Functional Beverages Surge as Science-Backed Claims, Non-Alcoholic Formats Drive Growth

The global functional beverage market is accelerating toward the $200 billion mark, driven by plant-based innovation, non-alcoholic product development and rising consumer demand for clinically substantiated health benefits ranging from gut and metabolic health to mood, energy and cognitive support, according to multiple new industry and research reports.

Market analyses project the global functional beverages category will grow from about $131 billion in 2024 to more than $174 billion by 2030, with compound annual growth rates around 4.8% to 5% across key regions, including North America.¹² Some forecasts suggest the broader functional drink space could surpass $200 billion by 2028 as brands lean on bioactive ingredients, reformulate around sugar and caffeine reduction, and roll out new concentrated formats such as shots and powders.³⁴

Health-Driven Demand Redefines “Drinks With Benefits”

Functional beverages are typically defined as non-alcoholic drinks formulated with bioactive ingredients intended to deliver health benefits beyond basic hydration, according to a recent review in the journal Trends in Food Science & Technology.⁵ These may target immune function, digestive health, metabolic regulation, cognitive performance or mood.

New consumer data suggest that preventive health is a central driver of the category’s growth, with shoppers increasingly seeking beverages that support “body, mood and mind” in a single, convenient format.⁶² A market report from Knowledge Sourcing Intelligence notes that products promising cognitive support, immune function and digestive benefits are gaining particular traction as consumers look for alternatives to traditional sugary sodas and legacy energy drinks.²

In a statement to industry outlet The Plant Base, Melanie Luangrath, senior director of new business development at DSM-Firmenich, said the functional beverage market “is on a trajectory of significant growth,” and argued that brands that “combine great taste, science-backed benefits” and credible ingredient stories are best positioned to capture share.³

Alcohol Declines, Functional Non-Alcoholic Drinks Rise

The convergence of declining alcohol consumption and growing interest in “better-for-you” drinks is another major engine of growth. A recent analysis from FoodNavigator highlights World Health Organization data showing global alcohol consumption fell by 12% between 2010 and 2022, opening space for non-alcoholic beverages that offer physiological or cognitive benefits instead of intoxication.⁷

Industry analysts say non-alcoholic “functional” options now range from mood-supporting botanical blends to gut health shots and electrolyte-based recovery beverages. These products often market claims around stress reduction, sleep support or metabolic recovery while positioning themselves as social, adult-oriented alternatives to beer, wine and spirits.

Investment is also flowing into products that intersect with drinking culture in novel ways. A Canadian company recently publicized Sure Shot, described as the first patented beverage clinically shown in human trials to accelerate the reduction of blood alcohol concentration (BAC), while also claiming benefits for energy, mental clarity and “post-drinking” recovery.⁸ The company has pitched the product as part of the broader “functional drinks” investment boom, though detailed peer-reviewed data on the clinical trial have not yet been widely disseminated.

From Energy to Mood: Reformulating Around Sugar, Caffeine and Mental Health

North America remains one of the most active markets for functional beverages, with manufacturers sharply reformulating to reduce sugar and shift away from “artificial-sounding” ingredients, according to a sector analysis by Mordor Intelligence and a U.S. market brief from Glanbia Nutritionals.⁹¹⁰

Glanbia reports that about one in four U.S. consumers say they are influenced by “natural energy” claims and are seeking energy drinks with less caffeine and sugar, often fortified with added vitamins, amino acids or plant extracts.¹⁰ This is reshaping traditional energy drink lines and opening space for products that emphasize “clean labels” and sustained, rather than rapid, stimulation.

A separate global market report from Technavio notes that weight management and mental health benefits are increasingly important purchase drivers, as consumers look for “holistic solutions” that address stress, mood and cognition alongside physical performance.¹¹ That aligns with broader public health concerns around anxiety and depression, and a surge of beverages featuring ingredients such as L‑theanine, adaptogenic herbs and nootropic compounds—areas where the scientific evidence base remains uneven, but where demand for clinical substantiation is growing.

Plant-Based and Ingredient Synergy Take Center Stage

Plant-based formulations are at the forefront of the functional beverage boom, with companies experimenting with botanical extracts, fibers, plant proteins, polyphenols and probiotics to substantiate health claims.³⁵ Analysts say ingredient synergy—where combinations of bioactives are designed to enhance efficacy or bioavailability—is emerging as a key R&D focus.¹¹

A recent industry review describes how advances in food science and processing have enabled “a plethora” of functional drinks, ranging from probiotic dairy alternatives and fiber-enriched juices to plant-protein shakes and polyphenol-rich teas and coffees.⁵ The authors emphasize that many of these products are being formulated with reference to clinical and dietetic research, though regulatory frameworks still constrain what can be claimed on labels.

New delivery formats also are proliferating. A white paper on “The Rise of Functional Beverages” highlights concentrated beverage shots, powders and customizable liquid concentrates as growth areas, citing their portability and ease of mixing with water or other bases.⁴ These formats also give manufacturers greater flexibility to dose bioactives at levels closer to those tested in clinical studies, though taste and stability remain significant barriers.

Women Lead Push for Transparency and Scientific Rigor

Women are exerting growing influence across the functional beverage landscape—as both primary consumers and as formulators steering product development—according to a recent analysis in SupplySide Functional & Beverage Journal.¹²

The publication reports that women’s health priorities, including hormone balance, bone health, iron status, pregnancy and postpartum needs, and stress management, are shaping ingredient selection and marketing narratives. At the same time, women scientists and product developers are described as driving a “more scientific approach” to formulation, demanding clinical evidence, transparent labeling and sustainable sourcing.

This shift is fueling demand for products designed to address specific life stages and conditions, while pressuring brands to provide clearer documentation of studies supporting claims such as improved sleep quality, reduced fatigue, or enhanced focus.

Market Outlook: Growth, Regulation and Evidence Gaps

Multiple forecasting firms, including Arizton, Grand View Research and Transparency Market Research, project continued steady expansion of the functional beverage and drinks sector through 2030 and beyond, propelled by innovation, aggressive marketing and an increasingly sophisticated manufacturing and co-packing ecosystem.¹¹³¹⁴

Transparency Market Research notes that North America and Europe benefit from well-developed supply chains, including specialized ingredient suppliers and private-label producers, which lower barriers for both start-ups and established companies to launch new products.¹⁴ At the same time, policy initiatives—such as dietary guidelines that discourage added sugars and public health campaigns targeting obesity and metabolic disease—are pushing manufacturers toward low- and no-sugar formulations and away from highly sweetened beverages.¹⁴⁹

Despite the optimism, researchers caution that clinical evidence does not always keep pace with marketing. The Trends in Food Science & Technology review stresses the need for more rigorous human trials, standardized outcomes and better characterization of bioactive doses in commercial products.⁵ Industry white papers similarly predict stronger emphasis on “science-first” positioning, but acknowledge that regulation of structure–function and health claims will be a critical factor shaping product narratives.⁴

Analysts say the next competitive frontier will likely hinge on which brands can pair appealing flavor profiles and convenient formats with transparent, clinically supported benefit claims—particularly in high-interest areas such as gut health, metabolic fitness, cognitive function and mood.