Functional drinks are one of the fastest-evolving segments in the global beverage market. According to Statista, revenue generated in supermarkets and convenience stores in the non-alcoholic drinks market surpasses $1t (€867bn) in 2026, with the rise of functional beverages a prominent trend driving this growth.
Growth categories are not in short supply, with high-protein drinks, electrolyte beverages, probiotic and prebiotic drinks, drinks with added vitamins or minerals and products marketed for focus, sleep or relaxation strongly resonating with consumers. But, consumers want to know if a drink really improve their health or is it just clever marketing.
Several trends are leading the food and beverage industry to consider whether functional beverages can deliver on their promises. Consumers’ growing interest in health and wellness is pushing brands to rapidly innovate. However, expanding regulations around health claims and scientific debate over whether claims are supported by evidence are challenging formulators.
Formulations favour functionality
Consumers’ growing calls for drinks with multifunctionality and added benefits stem from a rising consciousness of their health and wellness needs, and understanding more about the impact drinks can have on them. “It’s completely reshaping the innovation pipeline,” says Vhari Russell, founder of Food Marketing Experts.
According to EY research, wellness is now a baseline expectation among drinks consumers, influencing brands’ ingredients, nutrition and price point choices. In 2026, EY’s Consumer Beverage Survey found 97% of US consumers have taken part in health and wellness behaviours over the past two years, which are now impacting their drink preferences.
“Rather than starting with ingredients and looking for places to use them, we begin by understanding the benefits consumers are seeking,” a PepsiCo spokesperson says. That can be hydration, nutrition, digestive support, energy or recovery. “And then use science to determine how those benefits can be delivered in ways that fit naturally into everyday life,” they add.
Adopting a function-first approach helps brands focus on providing meaningful consumer benefits rather than chasing the latest ingredient trend. The importance of multifunctionality is pushing brands to build function in from the formulation stage, not bolt it on as a marketing afterthought.
Along with wanting products that do more for them, consumers also increasingly want those benefits through brands and routines they already know and enjoy. “That is creating opportunities to bring science-backed functionality into mainstream products in a way that feels accessible, relevant and enjoyable,” PepsiCo’s spokesperson adds.
Functionality supports health and wellness – is there a basis or is it baseless?
Shoppers want and actively seek drinks with added benefits, but can brands stand behind science to cut through the noise and competition, or is smart marketing their only option?
“The strongest performers are addressing everyday, unglamorous wellness needs rather than chasing miracle claims,” says Russell.
Juice shots with added functionality, made from ingredients such as ginger and turmeric, are a favourite category among shoppers. In Asia-Pacific, brands are tapping into plant-based wellness and Ayurvedic-influenced formulations. In the UK, juice shots reached £100m in value sales in May 2026, reflecting a shift towards everyday, food-first approaches to health.
Functional drink products built on a “small, convenient, targeted benefits” strategy demonstrate a more robust model than drinks built around a single trending ingredient. Formulations containing recognisable wholefood ingredients, along with promoting their efforts to support energy, digestion, immunity and general wellbeing, are particularly strong.
Understanding what various demographics want from functional beverages is vital for accurately capturing audiences. Consumers want different benefits at different times throughout the day, and brands promote functional beverages to support those goals. Some shoppers want hydration support, others are interested in muscle maintenance through protein, while others are looking for digestive wellness through fibre or prebiotics.
Science-backed claims is smart marketing
A growing body of scientific research and policy changes means the regulatory landscape is becoming stricter. “Innovation is taking place against a more demanding regulatory backdrop,” Simon Barker, partner and head of intellectual property at freeths, says.
“This is where brands need to tread carefully,” says Russell. In the European Union (EU), claims on functional foods refer to the body’s functions rather than simply the abundance of a nutrient. Therefore, they’re treated as health claims rather than nutritional claims, and health claims are prohibited unless authorised.
The European Commission regulates health claims on functional drinks, following the European Food Standards Authority’s (EFSA) scientific evaluation and assessment. A total of 44,000 health claims relating to food and drinks were submitted to the Commission and then EFSA for evaluation in 2008. Since the approved list was published in 2012, only 16 changes have been approved.
In the US, under the Food and Drug Administration’s (FDA) rule, brands must ensure health claims are backed by robust scientific evidence and avoid indicating a functional beverage product is associated with treating or reducing the risk of disease or a health condition.
The Competition and Markets Authority (CMA) – the UK’s principal consumer protection agency – now has the power to issue fines of up to 10% of a group’s global turnover for breaches of consumer law, including making misleading claims.
Brands are trying to meet consumer demands for healthier products while navigating restrictions on high-fat, salt or sugar (HFSS) products and increasingly sophisticated rules governing nutrition and health claims. “The result is a market where scientific substantiation and regulatory compliance are just as important as product development and marketing creativity,” Barker adds.
Simplicity equals success
Beyond what ingredients are in a product, increasingly, consumers want to know what those ingredients are designed to do. “The claims that resonate most are those grounded in well-understood areas such as hydration, protein, digestive wellness, and muscle health,” says PepsiCo’s spokesperson.
Functional juice shots and gut-health drinks are among those leading consumer interests, demonstrating how a small, credible, everyday format can outperform legacy categories.
Electrolyte and hydration drinks are evolving as consumers increasingly recognise their importance beyond sports performance. Premiumisation attracts new consumers by meeting their demands for convenience and control. Premium electrolyte powders are replacing traditional sports drinks as consumers seek more control over sugar content and flavour intensity while maintaining effective hydration.
Relaxation and stress-support drinks are gaining traction too, with stress-relief drinks anticipated to fuel the next functional beverage boom. The relaxation beverage category has witnessed 19% growth annually, according to Innova Market Insights, signalling it is growing at a market share seen in the gut health drinks sector.
“As workplace stress and mental health awareness increase, beverages targeting relaxation and stress relief have become a significant growth area,” said Russell. Magnesium-infused sparkling waters resonate with shoppers by combining familiar formats with functional minerals known for promoting calmness.
Drinks with claims relating to cognition and focus are also growing in appeal. Nootropic- and adaptogen-led products continue to gain shelf space as consumers seek ‘clean’ alternatives to traditional energy drinks.
The common thread in how brands convey stories is their authenticity, transparency, and simplicity. “Categories succeeding right now are the ones that translate a genuine, relatable need into a simple, honest product story, not the ones shouting the loudest about novel ingredients,” says Russell.
Continued momentum in protein and muscle health also prevails, with consumers seeking convenient ways to incorporate protein throughout the day. Digestive wellness is another important space, driven by growing consumer interest in fibre and gut health.
These benefit-centric categories address enduring consumer interests rather than emerging fads, which is a key ingredient for success. “They are also areas where scientific understanding continues to advance, creating new opportunities for innovation,” says PepsiCo’s spokesperson.
Creating confidence and credibility
Moving into the next phase of functional drinks will require manufacturers and marketers to overcome possible perceptions that beverages with added functionality are more about sales than science. Evidence-backed statements can be part of a brand’s marketing language to position and promote its products with authority.
“Transparency has to come before persuasion,” says Russell. For functional drink brands, that means being upfront about what a claim actually covers, such as showing dosages, sourcing, why an ingredient is included at the level it is. “And resisting the temptation to imply more than the evidence or the law allows,” Russell adds.
Marketing language and promotional materials that centre on well-understood and sought-after benefits are expected to resonate most. “The key is to ensure that any functional positioning is backed by a strong scientific understanding and reflects benefits that consumers can relate to and experience in their daily lives,” the spokesperson adds.
Consumers won’t accept swapping substance for smart marketing. Taste is the most decisive factor across both the US and UK markets, and it’s not a nice-to-have; it’s the baseline. “The brands earning long-term trust are the ones treating regulatory compliance not as a constraint, but as part of their credibility story,” Russell says.
To build trust, PepsiCo’s strategy involves beginning with a clear understanding of the consumer benefit they are trying to achieve. They are then looking at the biology behind that benefit and how consumers experience it in their everyday lives. Close collaboration between research and development, consumer insights and marketing from the earliest stages of development is essential.
“The industry’s opportunity is to move beyond starting with ingredients and instead focus on delivering meaningful, science-backed functionality that consumers can trust and incorporate into their everyday lives,” the spokesperson adds.
