2024
9
US Functional Drinks Market Report 2024
2024-09-02T12:04:46+00:00
REPA0BEA712_3BC3_4961_B26C_D04AC46D3857
3695
175627
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Report
en_GB
The functional beverage market is gaining traction, as consumers increasingly seek drinks that offer more than just refreshment. A diverse range of consumers, from young adults to older generations, are…
US
Drinks
simple

US Functional Drinks Market Report 2024

The functional beverage market is gaining traction, as consumers increasingly seek drinks that offer more than just refreshment.

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  1. Executive Summary

    • What you need to know
    • What consumers want and why
    • Market predictions
    • Opportunities
  2. Market Dynamics

    • Market context
    • Market drivers
    • The sober-curious movement benefits functional drinks
    • Graph 1: awareness and interest in sober curious lifestyle*, 2022-23
    • Consumers carry stress and anxiety on their shoulders
    • Graph 2: mental health symptoms experienced in the past 12 months, trended, 2020-24
    • Health motivates Gen X as they age
    • Graph 3: functional benefits/claims in drinks interest, by generation X, 2023-24
    • Room to continue building familiarity with biotics
    • Graph 4: familiarity and interest in digestive health – NET, 2024
    • Consumers feel optimistic about their spending
    • Graph 5: headline CPI and shelter CPI, 2021-24
  3. Consumer Insights

    • Consumer fast facts
    • Interest and experience with functional beverage claims
    • Education can bridge the gap between interest and trial
    • Graph 6: functional drinks experience and interest, 2024
    • Mind body balance is sought out in 2024
    • Graph 7: functional benefits/claims usage, 2023-24
    • Unfaltering interest signals room to grow
    • Graph 8: functional benefits/claims in drinks interest, 2023-24
    • Function isn’t just a fad for younger generations; it’s a lifestyle
    • Graph 9: functional benefits/claims in drinks usage – NET, by generation, 2024
    • From Gen Z to Millennials, consumers want drinks that help their future
    • Graph 10: functional benefits/claims in drinks interest – NET, by generation, 2024
    • Educate to bridge generational divide in functional drink interest and usage
    • Graph 11: functional benefits/claims in drinks interest- NET, by generation, 2024
    • Graph 12: functional benefits/claims in drinks experience – NET, by generation, 2024
    • Functional drink frequency
    • Room to grow consumption, even among engaged users
    • Graph 13: functional drinks frequency, 2024
    • Functional drink ingredients consumed
    • Hydration is key for consumers, so is the education of other functional benefits
    • Graph 14: functional drink ingredients consumed, 2024
    • The more benefits, the better for younger consumers
    • Graph 15: repertoire number of functional ingredients used, by generation, 2024
    • Gen Z prefers to drink their fruits and veggies
    • Graph 16: functional drink ingredients consumed, by generation, 2024
    • Health is prioritized amidst financial struggles
    • Graph 17: functional drink ingredients consumed, by financial status, 2024
    • Attributes associated with functional drinks
    • Flavor is top of mind when it comes to functional drinks
    • Graph 18: attributes associated with functional drinks, 2024
    • Build perceptions of alternatives to alcohol across generations through relaxation
    • Graph 19: attributes associated with functional drinks, by generation, 2024
    • Education opportunities outside of cityscapes
    • Graph 20: attributes associated with functional drinks, by area, 2024
    • Functional drink occasions
    • Consumers find functional drinks suitable throughout the day
    • Graph 21: functional drink occasions, 2023-24
    • Gen X, Millennials drive the morning daypart
    • Graph 22: functional drink occasions, by generation, 2024
    • Parents are looking to balance daily tasks with functional drinks
    • Graph 23: functional drink occasions, by parental status, 2024
    • Attitudes toward functional drinks
    • Pressure is on brands to educate
    • Graph 24: attitudes toward functional drinks, 2024
    • Keep it simple for Gen Z
    • Graph 25: attitudes toward functional drinks, by generation, 2024
    • Build trust for non-parents through ingredient transparency
    • Graph 26: attitudes toward functional drinks, by parental status – Any agree, 2024
  4. Innovation and Marketing Trends

    • Launch activity and innovation
    • Calm, clarity, and beauty: key claims for NA functional drinks
    • Graph 27: NA beverage functional claims, 2019-24
    • Mushrooms moves beyond coffee & tea
    • Remedy helps consumers know their drink
    • Oat Mama promotes peace for mothers-to-be
    • Leveraging fiber and prebiotics for optimal digestive health
    • Beauty goes bubbly
    • Enhance hydration with functional features
    • OG functional bevs tea & coffee get boosted
    • Marketing and advertising
    • Adaptogenic is photogenic
    • Enhancing the tea experience with tech
    • Safety Shot: aiming to be the ultimate post-indulgence beverage
    • Opportunities
    • Binge Bar integrates functional drinks into social settings
    • Sweet dreams are made of sleepy girl mocktails
    • A moment of lululemon
    • Brands can get creative with collagen
  5. Appendix

    • Market definition
    • Consumer research methodology
    • Generations
    • Abbreviations and terms
Download Report Summary

"Flavor serves as the foundation for functional drinks, yet educating consumers about their benefits and ingredients is key to driving both interest and usage."

Kamari Davis - Research Analyst, Food & Drink

Explore what drives consumers to engage—or not—with the functional beverage market in the US with this report. What are the key market drivers? Why do consumers pass functional beverages on the shelf? Why do they pick up one and not another? Answer key industry questions and grow your insight strategy with this critical report.

US Functional Drinks Market – Current Landscape

The functional beverage market is gaining traction, as consumers increasingly seek drinks that offer more than just refreshment. A diverse range of consumers, from young adults to older generations, are turning to these beverages for specific health benefits like energy, hydration, and cognitive support, making them a staple in daily routines.

This growing interest presents a wealth of opportunities for brands to innovate with new ingredient combinations and flavor profiles that resonate with consumers’ evolving preferences. This dynamic creates a prime environment for brands to engage and educate their audience on the distinct advantages of various functional beverages.

Beyond retail shelves, the trend is expanding as consumers experiment with making their own functional drinks and want to see these options in settings like restaurants and bars. Brands that clearly communicate the benefits of their products and present them in creative, relatable ways can not only exceed consumer expectations for more knowledge on specific ingredients, but also foster loyalty.

US Functional Drinks – Market Statistics

  • Functional drinks market drivers: Consumers’ stress, anxiety, and burnout levels have increased slightly in 2024 compared to 2022, with those reporting anxiety increasing from 38% (2022) to 42% (2024). With functional drinks claims often around reducing stress and helping other wellbeing factors, there can be a sense of relief in these beverages, driving market growth.
  • Functional drinks market analysis: Adherence and interest in the sober-curious lifestyle has increased in the past two years. This growing sober-curious movement is bolstering functional drinks and is mainly driven by health motivations—an opportunity for functional beverages to position as better-for-you (BFY) alcohol alternatives.
  • Functional drinks consumer insights: Current consumption and interest revolves around immediate tangible benefits like hydration (53% drink now) and energy (39% drink now). Drinks with less known ingredients and benefits are consumed less, but there’s an opportunity to educate the benefits of more niche ingredients clearly on-pack and in messaging to engage. Consumers are most interested in claims like “anti-aging” and “cognitive enhancing” (35% interested in each).

US Functional Drinks Market Report – What’s Inside?

Key Topics Analyzed in the Report

  • Market drivers influencing functional drinks
  • Consumer interest and experience with functional beverage claims
  • Consumption and frequency between different types of functional drinks
  • Functional drink ingredients consumed
  • Benefits linked to functional drinks
  • Functional drink consumption occasions
  • Attitudes toward functional drinks

Report Scope

This Report explores consumer consumption of and attitudes and behaviors toward beverages that promise some sort of functional/health benefit beyond basic nutrition, refreshment or enjoyment, such as relaxation, energy, improved mood or improved digestion. The Report covers trends in functional drinks across categories rather than a defined functional drinks market.

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