health
From protein coffee to CBD soda: How brands are cashing in on the functional beverage boom
"We're selling [almost] as much protein cold foam as we do flat whites," Starbuck's EMEA Manager of Beverage Development Sam Henderson told CNBC.
TL;DR
- The global functional drinks market is valued at $160 billion and growing, driven by consumer demand for wellness benefits alongside taste and enjoyment.
- Younger consumers, particularly Millennials and Gen Z, are key drivers of this market, with a high percentage consuming functional beverages and being willing to pay more for them.
- Major companies like Starbucks, Danone, PepsiCo, and Coca-Cola are actively investing in and expanding their functional beverage offerings, including protein coffees, meal replacement shakes, and prebiotic sodas.
- Functional drinks are often positioned as premium products, with brands like TRIP highlighting their unique ingredients and benefits for mental clarity and stress reduction.
- Social media platforms like TikTok and Instagram play a significant role in promoting functional beverages as status symbols and lifestyle choices, especially among younger demographics.
- There are ongoing discussions and some skepticism regarding the efficacy and regulation of certain functional ingredients, with experts suggesting prioritizing nutrients from whole foods.