Functional Beverages: Consumers Want Healthy Drinks That Taste Great

Consumers want drinks that DO more, so deliver functional beverages that meet evolving consumer demands for function AND flavor.

It’s a brand new day for beverages. Consumers are becoming more focused on their health and the resulting wellness trends are having a big impact on the global beverage industry. Namely, a boom in functional, or wellness-driven options.

Functional beverages are intended to promote benefits beyond basic hydration and often include ingredients like vitamins, minerals, herbs, and probiotics to promote things like focus, relaxation, or even immune and digestion support. 

According to the Innova Top Trends Survey 2025, roughly one third of consumers say health and wellness are major priorities when it comes to beverage purchases, so the popularity of such drinks makes sense.¹ The issue? Wellness means different things to different consumers and there are unique expectations across beverage formats. 

As a result, the concept of the “functional beverage” has evolved. Formats are blurring, there’s a better for you option for just about everything, and products are expected to DO more… while still tasting great. 

Ready for a functional deep dive? Learn how functional beverages can meet unique consumer demands and how brands can stake their claim with exciting flavor fusions. 

What’s Driving Consumer Demand for Functional Beverages?

People have been purchasing wellness products for years, and it’s not a leap to say the pandemic fundamentally shifted what products people shop for. A wave of health-consciousness flourished during lockdown, and its impact is still being felt today. 

From sugar free claims to ingredients advertising immune support, beverages with perceived health benefits have become more desirable than ever. As that interest has grown and evolved, consumer demands for functional beverages have become increasingly complex and ever-changing.

• Hydration Support

It may seem redundant to include “hydration” as a driver for beverage purchases, but there’s more to it than simply quenching thirst. Consumers view hydration as an accessible wellness goal and even “31% of packaged bottled water consumers are interested in boosted hydration products…”²

• Immune Support

According to a Research and Markets report, the global market for Immunity Boosting Food Products is currently valued at USD 1 trillion and is projected to reach 2 trillion by 2034. “These products include superfoods, fortified beverages, herbal supplements, probiotic-rich foods, and items containing vitamins C, D, zinc, and antioxidants - all aimed at enhancing immune function.”³

• Digestive Support

Interest in “gut health” has been growing over the last few years, and the number of beverages with prebiotics and probiotics has exploded as a result. In the SPINS 2025 report, What's New in Soda, they explain that “digestive health-focused sodas—though a small slice of the market—contributed over 30% of the dollar growth in the diet & alternative sweetened segment.”⁴

• Protein Support

Fitness and health-conscious consumers are looking for beverages that fill nutritional gaps and help them meet macronutrient goals. According to Mintel, “A significant 55% of consumers consider high protein an essential label claim, highlighting the critical role of protein in nutrition drinks.”⁵

• Weight Loss and GLP-1 Medication Support

Consumers attempting to lose weight have specific needs and preferences when it comes to food and beverages. In a recent report, IFF explains that “GLP-1 users are eating less but require more from every bite and sip. They need nutrient-dense, smaller portions that efficiently deliver protein, fiber and hydration—without overwhelming flavors.”⁶ 

• Energy Support

Consumers are looking for BFY (better for you) energy solutions without negative side effects. When Mintel asked respondents about important features in energy drinks, 46% cited vitamins and minerals, 44% said low or no sugar, 42% value hydration benefits, 41% want energy without jitters, 39% wanted extra benefits like immunity support or improved focus, and 38% viewed natural caffeine sources as healthier.⁷

• Mood Support

Elevated levels of stress and anxiety have consumers seeking beverages with mood-influencing features. Mintel explains that “From mood-boosting beverages to drinks with sleep benefits (e.g. melatonin), consumers have numerous options to tackle the pressures of daily life.” Reportedly, six in ten consumers want drinks to help them unwind and “younger consumers are interested in calming and cognitively building functional drinks.”⁸

Kash Rocheleau, CEO at Icon Foods, told Beverage Industry, “consumers are gravitating toward brands that blend functionality with transparency and taste. It's no longer just about cutting sugar – it’s about creating something they feel good about drinking every day.”

Whether consumed as a BFY replacement or in-addition to lifestyle changes, functional beverages are uniquely positioned to meet these demands in convenient formats that seamlessly fit into consumer lifestyles. 

Functional Water: Hydration Never Tasted So Good

In Mintel’s 2024 report Still and Sparkling Waters, they explain that hydration was the foundation for packaged water demand, but that “opportunities exist to explore flavors, health enhancements and sustainability to keep the category fresh.”⁹ One year later and that idea has clearly held true.

In a 2025 report, Mintel Senior Food & Drink Analyst Kelsey Girard explained that “superusers” base their packaged water purchases on several attributes like health, flavor, and brand. They found that category superusers who drink 4+ water types had specific interests and preferences:

• 45% were interested in packaged water flavored with real food ingredients.
• 41% were interested in indulgent flavors.
• 37% wanted herbal flavors.
• 29% wanted globally inspired flavors.

Whether still, mineral, or sparkling water, these beverages still need to maintain their “wellness” appeal, but flavor innovation and occasion positioning can be incredibly valuable. 

For example, Hydroboost from Essentia Water is a line of functional waters with added vitamins that comes in flavors like raspberry pomegranate, strawberry dragonfruit, and peach mango. On their website, they reference social and athletic activities before stating, “Essentia Hydroboost delivers supercharged hydration that helps you keep doing the activities you love.”¹⁰ 

While flavors like Lemonade, Passionfruit, and Kiwi are relatively established in the water space, Mintel’s Flavorscape AI identifies Guava, Limeade, and Dragonfruit as emerging flavors and Spicy, Yuzu, and Summer Berries as novel flavors.¹¹

Carbonated Soft Drinks Are POPping Off

Carbonated Soft Drinks (CSDs) are embracing BFY and functional trends while playing into the category’s innate associations with big, bold flavors. This is particularly evident in the popularity of prebiotic sodas like Olipop and poppi. 

Recently, PepsiCo acquired poppi, and CEO Ramon Laguarta explained in an interview that “More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness.”¹² They’re even launching their own Pepsi Prebiotic Cola that will be available for online purchase this fall and on retail store shelves in 2026.¹³ 

Functional sodas with added features like prebiotics, antioxidants, and/or adaptogens appeal to health-conscious consumers, while flavor innovations keep them engaged in the category and grow interest from new users. 

Paige Leyden, director of Americas food and drink at Mintel, Chicago told Beverage Industry that current flavor innovations included “novel and exotic flavors (e.g. elderflower and lychee), cultural and regional inspirations (e.g. Coca-Cola K-Wave), nostalgic flavors, and limited-time and seasonal offerings.”

Twists on familiar soda flavors can appeal to consumers who are new to functional sodas, while limited-edition releases and seasonal flavors are a great way to assess what might resonate with current and new consumers. 

Mintel’s Flavourscape AI identifies novel and emerging flavors in the CSD category that align with citrus, fruity, tropical and sweet consumer preferences.¹⁴ This includes:

• Lychee
• Elderflower
• Yuzu
• Blackberry
• Cherry (especially Black Cherry)
• Pomegranate
• Creme
• Guava
• Root Beer
• Apple
• Mango
• Grapefruit
• Watermelon
  

What’s the Tea? Reinventing RTD Tea with Bold Flavors

Mintel has noted a significant increase in RTD tea launches with functional claims.¹⁵ Within the last year, 26% of North American RTD tea launches included claims highlighting:

• stress and sleep (10%)
• antioxidants (7%)
• energy (7%)
• digestive health (6%)
• brain/nervous system support (4%) 

Additionally, “48% of tea consumers in the US say that on-pack functional claims/ingredients are more appealing than flavour.” Taste and flavor seems to be a major point of confusion in the category, though. If flavor is less important than functional claims, then reducing sugar to increase wellness associations makes sense… right? Not necessarily. 

Roger Dilworth, senior analyst at Beverage Marketing Corporation (BMC) Wintersville, Ohio, explained in an interview that “If anything, the sugar reduction trends have caused some consumers to exit the category altogether in favor of PET water, sparkling water and functional beverages.”¹⁶

So, are RTD teas separate from functional beverages? Teas can provide additional benefits outside of hydration. For example, many tea ingredients are known for providing energy (e.g. matcha and yerba mate), relaxation (e.g. chamomile and lavender), digestion (e.g. peppermint and ginger), and more. We don’t know about you, but those sound like functional ingredients to us.

The answer then could be leaning into functional ingredients AND flavor. In 2024, Paige Leyden, research manager of foodservice for Chicago-based Mintel said “Given that flavor leads food/drink choice, the category must boost its taste perception in order to compete with other beverages. Tea introductions that score highest for "tasty" promote bold flavors, sweetness, and familiar ingredient blends.”¹⁷

Functional Multitasking Masters: Energy Drinks and Sports Drinks

Whether drinking one as an afternoon pick-me-up, powering through a workout, or getting amped for social events, energy drinks and sports drinks are intended to provide a boost of energy in addition to hydration. Plus, with added functional ingredients, some energy drinks are now clearly entering the functional beverage category.

The demand for additional functionality in this category is significant with “71% of sports/energy drinks consumers in the US [saying] they wish these products had other functional benefits.”²⁰ Beverage manufacturers have clearly understood the assignment.

Brands like Protein2o offer protein hydration drinks for athletes with whey protein, electrolytes, and vitamins B5 and B6.¹⁸ In regard to their energy drinks, CELSIUS states “When combined with exercise, our formula is clinically proven to boost your metabolism and help you burn body fat” with ingredients like green tea and guarana seed extract, chromium, and vitamins B and C.¹⁹ 

From bridging nutritional gaps and aiding workout recovery to additional functional ingredients designed to support skin health (biotin, collagen, hyaluronic acid), these drinks are nailing the whole “functional” part of wellness beverages. Many consumers are even turning to energy drinks as an alcohol alternative for social events.

Mintel’s 2025 report on US Energy Drinks says “Consumers see energy drinks as an ideal mix of functionality and enjoyment. Their primary utility may be energy, but additional claims (eg, metabolism, focus) boost their profile. Flavor remains central, as energy drinks have become synonymous with flavor innovation and excitement.”²¹

Indeed, flavor innovation is non-negotiable in this category with limited-edition and seasonal flavors appealing to excitement-seeking consumers. “Brands that offer bold, exciting flavors and continuous innovation capture customer loyalty. From classic citrus to tropical and exotic blends, consumers enjoy the variety and experimentation that energy drink brands bring to the table.”

Abstrax | Formulate Functional Beverages People Want to Drink

At Abstrax, we provide novel solutions for beverage manufacturers looking to streamline, innovate, and gain a competitive edge. With our knowledge and extensive resources, we’ve crafted collections that make it easy to brew with the precise flavors and aromas your customers want.

Our Skyfarm Series is a collection of TTB-approved, shelf-stable blends with flavor that is ALWAYS consistent. These are strong, recognizable fruit flavors and aromas that are more potent than other fruit flavors or extracts. Plus, they have no added sugars, calories, or texture, they require no workflow modifications, have a 100% utilization rate, and more.

Want mood-enhancing terpene blends for your functional beverages? Our flavorless and odorless AI Terp Effects deliver specific effects based on over one million data points. This gives you a laser-focused approach to functional products with predictable, repeatable, and scalable effects.

Interested in formulating your next functional beverage with Abstrax beverage solutions? Contact us today and let’s get started.

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2. Girard, Kelsey. (2025, February 24). Still and Sparkling Waters - US - 2025. [Market Report]. Mintel. https://www.mintel.com/

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