The matter of functionality
Functional benefits – a key concept in the food and beverage industry – is driving innovation in product development and ingredient research. First introduced in Japan in the 1980s, the concept has since expanded to include beverages that provide health benefits beyond taste and hydration. For consumers, this category offers a convenient way to integrate wellness into their daily routines with products that deliver tangible health advantages.
Prevention through conscious consumption
Today, people are proactive about managing their health. They are focused on preventing health issues, before they arise, and conscious consumption is the chosen path so much so that prioritizing prevention is top food and beverage trend in 2024. Food and beverage manufacturers are more than ready with their emerging product range offering varied functional benefits from gut health to cognitive benefits and so much more, which we will dive into later in the series.
“The sheer diversity of functional drinks makes it such an interesting category to work with. They make up everything from vitamin-enriched beverages for kids, high-protein ones for athletes and sporty people, and even drinks geared towards senior citizens with specific health issues.”
Julia Trebels, Global Consumer Category & Consumer Insights Manager, SIG
What is the consumer demographic?
Everyone. Yes – the focus on health and wellness transcends generations. But the benefit they are looking for does differ.
The older demographic, made up of mostly Gen Xers, are a big consumer base now as they focus on healthy ageing. Millennials, who make up a substantial portion of the global population, are willing to pay a premium for products perceived as offering health benefits. Gen Z, the youngest of them all are increasingly seeking out low-sugar, high-energy drinks as a healthier way to power through their busy day with 48% choosing energy drinks to keep them going.
Modern lifestyles, marked by active schedules and high stress, are driving these diverse consumer demands. Beverages that boost wellness, aid post-exercise recovery, and provide stress relief, among others are popular choices, reflecting a shift towards products that support both physical and mental well-being.
Function focus
Good for me, good for the planet – is the new overarching ask from food and beverage products. This is even more applicable for functional drinks where the entire focus is on goodness.
From traditional beverages crafted at home with generation-old recipes to ready-to-drink packaged products, functional drinks have come a long way. And this niche but prominent segment is poised for further growth. People across generations want beverages that fit seamlessly into their daily routines and promote a holistic approach to health. And that is why the convenience of on-the-go packaging formats can be a differentiator. Talk to us to explore how we can help your functional drink stand out.
Needless to say, the functional beverage space is ripe with innovation. Would you like to know more about the top benefits and ingredients? Download our exclusive report with expert insights or subscribe to our monthly newsletter to get the next story in your inbox.
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