However, food and beverage brands in or considering entering this space should know they face stiff competition from the vitamin and dietary supplement segment as well as over-the-counter and prescription medications, Melissa Abbott, vice president of syndicated studies at The Hartman Group, told FoodNavigator-USA.
She explained that most consumers do not consider diet as a management tool for sleep, other than certain foods and ingredients to avoid – such as caffeine or sugar. Rather, she said, supplements are the most popular sleep-aid product or service.
However, she added, there is room for food and beverages as solutions given supplements have perceived downsides and – as with other conditions – consumers see pharmaceuticals “as last resorts.”
What is the market potential for food- and beverage-based sleep solutions?
According to The Hartman Group’s recently published Health Benefits 2024 study, 32% of US adults list sleep as one of their top three health priorities – coming in just behind the 45% who said the same about weight and ahead of the 26% who called out energy.
Of these, 55% report they took steps in the last year to improve their sleep or prevent related problems, including 19% who reported using “naturally helpful” food and beverages and 13% who used functional foods and beverages, according to Abbott.
This is behind the 26% who used vitamins and supplements, but on par with the 18% who used OTCs and 17% who used prescription drugs to support sleep, she added.
Despite the low percentage of consumers who currently use food and beverage to support sleep, data from The Hartman Group suggests there is an unmet consumer demand.
More than half of the consumers who use functional food and beverage to support their sleep are interested in new functional foods with the benefit (55%) and functional beverages to support the benefit (55%), according to The Hartman Group.
When choosing a new food or beverage to support sleep, the top attributes consumers look for are affordability, validity and accessibility. The Hartman Group found:
- 48% of consumers who use functional foods and beverages for sleep want a product that is affordable enough to use for a long time, and 48% want one that they can afford to use daily,
- 38% want products recommended by a trusted resource, 35% want products with clinically proven results and 27% want products specifically recommended by their doctor or clinician, and
- 20% want products that are sold by retailers and source they already use.
Drinks are the most popular type of food and beverage that consumers seek for sleep support, including hot tea, which 49% of consumers who use functional food and beverage for sleep said they prefer. About a third (32%) prefer ready-to-drink tea, 28% prefer ready-to-drink enhanced water, 19% want shot-sized packaged juice, smoothies or shakes and 13% want drink-sized packaged juice, smoothie and shakes, according to The Hartman Group.
TRIP Drinks: A case study in building a functional beverage brand to manage mood
The market potential for calming beverages that tick each of these consumer demands is tremendous – despite the relatively small existing consumer base – as illustrated by the quick success of TRIP Drinks.
Since launching in 2019 a line of lightly sparkling drinks infused with CBD or magnesium to instill a sense of calm in consumers through a combination of ritual and clinically researched and impactful ingredients, TRIP has become the No. 1 functional drink in Europe and fastest growing soft drink in the UK, according to Nielsen UK data for the year ending Aug. 4, with distribution in more than 30,000 stores in the US and UK.
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In the past two years, the brand says it has grown at a compound annual growth rate of more than 389%, which helped it recently catch the attention of celebrity investors, including Supermodel Ashley Graham and actor Paul Wesley.
Co-founder Olivia Ferdi attribute the brand’s success in part to providing consumers on-trend plant-based ingredients with a deep history in supporting relaxation, stress reduction and sleep in a format that is accessible and which delivers a consistent experience.
“The brand itself is all about creating moments of calm in the everyday chaos … with a hyper-functional, extremely delicious beverage,” Ferdi told FoodNavigator-USA.
She explained that she began the business with her husband after struggling to access the adaptogens and ingredients in TRIP in a format that was understandable, convenient and reliable.
“Traditionally ... these ingredients can help mood and overall well-being, but they are intimidating to people and there are misconceptions and concerns about dosage” or expectations that they would taste bad or be prohibitively expensive, she said.
TRIP balances flavor and function
TRIP turns these preconceived ideas on their head through a combination of balancing flavor and function and strategic branding and partnerships, Ferdi said.
“We created TRIP with experts who helped us provide the perfect dose of a proprietary blend of Lion’s Mane mushrooms, [1,200 mg] magnesium, ashwagandha, l-theanine and CBD in our CBD range,” she said.
“With our calming beverages or stress-relieving beverages, within 10 to 20 minutes of having one, people report feeling ‘the edge has been taken off’ or that they are less stressed and can be more productive,” Ferdi said. “The immediacy of this functionality in TRIP products has helped us connect with consumers” and earn both their repeat purchase and their recommendation.
She added consumers also are drawn to the taste and refreshment of the beverages, which are available in Raspberry Orange Blossom, Cucumber Mint, Edlerflower Mint, Peach Ginger & Blood Orange Rosemary and are made with monkfruit so that each can has only 29 calories or less and no added sugar.
“One of the big things we have seen in other functional categories with US consumers is making sure that you are delivering a refreshing and delicious experience. That is why people drink drinks, and I think so often certain categories in the functional space have not prioritized that perhaps as much as the traditional beverage industry,” Ferdi said.
TRIP imbues branding with ‘calm’ aesthetic in place of making health, ingredient claims
Because brands cannot make health claims for conventional beverages or many of the ingredients in TRIP, Ferdi said her company imbues its branding and packaging with a sense of calm and a “better-for-you nature” to communicate its benefit.
Earlier this fall, TRIP reinforced this messaging through a partnership with mental health company Calm.
US consumers who buy a limited edition of TRIP’s Mindful Blend can scan a QR code on the can to receive a complementary three-month Calm premium membership, which includes access to Calm’s full library of content, including celebrity-led meditations and support “to sleep more, stress less and live better,” according to the beverage brand.
“We are creating a multi-sensory approach to well-being and mental health. When you have a TRIP drink, you are enjoying a delicious experience, you are being encouraged to ‘take a trip, find your calm,’ is what we say, and have a mindful moment. And with this partnership we are gently encouraging people, if they so wish to continue that journey of discovery and mental well-being,” Ferdi said.
The partnership gives TRIP another layer of validation from a well-respected online mental health resource and brings Calm into unexpected places – like the refrigerator at a grocery store – where it can reach new consumers.
For the partnership, TRIP strategically opted to promote its Mindful Blend, which does not include CBD and therefore can be distributed more broadly than its CBD-infused beverages.
“We are in about 25 states with our CBD line, but logistically, the Mindful Blend range will have some more freedom and flexibility to partner with cross-state retailers, which is part of our step-change expectation for growth,” said Ferdi. “The new range will be in about 3,000 doors by the first quarter of next year.”
How important is brand loyalty to building a sleep support food, beverage set?
TRIP’s aggressive expansion in the US and strategic high-profile partnership are rooted partly in Ferdi’s belief that the relaxation and sleep beverage category will be built “on a handful of powerful brands” that earn consumers’ trust by meeting their need for benefits they can feel, convenience and taste.
This aligns with The Hartman Group’s research that found brand influence is a powerful driver within functional food and beverage sets promoting sleep. Of the consumers who shop this category, The Hartman Group found 14% always get the same brand and 39% always choose from a few brands with which they are familiar. Only 12% of consumers report brand does not matter to them in this category.
