Functional drinks are moving further into the mainstream as shoppers look for beverages that offer more than refreshment.

From protein coffee and prebiotic sodas to CBD and adaptogen drinks, beverage brands are racing to tap into demand from younger, health-conscious consumers who want products that claim to support energy, gut health, relaxation or nutrition.

The trend has become increasingly difficult for grocers to ignore, with major food and drink giants moving quickly into higher-margin wellness-led drinks.

According to EY’s Consumer Beverage Survey, around 80 per cent of Gen Z consumers and 75 per cent of millennials consume functional beverages regularly, while more than half of US consumers said they were willing to pay more for drinks that support health and wellness goals.

Starbucks has also leaned into the trend, rolling out protein cold foam in the UK and EMEA, giving customers the option to add 15g of protein to their drinks.

While the strategy for Starbucks is focused on coffee shops, it points to a broader shift in how shoppers are thinking about drinks. Coffee, soda and chilled beverages are increasingly being positioned as part of a daily wellness routine rather than an occasional treat.

That creates a clear opportunity in the soft drinks aisle, chilled coffee fixture and food-to-go mission.

The category is already attracting significant investment from some of the world’s biggest FMCG companies. PepsiCo completed its $1.95bn acquisition of prebiotic soda brand Poppi last year, while Coca-Cola has entered the prebiotic soda market with Simply Pop.

Danone has also strengthened its position in functional nutrition after agreeing to acquire UK-founded meal replacement brand Huel.

The momentum suggests functional drinks are becoming a more important battleground for grocery retailers, particularly as shoppers seek products that feel healthier, more purposeful and more premium.

However, the boom also brings challenges. Retailers will need to balance fast-moving innovation with clear range architecture, as products increasingly blur the line between soft drinks, supplements, protein shakes, meal replacements and wellness products.

There is also growing scrutiny around health claims. Last year, the Advertising Standards Authority banned an advert from TRIP after ruling that several claims around calmness, cortisol, stress and anxiety breached advertising rules.

That puts pressure on brands and retailers to ensure functional claims are clear, compliant and not overstated.

For grocers, the prize is a higher-value drinks category that appeals strongly to younger shoppers and social media-led trends. But success will depend on more than simply adding more cans to the fixture.

Retailers will need to decide where functional drinks sit, how they are merchandised, and which claims shoppers can trust.

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