Consumer health consciousness and changing trends push functional product manufacturers to strive for innovative, nutritional heights.
Functional products—usually in the form of foods and beverages—are products that provide health benefits beyond basic nutrition, such as support for immunity, digestion or cognition.
These health benefits are usually achieved through naturally occurring bioactive compounds or by adding beneficial ingredients such as vitamins, minerals, probiotics, fiber, omega-3 fatty acids or antioxidants.
According to Grand View Research, the global functional foods market was valued at $329.65 billion in 2023 and is expected to reach $586.06 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.6 percent.
The market analysis shows a rising demand for nutrient-rich food due to hectic lifestyles and increased consumer awareness of the health advantages of these products. Also, as life expectancy steadily increases, the aging population is focused on maintaining overall health and wellness and are paying more attention to their lifestyles and diets.
“I think we are seeing customers who appreciate functional food products that do more than just one thing, like the new ShroomBar Protein Bars we just brought in that combine a 2,000 mg mushroom blend with 12 grams of protein,” said Retailer Alina Hornfeldt, co-owner of Mastel’s Health Foods in Saint Paul, MN.
Trends
According to Simon Penfold, CCO of Vivici (The Netherlands), the rise of the ready-to-drink category, especially crystal-clear, better-for-you sodas is one of the biggest trends. Consumers are looking for lighter, refreshing beverages that deliver real function without the heaviness or high sugar content of traditional soft drinks.
“Even though overall soda consumption is declining, better-for-you sodas are accelerating because they offer functional benefits with the familiarity of bubbles. Almost one in five consumers has reduced their intake of traditional carbonated soft drinks in the past year, shifting instead to low-calorie, functional options that support gut health, energy, immunity and metabolic balance,” he explained.
Penfold also observed a strong push toward high protein intake in compact and convenient formats.
“The market is moving quickly toward small-volume, high-protein shots, with brands aiming for 25 grams of protein in just 100 milliliters,” he said. “Consumers want a no-fuss, on-the-go way to get meaningful protein for recovery, satiety, everyday wellness and longevity. This surge reflects a broader shift toward dense, efficient protein delivery systems that fit busy, health-conscious lifestyles.”
Rhett Barney, co-founder and president of Sturdy Sauce (Liberty Lake, WA) also observed a high push for “all things protein.”
“While we have been the beneficiary of this trend, it has also created a lot of noise as the market fills with strange or sub-par products,” he said. “Other trends include gut-health, mushroom/nootropics infused beverages, functional beverages generally (every function you can think of right now has a beverage), and an emerging ‘trend’ is a greater understanding of the need for fiber … though this one is still nascent and is not as ‘sexy’ of a topic as protein or mushrooms.”
CC Salzman, founder and CEO of Hydra Hydration (Los Angeles, CA) added the functional space is growing fast around better-for-you hydration and multi-benefit formats.
“Clean label formulations, low or no added sugar, real food ingredients, and enjoyable formats are leading the way. Brands are also innovating with hybrid products that combine electrolytes, adaptogens, botanicals and flavor experiences,” she said.
“In terms of functional products, more than ever, consumers are looking for a product that targets a specific goal of theirs, i.e., gut health, immunity, protein and more,” added Lindsee Brian, director of brand partnerships at Utah-based Clean Simple Eats (CSE).
Health Benefits
According to Salzman, consumers want hydration products that fit into real life with quick absorption, minimal sugar, natural ingredient and clear labeling.
“Many are looking for proactive hydration to support daily wellness, not just post workout recovery. They are drawn to unique flavors and fun formats that make staying hydrated feel easy and enjoyable,” she explained.
“Customers are looking to simplify their supplement routine whenever possible. When we show them options for fish oils that combine omega-3s with vitamin D, they really appreciate it!” Hornfeldt added.
Penfold said consumers want products for the so-called “protein trilemma.” They want high protein performance, great sensorials and products that align with their lifestyles and values.
“Historically they’ve had to compromise, but they no longer accept trade-offs,” she said. “They’re looking for superior nutritional quality with high BCAA and leucine, rapid absorption, refreshing sensorials without chalkiness, and clean formulations that are vegan or flexitarian friendly, lactose-free, cholesterol-free and sustainably produced. Ultimately, they want products that deliver all three pillars at once: performance, taste and lifestyle alignment.”
Products
As one of the most popular wellness categories, manufacturers are always looking for ways to stand out.
According to Hornfeldt, a popular product at Mastel’s is Botanical Lucidity, a drink that has several functional options to choose from. A favorite is the Adaptogenic Golden Chai, which combines the roots of ashwagandha, maca, turmeric and licorice to create a delicious elixir to soothe the nervous system.
According to Barney, Sturdy Sauce was developed in 2022 before the high push for protein as a better-for-you option for a category that has only ever been interested in taste.
“The role of sauces in the food system is flavor where at best there is no nutritional value to speak of, and at worst there are added sugars, fats, and stabilizers that turn the sauce into carbohydrate bombs … that are then typically paired with more carbohydrates,” he explained. “So, we decided to make a product with a meaningful amount of protein, but without changing the experience for the consumer. The product tastes, smells, feels just like a delicious high-quality sauce. The product is all-natural, shelf-stable, high in protein, and still tastes amazing.”
Clear Protein Soda from CSE is a refreshing bubbly and guilt-free soda alternative in the functional beverage space. Compared to traditional sodas and sugary drinks, Clear Protein Soda is clean and offers consumers a convenient way to boost their protein intake without sacrificing flavor or ingredient integrity. It is available in Sour Green Apple, Frosted Lemonade, Cherry Lime and Classic Grape flavors.
“Created with health enthusiasts, fitness lovers, and busy, everyday people in mind, this lightly carbonated, protein-packed beverage delivers 20 grams of grass-fed whey protein isolate, without any added sugars or artificial ingredients, so you can satisfy a soda craving without the crash,” Brian explained. “Thanks to its ultra-filtration process, the lactose content is reduced, making it easier to digest, fuel up and enjoy.”
Vivici’s high-protein shots with Vivitein BLG represent the next generation of compact, clean, high-concentration protein formats. The shots deliver 25 g of protein and more than 3 g of leucine in just 100 mL, offering a highly efficient format for both performance and recovery.
“Vivitein BLG, our fermentation-derived beta-lactoglobulin, makes this possible. It remains fully soluble at extremely high concentrations, maintains very low viscosity, avoids sedimentation, and delivers a refreshing, clean taste suited to fruit-forward flavors,” Penfold explained. “Its nutritional quality is superior to traditional whey isolates and offers predictable, consistent functionality. Shots can be preserved through cold-fill with preservatives or clean-label high pressure processing, ensuring stability while retaining fresh taste.”
Hydra Hydration manufactures electrolyte freeze pops that deliver effective hydration in a “fun and convenient way.”
“We use real fruit and sea minerals in ionic form for optimal absorption, and avoid added sugar, artificial sweeteners and dyes,” Salzman said. “Each pop provides essential electrolytes like potassium, magnesium, sodium and chloride, offering both performance and wellness benefits for athletes, parents, wellness seekers and everyday consumers.”
Functional Ingredients
The ingredients used in functional products are evolving.
“Functional beverages are growing faster than ever. Consumers are seeking products that provide them with added health benefits,” Brian said.
According to Penfold, protein continues to lead the functional category especially when combined with other performance and wellness ingredients. There is also strong traction with electrolytes, collagen and other functional nutrients.
One ingredient that has been gaining momentum is lactoferrin especially with growing awareness of women’s health.
“Iron deficiency and GI (gastrointestinal) discomfort from traditional supplementation have created space for gentler, more effective bioactives,” Penfold said. “Products designed [for] women represent a focused and clear opportunity, with potential to expand into everyday and endurance athletes. This aligns with a broader market shift toward functional products that address biology-specific needs for men and women.”
Salzman said one of the key ingredient trends are electrolytes, such as sodium, potassium and magnesium, in new formats beyond sports drinks.
“Clean label minerals, botanicals, adaptogens, and plant-based ingredients are supporting hydration, recovery, stress relief, skin health and gut support. Flavor innovation and new delivery formats like freeze pops, sticks and portable sachets are also gaining popularity,” she said.
For Retailers
According to Penfold, retailers should focus on products that solve the “Protein Trilemma:” strong protein performance, superior sensory experience and alignment with modern lifestyles. Functional sodas, clear RTDs (ready-to-drinks) and compact protein shots are becoming the preferred choices for wellness-driven consumers.
“Even with protein taking center stage, the next wave of innovation is expanding beyond muscle and recovery. Consumers are now looking for well-rounded wellness, and retailers should prepare for more formats and categories embracing ingredients that support immunity, balance and overall health,” he said.
“Retailers should know hydration is evolving beyond sports into daily wellness, frozen snacks and convenience formats,” Salzman added. “Clean hydration options are driving larger basket sizes and category expansion. Unique products like freeze pops bring new shoppers to the freezer and better for you snack aisles. Retailers can benefit by stocking products that combine function, flavor and a strong wellness message.”
According to Barney, Sturdy Sauce is the only product in the sauce category that is additive from a nutritional perspective.
“While there has been some innovation as far as removing ingredients or changing the flavor of sauces, none of those changes do anything nutritionally positive. And right now, consumers want products that are nutritionally additive, all while being convenient,” he said.
“We are very comfortable helping folks to see how the products we carry benefit them in a functional way. We tend to lead with the ‘Why?’ before diving into the science. If a customer wants to get more into the details, we are happy to go there, but many just want to know the basics and trust our judgement,” Hornfeldt added.VR
For More Information:
Clean Simple Eats (CSE), www.cleansimpleeats.com
Hydra Hydration, www.thehydrashop.com
Sturdy Sauce, www.sturdysauce.com
Vivici, www.vivici.com
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