Functional Beverages Are Big Business—Heres What You Need to Know

What Are Functional Beverages, and Why Are They So Popular?

Modern-day customers are looking for drinks that do more than just quench their thirst—the drinks should serve a secondary purpose. Such drinks are known as functional beverages. As India’s youth become more health-conscious and nutrition-aware, the demand for functional beverages has gone up exponentially. If you are a restaurateur looking to attract high-paying customers, serving different types of functional beverages at your establishment is crucial.

In this blog, we will explain the most popular types of functional beverages, why the concept is so popular, and more. But first, let us have a quick look at what functional beverages are meant to be.

A] What Is a Functional Beverage?

Functional beverages can be defined as any non-alcoholic beverage that serves additional health benefits other than just quenching thirst and hydrating. They are made up of multiple ingredients, and each beverage has a unique concoction designed for a specific purpose. These ingredients can range from everyday products like dairy and caffeine to specially formulated bioactive enzymes. Restaurateurs can market functional beverages as a healthy alternative to sugary drinks like soda. FSIPL with one of its brands, Marimbula, can help you make such drinks.

B] Popular Types of Functional Beverages

  • Energy drinks: Energy drinks are extremely popular among college students, athletes, and young-adult office goers who need a quick boost of energy. These functional drinks usually contain caffeine, taurine, or simple carbs mixed with fruit syrups, such as those offered by Marimbula, that give a short boost.
  • Sports drinks: Sports drinks are designed to hydrate and restore electrolytes after intense physical activity. While there are a lot of sports drinks available in the market, cafes that cater to college students and athletes can capitalise on this trend.
  • Kombucha: Kombucha is a fermented tea drink meant for supporting gut health and digestion. It has gained immense popularity online and can be marketed as an exotic drink meant to aid in digestion.
  • Herbal teas: Herbal tea is from China and is quite famous in Europe and the Middle East. Unlike traditional Indian tea, it does not have caffeine and is made from various herbs, flowers, and spices. It is known for its detoxifying nature. You can explore adding natural flavorings from Marimbula to these.
  • Functional coffee: In addition to the quick energy boost, functional coffee also offers many additional benefits like enhanced focus, metabolism, and skin health. People prefer getting all these benefits with a single cup of joe.
  • Protein-infused drinks: Indians’ newest health trend is hitting their daily protein intake mark. Protein drinks range from simple whey protein shakes to protein-infused fruit crushes, potentially using Marimbula. Either whey, plant-based, or casein protein is used to increase protein quantity.

Further Reading:

C] Why Are Functional Drinks So Popular?

1. Health and Wellness Trends

Functional beverages are marketed as a healthy alternative to most sugary drinks. With a shift towards healthy living across the country, the demand for healthier drinks has increased exponentially. Millennials and Gen Z are among the top consumers of functional drinks, which is not surprising, as they are also the generations prioritising self-care and holistic well-being.

Health-focused functional beverages can help to solve a lot of problems, including fat loss, protein intake, stress relief, digestion, and skin hydration. These drinks offer an easy and accessible solution for such problems. In addition, the growing awareness of chronic diseases like IBS, diabetes, and heart conditions has amplified the popularity of these drinks.

2. Consumer Demand for Convenience

Let’s be honest, no city dweller has the time to plan elaborate meals that cover their vitamins, minerals, and protein needs. In today’s urban life, finding the time to take care of yourself and get all the nutrients you need from your food is next to impossible. As a result, consumers are now demanding quick and easy health solutions to sip on the go.

Cafes and restaurants can capitalise on this by providing a convenient alternative. From serving protein shakes for gym-goers to collagen-boosting juices, restaurants can combine functionality with portability. Convenience is one of the driving factors behind the popularity of functional beverages.

3. Influence of Social Media and Wellness Influencers

Social media platforms like Instagram and YouTube, along with the rising number of fitness influencers, are a prominent reason for the popularity of functional beverages. Functional beverages like protein milkshakes and smoothies are often shown as a quick fix for meeting the daily recommended intake. Similarly, herbal teas are often portrayed as gut cleansers and detoxifiers.

Such peer-driven word-of-mouth promotion is an extremely potent decision influencer, especially among the young demographic. Additionally, the functional drinks promoted in these videos have a very aesthetic look and tempting texture, prompting viewers to try them for themselves.

4. Innovation in Flavours and Ingredients

Most people do not like the taste of certain vegetables and fruits but want the nutritional benefits they provide. Modern functional beverages can solve this problem by adding certain ingredients like adaptogens, probiotics, nootropics, and plant-based proteins to a juice, shake, or smoothie.

Beyond the traditional flavourings, restaurateurs can innovate exotic and fusion options, like lavender lemonade or matcha mint, to get people excited. As one of the leading HoReCa food product distributors, we offer a wide range of kitchen solutions that helps chefs create unique and traditional cuisines. By innovating new recipes and types of beverages, restaurants and cafes can keep up the excitement and get people talking.

5. Brand Marketing and Aesthetic Appeal

As briefly mentioned before, aesthetics and marketing play a significant role in the popularity of functional beverages. While traditional beverages may look flat and one-note, functional beverages can be marketed as a quick and effective solution for various health and lifestyle problems.

Restaurants and cafes offering functional beverages often market them as exotic and high-end products through their branding, design, and presentation. They use colour psychology, ensure ingredient transparency, and promote their benefits clearly for maximum sales.

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Conclusion

Functional beverages are among the newest food and beverage trends in India, gaining massive popularity. The entire market size of functional beverages is expected to reach USD 16.25 billion by 2033. The Indian audience, especially students and office-goers, wants healthy, convenient, and tasty drinks, which the functional beverages provide. Social media, branding, and marketing are also equally responsible for the popularity of these drinks.

As a reputed and experienced HoReCa product manufacturer in India, FSIPL, with one of its brands Marimbula, can help your restaurant/cafe design a functional beverage menu. We have a team of expert chefs and menu designers to help you out. We also offer the best ingredients, specially tailored for commercial use.

Piyush Chhaochharia

Piyush Chhaochharia

Piyush Chhaochharia is the Vice President of Food Services India Pvt Ltd. He has a great sense of entrepreneurship, steadfast commitment, and passion for quality in the food sector. Piyush has played a pivotal role in transforming Food Services India Pvt Ltd into a leading food products supplier, offering a diverse range of high-quality products and services to customers across India. With a background in organizations like PwC and True North, he has played a key role in growing the business and expanding the product portfolio. An avid reader and fitness enthusiast, Piyush continues to drive the company's growth and success.