Understanding what functional benefits consumers want means taking a step back and looking at what they need. More specifically, it’s about understanding their ‘need states’; that is, the parts of their daily lives where they need that extra boost.
And above all, it’s about understanding how beverages can become a regular fixture in meeting those needs.
Growing mass appeal
The functional beverage industry is at an interesting point of divergence. On the one hand, brands are exploring niches to appeal to a very specific group of consumers (menopause or perimenopause, for example).
But for the majority of brands, the opportunity is still in volume: becoming mass market products thanks to broad benefits that appeal to a wide range of consumers.
Yet reaching that mass market is not always easy. Many people are put off by price - and ignore the functional beverage category entirely.
However, that’s not the end of the story. There are benefits that resonate with large groups of consumers - and hold the potential to draw people into the category.
And honing on in on top benefits - and highlighting the added value that functional beverages hold - is the way to do so.
Product intelligence business Vypr recently surveyed everyday shoppers in the UK to understand what they think about functional beverages.
Sleep remains the top priority: 42% of consumers reported that they’re interested in drinks with this benefit, according to Vypr’s research.
Gut health and digestion benefits also resonate highly (37%).
The idea of focus and concentration is also emerging: an idea attractive to 24% of those surveyed.
But what’s important to most consumers, says Adam Simpson, drinks expert at Vypr, is that consumers see functional drinks as products that actively do a job for the body.
“For example, the most common associations are with gut health, immunity, and sleep,” he said. “Energy remains important, but digestive and longer-term health benefits dominate perceptions.”
Know your audience: A demographic split
The attraction of broad claims such as sleep or gut health is that they resonate with many consumers groups.
Having said that, shoppers do skew differently according to their age and stage of life.
“Overall, as shoppers age, functional benefits required shift from immediate boosts toward longer-term health and resilience, creating clear opportunities for brands that can credibly span everyday function and health span benefits,” explains Simpson.
“For example ‘Kefir’ & ‘Gut health’ generally appeals more to consumers within the older age brackets; and then things like ‘Focus & Energy’ appeals more to the younger consumer.”
There’s also a split in how consumers want functional beverages to feature in their lives.
“Younger consumers are looking to experiment; mid‑life consumers build routine; older consumers gatekeep trust, value and longevity," said Simpson.
Building routines
As for any beverage category, the challenge is two-fold: getting out to new consumers; then keeping them as loyal repeat customers.
“Brands need to communicate that they can be included into routine use across life stages, not just offer short‑term hype," said Simpson.
“This is not a category that will win through endless innovation. Functional beverage brands will win by moving from trial into everyday routine.”
