Consumers of all ages are increasingly looking for drinks that offer specific health benefits such as energy, hydration and cognitive support, rather than simply refreshment.
A healthy lifestyle is driving demand for functional
Consumers across all generations are exploring beverages with functional claims but a high usage among Gen Z and Millennials shows a generational preference for beverages with targeted health and wellness benefits. Even in their youth, Gen Z and Millennials are keen to invest in their long-term health. They tend to look for drinks that not only provide hydration and energy boost, but also immune support and cognitive enhancement. Younger consumers are also interested in calming functional drinks as they look to manage stress and maintain emotional and mental wellbeing. Gen X consumers are focusing on extending their health span which is driving them to make healthier food and drink decisions to improve their overall life outcomes.
Consumers prioritise digestive health in functional beverages, making it the third most important claim in 2024. To capitalise on this trend, brands are enriching their products with fibre and prebiotics for improved gut health. In the last three months, 31% of consumers have tried prebiotic drinks, and 26% have consumed fibrous beverages.
Over half of functional drink users consume them in the morning as a potential breakfast booster. With uptake of more traditional breakfast staples like juice and milk falling, highlighting the benefits of drinks with anti-inflammatory properties for joint health and cognitive supplements for improved mental clarity can make these drinks more appealing. Functional drinks can be positioned as a suitable replacement for traditional options like morning tea or coffee, or to supplement daily vitamins. Gen Z, more so than other generations, find functional drinks suitable for all-day consumption, reflecting the growth of the functional beverage market for afternoon pick-me-ups and evening wind-downs.
Function is important, but flavour continues to be key
While functionality in drinks is becoming more popular, consumer appeal ultimately depends on taste. A Mintel report found that flavour is one of the top attributes (41%) associated with functional beverages, ranking higher than the health benefits these drinks actually offer. Introducing multiple benefits in a single beverage adds consumer appeal, but only when accompanied by palatable flavours.
While consumers prioritise effectiveness and relaxation, their demand for a pleasurable taste experience means that brands must fulfil their functional promises but also enhance sensory appeal. Gen Z consumers are more likely to drink functional beverages with characteristics found in food, indicating a preference for sippable convenience on-the-go to get their daily intake. This goes beyond adding fruits or vegetables to drinks, as beverages with added protein and other nutritional components found in produce also interest them.
The rise of functional social drinking
Functional drinks at bars and restaurants will become a staple in social settings as the sober curious movement grows, and 60% of consumers want to see functional drinks featured more prominently. As consumers seek healthier alternatives, there is a growing demand for non-alcoholic beverages, on the basis of both health and taste. To capitalise on this shift, brands can emulate the flavour profiles of alcoholic options, such as hops or botanicals.
The Sleepy Girl Mocktail is a home-made beverage that has gained popularity and gone viral on TikTok as a helpful sleep aid. It blends tart cherry juice, known for its natural melatonin content, with sparkling water or prebiotic soda and magnesium powder.
Pressure is on brands to educate
Consumers want more than just a general functional claim on beverages: 75% want brands to educate them about the benefits of the ingredients in functional drinks. Therefore accessible education (such as on pack or online) about the ingredients will help build habitual consumption. By clarifying the science behind their ingredients, brands can build trust, differentiate themselves and justify premium positioning.