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1035803

Functional Beverages: Market Trends and Opportunities

Published: | Packaged Facts | 180 Pages | Delivery time: 1-2 business days

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Functional Beverages: Market Trends and Opportunities
Published: November 5, 2021
Packaged Facts
Content info: 180 Pages
Delivery time: 1-2 business days
  • Description
  • Table of Contents

In 2020 and 2021, the coronavirus pandemic has had a significant effect on consumer food and beverage purchases and desires for health and wellness. Packaged Facts has found that 36% of consumers report eating more foods that support their immune system because of the coronavirus. Survey results also reveal that those who seek out functional beverages and/or are willing to pay more for them are also more likely to report negative personal effects of the pandemic.

With a focus on "what's next" and current consumer trends, Functional Beverages: Market Trends and Opportunities is packed with insights about consumer trends, behavior, and motivations to help food and beverage producers, retailers, packaging companies, employers, and investors gauge consumer perspectives and find areas for growth in a competitive market.

“ Functional Beverages: Market Trends and Opportunities” delivers actionable predictions and recommendations designed to guide producers, retailers, and investors in making business decisions by providing data and insights about what consumers think about foods and beverages, and how they feel about various diets and food lifestyles.

Scope

“ Functional Beverages: Market Trends and Opportunities” is the go-to source for a complete understanding of U.S. consumer trends in the functional beverage market. This report combines Packaged Facts' extensive monitoring of the food and beverage market with proprietary surveys, and evaluates current trends and future directions for marketing and retailing, along with consumer patterns during the pandemic and across the broader food and beverage market.

Functional beverages are drinks in ready-to-drink (RTD) or ready-to-mix/brew form (e.g., beverage powders, liquid drink enhancers, dry coffee and tea) that are purported to confer functional benefits which consumers perceive as important to health or everyday life.

This report covers the scope, size, and growth of the U.S. market for functional beverages with various functional claims such as increased energy, enhanced hydration, boosts in cognitive function/brain activity, better sleep and relaxation, boosts in immunity, increased gut health, meal replacement and weight management, and sports performance improvement.

Historical and projected retail sales are provided for functional beverages, segmented by product category (energy and sports drinks; functional carbonated drinks; functional coffees and teas; functional juices; functional waters; nutritional shakes, protein drinks, and meal replacements; yogurt drinks; and other functional beverages). Additionally, Functional Beverages: Market Trends and Opportunities has dozens of tables showcasing numerical survey data on consumer demographics and psychographics and numerous product and marketing photographs. This report goes in-depth on COVID-19 trends affecting the food and beverage market.

Report Methodology

The information contained in “ Functional Beverages: Market Trends and Opportunities” was developed from primary and secondary research sources. Primary research includes interviews with food and beverage market experts; participation in and attendance at food industry events; and extensive internet canvassing.

Primary research also includes national online consumer polls of U.S. adult consumers (age 18+) conducted on an ongoing basis by Packaged Facts to analyze attitudes of consumers and their relevant food and beverage preferences.

Supplementing Packaged Facts' exclusive survey is analysis of the 2021 Food & Health Survey conducted by the International Food Information Council, which analyzes consumer food purchase decisions, diet and lifestyle choices, snacking activity, and perception of health benefits in foods.

Product Code: LA16820502

TABLE OF CONTENTS

CHAPTER 1: EXECUTIVE SUMMARY

  • COVID-19 Effects on Consumers and the Beverage Market
  • Key Consumer Trends
  • Packaging Trends
  • Scope

CHAPTER 2: COVID-19 EFFECTS ON CONSUMERS

  • HIGHLIGHTS
  • FIRST TIME USE OF CONVENIENT FOOD AND BEVERAGE ORDERING METHODS IN 2020
    • Table 2-1: Coronavirus Food Purchase Habits: "Because of the coronavirus, I have for the first time used...", 2020 (percent of consumers)
  • INCREASING USE OF CONVENIENT FOOD AND BEVERAGE ORDERING METHODS CONTINUING THROUGH 2021
    • Table 2-2: Coronavirus Food Purchase Habits: "Because of the coronavirus, I am...", 2020-2021 (percent of consumers)
    • Figure 2-1: Changes to Grocery Ordering Habits Because of the Pandemic, 2021 (percent of consumers)
  • PANDEMIC-RELATED CHANGES TO EATING HABITS AND SNACKING
  • Eating Habits and Food Prep
    • Figure 2-2: Changes to Eating and Food Preparation Due to COVID-19, 2020-2021 (percent of consumers)
  • Snacking and Healthy Eating
    • Figure 2-3: Coronavirus Changes to Snacking and Healthy Eating Patterns and Returning to a Pre-COVID Normal, 2021 (percent of consumers)
    • Table 2-3: Coronavirus Eating Habits: "Because of the coronavirus, I am eating more...", 2021 (percent of consumers)
  • CONCERNS ABOUT COVID-19 EXPOSURE AND FOOD SAFETY
  • Concerns About Food Safety and Waste Rose in the Wake of the Pandemic in 2020
    • Table 2-4: Coronavirus Concerns about Safety and Food Waste: "Because of the coronavirus, I am...", 2020 (percent of consumers)
  • Concerns about Exposure Remain in 2021
    • Figure 2-4: Concerns about COVID-19 Exposure, 2021 (percent of consumers)
  • Considering the Pandemic a Health Threat Personally or to Family/Friends
    • Table 2-5: Coronavirus Health Concerns: "I am concerned about the...", 2020-2021 (percent of consumers)
  • Consumers Who Seek Out Functional Beverages Are More Likely to Be Concerned about the Pandemic's Health Threat
    • Table 2-6: Coronavirus Health Concerns: "I am concerned about the...", 2021 (percent of consumers)
  • CONSUMERS WHO SEEK OUT FUNCTIONAL BEVERAGES ARE EXPERIENCING MORE NEGATIVE PERSONAL EFFECTS OF THE PANDEMIC
    • Table 2-7: Coronavirus Concerns: "The coronavirus has negatively affected my...", 2020-2021 (percent of consumers)
    • Table 2-8: Coronavirus Concerns: "The coronavirus has negatively affected my...", 2021 (percent of consumers)
  • EFFECTS ON WORK ARE CONTINUING IN 2021
    • Figure 2-5: Coronavirus Changes to Work Patterns and Returning to a Pre-COVID Normal, 2021 (percent of consumers)
  • IN-STORE SHOPPING PATTERNS
    • Figure 2-6: Coronavirus Changes to Shopping Patterns and Returning to a Pre-COVID Normal, 2021 (percent of consumers)
  • FOOD INSECURITY ATTRIBUTED TO COVID-19
    • Figure 2-7: Food Insecurity and Attribution to COVID-19, 2021 (percent of consumers)
  • EXCITEMENT FOR FOOD-RELATED ACTIVITIES WHEN THE PANDEMIC SUBSIDES
    • Figure 2-8: Excitement for Food-Related Activities when the Pandemic Subsides, 2021 (percent of consumers)

CHAPTER 3: OVERVIEW AND MARKET TRENDS

  • HIGHLIGHTS
  • GLUTEN, FOOD ALLERGIES, AND DIETARY RESTRICTIONS ARE A CONCERN TO MANY CONSUMERS
    • Figure 3-1: Ingredients and Allergen Content in a Functional Beverage
  • VEGETARIANS, VEGANS, AND FLEXITARIANS: PLANT-BASED EATING, SUSTAINABILITY, AND BEYOND
    • Figure 3-2: Magazine Covers Reflect the Issues of Importance to General Consumers
  • CLEAN LABEL TRENDS
  • COMPANIES ARE INVESTING IN BLOCKCHAIN AND BIG DATA TO SATISFY CONSUMER DESIRES FOR TRANSPARENCY
  • CONSUMERS THINK SMALL AND MEDIUM BUSINESSES HAVE MORE CREDIBILITY
    • Figure 3-3: Kombucha for a "Happy Gut" Espouses Clean Label Sentiments and Is Certified Organic
  • THE COVID-19 PANDEMIC WAS THE JUMPSTART THE ONLINE GROCERY MARKET NEEDED
    • Impact on the Beverage Market
  • DIETS AND EATING PATTERNS
    • Most Consumers Believe They Know the Amount of Caffeine they Consume
      • Figure 3-4: Consumer Perceptions of Caffeine, 2021 (percent of consumers)
      • Figure 3-5: Positive Perceptions of Natural Caffeine Sources Used to Market Functional Beverages
    • Over One Third of Consumers Have Followed a Special Diet in the Last Year
      • Figure 3-6: Following of Diets in the Last Year, 2021 (percent of consumers)
    • Losing Weight Is the Most Common Reason to Follow a Diet
      • Figure 3-7: Reasons for Dieting in the Last Year, 2021 (percent of consumers)
    • Most Consumers Are Trying to Avoid or Limit Sugars in Their Diet
      • Figure 3-8: Actions Taken to Limit or Avoid Sugars, 2021 (percent of consumers)
    • Sugar Tends to Be Preferred to Low/No Calorie Sweeteners, However
      • Figure 3-9: Sweetener Preferences and Perceived Benefits of Low/No Calorie Sweeteners (percent of consumers)
    • Frequency of Snacking and Reasons for Snacking
      • Figure 3-10: Frequency of and Reasons for Snacking, 2021 (percent of consumers)
    • Younger Consumers Are More Likely to Snack Throughout the Day
      • Figure 3-11: When Snacks and Meals Are Eaten by Age Bracket, 2021 (percent of consumers)
  • DRIVERS OF FOOD PURCHASE DECISIONS
    • More Than Half of Consumers Say Healthfulness Matters More to Them Now When Deciding on Foods to Buy
      • Figure 3-12: Changes to the Importance of Drivers of Food Purchase Decisions over the Last 11 Years, 2010-2021 (percent of consumers)
    • Consumers Think Meat and Poultry Have the Greatest Negative Impact on the Environment, Followed by Bottled Beverages
      • Figure 3-13: Perceptions of the Negative Effects of Food and Beverages on the Environment, 2021 (percent of consumers)
    • About Half of Consumers Pay Close Attention to Food Labels When Shopping
      • Figure 3-14: Paying Attention to Food Labels When Shopping, 2021 (percent of consumers)
    • "Natural" Labels Are Most Impactful When Grocery Shopping
      • Figure 3-15: Influential Labels When Purchasing Food, 2021 (percent of consumers)
    • Helpfulness of Food Label Features
      • Figure 3-16: Perceptions of Food Labels Being Helpful or Confusing, 2021 (percent of consumers)
  • HEALTH BENEFITS IN FOODS
    • One-Fifth of Consumers Seek Health Benefits from Foods
      • Figure 3-17: Seeking Health Benefits from Foods, 2021 (percent of consumers)
    • Weight Loss/Management Is the #1 Health Benefit Sought from Food
      • Figure 3-18: Number One Health Benefits Sought from Foods and Ease of Finding, 2021 (percent of consumers)
    • Most Consumers Want to Know More About How Food and Nutrients Affect Immune Health
      • Figure 3-19: Interest in Learning More about the Role of Foods and Nutrients in Immune Health, 2021 (percent of consumers)
    • Nutrients and Characteristics Consumed and Avoided by Consumers
      • Figure 3-20: Food Characteristics Consumed or Avoided, 2021 (percent of consumers)
    • Most Nutrients Are Sought from Foods Instead of Beverages or Supplements
      • Figure 3-21: Sources Used to Consume Nutrients, 2021 (percent of consumers)
    • Perception of Health Differences in Products
      • Figure 3-22: Perception of Health Differences in Food Characteristics, 2021 (percent of consumers)

CHAPTER 4: MARKET SIZE AND FORECAST

  • SCOPE
  • FUNCTIONAL BEVERAGE SALES
    • Sales by Product Category
      • Table 4-1 Functional Beverage Retail Sales by Product Category, 2016-2020, 2021E, 2026P (million dollars)

CHAPTER 5: MARKETING TRENDS AND OPPORTUNITIES

  • HIGHLIGHTS
  • "SUPERFOODS", "ADAPTOGENS", AND "FOOD AS MEDICINE"
    • Figure 5-1: Immune Boosting Beverage Markets with Superfood Claims
  • HEMP AND CBD
    • Figure 5-2: Hemp Drink Mixes Feature a Number of Functional Ingredients for Various Benefits
    • Figure 5-3: Sparkling Hemp Beverages Marketed to Restore and Rejuvenate the Mind and Body
  • BRAIN HEALTH, COGNITIVE FUNCTION (NOOTROPICS), AND MENTAL FOCUS
    • Figure 5-4: Beverage Shots Marketed to Improve Mental Focus and Boost Energy in the Body
    • Figure 5-5: Brain Boosting Ingredients in RTD Format
    • Figure 5-6: Different Formulas Provide Various Brain Health Claims Such as Improved Memory and Boosted Output
  • SLEEP, RELAXATION, AND STRESS RELIEF
    • Figure 5-7: Better Sleep Supported by Beverage Ingredients
    • Figure 5-8: Beverage Mix Marketed for Relaxation and Stress Relief
  • ENERGY AND SPORTS FUNCTIONS
    • Figure 5-9: Sports Drink Mix Made with Clean, Premium Ingredients
    • Figure 5-10: Functional Beer Made to Refresh Athletes after Exercise
    • Figure 5-11: Energy Drink Mix Marketed with "No Crash"
    • Figure 5-12: Sparkling Water Energy Drinks Help You Recharge with "Clean Ingredients You Can Pronounce"
  • IMMUNITY BOOSTING AND GUT HEALTH
    • Figure 5-13: Enhanced Water Flavor Added to Immune Support Beverage Line
    • Figure 5-14: Prebiotic Soda Brand Features Clean Label Claims
  • MEAL REPLACEMENT AND WEIGHT MANAGEMENT
    • Figure 5-15: Keto Nutritional Meal Replacement Shakes Claim to Be Clinically Proven to Help Consumers Lose Weight
    • Figure 5-16: Two Different Complete Meal Replacement Shakes with Similar Branding
    • Figure 5-17: Nutrients in Nutritional Shake Claim to Nourish the Body and Mind
  • SOME CONSUMERS ENGAGE IN "CLEANSE" AND "DETOX" DIETS OR INTERMITTENT FASTING TO BOOST IMMUNITY, MOOD, ENERGY, OR OVERALL HEALTH
    • Figure 5-18: Juice Cleanse Marketed for Weight Loss and Energy Boost
    • Figure 5-19: Probiotic Shots for Detoxification and an Energy Boost
    • Figure 5-20: Detox Tea Blend Marketed for Weight Loss, Immunity, and Increased Energy
  • OPPORTUNITIES TO INTEREST OLDER CONSUMERS IN FUNCTIONAL BEVERAGES
  • TARGETING FAMILIES WITH CHILDREN
    • Figure 5-21: Probiotic Products Made with Kids in Mind for Snack Time
    • Figure 5-22: Weight Management Beverages for Children Deliver Delicious Nutrition and Better-for-You Claims
    • Figure 5-23: Kids Vitamin-Packed Beverages for Enhanced Hydration without Sugar
  • "BETTER-FOR-YOU" TRENDS
    • Clean Label
      • Figure 5-24: Clean Label Prebiotic Fiber Ingredients Improve Nutritional Profile of Finished Products
    • Unrefined Sugar
      • Figure 5-25: Kombucha Using Honey and Cane Sugar to Bolster Image of Premium and Simple Ingredients
    • Sugar-Free/No Sugar Added Products and Alternative Sweeteners
      • Figure 5-26: Zero Calorie, Zero Sugar Energy Drinks Help Consumers Power Up with Clean Energy Minus the Sugar
    • Low-Carb/High Protein, Keto, and Paleo Diets
      • Figure 5-27: Prebiotic Keto Coffee Beverage Features Multiple Functional Benefits
    • Vegan/Plant-Based Products Appeals to Those Looking to Eat a Plant-Forward Diet
      • Figure 5-28: Plant-Based Creamer with Prebiotics
      • Figure 5-29: Vegan Nutritional Shake Featuring Prebiotic Fiber and Added Vitamins and Minerals
      • Figure 5-30: Sipping Broths for Better Immunity, Vitality, and Digestive Health
    • Organic and Non-GMO Products
      • Figure 5-31: Organic Products from a Larger Beverage Company
      • Figure 5-32: Non-GMO Functional Coffee Made with Organic Ingredients
  • PERSONALIZED NUTRITION
    • Figure 5-33: Personalized Meal Replacement Beverages Custom Made Just for You
    • Figure 5-34: Health Testing Company Recommends Foods to Eat Based on Personal Biological Markers and Formulates Customized Supplements
  • DIRECT-TO CONSUMER (DTC) MARKETING
    • New Companies and Products with Niche Appeal May Choose DTC Channels
      • Figure 5-35: Functional Beverages to "Unlock Your Best Brain" Mostly Sold Via E-Commerce
    • Subscriptions Save Consumers Money and Boost Sales
      • Figure 5-36: Functional Beverages Provide a Discount with a Subscription Delivery
    • Private Labels
      • Figure 5-37: Private Label Premium Honey Exclusive to DTC Retailer
  • IN-STORE PURCHASING TRENDS
    • Figure 5-38: Target Online Order Pickup Is One Option That Increases Store Traffic after an Online Order
  • Retail Stores Rely More On Impulse Purchases
    • Figure 5-39: Functional Beverages in a Checkout-Area Cooler
  • Private Label Products Are a Driver of Store Traffic and Retailer Loyalty
    • Figure 5-40: Private Label Brands Advertised Alongside National Brands for Seasonal Promotion
    • Figure 5-41: Private Label Brand Sells Protein Shakes

CHAPTER 6: CONSUMER DEMOGRAPHICS

  • HIGHLIGHTS
  • TRENDS BY GENDER
    • Table 6-1: Seeking Out and Willingness to Pay More for Functional Beverages by Gender, 2021 (percent of consumers)
  • TRENDS BY AGE BRACKET
    • Table 6-2: Seeking Out and Willingness to Pay More for Functional Beverages by Age Bracket, 2021 (percent of consumers)
  • PATTERNS BASED ON HOUSEHOLD INCOME
    • Table 6-3: Seeking Out and Willingness to Pay More for Functional Beverages by Household Income Bracket, 2021 (percent of consumers)
  • REGIONAL DIFFERENCES
    • Table 6-4: Seeking Out and Willingness to Pay More for Functional Beverages by U.S. Region, 2021 (percent of consumers)
  • URBAN, SUBURBAN, AND RURAL CONSUMERS
    • Table 6-5: Seeking Out and Willingness to Pay More for Functional Beverages by Urban, Suburban, or Rural Living, 2021 (percent of consumers)
  • EDUCATIONAL ATTAINMENT
    • Table 6-6: Seeking Out and Willingness to Pay More for Functional Beverages by Educational Attainment, 2021 (percent of consumers)
  • PRESENCE OF CHILDREN IN THE HOUSEHOLD
    • Table 6-7: Seeking Out and Willingness to Pay More for Functional Beverages by Presence of Children in HH, 2021 (percent of consumers)
  • RACE/ETHNICITY
    • Table 6-8: Seeking Out and Willingness to Pay More for Functional Beverages by Race/Ethnicity, 2021 (percent of consumers)
  • PLANT-FORWARD CONSUMERS
    • Table 6-9: Seeking Out and Willingness to Pay More for Functional Beverages by Primary Diet/Eating Philosophy, 2021 (percent of consumers)
  • ONLINE GROCERY SHOPPERS (FOOD DELIVERY AND PICKUP SERVICES)
    • Table 6-10: Seeking Out and Willingness to Pay More for Functional Beverages by Use of Food Delivery and Pickup Services in the Last 12 Months, 2021 (percent of consumers)
  • CLEAN LABEL DIETERS
    • Table 6-11: Seeking Out and Willingness to Pay More for Functional Beverages by Adherence to a Clean Label Diet, 2021 (percent of consumers)

CHAPTER 7: CONSUMER PSYCHOGRAPHICS

  • HIGHLIGHTS
  • SPECIAL EATING RESTRICTIONS OR PREFERENCES
    • Table 7-1: Extent to Which Consumers Report Following a Special Diet, 2021 (percent of consumers)
    • Table 7-2: Special Diets Followed by Consumers, 2021 (percent of consumers)
  • WILLINGNESS TO PAY MORE FOR FOOD DELIVERY OR PREMIUM FOOD CHARACTERISTICS
    • Table 7-3: Willingness to Pay More for Food, 2021 (percent of consumers)
  • PERCEPTIONS ABOUT HEALTH AND NUTRITION
    • Concerns About Health Can Be Addressed by Functional Foods and Beverages
      • Table 7-4: Health Concerns That Can Be Addressed by Functional Beverages, 2021 (percent of consumers)
    • Alternative Medicine, Vitamins, and Foods Considered Healthier
      • Table 7-5: Opinions about Healthy Foods and Alternative Medicine, 2021 (percent of consumers)
    • More than Half of Consumers Consider Themselves to Be in Excellent or Very Good Health
      • Figure 7-1: Self-Reported Health Status, 2021 (percent of consumers)
    • Beliefs about Sources of Weight Gain
      • Figure 7-2: Beliefs about the Most Likely Sources of Weight Gain, 2021 (percent of consumers)
    • Definition of "Healthy Food"
      • Figure 7-3: The Definition of "Healthy Food" According to Consumers, 2021 (percent of consumers)
    • Elements of "Healthy Eating Patterns"
      • Figure 7-4: Elements Seen as Part of a "Healthy Eating Pattern", 2021 (percent of consumers)
    • Most Consumers Are Confident in Their Ability to Choose Healthy Foods
      • Figure 7-5: Consumer Confidence in and Ease of Choosing Healthy Foods, 2021 (percent of consumers) .. 157

CHAPTER 8: PACKAGING TRENDS

  • HIGHLIGHTS
  • THE BALANCE BETWEEN EFFECTIVE, SUSTAINABLE, AND LOW-COST PACKAGING
    • Figure 8-1: Use of Attractive Printing and Packaging to Give Functional Beverages an Upscale Image
  • PROTECTIVE PACKAGING IS IMPORTANT FOR PRODUCT INTEGRITY
  • RETAIL-READY PACKAGING PROMOTES STOCKING EFFICIENCY IN STORES
    • Figure 8-2: Retail-Ready Boxes and Trays Promote Stocking Efficiency of Functional Beverages
  • CONSUMER CONCERNS ABOUT PACKAGING WASTE AND SUSTAINABILITY
    • Recycling and Household Waste
      • Table 8-1: Consumer Opinions on Recycling and Household Waste, 2021 (percent of consumers)
    • Proper Disposal of Products
      • Table 8-2: Consumer Opinions on Taking Responsibility for Proper Disposal of Products, 2021 (percent of consumers)
    • Opinions on Packaging Materials
      • Table 8-3: Consumer Opinions on Packaging Materials, 2021 (percent of consumers)
    • Types of Packaging Consumers Look for
      • Table 8-4: "Do you especially look for any of the following in terms of "sustainability" or "eco-friendly" packaging?", 2021 (percent of consumers)
  • PACKAGING TYPES CONSIDERED ECO-FRIENDLY BY CONSUMERS
    • Table 8-5: Consumer Thoughts on Recycling and Recyclable Packaging (percent of consumers)