The US functional beverage market is exploding, and while many consumers are searching for energy, gut health and hydration drinks, the market for mood drinks that promise a chill vibe and relaxation is growing rapidly.
The emerging sector presents fresh opportunities for CPG beverage brands aiming to lead in the functional drinks space.
“Generic stress claims don’t resonate universally” in the fledgling market, according to Innova Market Insights.
US consumers value routine over explicit ingredients, so reframing calm as “hydration with familiar flavors” better positions the product, Innova said.
“Products with subtle functionality and emotional appeal may also outperform those without obvious stress signals,” Innova said, citing Psilly Goose’s Silly Passionfruit Mango as an example due to its “playful branding and fruit flavors to focus on mood and aesthetics for casual consumers desiring better options.”
The relaxation drink trend is also supported by the Gen Z move away from hard beverages, but it’s largely older consumers driving market growth in the chill out drink market.
“Anxiety, sleep, energy and focus are key for Americans, but no single need dominates,” according to Innova. “Younger consumers seek mood, focus and emotional support linked to digital lives, while older consumers prioritize cognitive health, calm and sleep.”
Ashwagandha, an herbal medication used for stress relief and sleep support, dominated the functional ingredient market for euphoric beverages in 2024, up $10.8 million year over year, an increase of 151%, according to a Spins report in 2024.
Reishi mushrooms followed at $6.6 million in growth for the year (up 54.7%), magnesium at $3.9 million (up 106.8%), other mushrooms at $3.1 million (up 177.8%) and L-theanine at $2.4 million (up 95.2%).
“Consumers are looking outside of alcohol for ways to elevate their mood, enhance their mind, or achieve a temporary buzz,” Spins said.
Here are a few of the newest brands to hit the market over the past year.
Alcohol alternative Psilly Goose
Psilly Goose hit store shelves in November, marketing itself as “a new kind of social drink.”
The initial launch featured two options containing kanna, a dietary supplement ingredient, and lion’s mane mushroom – the difference is the Euphoria variety contains Delta 9 THC, which FDA considers unlawful to add to conventional foods and beverages, while the Silly variety is THC-free.
Calling the drinks a “modern alternative to alcohol,” Psilly Goose founders Stephanie Moyal and Jake Mellman aim to reimagine what it means to have a drink, the company said.
“Psilly Goose is about joy, curiosity and connection,” said Moyal. “We wanted to create a drink that helps people feel good in a way that’s lighthearted but still thoughtful – a modern alternative that fits how people actually want to socialize today.”
Melting Forest at GNC
Functional-mushroom Melting Forest strengthened its place in the relaxation drink market in May with the expansion of its functional lineup to nutritional supplement chain GNC.
The portfolio includes drinks that contain 150 milligrams of caffeine, but its D-Stress variety is caffeine-free.
“Designed to promote calm with elevated L-theanine,” the beverage lineup includes active adaptogens, such as cordyceps militaris, lion’s mane and reishi.
“Melting Forest was founded with the vision of creating a beverage brand that seamlessly blends fun, functionality and flavor,” said Sean McDonald, Melting Forest co-founder and CEO. “We identified a clear gap in the market for mushroom-based drinks that not only deliver tangible benefits – such as enhanced focus, stress relief, and sustained energy – but also offer exceptional taste and strong shelf appeal.”
Vibes take on alcohol
Another new line of functional relaxation beverages aiming to replace alcohol as the relaxation drink of choice is Fort Myers, Fla.-based Vibes, which launched in May.
“Each SKU is engineered to replace alcohol in a distinct social moment, creating occasion-based repeat consumption across an entire day,” the company said.
