The functional drinks market is overflowing with opportunity. It is predicted to achieve a CAGR of 6.46% between 2023-32, hitting a value of $385.94 billion.1 At the heart of this growth is increasing consumer health consciousness. People overwhelmingly see living and feeling well as a priority in 20232 and they’re willing to pay to achieve this goal – 65% of consumers say spending money on health and wellness will either be the same or higher priority level compared to 12 months ago.3 But how can brands stand out on the health-boosting functional drinks market? Tasty, nutritious and convenient protein ready-to-drink (RTD) applications may be the answer.
The positive nutrition movement means there is now less of a drive among consumers to cut out what could traditionally be thought of as ‘bad’ ingredients. Instead, many are focused on the health benefits that come from adding more ‘good’ ingredients into their diets. One example of this is seen in the 58% of consumers who have increased their protein intake,4 marking a significant move away from the era of dietary deprivation and negative food habits.
Protein is a particularly popular choice for health-conscious consumers with its strong health halo and a reputation for being fulfilling as well as nutritious. In fact, high protein claims rank among the top five health claims across all regions globally.5 However, there is plenty of room for innovation in the high protein drink space. Most protein drinks on the market are shakes and meal replacements,6 so there’s a big opportunity for brands to capitalise on the growing demand for both convenient and indulgent protein ready-to-drink products.
Here, we’ll look at the five key trends to keep in mind when designing your next protein ready-to-drink application to meet this growing consumer need.
To say societies have been in a state of constant flux since 2020 would be an understatement. But zooming in on a purely personal level, most people are adjusting to a post-COVID 19 life and feeling apprehensive about the current global cost of living crisis. These factors, alongside general day-to-day stresses of family and work, have pushed resilience high up the consumer priority list. As such, many consumers are turning to nutrition and exercise to help build up their reserves and taking a total mind and body approach to wellness.
Exercise is well recognised to boost overall well-being. A healthy, active and well exercised body supports a resilient mind and is generally associated with people feeling happier and healthier7 and enables us to better cope with stress.8 And people are exercising more to support their overall well-being – 38% of Europeans exercise at least once a week8 – which has increased appetite for functional drinks. Long associated with exercise, protein naturally taps into this growing active consumer demographic. But 74% of consumers also associate protein with overall health benefits,9 making it an ideal nutrient to fortify nutritious RTDs positioned at boosting overall well-being and resilience.
The buzz around alternative proteins continues to grow. The market is projected to double from 2021 to 2028 and reach a value of $78.95 billion.10 Health-conscious flexitarian consumers are largely responsible for this growth as they seek balance as part of a healthy lifestyle. When looking at why people add plant-based dairy alternatives to their diets – 71% say they do so for health reasons.11 But as the call for plant-based alternatives grows louder, so too does the need for innovative applications that solve this sector’s taste, texture and nutritional challenges while also offering something new and exciting. Consumers ranked ‘standalone products’ as the third biggest ‘game changer’ for plant proteins – just after improved taste and texture.12
For brands to tap into the plant-based movement, it’s crucial the pace of plant protein drink innovation keeps up with traditional protein innovation. This means looking beyond traditional dairy-like shakes, creating plant-based RTDs that leverage exciting flavours and formats, such as fruit flavoured shots or indulgent chocolate drinks.
When it comes to improving holistic health, protein isn’t the only nutrient that piques consumers’ interest. Awareness of the gut microbiome’s role in holistic health is on the rise with 2 in 3 consumers now recognising that gut health is key to well-being.13
Gut health has moved on from digestive support through a daily yoghurt. Over half of consumers are aware of prebiotics and their health benefits.14 And prebiotic ingredients can unlock holistic health through the gut-brain axis15,16,17,18 and the gut-muscle axis.19
Formulating high protein drinks with added health benefits can help brands tap into new demographics of consumers who want their nutrition to be multifunctional and fit easily in their busy lifestyles. RTDs with gut-boosting ingredients can help brands effectively tap into the holistic health trend.
Whey protein has a strong nutritional reputation and is highly trusted by consumers. This is because it’s tried and true – there’s lots of scientific evidence into how whey supports muscle protein synthesis.20,21 It’s no surprise then that whey dominates the clear protein drink and protein shake space, in fact whey makes up 45% of the protein water market.22 What’s more, over half of active consumers prefer whey as their go-to protein source.23
However, there are challenges when formulating with whey protein to create traditional milk-like RTDs. Thankfully, innovative new ingredients are making it easier for brands to add this popular ingredient to protein ready-to-drink applications. Working with a partner with the relevant formulation expertise can help brands stand out in this competitive segment. And by formulating with whey, brands benefit from its global appeal, awareness and trust.
The e-sports industry has been an unstoppable force in recent years, reaching a value of $1.64 billion in 2023.24 And with the rise of streaming, gaming is increasingly seen as a competitive sport that’s attracting amateurs and professionals alike. This has quickly grown into a serious sport, with some e-sport athletes gaming for up to 10 hours a day. As such, competitors are increasingly taking personal health and the impact nutrition can play more seriously – just as a strength or endurance athlete might.
In fact, some of the benefits are equally similar, with competitors seeking hydration, good muscle function, better sleep and enhanced energy and focus to help them achieve their best. Ready-to-drink products and cans are already the established and preferred format for this segment and offer a convenient and attractive method for delivering all these benefits and more. RTDs are also an established, well-accepted format for this target group but many want to turn away from sugar and caffeine-laden energy drinks in favour of healthier alternatives like high protein drinks, clear protein drinks and plant protein drinks with a great taste and added health benefits.
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Subscribe1 Precedence Research, Functional Drinks Market (By Type: Energy Drinks, Dairy-based Beverages, Sports Drinks, Juices, Others; By Distribution Channels: Specialty Stores, Supermarket/ Hypermarket E-Commerce Others; By End-User: Fitness Lifestyle Users, Athletes, Others) – Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032, 2023 https://www.precedenceresearch.com/functional-drinks-market
2 Innova Lifestyles and Attitudes Survey, 2022
3 FMCG Gurus, 2023
4 FMCG Gurus, Trends & Opportunities in the Ingredient Market, 2022
5 Euromonitor International, Protein-Meeting Lifestyle Demand, 2023
6 Nutrition Integrated, Market Intelligence. The UK landscape for protein RTDs – a search for mainstream acceptance, 2023
7 An et al. The Relationships between Physical Activity and Life Satisfaction and Happiness among Young, Middle-Aged, and Older Adults. 2020. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1470658/
8 Eurobarometer, 2022
9 FMCG Gurus, Consumer Perspectives on Protein Consumption, 2022
10 Vantage Market Research, ‘Plant Based Food Market – Global Industry Assessment & Forecast’, 2022
11 FMCG Gurus, Meat & Plant-Based – Global Report, 2022
12 Innova Trends Survey, 2022
13 Innova Top Ten Trends, 2022
14 FMCG Gurus, ‘Five Trends Your Brand Must Monitor in 2022’, 2022
15 Chichlowski et al., 2022
16 Schmidt et al., 2015
17 Johnstone et al., 2019
18 Schaafsma et al., 2021
19 Przewłócka, K. et al. Gut-Muscle Axis Exists and May Affect Skeletal Muscle Adaptation to Training. Nutrients.12(5):1451, doi:10.3390/nu12051451 (2020).
20 Phillips et al., 2016
21 Pennings et al., 2011
22 Nutrition Integrated, Market Intelligence. The UK landscape for protein RTDs – a search for mainstream acceptance, 2023
23 FMCG Gurus, ‘Meat, Dairy, or Plant Based Protein Sources’, 2020.
24 Global Data, 2023. https://www.globaldata.com/store/report/esports-market-analysis/#:~:text=Esports%20Market%20Overview,16.7%25%20over%20the%20forecast%20period.
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