It started with the quiet rise of immunity-boosting and added-vitamin claims – a response to lingering health anxieties in the wake of the pandemic. Half a decade on and functionality has become the default way of communicating value, particularly to consumers looking to mirror the aspirational lifestyles of their favorite influencers.
With the trend showing no signs of slowing, here's a look at where it’s heading.
Hydration: Energy drinks are no longer just about a pure caffeine hit; they’re being reimagined as comprehensive hydration solutions, reflecting a shift in consumer expectations. In fact, 91%of U.S. energy drink consumers now say they’re seeking hydration benefits from these products (Mintel, 2024). One of the most prominent examples of the growing demand for hydration solutions is Unilever-owned Liquid I.V., which has quadrupled in size since 2020. Celebrity backing is also helping push the trend mainstream. Unwell, a new functional water brand by podcast host Alex Cooper, combines electrolytes, B-complex vitamins and 75mg of green coffee extract for a natural caffeine boost.
Mindfulness: The rise of the 'sober curious' movement, particularly among Gen Z, has led to more consumers choosing to reduce or moderate their alcohol intake. In response, drinks featuring botanicals, adaptogens, and nootropics are gaining traction. Brands such as Ghia, Kin Euphorics, and Juni are leading the charge with low-sugar, high-flavor, and function-forward alternatives. These non-alcoholic beverages are designed to deliver some of the desirable effects of alcohol – relaxation and social ease – without the associated downsides, making them a compelling choice for a more mindful generation of drinkers.
Protein: Protein’s vertiginous ascent continues. Once confined to core food categories, it is now making significant inroads in beverages, supporting consumers looking to optimize all aspects of their diet. The trend is gaining traction across both foodservice and retail. Dunkin’ recently launched Strong Brew, a vanilla iced coffee with 20g of protein, while Slate’s RTD protein coffee range grew a whopping 360% between 2022 and 2024, demonstrating the proof is, quite literally, in the protein.
Health tech: Despite a renewed focus on health, consumers still enjoy products that help them feel as if they’re indulging in their favorite treats. Thanks to recent advances in research and technology, they no longer have to choose between taste and functionality.
Functionality is no longer a bonus, it’s an expectation. From hydration and protein to nootropic-infused sips that support focus and calm, today’s beverage consumers are increasingly looking for products that do more. For brands, the opportunity lies in blending benefit-driven innovation with bold, crave-worthy flavor and cultural relevance. With their health halos, flavor versatility, and innate functionality, tea and botanicals are uniquely positioned to drive the next phase of functional beverage growth.
