New functional beverages that address trending demands from immunity to beauty-from-within are entering the market on a weekly basis – and there is no sign of this slowing down. It takes a closer look at exactly what is making this space so attractive for nutritional ingredients.
“Functional beverages are one of the easiest ways to get the vitamins and minerals our bodies yearn for on a daily basis. The continued rise in popularity of the functional beverage category can be attributed to their user-friendly format,” argues Ryan Coon, chief marketing officer of ShineWater, which has recently rolled out its vitamin D-rich beverages across the US.
Consumers are busier than ever, and they are interested in convenience and on-the-go usability. Daily life involves a lot of decisions, and decision-making fatigue is something very relevant among global consumers. Functional drinks offer one fewer decision consumers have to make in their day, Coon explains.
Innova Market Insights also reports that 71 percent of global consumers say that it is “important” or “very important” that they choose products that positively boost their nutrition or benefit how their body functions.
In danger of oversaturation?
According to Kerry, strong growth of almost 10 percent in functional F&B in the last year shows that people are embracing the concept of “food as medicine.” However, in the current competitive market, functional beverages must evolve and diversify to provide consumers with the benefits they seek.
“We’re keenly aware of the ‘of the moment’ trends in the functional drink market, such as CBD and extreme hydration performance beverages, but with both of these avenues comes inherent duplication and a lack of unique value offerings to the consumer,” says Coon.
He argues that standing out in the eyes of the consumer requires meeting a need in a novel way, and ShineWater fills an “obvious gap” in the market that has yet to be met by any other beverage brand. It is marketed as the only ready-to-drink (RTD) hydration beverage that offers 100 percent of the daily recommended vitamin D amount.
“The variations in these fads may come and go, but the interest in reaching optimal health is here to stay. You have only one body, and consumers have a right to demand more from F&B brands in terms of how their ingredients are contributing to a lifetime of healthy living,” Coon continues.
He also points out that with typical vitamin D-rich foods and beverages like egg yolks, cereal and milk losing popularity in US diets, introducing a beverage that solves the problem of this vital nutrient “just makes sense.”
Addressing niche markets
Kerry also observes that beyond the traditional function of hydration, functional beverages are now being called upon to help relieve stress, provide energy, improve mood, support immune health, and promote a healthy digestive tract.
“Consumers now view beverages as a customized means for supplementation through active ingredients and holistic nutrition,” the company notes.
Accordingly, individual beverage categories have gone through their own functional revolution to provide more products geared to the niche consumer. Dairy and alternative dairy milk is often fortified with additional protein.
Meanwhile, soft drinks have increased functionality while lowering sugar. Hot drinks, like coffees, teas and cocoas, add functional benefits to their intrinsic calming properties. Finally, meal replacements have expanded beyond weight management and into functionality around protein, fiber and nutrients, according to Kerry.
Targeting immunity
Immunity is also a key concern, with Kerry’s 2021 survey revealing that nearly three-quarters of global consumers say that they have made changes to their diets in the last twelve months in order to improve their immune health.
Of consumers who have looked to improve immune health, nearly half have increased their use of immune-supporting foods and beverages.
“This increased focus highlights the importance of products being compromise-free from a taste, cost and convenience perspective so that products can be easily incorporated into diets,” notes Kerry.
In this space, the company offers Wellmune, a yeast beta-glucan that can be included in beverages.
Another example of immunity beverages is Kirin’s teas, which landed Japanese claims for immune function.
Beauty-from-within picks up
Another trending positioning in functional beverages is beauty-from-within. In this space, Thailand-based QminC recently launched Manuka Honey Collagen, a RTD beverage containing 2,500 mg fish collagen tripeptide, which it says is the easiest for body absorption.
The drink also features L-glutathione, vitamins A, E, C, B3, zinc, as well as 4,200 mg manuka honey, which is marketed as having healing properties.
The beverages use nano-liposome technology and zero preservatives. They target the mass market, with a cost of ฿25 (US$0.83).
Another major theme in functional beverages is brain and mood health. Last month, FrieslandCampina Ingredients’ Biotis SleepWell concept was shown to reduce stress and provide a better night’s sleep.
Meanwhile, Eat Beyond’s CEO previously argued that mindful consumption has led to “tremendous” opportunity within functional beverages for the health and wellness category.
Functional snacks have also been popular, with nuts being an especially popular space for innovation.
