Today’s health-conscious consumers expect a lot from their snacks and sips: They want options that taste great, remind them of nostalgic favorites, and deliver functional benefits like increased energy, sharper thinking, and sunnier moods. Meeting these demands has become big business. Grandview Research posits that the global functional food market will reach $586 billion by 2030, growing at a CAGR of 8.5%. 

“Over the past 10 years we have seen snacks and drinks evolve from high caffeine, high sugar into more functional options—think natural energy sources, hydration, high-protein formats, and better-for-your indulgences with targeted health benefits,” says Denis Neville, CEO, CoreFX. “In 2025 that evolution continues with even greater sophistication with multi-functional benefits delivered through unique formats that support a wide variety of health benefits such as gut health, brain health, active nutrition, immune health, and so many more, all while offering great taste.” 

As consumers have become more aware of how nutrition influences their overall wellbeing, it’s changing the way they shop. “BLS is seeing strong momentum in the data-driven wellness space,” explains Sydney Staedt, Marketing Manager, Bioenergy Life Science (BLS). “With the widespread adoption of wearable wellness tech such as smartwatches, consumers now have instant insight into their sleep, energy, and recovery patterns. This shift has created a more informed and proactive shopper, one who’s actively seeking clean, science-backed ingredients to boost energy without caffeine, support NAD+ production, and build resilience to stress.” 

Data-driven shoppers approach functional snacks and drinks with the same scrutiny as they do supplements. “There is a blurring of the lines between functional foods and supplements, where we see more active ingredients traditionally used in supplements starting to gain traction in products with nutritional fact panels, especially beverages,” explains Devon Gholam, Ph.D., Vice President of Science and Innovations, Step Change Innovations. “Ingredients that interact with the gut microbiome, support the gut-brain axis, or help with mental health and wellbeing seem to be the most popular at present.”

Educated shoppers are also looking for functional ingredients supported by research. “With so much buzz around many of these trends, brands should be scouting for ingredients that don’t just sound functional, but actually are,” says Brian Zapp, Marketing Director, Applied Food Sciences (AFS). “We have all seen products that sprinkle in ingredients like lion’s mane or turmeric just to get it on the label. But pixie dusting won’t cut it anymore. Products have to work!”

If consumers can’t feel the benefit, no amount of clever branding or pretty packaging is going to save it, Zapp stresses. “We’re in a post-gimmick era, where clinical validation and efficacy matter more than ever. The bar has been raised, and brands should be seeking ingredients that are clinically studied, properly dosed, and deliver on their promises. AmaTea Max is a great example. Not only is it USDA Organic and sustainably sourced from Amazonian guayusa, but it’s also backed by numerous human clinicals showing tangible benefits in focus and mood support. Same with CelluThrive for detox and hormone balance, and MycoThrive Lion’s Mane for fast-acting mental clarity. When you start with ingredients that work, the product speaks for itself and has a fighting chance to build repeat business and brand loyalty.”

Retailers can appeal to shoppers by having experts on hand to help them cut through the noise of this oversaturated market. “Even as a professional in this industry, I get overwhelmed at all the options available when I go shopping!” says Dr. Gholam. “Heinen’s, where I often shop in northeast Ohio, has wellness consultants at each store that help consumers learn about the active and functional ingredients in foods and nutraceuticals, helping them make the best choices for their lifestyle and health status. Using emails, websites, and other digital communications to educate consumers on the benefits of active ingredients in language accessible to everyone—and not just science nerds like me!—will go a long way to support the functional food and nutraceutical industry as well as help retailers establish credibility and trust with their shoppers.”

As Dr. Gholam notes, consumers are focused on making the right choice. And new research from NSF shows what they are tuning into: 

• 83% of U.S. consumers read food labels before making a purchase decision.
• 64% of consumers pay more attention to labels compared to five years ago. When reading food labels, adults first look for the expiration date (86%), ingredients list (79%), health claims (78%), allergen warnings (77%) and country of origin (77%)

That said, only 16% of adults find health claims very trustworthy, according to NSF.  Consumers want clearer labels, with more detailed processing information (82%) and comprehensive allergen information (80%) on the food they’re purchasing. Sustainability is also top-of-mind: 67% consider sustainability factors important in food purchasing decisions, yet only 39% feel current food labels adequately address sustainability. Nearly seven in 10 (69%) would like to see ethical sourcing information on product labels.

"The food industry must respond to these evolving consumer demands, prioritizing more transparent, accessible and reliable labeling practices as regulations are updated and introduced," stresses Michelle Anstey, Regulatory Manager at NSF. Read more on the findings.

For a closer look on what consumers want in the functional space specifically, we asked experts for their take.

What’s driving demand in functional food & bev?

Protein-powered. “Protein continues to see high utilization across several applications, especially snacks and beverages,” says Dr. Gholam. “Consumers continue to look for convenient options that support their nutritional goals, thus options that deliver on fiber and protein without having to adapt an entirely new product are highly appealing. Options with high fiber and protein content are appealing to a large number of consumers and are hugely beneficial as GLP-1 trends dominate the market.” 

Natural sweeteners. Artificial sweeteners are out, and natural sources of sugar are in, says Scott Frohman, Founder and CEO, Odyssey Elizer. “A few calories, such as 20-50, are better than virtually no calories that taste artificial or don’t taste great. Less sweet, real fruit flavor without artificial sweeteners—pineapple, tropical flavors like passionfruit, dragon fruit, lemon, lime, and strawberry are the leaders.” 

Fiber-boosted. “We’re seeing fiber making a comeback,” says Esen Pence, Senior Director, Brand & Creative, Blueshift. “With protein clearly taking the mainstream stage, people who are digging a bit more into nutrition information will find that fiber has been there all along. We even have 2g of fiber in our Electrolytes from organic raspberries.”  

Targeted turmeric. ”Among trendy ingredients, turmeric has been here to stay and often gets a resurgence with more specific clinical research being published,” adds Pence. “Many of our blends include turmeric/curcumin—including but not limited to our Turmeric Superblend, Joint Defense Plus, Skin Defense Plus, and Recover Post-Workout.” 

Clean energy. Brands like Melting Forest avoid ingredients that come with an undesirable crash, jitters, or anxiety. “We don’t use those types of ingredients that amp you up and then let you down fast,” says McDonald. For example: “L-theanine for mood boosting and sustainable energy without any crash.” 

BLS’s Bioenergy Ribose is another option that can help the body naturally produce ATP and deliver an energy boost at the cellular level, says Staedt. It is a smart choice for consumers who are watching caffeine consumption and want to stay present and energized. 

Enhanced hydration. “Functional hydration is another significant trend, particularly with enhanced waters and electrolyte drinks designed to support various health benefits using natural flavors,” says Angie Rimel, Marketing Communications Manager, North American, GELITA. “Collagen emerges as a standout ingredient that combines health, beauty, and performance advantages.” 

Healthy candy. There’s a growing market for nutritionally boosted candies like gummies to satisfy sweet cravings in a healthy way, adds Rimel. “For instance, GELITA launched SOLUFORM, an innovative gelatin that allows for gummy formulations with reduced sugar and collagen enrichment while preserving the unique gelatin texture and delightful flavor release.”

The Sober Curious Boom 

Research on the harmful effects that alcohol has reached an apex, and consumers are taking note. A Mintel survey found 39% of consumers follow a sober curious lifestyle for physical health reasons and 29% are limiting alcohol for mental health reasons; 71% of sober curious drinkers worry about the long-term health effects of alcohol.

“The sober curious crowd isn’t just ditching drinking, they’re looking for an alternative drinking ritual,” says Brian Zapp, AFS. “But while sparkling waters and soda have their place, the genuine NA seekers want something with more complexity and functional depth. A well-crafted mocktail should slow you down and be a more ‘sippable experience’ rather than thirst-quenching hydration. Ingredients like PurGinger and PurTurmeric can deliver an earthy warmth and layered flavor that evolves as you take it in. Add in calming mushrooms like MycoThrive Reishi or a smooth calmer dose of energy from AmaTea Max, and suddenly you’ve got a drink that feels more like a moment than a product. These are beverages that make you slow down, notice the nuances, and feel the effects.”

To appeal to consumers, spotlight benefits that correlate to the effects of cocktails. “Many of the mocktail options coming to market contain ingredients for mood and relaxation, which makes sense since many consumers enjoy a glass of wine or an alcoholic drink of choice to unwind at the end of a busy day,” says Devon Gholam, Step Change Innovations. “Active ingredients like ashwagandha, magnesium, lemon balm, L-theanine, mushroom extracts, and other adaptogens are very popular in this category.” 

Retailers can also point to downstream benefits like liver-support, adds Sean McDonald, Melting Forest: “Functional ingredients like Reishi, L-Theanine, and liver-supportive compounds offer relaxation without the drawbacks of alcohol. The appeal lies in mood balance, mental clarity, and supporting healthy habits, all while maintaining the social and sensory experience of a cocktail.” 

In-store taste tests and sober social hours can attract shoppers. “We want to allow people to find ways to still relax and have a stress-free evening while avoiding the impact of alcohol on their bodies,” says Esen Pence, Blueshift. “Our Blueshift Calm is created for exactly this. Instead of one or two ingredients, we’ve packed in four luscious fruits and 18 calming vitamins and herbs to help you get into zen mode. I think there’s a massive opportunity for retailers to merchandise these products a lot more effectively. Wouldn’t it be fun to see these functional drinks in their store cafes, too? That’s my dream.”