Gut-friendly sodas, vitamin-rich juices and other functional beverages are expected to grow in 2025 as brands focus on backing up claims with scientific evidence or potentially face legal scrutiny.
The global functional beverages market was worth $154.44 billion in 2023, growing at a 5.5% CAGR from 2018-2023, spurred by demand for products with natural ingredients and an aging populace, according to Research and Market data. These behaviors are projected to boost the global functional beverages market to $204.74 billion in 2028, growing by a 6.3% CAGR from 2024-2028, Research and Market reported.
Additionally, consumers seek out specific ingredients and nutrients to meet various need states and day parts. For instance, magnesium claims are rising among younger consumer seeking to improve their blood pressure and sleep habits, according to Circana research.
To better understand these evolving trends, FoodNavigator-USA is hosting on Feb. 14 an online event with presentations, startup pitches and a panel discussion with representatives from DSM-Firmenich, Euromonitor, Suja Organics and Zevia. The event is part of FoodNavigator’s Nutrition Broadcast series.
Zevia and Suja Organic shake up the soda category
As consumers demand cleaner labels and functional benefits, established beverage categories like soda are evolving with an eye towards health, a main trend that will be discussed during a panel at the Positive Nutrition Broadcast Series.
This better-for-you soda trend is forcing retailers to reconfigure their shelves and dedicate more space to the growing category. Last month, Walmart introduced its “Modern Soda” section of the soda aisle, featuring brands like gut-friendly brands Olipip and Poppi and stevia-sweetened natural soda brand Zevia.
Zevia was one of the first natural soda brands to appear on shelves, launching in 2007, and then expanded into energy drinks, teas and kid beverages. Zevia’s President and CEO, Amy Taylor, will provide perspective on the zero-sugar soda market and how the category evolved over the years, during the panel.
Additionally, Director of Brand Marketing at Suja Organic Jamie Berle will share insight into the natural juice and shot category as well as the company’s ambition in the better-for-you soda space. Last year, Suja Organic’s parent company acquired Slice, and the company is on the cusp of launching a newer and healthier version of the iconic ‘80s citrus soda.
FoodNavigator’s Positive Nutrition Broadcast Series
FoodNavigator's Positive Nutrition Broadcast Series is a multi-day series dedicated to the health and wellness trends influencing the food and beverage industry, featuring insight from all of FoodNavigator's sister websites.
FoodNavigator-USA will host three days’ worth of content on:
- Weight Management
- Functional Beverages
- Healthy Alternatives
Learn more about the event, sessions and speakers and register for free here.
For a broader market perspective, Howard Telford, head of soft drinks at Euromonitor International, will share how the trends in soda are influencing other beverage categories.
Global Business Development Director for DSM-Firmenich Ingrid Damen will share how the ingredient company is helping CPG companies create functional beverages without sacrificing taste. DSM-Firmenich is a partner for this event.
Also, functional beverage startups Drink Todo, Key and Sozu will pitch their brands and share how they distinguish themselves in the market.
Guarding against lawsuits through responsible marketing and science
Amid the functional beverage boom, CPG companies must ensure their functional claims are backed up with evidence or potentially face legal action, the focus of a session hosted by Rend Al-Mondhiry, partner at law firm Amin Wasserman Gurnani.
Last year, Poppi faced a class-action lawsuit that argued that the soda maker was misleading consumers on benefits since 2 grams of prebiotic fiber is too low to have a meaningful impact on gut health. Poppi defended against the lawsuit calling the claims that they do not provide gut-health benefits “baseless” in a statement to the Associated Press.
The lawsuit provided a moment of reflection for the functional beverage and prebiotic industry to ensure that they make claims rooted in science, Hannah Ackermann, a registered dietitian and VP of marketing and nutrition affairs at Comet said at the time.
“This lawsuit is a watershed moment for the prebiotics industry, as it forces the industry to take a step back and align on how to define and market prebiotics to consumers. Prebiotics can benefit millions of consumers struggling with gut health issues, but we must formulate and market products responsibly,” she elaborated.
