Functional Drinks Market Report 2026

The functional drinks market size has grown strongly in recent years. It will grow from $48.25 billion in 2025 to $50.77 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to growth in health-conscious consumer behavior, rising consumption of fortified beverages, expansion of urban lifestyles, increasing disposable income levels, wider availability of functional drink formulations.

The functional drinks market size is expected to see strong growth in the next few years. It will grow to $62.88 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to rising demand for personalized nutrition, increasing adoption of plant-based functional beverages, growing focus on preventive healthcare, expansion of online health-focused retail channels, increasing innovation in bioactive ingredients. Major trends in the forecast period include increasing demand for immunity-boosting beverages, rising popularity of probiotic and gut-health drinks, growing focus on natural and clean-label ingredients, expansion of functional rtd beverage formats, enhanced product differentiation through targeted health claims.

Rising healthcare costs are expected to drive the growth of the functional drinks market in the coming years. Health expenditures refer to investments aimed at promoting, restoring, and maintaining health. Functional beverages contain ingredients that provide health benefits beyond basic nutrition. Some functional drinks are enriched with antioxidants, vitamins, and minerals that help boost immunity, lower blood pressure, and reduce inflammation, offering a cost-effective way to meet nutritional needs. For example, in January 2025, the Healthcare Innovation Group, a US-based media and events company, reported that hospital cost inflation reached 10.4% in 2023, up sharply from 3.2% in 2022. Therefore, rising healthcare costs are expected to support growth in the functional drinks market.

Key players in the functional drinks market are focusing on product innovation, such as instant energy beverages, to gain a competitive advantage. Instant energy drinks are designed to provide a quick boost in physical and mental alertness through fast-acting stimulants like caffeine and sugar. For instance, in September 2024, PepsiCo, a US-based global food and beverage company, launched Gatorade Hydration Booster, an electrolyte powder formulated for daily hydration. The powder contains a blend of electrolytes sourced from watermelon juice, sea salt, sodium citrate, and potassium salt, along with 100% of the daily value of essential vitamins A, B3, B5, B6, and C, and no artificial flavors, sweeteners, or colors.

In May 2025, PepsiCo Inc. acquired Poppi for approximately $1.95 billion. This acquisition enables PepsiCo to expand its functional and better-for-you beverage portfolio, strengthening its presence in the growing prebiotic and gut-health drinks segment. Poppi, a US-based beverage company, specializes in prebiotic sodas and functional drinks designed to support digestive health and overall wellness.

Major companies operating in the functional drinks market are The Coca-Cola Company, PepsiCo Inc, Red Bull GmbH, Suntory Beverage and Food Ltd, Danone SA, Nestle SA, Monster Beverage Corporation, Otsuka Holdings Co Ltd, Universal Nutrition Corp, Dr Pepper Snapple Group Inc, Glanbia Plc, Kerry Group Plc, Probi AB, The Hain Celestial Group, Koios Beverage Corp, Celsius Holdings Inc, Vital Proteins LLC, Fonterra Co operative Group Limited, The Naked Collective Limited, The Alkaline Water Company Inc, The New Age Beverages Corporation, The Republic of Tea.

Asia-Pacific was the largest region in the functional drinks market in 2025. The regions covered in the functional drinks market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the functional drinks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The functional drink market consists of sales of coconut water, enhanced waters, functional sodas, and related products. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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