October 7, 2024 – Leading up to Fi North America, SupplySide West happening this October in Las Vegas, Innova takes a look at the current consumer and market trends around functional beverages in the US.
Health is Important to US Consumers
Consumer interest in health intensified during and after the COVID-19 pandemic. Additionally, age demographics and US healthcare systems under pressure have magnified consumer interest in personal health. US consumers also are better informed than ever about health. They are paying closer attention to how diet can be a tool to meet their health needs.
Recent consumer trends research by Innova Market Insights show that spending on health and wellbeing is a top priority for US consumers. Approximately 1 in 3 US consumers say they’ve taken much or a great deal of action to live more healthily in the past year, and nearly all have taken at least a little action.
Functional Beverages Deliver Healthy Nutrients
Functional beverages provide consumers with an easy, tasty, and enjoyable way to consume healthy nutrients. More than 1 in 4 US consumers in a recent consumer trends research say that they select products that boost their nutrition or benefit the functioning of their body. US consumers also overindex compared to consumers globally regarding their preference for natural ingredients. In functional beverages, these ingredients could include active botanicals.
Different Generations, Different Demands for Functional Benefits
Demands for functional health benefits differ by generation. Young adult consumers in Generation Z are interested in better sleep, healing, muscle building, and overall fitness. Millennial adults seek relaxation from their busy and hectic work and family lifestyles. Generation X consumers look for long-lasting energy, as well as gut health and digestive health. The oldest generation, Boomers, look for heart health and healthy aging.
US Leads in Sports Drinks and Functional Drinks
Compared to functional beverage launches in other countries around the world, US functional beverage launches stand out in sports drinks, iced tea, bottled waters, and carbonates. Energy and sports drinks continue to grow, as do the smaller share plant-based waters and unflavored bottled waters.
The US market is the largest in the world for functional energy and sports drinks, representing around 1 in every 3 dollars spent. The US also leads the world in per capita consumption of both energy and sports drinks. Purchases by US consumers of sports drinks, functional beverages, and functional waters lead consumer purchases of these products in other countries. US consumers tend to drink functional waters on a daily basis and sports drinks a little less often but still at least once a week.
Prebiotic fibers are performing well within functional beverage launches in the US. Use of prebiotics as value-added ingredients support a wide range of claims related to gut health, immune health and blood sugar balance.
Vitamins and Minerals are Top Functional Ingredients
Nutraceuticals and functional ingredients have shown strong growth over the past five years and penetrate over two-thirds of functional beverage launches. Nutrients that are gaining share in functional beverages include minerals, amino acids, fibers, and prebiotics. Claims regarding vitamin and mineral fortification capture the attention of US consumers of soft drinks. They also are important to US consumers of energy drinks, juices, and bottled water. Functional ingredients in energy drinks are appealing to consumers, while fiber and protein are popular in juices and smoothies. Functional ingredients and claims overall appeal to consumers of sports nutrition drinks.
What’s Next for Functional Drinks in the US?
Since the pandemic, US consumers have been increasingly concerned about immune health. Launches of functional beverages for immune health have been growing. In addition to vitamins, other ingredients such as zinc and adaptogenic botanicals offer potential for use in functional drinks with immune health claims.
Prebiotic fibers are performing well within functional beverage launches in the US. Prebiotics can support health claims around gut health, immune health, and healthy blood sugar.
Meet Innova at Fi North America, SupplySide West
Innova will be on site at stand # 1476 to share the latest consumer attitudes and behaviors around health and functional ingredients.
Discover our in-depth understanding of what’s driving the rising demand for supplements, healthy aging, mental wellbeing, and the future of biotics.
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This article is based on Innova’s Now & Next in Functional Beverages in the US report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
