Functional drinks are no longer a niche. In 2025, they’re becoming a core part of wellness routines – and private label brands are leading the charge. From collagen-infused teas to nootropic energy boosters, consumers want health benefits in every sip. Similarly, private label functional drinks often come in ready-to-drink (RTD) formats, making them even more convenient and accessible to consumers.
For all of these reasons, private label functional drinks are likely to become a staple product for businesses in 2025 and beyond. Private label lets businesses tap into wellness trends without investing in costly production, storage, or R&D infrastructure.
To learn more about the value of private label functional drinks and how they will develop in 2025, I spoke to Siobhan Linney. She is the founder and CEO of Thirsty Gal Drinks, an RTD beverage manufacturer.
The key benefits of private label functional drinks for 2025
When it comes to private label functional drinks, the two most significant consumer demands are convenience and health benefits. Millennial and Gen Z consumers are particularly wellness-minded, with both generations spending more than average consumers on health and fitness products and services.
They want drinks that meet the needs of their lifestyle, meaning they need marketable benefits. These range from pre-workout drinks that boost athletic performance to products that improve focus or cognitive function.
Primarily, private label functional drinks and RTD drinks appeal to consumers who are on the go but don’t want to sacrifice quality. “RTD and functional drinks are a dream for consumer-facing brands because they deliver instant satisfaction with zero fuss,” says Siobhan.
This makes private label functional drinks a powerful way for brands to meet demand and build loyalty. They can range from “clean energy” drinks containing natural energy sources like L-theanine to adaptogen-infused drinks that can reduce stress for some people. The active ingredients you can include vary from fungi like lion’s mane to antioxidants such as polyphenols, which can be infused into a formulation of your choice.
By sourcing private label functional drinks that offer an array of lifestyle benefits, businesses can appeal to consumer demands in a rapidly expanding sector. The global functional beverages market is currently valued at $131 billion USD, and is expected to rise to $174 billion by 2030. Private label products can often reach shelves 3x faster than traditional R&D pipelines, helping brands capitalise on emerging health trends in real time. Ultimately, there’s never been a better time than now to explore it.
By positioning your business as a pioneer of this growing sector with your own private label functional drinks, you can attract customers, win mindshare, and build brand loyalty. More than half of all Gen Z (61%) and Millennials (57%) consider themselves “forever customers” for companies they trust. Therefore, you can win loyal, long-term customers by providing convenient and healthy RTD drinks.
Why private label is the smartest way to launch functional drinks
As we’ve seen, the demand for functional drinks with marketable health benefits is rising. To save time and money, brands are looking to private label solutions to accommodate these needs without expanding their in-house production facilities.
By working with private label manufacturers for your functional drinks, you can harness their expertise to determine formulations. Then, you can test them with consumers and adjust your product line accordingly, without needing the expensive equipment, storage, and facilities to make it possible. All of these translate to significant overhead costs if you handle them yourself.
For example, manufacturers of private label functional drinks such as Hardtank offer three rounds of feedback on samples with adjustments to your formulation. That way, you can hone your beverages to reflect consumer demands, emerging trends, and your own preference.
Another benefit of working with private label functional drinks manufacturers is the addition of your branding to the product. “Sourcing RTD drinks should reflect your brand’s story, audience, and aesthetic,” Siobhan says. “Make sure the drink tastes as good as it looks and aligns with your message.”
For this reason, the packaging design, ingredient profile, and messaging of your private label functional drinks can all reinforce your brand’s values. By working with private label manufacturers, you can meet specific nutritional trends, such as collagen infusions for skin health or adaptogens for stress management. Equally, you can save on formulating and producing the drinks yourself by leveraging a private label manufacturer’s existing infrastructure.
By producing a range of wellness-focused private label functional drinks, you can also position them as premium products and drive a higher price. 59% of consumers are willing to pay extra for wellness products, creating a valuable opportunity for businesses to increase margins.
Future growth: What’s next for private label functional beverages?
As more businesses adopt private label functional drinks to appeal to wellness trends and broaden their product range, the sector is likely to develop even further. We’re already seeing this in action, as drinks businesses use RTD functional drinks as a point of distinction and innovation.
Similarly, the range of beverages and wellness benefits on offer is constantly evolving. “Beauty-boosting collagen teas, adaptogen elixirs, and iced tea with an edge”, Siobhan notes, are all new developments that expand the remit of your product range’s functional benefits. “They help brands stay relevant and desirable,” she adds.
In practical terms, this means that brands need to work with private label functional drinks manufacturers aligned with their vision and goals. Their benefits need to be backed by substantiated claims that consumers can easily identify, alongside clean labelling and recognisable ingredients. However, to foster loyalty and repeat purchases from customers, they also need to be visually distinct and attuned to consumer demands.
Private label functional drinks that incorporate healthy ingredients – whether it’s vitamin D for immunity boosting or L-theanine for calm – will help companies appeal to younger consumers. Finding ways to weave this messaging into your existing branding and product range is essential, though, for remaining authentic. “Consumers can spot a poser from a mile away,” Siobhan adds.
The rise of private label functional drinks reflects a wider transformation in how consumers think about drinks. They’re now an accompaniment to lifestyle, identity, and wellness. In 2025 and beyond, companies that prioritise function, design, and authenticity in equal measure will be the ones that stand out.
Ready to launch your own private label wellness drinks? Talk to the Hardtank team about custom formulations, fast go-to-market options, and packaging designed for modern consumers.
FAQ
What are functional drinks?
Functional drinks are beverages enhanced with health-boosting ingredients such as vitamins, antioxidants, adaptogens, or nootropics. They offer benefits like stress relief, focus, gut health, or energy.
Why choose private label instead of producing in-house?
Private label lets you launch a wellness product quickly without investing in production infrastructure. You can focus on branding, while experienced partners handle formulation and manufacturing.
What kinds of ingredients are trending in functional RTD beverages?
Popular choices include L-theanine (calm focus), lion’s mane (cognitive support), collagen (skin and joint health), and probiotics (gut health).
Are consumers really buying these kinds of drinks?
Yes! The global functional beverage market is set to grow to $174 billion by 2030, and 59% of consumers say they’re willing to pay more for wellness benefits.
How can I create my own private label functional drink?
Partner with a manufacturer like Hardtank, who can help with formulation, sampling, labelling, and packaging. You get a full-service experience while maintaining control over your brand identity.
