As alcohol intake has decreased, especially in younger demographics, functional beverages—beverages with additional health benefits—have become more popular. The global functional beverages market size was valued at $175.5 billion in 2022 and is expected to reach $339.6 billion by 2030. Here, industry insiders share insights on what consumers are drawn to and some of the biggest trends in functional beverages.
Alcohol alternatives
Alcohol consumption in the U.S. has been on a decline for several years, with young adults and millennials leading the shift. In a survey of 1000 Gen Z individuals, 21% reported they don’t consume alcohol and 39% drink only occasionally. Health and mental health concerns and lack of interest in alcohol are some of the primary reasons reported for abstaining. Consumption of alcoholic beverages among adults aged 18-25 decreased from 59.6% in 2013 to 49.6% in 2023. Millennials are among top purchasers of non-alcoholic alternatives, such as alcohol-free spirits, dealcoholized wine and non-alcoholic beer. For example, in April 2024, 61% of non-alcoholic beer consumers in the U.S. were Millennials, up from 45% in 2023.
In the United States, the volume of non-alcoholic beverages consumed grew by 20% in 2023 and is projected to continue growing at a compound annual growth rate of 17% through 2028.
21.5% of Gen Z does not consume alcohol, and 39% drink only occasionally. Health concerns are a key factor, with 34% citing mental health and 46% simply not being interested. Attest
Sarah Kate, a go-to expert in the non-alcoholic space and founder of Some Good Clean Fun, has been tracking industry trends since 2021 and is especially excited about the growing number of women swapping wine for functional drinks.
“You can have so much fun with drinks that don’t have alcohol in them. IYou get so much back when you stop drinking. And your social experience is actually better because you’re actually more present.” She’s found that women in their 40s who don’t have time for “aesthetic mocktails” who are used to drinking wine, “are searching for the holy grail of NA red wine.” Gen Z, on the other hand, she shares, tends to gravitate towards beverages with strong branding.
Gut healthy ingredients
Health-conscious consumers have also become increasingly focused on gut health in recent years, and an array of beverages featuring gut-healthy ingredients like probiotics and fiber (especially prebiotic fibers) have hit the market. Fiber is a star nutrient There has been significant year-over-year growth in prebiotic and probiotic beverage purchases, reflecting a growing consumer focus on digestive health. In March of 2025, PepsiCo even acquired functional soda, Poppi in a $1.95 billion deal.
Lauren Manaker MS, RDN, LD, Charleston-based registered dietitian and OLIPOP partner says there’s a wide range of consumers purchasing the functional soda but that some of the main things they’re focused on are reducing sugar, improving digestion, and enjoying a healthier alternative to nostalgic soda.
Manaker says, “OLIPOP stands out for its unique OLISMART formula, a science-backed blend of functional ingredients, including prebiotics, designed to support digestive health. Each can delivers 6-9 grams of fiber while keeping sugar content low at just 2-5 grams.”
She explains, “Fiber is an essential component of a healthy diet, yet many people fail to meet the recommended daily intake,” which is 25 to 35 grams per day. “This fiber gap highlights the disparity between the amount of fiber people consume and the amount they actually need to support optimal digestive health, regulate blood sugar levels, and maintain overall well-being.” Functional drinks with fiber can help bridge this gap by providing a delicious alternative to traditional sugary sodas, she says, while also supporting gut health.
“Prebiotic fiber, specifically,” adds Manaker, “is essential for gut health because it serves as food for the beneficial bacteria in your digestive system. These ‘good’ bacteria, also known as probiotics, may play a key role in maintaining a healthy balance in your gut, which affects digestion, immunity, and even mood. Prebiotic fiber helps these bacteria thrive and grow, supporting a healthy microbiome. By including foods and beverages rich in prebiotic fiber, like slightly underripe bananas, garlic, onions, whole grains, and OLIPOP, you can promote better digestive health.”
Just one thing to note about fiber is that more is not always better. Dialing it up too much too soon could cause GI discomfort, bloating and gas, and those with underlying gastrointestinal issues who need to be on a low-fiber diet should talk to their doctor about use of high-fiber sodas.
Athletic performance and recovery
Beverages geared towards enhancing hydration, athletic performance and post-workout recovery have become popular in recent years. For example, the United States Electrolyte Drinks Market, estimated at $11.31 billion in 2023, is expected to grow to $21.26 billion by 2034. Nutrients shown in studies to be associated with things like endurance, energy, antioxidant and anti-inflammatory benefits, reduced muscle soreness and similar effects are also being promoted in functional beverages.
POM Wonderful, a longtime favorite of consumers and healthcare professionals for its high antioxidant content, has also stepped into this workout recovery space, partnering with athletes highlighting how the carbohydrates, polyphenols and potassium in pomegranate juice can support their performance and promote recovery.
Catherine Sebastian, MS, RD, Senior Manager for Nutrition Communications of POM Wonderful or Registered Dietitian fo POM Wonderful
Jennifer Hirano, Vice President of Marketing at POM Wonderful, says, “Our main POM audience is a group we like to call Wellness Seekers. They tend to be more women ages 25 and up. What’s common with them is that they’re interested in wellness, live an active lifestyle, and are looking for healthy alternatives.” Some of the brands other primary customers are those they all flexible spenders. “They are on the lookout for quality things. They like to eat organic, put value behind fresh produce and seek out healthier options.” Those using pomegranate juice to support an athletic lifestyle are a growing part of their customer base.
Adaptogens
Beverages featuring adaptogenic herbs like ashwagandha, functional mushrooms like reishi, lion’s mane and chaga as well as compounds shown to promote feelings of calm like GABA and L-theanine have been on the rise. Another reason these beverages appeal to consumers is that they offer feelings of relaxation associated with alcohol but without the hangovers, disrupted sleep, and anxiety that also come with alcohol.
Kate says, “A big thing I’m seeing right now, especially among women, is that we’re seeing people say they like NA wine, but they want to ‘feel’ something.”
While they may be natural, however, always check for interactions between adaptogens and any supplements or medications you may be taking.
More than a trend
Functional beverages appear to be more than just a passing trend—they reflect a larger cultural shift in how consumers think about what they drink and why. Whether it’s swapping wine or beer for a non-alcoholic alternative, reaching for a prebiotic soda to support gut health or hydrating with electrolytes or replenishing carbs after a workout, people are looking for more from their beverages than just refreshment. As interest in intentional, health-focused choices continues to grow, functional beverages are expected to remain a major player in the wellness landscape.