Riding the Wellness Wave with PepsiCo: How Functional Beverages are Shaping the Future of the Beverage Industry
As 2025 approaches, the beverage industry is seeing a significant shift toward functional drinks that cater to a health-conscious consumer. These beverages are no longer just about their alcoholic content, they’re designed to offer tangible benefits, from boosting energy to improving gut health. For businesses in foodservice, healthcare, hospitality, and beyond, incorporating these wellness-focused options can be a powerful way to attract new customers and bring a new experience to their establishment.
Functional drinks cover a variety of categories, each appealing to a specific need. Adaptogenic beverages, infused with stress-relieving herbs like ashwagandha, target consumers looking for balance in their hectic schedules. Probiotic-rich options, such as kombucha and kefir, cater to consumers prioritizing digestive health, while enhanced waters fortified with electrolytes and vitamins appeal to athletes and fitness enthusiasts.
Plant-based milk alternatives, infused with additional nutrients, have become a staple for lactose-intolerant and vegan customers. Emerging trends also include CBD-infused drinks, offering relaxation benefits without psychoactive effects, and “health shots” featuring concentrated doses of superfoods or vitamins.
These beverages resonate with diverse audiences. Millennials and Gen Z consumers are particularly drawn to innovative wellness products, while fitness enthusiasts value protein-packed recovery drinks and hydration solutions. Busy professionals rely on energy-boosting or stress-relieving options, and even families are seeking fortified juices and kid-friendly functional beverages. Offering these drinks helps businesses align with these customer preferences, providing not just products but solutions to everyday challenges.
We spoke with the PepsiCo team, who highlighted several key trends they are seeing:
Trend 1: Consumers are increasingly demanding better-for-you offerings that don’t sacrifice taste. In fact, 74% of consumers consider healthy and nutritious products to be a top priority.1
Trend 2: People are looking for brands and flavours they love and trust, without the added sugar. The “no sugar” segment is gaining traction, with a 9% increase in 2024 across menus.2
Trend 3: Canadians are seeking more energy. In the early 2000s, the average Canadian consumed 415mg of caffeine daily (equivalent to two medium coffees). By 2024, this has risen to over 615mg per day (about three medium coffees). (*A 250mL serving of drip coffee contains approximately 100mg of caffeine).3
For businesses, the appeal of functional beverages extends beyond the consumer. These drinks often command higher price points, driving increased revenue and better profit margins. They also enhance a brand’s image, signaling a commitment to staying ahead of industry trends. Functional beverages are highly marketable on social media, thanks to their vibrant presentations and wellness-focused messaging, making them an organic way to amplify reach and engagement.
Strategically integrating functional drinks into menus or offerings can transform customer experiences. Restaurants and cafés might introduce adaptogenic lattes or highlight kombucha as a healthier alternative to traditional soft drinks. Hotels and resorts can offer infused waters or detox juices at breakfast buffets, while healthcare facilities and senior living communities may incorporate protein shakes or fortified beverages into meal plans. Convenience stores can appeal to busy customers by stocking single-serve wellness drinks.
Canadians will find many brands and products from PepsiCo that offer the taste they love, without the added sugar including:
- Zero sugar carbonated soft drinks: Pepsi® Zero Sugar, 7UP® Zero Sugar, MTN Dew® Zero Sugar, and many more.
- Energy drinks: Rockstar® Zero Sugar energy drinks and GURU Organic Energy Drinks
- Premium water beverages: Gatorade WaterTM
Foodbuy makes incorporating these trends seamless by connecting businesses with leading beverage brands from companies like PepsiCo.
Embracing drinks with functional benefits is more than a trend; it’s an opportunity to meet evolving consumer expectations while enhancing revenue and brand loyalty. For businesses ready to take the plunge, partnering with Foodbuy ensures a smooth transition into the thriving world of wellness beverages.
Source:
- Circana Future of Foodservice Canada May 2024.
- Technomic October 2024
- Stats Canada, Canadian Caffeine Consumption Report 2004 – 2024