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Explore the top trends shaping the ready-to-drink beverage market, from functional ingredients to protein fortification, and discover how brands can stay ahead.
The ready-to-drink (RTD) beverage market is evolving rapidly, shaped by consumer demand for convenience, functionality, and health benefits. The industry has moved beyond traditional soft drinks to a diverse array of beverages incorporating functional ingredients, reduced sugar, and enhanced nutrition. With innovation at the core, brands are adapting to changing preferences and competitive pressures to stay relevant in this dynamic landscape.
Here are five key insights driving the RTD market forward.
Consumers are increasingly looking for beverages that do more than quench thirst; they want drinks that support their health. Functional RTD beverages, which include ingredients like vitamins, probiotics, adaptogens, and antioxidants, are experiencing a surge in new product development (NPD).
Global functional beverage launches saw an 18% increase in 2023-2024 alone,1 with soft drinks accounting for 46% of functional beverage launches, followed by dairy drinks (45%) and sports drinks (9%).2
Asian consumers are putting their money where their health is. Among consumers, some of the ingredients most valued include vitamins (73%), probiotics (55%), and antioxidants (51%)..3
From gut health to cognitive function, functional RTD beverages tap into consumer desires for proactive wellness solutions.
(Source: Innova Market Insights, Now & Next in Global Functional Beverages, August 2024).
Sugar remains the top ingredient that consumers are actively limiting in their diets. As a result, RTD brands are reformulating their products with alternative sweeteners and reducing overall sugar content.
62% of global consumers say they prefer to cut back on sugar rather than use alternative sweeteners.4
Cane sugar (49%), brown beet sugar (38%), and Stevia (38%) are among the most accepted sweeteners in reformulated beverages.5
Energy drinks, in particular, are evolving with zero-sugar formulations and innovative flavor profiles in China, with brands like Red Bull and Celsius leading the way.6
Brands prioritizing sugar reduction while maintaining great taste will resonate with today’s health-conscious consumers.
Gut health is a growing consumer priority, ranking among the top five global health concerns overall.7 Digestive concerns are driving interest in fermented and cultured RTD beverages like kombucha, kefir, and probiotic-infused drinks.
In Japan, drinking yogurt and fermented beverage launches account for 21% of total product launches,8 showcasing the strong demand for cultured drinks in this region.
Successful brands have leveraged unique flavors and clean-label ingredients to attract health-conscious consumers. One example of this trend is the brand Hip Pop, which offers a range of functional beverages such as kombucha made with “gut-healthy ingredients” such as vitamins, probiotics, and antioxidants.
As consumers become more aware of the connection between gut health and overall well-being, demand for probiotic and fermented RTD drinks is expected to grow.
The energy drink market remains a key player in the RTD space, but innovation is driving changes in formulation and positioning. Today’s energy drinks incorporate natural caffeine sources, adaptogens, and zero-sugar options to appeal to a broader audience.
Globally, energy drinks remain the most mainstream of the core functional beverages, with penetration of 34%.9In South and Southeast Asia, energy drinks have the highest penetration rate among RTD categories, at 36%. India leads the pack at 48%, and Vietnam is another major market for energy drinks at 40% penetration.10
Protein-fortified RTD drinks are no longer just for athletes—they are now a mainstream choice for consumers seeking muscle support, satiety, and overall nutrition.
Globally, protein claims are among the most relevant purchase drivers, especially in sports nutrition and dairy-based RTD beverages.11
Source (Innova Market Insights, Next in Global Functional Beverages, August 2024.)
Following this trend, protein and fiber claims are seeing strong growth in Asia, with “high in protein” or “source of protein” topping the chart among claims.12
Whether in dairy-based shakes or plant-based alternatives, protein RTD drinks are well-positioned for continued success.
Consumer interest in health, convenience, and innovative formations is transforming the RTD beverage market today. Brands looking to succeed must stay ahead of these trends by incorporating the following strategies into their product formulations:
Emphasize functional ingredients to offer added health benefits.
Reformulate for sugar reduction while maintaining great taste.
Capitalize on the gut health movement with fermented and probiotic drinks.
Evolve energy drinks with better-for-you ingredients and zero-sugar options.
Leverage the protein trend to meet the growing demand for performance and wellness beverages.
Contact Glanbia Nutritionals today to develop your next breakthrough beverage formulation.
A functional beverage is a drink that provides a beneficial effect beyond basic nutrition. These health and wellness benefits can come from a wide range of bioactive ingredients—from adaptogenic herbs like ashwagandha to MCTs for the keto diet to tryptophan for sleep support.
Some examples of functional beverages are energy drinks formulated with caffeine and B vitamins, sports drinks with added electrolytes and antioxidants, yogurt drinks that have probiotics, and beauty-from-within beverages containing collagen. The functional beverage market continues to grow as more people look for benefits like energy, relaxation, immune support, cognitive support, muscle building, and more.
Protein is an essential nutrient for workout recovery to repair and rebuild muscle after resistance or endurance exercise. The best type of protein for workout recovery is one that contains all of the essential amino acids in the proportion needed by the body. This ensures no amino acid is in short supply, which would hinder the protein synthesis process.
Protein quality is measured by its Protein Digestibility Corrected Amino Acid Score (PDCAAS), with a score of 1.00 indicating a complete protein. Whey protein’s PDCAAS of 1.00 makes it a top choice for workout recovery, which is why it’s so often used in sports nutrition products. Casein, egg white, and soy protein are also very high in quality.
Even among whey protein ingredients, however, there are some differences that can impact exercise recovery. For example, whey protein isolate (WPI) has benefits over whey protein concentrate (WPC) that include more protein, higher branched chain amino acid (BCAA) content, and less fat and lactose.
Protein powders sold to consumers are regulated by the FDA as dietary supplements under the Dietary Supplement Health and Education Act of 1994 (DSHEA). As with conventional foods, misbranding and adulteration are prohibited in the manufacture of protein powders, and manufacturers are responsible for ensuring product safety and labeling meet the FDA regulations.
For any new dietary supplement ingredient (including a new protein powder), a manufacturer must submit a notification to the FDA for review before the product containing it goes to market. Under DSHEA, structure/function claims (such as “supports healthy muscles”) can be used to describe the benefits of a supplement as long as the manufacturer keeps on file scientific evidence supporting the claim.
