Functional beverages are everywhere. Core areas such as energy, hydration, protein and gut health are seeing mass market success. But then more niche areas are gathering momentum. Brain health, cognition, focus, productivity, menopause, and more: there’s now a functional beverage for every need state and occasion.
But is it all too much?
Keeping down with the consumers
Innovation in functional beverages is evolving at a rapid pace.
But consumer understanding is not following at the same speed.
In fact, 47% of US adults say they feel overwhelmed by the assortment of functional beverages on the market, according to Mintel data.
The rises to 56% in 18-24 year olds (This generation, while perhaps more likely to research and educate themselves on functional beverages, are also more likely to be overwhelmed by the complexity of what they find.)
“We know that innovation only works when consumers can keep up,” says Alex Beckett, principle strategist, Mintel Food and Drink. “And right now, many can’t.
“I think we need to have empathy with consumers right now because of that overwhelm.”
Keeping it simple
So how can beverage brands respond?
It’s about looking closely at consumer trends and thinking about how consumers feel about the category. And that’s not necessarily the same as what innovation opportunities provide.
With so many hot trends in functional beverages, creating drinks that meet multiple consumer needs at the same time seems like an obvious white space.
And yet that’s not necessarily what consumers want.
Mintel’s research shows that 57% of consumers say they prefer beverages that don’t make too many health or functional claims.
That jumps to 64% of 18-24 year olds.
“It’s about being selective, not throwing every claim you can think of on the drink,” says Beckett. “And there’s so much blurring happening at the moment, and that’s confusing.”
For brands that do explore the idea of functional layering, it’s important to keep messaging simple and clear.
Then there’s education: explaining the benefits of functional brands to consumers.
“People want to learn,” says Beckett. “I think the FAQ section on your website is more important than ever, and the QR code on your pack is so crucial as well.”
