Functional food and drink evolution: Overview
- Functional food has grown from low-fat and low-sugar products into a major market centred on protein, gut health, energy and hydration
- Post-pandemic consumers are more health-conscious and seek foods with clear, targeted benefits
- Protein and digestive health remain the biggest drivers of innovation across food and drink
- Future growth will focus on energy, cognitive health, healthy ageing, sleep and stress support
- Brands will need strong science and credibility to stand out as competition and scrutiny increase
Health-focused and functional food and drink is hot right now, but the appetite for products designed to support or improve our health hasn’t appeared overnight.
Dairy spreads aiming to lower cholesterol; yogurt drinks promoting healthy gut bacteria; fruit smoothies claiming to boost immunity; and fat-free desserts to help cut calories are examples of better-for-you products that have existed for decades.
This desire to meet consumer demand for food and drink that supports wellbeing has driven NPD in recent years and is key to understanding its evolution.
In 2006, Mintel’s Global New Products Database not only highlighted a 17% rise in the number of new products entering the market, but within them was an explosive number of what it dubbed ‘food minus’ items – those containing reduced fat, calories, sugar and cholesterol– as health became a bigger focus for shoppers.
“The strong focus in many categories is on promoting good health, which can be seen in the most popular product claims,” David Jago, director of Mintel Custom Solutions said at the time. “Companies are offering more products that enhance well-being for consumers.”
While there has been momentum in the health and wellness space from manufacturers since the early noughties, the pace really picked up post-pandemic as consumers sought ways to not only maintain good health, but optimise it too.
“The pandemic made many people more proactive in controlling their physical wellness,” says Mintel Food & Drink principal strategist Alex Beckett, noting that today’s ‘nutritionally-aware’ consumer is acutely aware of what they eat and drink, and how it impacts the way their body works.
“Compared with 19-year-olds in 2006, 19-year-olds in 2026 know more about macros, microbiome and matcha,” he says.
A mindset shift
It’s this mindset shift from health to function among increasingly knowledgeable consumers that has driven demand for functional food and drinks products, and led to thousands of lines – from protein-rich snacks, milkshakes and bakery to support weight management and muscle growth, to breakfast cereals and drinks with added probiotics and fibre to support better gut health – filling supermarket shelves.
Functional is here and growing. While exact figures differ among research companies, the value of the global functional food and beverage market has more than doubled in the last five years. Fortune Business Insights valued it at $189bn (€168.86bn) in 2021; today it says it is worth $438bn (€390.92bn).
So is it because consumers are more nutritionally aware that there’s such momentous growth within this category?
It’s more nuanced than that, says Beckett, noting that the modern aspect of the functional boom relates to consumers’ sense of identity.
“Most Brits (94%) eat healthily some, most, or all of the time, and among these, a huge 66% say eating healthily is part of their self-image,” he explains.
“With their loud branding and claims, these products promise nutritional benefits, but they also promise social value, acting as a visible proof points that articulate ‘I care about my body’ to an increasingly image-conscious population.”
Good timing
Jenny Burns, CEO at innovation and design consultancy Magnetic, says the growth of the functional food and drink market reflects a wider shift in how people consider their health. But she also believes this category has been fortuitous with its timing.
Consumers may have good intentions to lead healthier lifestyles but in the post-pandemic environment are often too busy to put them into practice, and lack the time and energy to turn the knowledge into consistent behaviour.
The emergence of GLP-1 use for weight loss has also made functional food and drink an appealing choice for those with reduced appetite.
“Eating less can place greater emphasis on getting enough protein, minerals or other nutrients from smaller portions,” she says. “Food and beverage brands have an opportunity to close that intention-action gap by building useful health benefits into the products people already consume.”
Products with a functionality that help consumers easily develop consistent habits for a healthier lifestyle – like breakfast cereals – are arguably the most successful examples within the space.
Take Bio&Me. Its co-founders Jon Walsh and Dr Megan Rossi ‘set out to bring clarity and credibility to the world of gut health’ by launching a range of high-fibre and low-sugar granolas in the UK in 2019.
The success of these cereals, packed with gut-friendly, high-fibre ingredients like wholegrains, nuts, seeds, chicory root fibre, dried fruits and vegetables, has not only meant the brand has evolved, it’s inspired bigger brands – like WK Kellogg Co with Kashi Gut Health Granola – to launch similar.
Beckett says by boasting similar functional claims, big FMCGs are finding it easier to muscle in on smaller, more agile brands who are quicker to market and work as a testing ground.
“Emulating the functional claims helps the big guys to compete,” he says. “Also, big (and small) brands are desperate to improve volume growth, and functional and fortified boosts that target various ‘needstates’ throughout the day can trigger more habitual usage.”
The next five years
What trends will drive volume growth within functional over the next five years?
Gut health and protein are well established but Beckett does sees opportunities for further growth.
“In food, breakfast cereals are packing in B vitamins to carry energy claims while high fibre content enables in-demand digestive claims.
“The protein trend means that muscle mass-supporting claims have also increased across categories like prepared meals and fish products and meat substitutes,” he says.
In drinks, he predicts the ongoing rise of products that claim to boost energy and hydration, and support the brain, nervous system and digestion that “have notably been increasing in the UK over the past year”.
“Functional drinks are likely to remain one of the strongest areas because they’re easy to incorporate into existing routines,” agrees Burns, highlighting brands like PepsiCo’s Pepsi Prebiotic Cola, which includes 3g of prebiotic fibre.
She predicts an expansion of products that meet the needs associated with healthspan: sustained energy, cognitive health, sleep and stress, maintaining muscle and health ageing.
Functional products that will boost energy and support the ageing population is where Beckett is putting his money.
“The next generation of seniors wants solutions beyond caffeine, as they work into old age, cherish sleep and strive to stay positive and productive in a fast-changing future,” he says.
“Beyond that, gut-health innovation won’t stop unfurling via new, globally-inspired ingredients and corroborating research findings, and enhanced hydration will continue to flourish.”
He has a cautionary message, however. With growth comes exposure to health claims regulation and consumer distrust.
“As the category becomes more crowded, products will need credible ingredients and a reason to exist,” agrees Burns. “Brands need to ensure they have the level of authenticity and trust to stand out from the crowd.”
The brands that nailed functional
What does success in the functional space look like? These five launches tell the tale...
Grenade
Grenade’s flagship Carb Killa high-protein bar hit the market in 2015 (five years after founders Alan and Juliet Barrat launched the brand) as a snack solution for gym-goers, bodybuilders and athletes. Acquired by Mondelēz International in 2021, Grenade remains the largest brand in the high-protein category and its bars are now sold in 10 countries. Each 60g bar contains over 20g of protein (calcium caseinate and whey protein isolate) and are low sugar. There are over 12 flavours, including Grenade Oreo and Chocolate Chip Salted Caramel.
Oikos Fusion
Danone launched Oikos Fusion – a high-protein cultured dairy drink, featuring its patented Advanced Fusion blend of whey protein, leucine and vitamin D – in the US last year. Each 7fl oz bottle contains 23g protein; 5g prebiotic fibre, vitamins D, B3 and B12. The drink, available in three flavours – strawberry, mixed berry and vanilla – is designed to help build and maintain muscle mass during weight loss and has been dubbed the world’s first GLP-1-friendly yogurt.
Poppi
Stephen and Allison Ellsworth sold their prebiotic soda at farmers markets in the US before a Shark Tank investment helped catapult Poppi into the mainstream. The low-sugar soda brand – a blend of carbonated water with real fruit juice, apple cider vinegar, natural flavourings, sweeteners plus cassava root fibre and agave inulin for fibre, was acquired by PepsiCo for $1.95bn (€1.74bn) in 2025. While a lawsuit in the US challenged its gut-friendly claims, it hasn’t challenged its success. Poppi – available in five flavours – has already generated £14m in retail sales value since launching in the UK last year.
Trip
Trip – an adult soft drink with claims it makes drinkers more calm - was founded in 2019 by Dan Khoury and Liv Ferdi. It combines carbonated water and fruit juices from concentrate with magnesium, adaptogens and botanicals like lion’s mane extract and chamomile – to help regulate the nervous system and help drinkers unwind. Since launch, Trip has rapidly expanded across Europe and North America, generating over $100m (€89.28m) in annual profitable revenue.
Actimel
Danone was way ahead of the curve with Actimel, arguably the first functional product to hit the market before the category existed. Launched in 1990 with gut-health and immunity supporting claims, the cultured yogurt drink contains the bacterial culture Lactobacillus casei (renamed L.casei Danone by Danone) and vitamin D and B6 to support better immunity. Despite its market longevity, the brand’s health claims have been challenged several times over the last three decades.
