Functional Beverages: Why Consumers Are Drinking Their Way to Wellness
Remember when health and wellness beverages took up a shelf, maybe two, in the aisle? It’s fair to say, those days are long gone! Today, there’s a functional beverage frenzy in the food and beverage industry and the U.S. is at the epicenter, with the market growing 54% since 2020. Even though functional beverages are not new in the food and beverage space, consumers’ obsession with drinking them is, and retailers and distributors are taking notice.
The functional drinks on consumers’ shopping lists are specially formulated libations made with ingredients packed with healthy benefits such as energy boosts, hydration shots, and cognitive kick-starters, to name a few. The rise of functional beverages (with 258 new product launches last year) and consumers’ ever-growing demand for drinkable wellness, has led to the rapid emergence of the “Drink Your Health” trend, highlighted in KeHE’s 2025 Macro Trends report.
So what do you need to know about the “Drink Your Health” movement and how can you benefit from consumers’ fascination with functional beverages? Read on for the details.
Who’s leading the “Drink Your Health” movement?
Younger generations are behind the latest functional beverage fad. Research shows Gen Xers, Millennials, and Gen Zers prioritize self-care and functional drinks that provide targeted benefits while seamlessly fitting into their busy lifestyles. Additionally, these groups incorporate functional drinks into their morning and workout routines. Other notable consumer groups leading the upswing in functional beverages’ popularity are exhausted parents, seeking energy-boosting functional drinks in the morning and relaxing options in the evening. General consumers are also searching for everyday alternatives to coffee or an afternoon pick-me-up. As far as genders go, a Mintel report found men’s functional beverage of choice contains added protein, omega-3 fatty acids, and cognitive support. Women prefer products containing collagen, added vitamins, and probiotics.
Why is “Drinking Your Health” trending?
Shifting consumer preferences and increasing demand for health and wellness products are driving the functional beverage surge. Not only do drinks in this category offer specific benefits consumers are looking for right now — from improved gut health to enhanced mental clarity to restful sleep — but the products are also easily consumable, on-the-go options. The “Drink Your Health” trend also aligns with other notable consumer trends happening in the market, including:
Holistic Health Approaches: Consumers are incorporating functional drinks into their overall health and wellness strategy. Not only are they looking for hydration and energy, but they also want inflammation reduction and anti-aging.
Simple Pleasures: Consumers seek clean-label ingredients and sustainable sourcing over complex flavors or numerous claims. They want straightforward options that deliver results without confusing labels.
Ingredient Transparency: Consumers want to understand the health benefits of ingredients in functional drinks. This builds trust and justifies the higher prices.
Sober-Curious Movement: Many individuals are consuming non-alcoholic functional beverages as healthier social alternatives.
Multi-Functional Benefits: Younger consumers want beverages that offer multiple benefits — like hydration combined with cognitive support or immune boosting — and focus on various health needs at the same time.
Daily Integration: Functional drinks are becoming more integrated into daily routines, with consumers enjoying them in the morning as coffee alternatives or as daily vitamin supplements.
How to meet consumers’ demands?
With the “Drink Your Health” trend here to stay, the food and beverage industry must meet market demand. This means prominently stocking functional beverages in-store and offering the varieties consumers want most.
Additionally, it’s crucial to keep a finger on the pulse of consumer micro-trends — especially in categories experiencing massive growth like functional beverages. Know what products consumers want right now and keep an eye out for the next generation hitting the market. Studies show consumers will continue to want functional beverages with an emphasis on hydration, gut health, vitamin and mineral supplements, caffeine, and cognition.
Knowing that consumers are shopping for functional beverages that pack a powerful punch, our industry is finally allocating much-coveted in-store space to the drinks that were once merchandised along the periphery in a corner. Now, functional beverages demand attention and the shelf-space of a top-selling product, because they are. If you’re not taking advantage of the “Drink Your Health” trend, you should be — because it’s here to stay, just like functional beverages.
Read the complete list of consumer shopping habits in KeHE’s 2025 Macro Trends report and visit to shop on KeHE CONNECT Retailer®.