Starbucks Iced Vanilla Protein Matcha Latte.
Starbucks
Beverage brands are capitalizing on the growing demand for functional beverages among younger, health-conscious consumers by introducing increasingly innovative offerings, including protein-enriched coffees and CBD-infused sodas.
THE A $160 billion global functional beverage market has become an increasingly lucrative category, encompassing versatile beverages that claim to promise taste and pleasure as well as wellness benefits, as consumers look for convenient ways to achieve their health goals.
“Functional drinks are drinks that are going to deliver results,” Sally Lyons Wyatt, global executive vice president and chief advisor of consumer goods and foodservice at consumer analytics firm Circana, told CNBC.
“Convenience is definitely a factor, but it’s also this quest to live longer and healthier… do you want to drink a beverage that’s just there, or do you want the beverage to work harder for you?”
About 75% of millennials and 80% of Gen Z consume functional beverages ranging from energy drinks to probiotic drinks to vitamin-enriched drinks, according to EY’s most recent report. survey on drinks consumed by consumers of more than 2,500 adults in the United States and Brazil.
More than half of those surveyed said they were willing to pay more for drinks that support their health and wellness goals, EY found.
Additionally, Circana’s 2026 Beverage Evolution report showed that nearly 64% of consumers sometimes choose to have a beverage as a snack, and that figure jumped to 70% for 25- to 34-year-olds, signaling an increased appetite for beverages as meal replacements.
Starbucks has launched protein coffees sold in its stores in the United States, Canada and Europe over the past year to capitalize on the frenzy for versatile wellness drinks – an expansion of its ready-to-drink protein coffees in supermarkets launching in 2024.
Starbucks Frozen Caramel American Protein.
Starbucks
“Functional drinks are now very prevalent in all kinds of food and drink categories, and protein is probably at the top of the list,” Sam Henderson, director of beverage development for Starbucks’ EMEA group, told CNBC.
“We sell [almost] There are as many protein cold foams as there are flat whites, and as you can imagine, flat whites are a hugely popular drink, and protein is performing just as well right now,” he said.
The industry as a whole is also looking to tap the market, with the French food and beverage group Danone recently acquisition of protein drink maker Huel, backed by Steven Bartlett in a deal reportedly worth $1.15 billion. Huel offers nutritionally complete protein shakes as meal replacements.
Meanwhile, the soda giants PepsiCo And Coca-Cola also jumped on the trend. Coca-Cola launched its prebiotic soda brand Simply Pop early last year in the United States, while Pepsi acquired a prebiotic soda startup Poppi as part of a $2 billion deal.
“I think our consumers – all consumers – are looking more than ever for products that provide them with functional benefits. I think people are more educated than ever about nutrition and what they’re putting into their bodies,” Henderson said.
A premium offerAs coffee chains, soda brands and startups compete for a share of the functional beverage market, many charge a premium over traditional products.
Prices for Starbucks’ in-store protein coffee range from about $5.75 to $6.75, while its protein-enriched milk and protein cold foam can be added to any drink for an additional $1 and $2, respectively.. “This is absolutely a premium offering,” Henderson said.
TRIP, a British wellness drinks startup founded in 2019, sells drinks containing adaptogens and botanicals with ingredients ranging from CBD to magnesium.
A single TRIP drink can cost over £2.00 ($2.60) and can be found in supermarkets across the UK, as well as several US retailers.
Mindful Blend TRIP Cherry Lemon Drink with Magnesium and Lion’s Mane.
JOURNEY
“TRIP is a premium product; it’s not marketed alongside traditional sodas,” TRIP co-founder Olivia Ferdi told CNBC. “We don’t make standard sodas, we formulate everyday well-being solutions that customers recognize.”
Ferdi explained that six years ago, functional drinks were an emerging concept, but now they are a “basic consumer necessity” that people are willing to pay more for.
Additionally, sourcing key ingredients like magnesium, lion’s mane, and ashwagandha — a medicinal plant believed to reduce stress — requires different standards than traditional soda making.
“Our consumers are not just paying for refreshments; they invest in a functional advantage that supports their mental clarity and daily foundations. »
Does it actually work?There is skepticism about whether supplements and vitamins like magnesium and collagen actually work. experts and nutritionists previously told CNBC. They cautioned that supplements are not closely regulated by the Food and Drug Administration in the United States and that consumers should instead seek to obtain essential nutrients from food.
In fact, the UK’s Advertising Standards Authority (ASA) banned a TRIP ad for its cucumber-mint drink, Mindful Blend Drink, ruling that it made misleading claims about the drink’s health benefits. This included falsely suggesting the drink could reduce stress and anxiety, and included unauthorized nutritional and health claims.
TRIP declined to comment on the ASA’s decision, but Ferdi told CNBC last week that TRIP’s products are developed by a team including experts in nutrition, food science and culinary innovation.
“We also work closely with specialist formulation partners, regulatory experts and manufacturing partners throughout the development process to ensure our products meet the standards in each market in which we operate,” she added.
A new “status symbol”Starbucks and TRIP said Gen Z and millennials are driving demand for their functional products, with social media playing a role in broadening visibility.
TRIP, become TikTok Shop, the UK’s #1 drinks brand in January 2025, used a “social first” strategy to tap into this younger consumer base.
“Social media has been a major catalyst in this, transforming functional drinks into a status symbol,” said Ferdi, co-founder of TRIP. “On platforms like TikTok and Instagram, choosing a drink that supports your mental foundation has become a lifestyle statement.”
In fact, 72% of Gen Zers turn to social media for food and drink-focused wellness trends, according to 2025 data shared with CNBC by food and drink analytics company Datassentials.
“They are [young consumers] “That will be the engine of growth over the next five years because they’re entering those high-income years and that gives them more purchasing power,” Circana’s Lyons Wyatt said.
“If they’re going to pay for something, they want to get the most out of it, and that’s why you would see coffees with protein and other benefits probably outpacing some of the ones that might be good old-fashioned traditional options,” she added.
