwork Sleep Drinks, and Chillbev.

Key Developments:

In August 2025, Dream Water launched 6-count sleep gummies in Saudi Arabia and GCC markets. The expansion targets airports, pharmacies, and e-commerce channels with wellness-focused SKUs.

In August 2025, Coca-Cola partnered with Universal and Blumhouse to launch a horror-themed Fanta campaign. This global collaboration merges beverage branding with pop culture storytelling.

In March 2025, PepsiCo acquired Poppi, a prebiotic soda brand, for $1.95B to expand its better-for-you beverage portfolio. The deal includes performance-based earnouts and tax benefits, aligning with PepsiCo’s wellness strategy.

Product Types Covered:
• Herbal Sleep Aids
• Relaxation Drinks
• Functional Beverages
• Melatonin-Based Drinks
• Adaptogenic Blends
• Other Product Types

Types Covered:
• Ready-to-Drink (RTD) Beverages
• Powdered Mixes and Drink Sticks
• Concentrates & Shots
• Carbonated vs. Non-Carbonated Variants
• Other Types

Ingredient Types Covered:
• Melatonin
• Botanicals & Adaptogens
• Magnesium
• Amino Acids
• Multi-Ingredient Blends
• Other Ingredient Types

Consumer Types Covered:
• Adults
• Seniors
• Children

Distribution Channels Covered:
• Supermarkets/Hypermarkets
• Convenience Stores
• Health & Wellness Stores/Pharmacies
• Specialty Stores
• Other Distribution Channels

Applications Covered:
• Sleep Aid/Insomnia
• Stress Relief
• Anxiety
• Cognitive/Focus Enhancement
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements Show more