Dive Into the Trend of Functional Beverages: A Growing Market
In recent years, the trend of functional beverages has been on the rise, with more Americans seeking out alcohol alternatives that offer health benefits. This shift is driven by a growing awareness of health and wellness among consumers, particularly younger generations.
According to data from NCSolutions, over 40% of Americans are looking to cut back on alcohol consumption in 2024, up from 34% the previous year. This trend is even more pronounced among Generation Z, with 61% of young consumers aiming to drink less alcohol. The rise of functional beverages, which go beyond traditional non-alcoholic drinks to offer specific health benefits, has been propelled by this shift in consumer behavior.
Functional beverages often contain adaptogens, herbs believed to have health benefits, or substances like THC, the psychoactive component in cannabis. These drinks have gained popularity post-pandemic, leading to a booming global market expected to reach $249.5 billion by 2026, according to Euromonitor.
In the U.S. alone, retail sales of functional beverages topped $9 billion in the past year, reflecting the growing interest in these innovative products. Companies like Brez and Cann are at the forefront of this trend, offering cannabis-infused drinks designed to provide a true alternative to alcohol. These beverages appeal to a new generation of consumers, dubbed “healthy hedonists,” who seek to balance health and pleasure in their lifestyle.
While the rise of functional beverages does not signal the end of alcohol consumption, it represents a significant shift in consumer preferences. As more people prioritize health and wellness, the demand for drinks that offer more than just hydration or nostalgia continues to grow. With an increasing focus on well-being and longevity, functional beverages that promote energy, digestive health, and mood enhancement are becoming increasingly popular among consumers.
As the functional beverage market continues to expand, questions around safety and regulation will come to the forefront. With the legalization of cannabis in many states and the potential for federal reform under the Biden administration, the landscape of functional beverages is set to evolve. Companies like Cann are leading the way in creating innovative THC-infused drinks that cater to a changing consumer base.
At Extreme Investor Network, we keep a close eye on emerging trends in the business world, including the rise of functional beverages. Stay tuned for more in-depth analysis and insights into this growing market, and discover how you can capitalize on the latest trends in the beverage industry.