Functional beverages are innovating by incorporating both animal- and plant-based proteins, vitamins, and fiber to address daily dietary needs. Protein has seen significant growth in recent years, with the global ready-to-drink (RTD) protein beverage market expected to reach US$4.1 billion by 2025, boasting a compound annual growth rate (CAGR) of 7.9% over six years, according to Grand View Research. Brands are differentiating their products by adding more protein, using plant-based proteins, and expanding into new categories like water, juice, and coffee.
Whey and milk remain the most common protein sources in RTD beverages, but plant-based protein beverages are poised for growth. Plant-based protein supplements are projected to grow at a CAGR of 7.9% through 2025, compared to 5.6% for animal-based sources, as reported by Grand View Research. Innovation continues with protein being incorporated into new beverage categories, such as protein waters, which gained momentum due to the health halo around water and the popularity of functional beverages. Nielsen data shows the U.S. protein water market increased 563% from 2015 to 2017, with ongoing growth expected. Other nutrient-enhanced beverages like Vitamin Water and Sparkling Ice are also popular. Fortune reported Sparkling Ice experienced a 6,570% sales increase from 2010 to 2016, leading to the development of several private label varieties. Newer RTD beverages are being enhanced with prebiotics, a type of fiber, such as Hellowater and Wanu (which also includes vitamins). Growing consumer awareness of gut health benefits and positive publicity around probiotics have driven interest in prebiotics. Beverages offer a convenient way to add fiber to diets, and with prebiotic incorporation still novel, there is ample room for innovation. Read the full article and gain more insights in INSIDER’s Beverages digital magazine. Holly McHugh, marketing associate at Imbibe, a Chicago-based beverage development company, focuses on external communications, brand awareness, and trend analysis. Her insights have been published in BevNet, Beverage Industry, Natural Products INSIDER, Prepared Foods, and Food Ingredients First. She holds a bachelor’s degree from Columbia College Chicago and a master’s from the University of Denver.
