Consumer interest in beverages that “do more,” and willingness to pay upward of $8 to $10 to try a single serve functional drink means companies can test novel concepts and ingredients while preserving margins and educating early adopters about new usage occasions.
This has fueled an explosion of options – from plant-based waters and drinkable grains to next-generation energy drinks and new tea and coffee options. Likewise, platforms have proliferated with powders, tablets, concentrates and other options rising alongside ready-to-drink products.
Yet, for all the excitement, the big question is which of these innovations are fleeting fads and which signal significant and lasting change that can cross categories.
In this month’s special edition, FoodNavigator-USA explores how beverage brands are redefining what ‘healthy’ means and how best to deliver it.
For example, the energy drink market is expanding its appeal beyond its male-dominated core consumer base to reach more women and natural consumers, as in the case of Celsius as it enters a new era with Rockstar and Alani Nu.
At the same time, instant coffee is shaking off its bad reputation to appeal to Gen Z and Millennials who are drawn to the format for its convenience and lower price point compared to more expensive ground and whole bean alternatives.
One of the hottest claims within functional beverage is hydration – within which, startup Plink! is increasing usage occasions by offering a fizzing tablet with bold flavors and lower levels of electrolytes that can be consumed everyday by everyone, unlike legacy brands that focus on sports and recovery.
Flavor also is emerging as a change driver in the children’s beverage set where brands are responding to consumer demand for cleaner labels, less sugar and age-appropriate functional benefits. Likewise, new flavor and format developments by Lipton fill the needs of consumers taking GLP-1 drugs for weight management as well as those seeking stress management support.
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Healthy beverage trends: from mood management and permissible indulgence to functional wellness
The future of functional food is female: Startup The Cycle taps into huge whitespace with PMS and period relief beverages – Targeting the growing demand for functional products designed by and for women, the startup blends clinical science, tradition and taste to normalize self-care during menstruation
Kids’ beverages are becoming simpler, cleaner and more flavor-focused – Brands like Oodles of Doodles and Stonyfield Organic show how the kids’ beverage category is evolving toward simpler ingredients, functional benefits and age-appropriate formats
What’s the buzz around instant coffee? – Gen Z and Millennials are embracing the low-cost counterpart to ground and whole bean coffee
Celsius enters a new era with Rockstar, Alani Nu acquisitions – New flavors, female-forward brands power energy drink company reboot
Third wave hydration: Plink! sparks shift toward flavor-first daily wellness – By putting consumer enjoyment ahead of its sustainability mission, the fizzy electrolyte tablet brand has ushered in an area of daily hydration and in doing so double its velocity, expanded distribution and outpaced legacy competitors in natural grocery stores
Lipton leans into function and flavor with new herbal teas and concentrates – Lipton is expanding into concentrates and herbal teas to meet growing demand for flavorful, functional and convenient tea formats, while keeping pace with trends like GPL-1 wellness and stress management
