Functional beverage bonanza: Blurring lines between drinks and supplements

From ashwagandha to brain-boosting citicoline, functional beverages are evolving beyond energy and hydration, and offering botanical-forward approaches toward overall wellness.

During a Natural Products Expo West several years ago, a group of New Hope editors and I noticed RTD drinks punched up with ingredients such as ashwagandha, maca root, magnesium, L-theanine, turmeric and more.

We wondered: Did this nascent footsie between beverages and supplements have legs?

Fast forward to this year's Expo West, and we have an answer. Legs? The relationship has leapt from footsie to tango. Beverage brands lined the aisles, slinging samples of a wide range of good-for-you drinks.

For decades, the function of most of these drinks revolved around energy. Coffee and tea are the OG functional beverages. Electrolyte-pumped Gatorade leapt into the beverage pool in 1965, and addressed athletes—chug this, and your performance and recovery might improve. About 30 years later, in 1996, Vitamin Water made quite a splash when it swan dived into the functional drink waters, with promises of vitamin-enhanced health with every sip.

Innovation happened during the ensuing two decades. Gut-friendly kombucha's profile rose, for one thing. But most advances on the ready-to-drink front revolved around flavor, rather than function.

Today's functional beverage sector roams far from the old-school provinces of energy, electrolytes and jolts of Vitamin C. Labels broadcast drinks' versatility with everything from promoting serenity to fortifying sleep, boosting stamina, mitigating stress and enhancing social lubrication.

A notable movement within the beverage sector has been the emergence of ready-to-drink nonalcoholic elixirs. Up until a few years ago, most NA drinks referred to their boozy cousins: they were IPAs, Chardonnays and mojitos without the hooch. But that positioning has shifted.

Today, many NA brands tout their effects—how sipping the cold can of carbonated liquid might improve moods and spark conviviality. I think functional and NA beverages are merging, providing further momentum for the proliferation of supplement-style beverages.

The numbers tell a compelling story. The global functional beverages market is projected to surge from $204.8 billion in 2022 to $353.4 billion by 2030, reflecting a robust 7.1% compound annual growth rate, according to Grand View Research.

That pre-Covid, Expo-inspired hint at a budding beverage trend hasn't lost its fizz. About half a decade later, it's wildly effervescent.

"Today's consumer isn't grabbing whatever's cold," says Emily Sommariva, chief marketing officer at functional beverage brand LIFEAID. "They're intentionally shopping, researching, reading labels, counting macros and choosing beverages the same way they choose supplements: with intention and knowledge."

"She added: "Categories once confined to pills and powders have gone RTD, and fast. We've always believed your drink should do something. Recovery, focus, immunity—whatever the benefit, we formulate backwards from real need states and use clinically backed ingredients to get there."

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