September 10, 2024 – Functional beverage trends in the United States are driven by global macro level influences, trends in different categories, and food and beverage trends relevant to specific types of products. Also, consumer trends affect functional beverages trends.
Functional Beverages Offer Health Benefits
Functional beverages are drinks that provide hydration plus other health benefits. Key categories with functional beverages are sports nutrition drinks, dairy and dairy alternative drinks, and soft drinks. Functional sports nutrition drinks include ready-to-drink sports beverages that are designed for athletes. RTD sports beverages help replace water, electrolytes, and energy for training and competitions. Ready-to-drink sports protein drinks are functional beverages with high levels of protein. Functional dairy beverages include dairy alternative drinks such as soy milk, oat milk, and almond milk, drinking yogurt, fermented dairy drinks like buttermilk and kefir, flavored milk, and unflavored milk. Functional soft drinks encompass flavored and unflavored bottled water, carbonates, drink concentrates and mixes, energy drinks, fruit flavored drinks, iced coffee and tea, juices, and nectars.
US Consumers Focus on Healthy Living
American consumers focus on health strategies for healthy living. They are looking for new tools to manage their own health since the expanding and aging population in the US is putting pressure on the healthcare system. Solid numbers of US consumers in recent consumer trends research focus on positive nutrition and also limit unhealthy foods as their approach to healthy eating. However, only a minority of US consumers are willing to pay more for functional benefits.
Consumers in the US Seek Health Benefits
US consumers are interested in a range of health benefits, including hydration, sleep, and gut and digestive health. They report purchasing products for these benefits. Consumers in the US also seek products with health benefits for relaxation and mental focus.
US generations differ in desired health benefits. Generation Z consumers in the US are especially interested in fitness and building muscle. Relaxation is important to Millennials. Boomers are especially interested in functional benefits such as heart health and healthy aging.
Energy Drinks are Popular Functional Beverages
Looking at purchasing of functional beverage trends, US consumers purchase the most energy drinks, followed by sports drinks and then functional waters. Vitamin and mineral fortification is an important claim in energy drinks, juices, and bottled waters.
US Strength in Functional Beverages
In the US, the retail sales value of energy drinks is higher than for sports nutrition drinks but sports drinks top energy drinks in volume sales. Functional beverage trends research shows that globally, close to half the energy drinks and sports drinks are sold in the US. Also, the US is the #1 country for per capita consumption of energy drinks and sports drinks. Functional beverage trends in the US help drive functional beverage trends globally.
Manufacturers of functional beverages in the US include large global soft drinks companies, dairy companies, and specialty companies. The largest companies account for a small percentage of functional beverage launches.
Sports Drinks as a Rising Functional Beverage Trend
Launches of sports drinks in the US are on the rise, although overall launches of functional beverages are somewhat down over the past five years. Sports drinks account for about two-thirds of functional beverage launches in the US, while functional dairy drinks and sport drinks each make up about one in five launches.
Compared to global functional beverage trends, functional drinks in the US are more likely to be sports drinks and less likely to be functional dairy beverages. Innovation is most active in energy drinks. Flavored bottled water and carbonates are more prevalent in the US than in other areas of the world. Functional beverages for adults are growing while categories for children are slowing.
Energy or Alertness is a Top Claim
Energy and alertness is the top health claim in US functional beverages, along with antioxidant, high in/source of protein, and immune health. Energy claims and immunity claims both are growing strongly in the US. Smaller, niche claims that are growing include brain health, prebiotic, skin health, bone health, and heart health. Compared to global functional beverages, US functional beverages also stand out for the prominence of energy claims, antioxidant claims, immunity claims, and brain health claims. Also watch for claims regarding sugar reduction and plant-based.
Ingredients for Immunity and Brain Health
Use of the minerals zinc and magnesium in US functional beverages is growing because of their respective roles in immunity and brain health through mood support. The quest for brain health in the US also supports growth of functional ingredients such as L-theanine and the adaptogens lion’s mane mushroom and ashwagandha. Prebiotics are growing in functional carbonates.
Fruit Flavors are Popular
Strawberry is the most popular flavor in functional beverages in the US. Other growing fruit flavors include orange, lemonade, berry, black cherry, and dragon fruit. Limited edition and seasonal functional beverage launches often feature new flavors.
What’s Next in US Functional Beverages Trends?
Watch for continued growth in functional drinks for energy and hydration. US consumers are likely to continue being interested in natural ingredients with benefits. Prebiotic sodas will improve the health profile of carbonates. Ingredients for brain health and mood support are expected to stay strong.
This article is based on our report, “Now & Next in Functional Beverages in the US .” If you are interested in reading this report, feel free to request a demo.
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