Consumers are seeking more than just hydration (but this continues to be a sought-after benefit). Functional beverages are gaining popularity as people prioritize overall well-being. To understand this evolving market, we surveyed consumers in 2023 and 2024. Our findings highlight key need-states driving demand for functional beverages:
- Hydration
- Energy
- Focus & Cognition
Hydration
While hydration remains a top priority for 81% of consumers in 2024¹ (down slightly from 90% in 2023), it’s clear that consumers are increasingly seeking beverages that offer additional health benefits. As hydration becomes more routine, the focus shifts to functional benefits like boosting energy, strengthening the body, and improving heart health.
This evolving consumer mindset is driving innovation in the beverage industry. Major players like Gatorade (Hydration Booster) and Más+ by Lionel Messi introduced new products to cater to these emerging needs.
Energy
While energy remains a key concern for consumers, there’s a growing demand for functional beverages that offer more than just a caffeine jolt. Consumers are seeking natural ingredients, balanced energy delivery, and support for overall well-being.
This shift is evident in the rising popularity of energy drinks with natural ingredients and lower caffeine content. These formulations are perceived as providing a more sustainable and holistic energy boost. Even in a crowded market dominated by major brands, new and established players like Starbucks and Dunkin’ Donuts are entering the scene. Balancing taste and functionality is crucial, and our team at Imbibe is here to help you create liquid and powder beverages that resonate with consumers.
Focus & Cognition
A significant 84% of consumers are seeking beverages that enhance their mental clarity, focus, and cognitive function, up from 81% in 2023. This increase in demand is fueling the development of functional drinks infused with nootropics, adaptogens, and other brain-boosting ingredients.
Consumers are increasingly seeking ways to improve their mental performance in today’s fast-paced and demanding world. Functional beverages that offer cognitive benefits are well-positioned to capitalize on this growing trend. A recent example of this is the launch of Emotional Utility Beverages (E.U.B.) in 2024, which specifically targets mood and mind-boosting benefits.
45-minute deep dive:
Uncover consumer preferences, hot flavors & innovative formulations in our Epicurated – Lifestyle & Sports Nutrition edition. Contact marketing@imbibeinc.com for details.
Imbibe Survey Gen Pop, Functional Beverages, n=300, 9/24
