Amid the rapid growth of the nonalcoholic industry in recent years, functional beverages have been generating a good deal of excitement for their wide variety of health promises and feel-good benefits. There are as many formulations in the functional category as there are brands, from products designed to enhance mental and emotional well-being—fostering anything from a sense of social ease or focus to calm and relaxation—to those that support physical optimization, aiding in digestion, hydration, or even immune function and gut health. With ingredients that include adaptogens, nootropics, probiotics, hemp derivatives, vitamins and minerals, and amino acids, these beverages are crafted to offer consumers physical and mental benefits without the intoxicating effects of alcohol.

A Growing Market

The functional beverage market, which includes a variety of drink categories from energy drinks to adaptogenic tonics, has grown at a CAGR of 5.9%, according to Allied Market Research. Concurrently, the nonalcoholic beverage sector, including alcohol-free beers, wines, and spirits, is seeing sustained growth with a CAGR of 5.3%. Within this intersection, brands are developing sophisticated functional beverages that provide the sensory experience and intentional craftsmanship consumers seek—without the alcohol. Significant investment from major beverage companies—like Constellation Brands’ stake in Hiyo, a non-alcoholic social tonic infused with adaptogens and nootropics—signals continued growth in this category, driven by rising consumer demand.

Crafting an Experience