In this article, you’ll discover:
- Key types of functional ingredients driving consumer demand (adaptogens, probiotics, etc.).
- How coffee shops, hotels, and retailers can leverage functional beverages.
- The financial and operational benefits of partnering with an RTD manufacturer.
- Why convenience and health are a winning combination for 2025.
With the functional beverage market exploding to over $212 billion USD in 2024, one thing is clear: consumers now demand drinks that do more than just taste good. They seek science-backed health and lifestyle benefits – from crash-free energy boosts to improved focus and immunity. For FMCG businesses, tapping into this powerful trend isn’t just an opportunity, it’s becoming essential for growth in 2025.
To keep up with these trends and position themselves as leaders in this sector, businesses should work with a functional beverage manufacturer. These partnerships allow you to formulate and supply functional drinks without investing in specialised formulation and manufacturing equipment. Not only does it save your business money, but it also unlocks a new sector of potential customers and sales.
To learn more, I spoke to Brandon Coyle. He is the Operations Manager at Marna Coffee, a specialty coffee shop based in London, England. Read on for his insight into how a functional beverage manufacturer can benefit all kinds of businesses.
Expanding your portfolio: The diverse functional drinks your manufacturer can create
A functional beverage manufacturer can produce a wide range of drinks that promote health and wellness. Depending on your brief, they can include a range of active ingredients such as adaptogens and probiotics, or cognitive enhancers like nootropics. All of these can contribute towards consumer health goals and trends within the FMCG industry.
Functional drinks are becoming more popular than ever with consumers. In 2024, the functional beverage market was valued at over $212 billion USD, resonating in particular with Gen Z and millennials. Due to the range of active ingredients and wellness benefits you can promote, it creates significant opportunities for businesses to target this sector.
Adaptogens, for example, are especially common active ingredients in functional drinks. These are natural compounds found in plants like ashwagandha, a shrub commonly found in Asia and Africa, or the reishi mushroom. Studies have shown that adaptogens may help reduce cortisol levels, a hormone associated with stress, and enhance cognitive function.
As a functional drink, you could offer ready-to-drink (RTD) products with adaptogens, such as cold brew coffee infused with ashwagandha. This can provide consumers with increased focus and stress relief, making them a perfect option for today’s fast-paced consumer lifestyles.
Probiotic-rich drinks, such as kombucha and kefir, are essential for supporting gut health. Probiotics are live bacteria usually added to fermented milks and yoghurts that maintain a healthy balance in the gut microbiome. By extension, this can improve digestion, immune function, and even mood. In the United Kingdom alone, 58% of people have experienced gut problems, so probiotic beverages – typically in the form of RTD shots or yoghurt drinks – can address these concerns.
Antioxidants are also common in functional beverages, usually by including green tea, matcha, and berries as key ingredients. These compounds neutralise free radicals, which are unstable molecules in the body that damage cells and can potentially cause heart disease, diabetes, and cancer.
Green tea, for instance, contains catechins, which are plant compounds that may have anti-inflammatory effects and support immune health. Offering RTD functional beverages with green tea extract, therefore, supports overall health and appeals to consumers looking to boost their immune system.
The functional beverage sector also encompasses lifestyle-related benefits, alongside these health and wellness concerns. For example, sports drinks infused with electrolytes are especially popular for consumers during and after exercise. These are minerals such as sodium, potassium, and magnesium, which the body loses during high-intensity sport or activity. RTD drinks infused with additional electrolytes can improve athletic performance and help recovery after exercise.
FMCG businesses can partner with a functional beverage manufacturer to include these ingredients in their product range. This means your products can strike the balance between tasting good and supporting health and wellness goals.
Tapping new markets: Which businesses thrive with functional beverage partnerships?
Due to the broad range of ingredients, wellness benefits, and flavours you can offer, functional beverage manufacturers can work with a range of businesses. RTD manufacturers are particularly versatile, allowing you to formulate and order canned drinks to sell across consumer touchpoints.
Coffee shops, cafés, and restaurants are already well-positioned to offer RTD functional drinks. Cold brew coffee, for example, is already popular for its smooth taste – but also provides a foundation for additional functional ingredients. For example, canned cold brew with added probiotics can support gut health while combining caffeine’s natural energy source.
“Selling functional beverages allows a coffee shop to tap into the growing wellness and health trend,” says Brandon. “It’s a great way to attract health-conscious customers who are looking for diversity and alternative caffeine options. They are often a premium option that helps diversify your menu and sets you apart from competitors.”
Hotels and resorts can also benefit from working with a functional beverage manufacturer. They are easy to incorporate into wellness-focused areas of a hotel, such as spas, gyms, or massage rooms. For example, you can offer immunity-boosting teas alongside these facilities.
Incorporating functional beverages allows you to market your hotel as holistic and wellness-oriented, making you stand out from competitors. Equally, you can charge more. “Due to the nature of these beverages, they come with a premium price,” Brandon adds.
Retailers, especially those focused on health foods, can capitalise on the growing trend for functional RTD products as well. In particular, producing a custom range of RTD drinks from a functional beverage manufacturer allows you to determine which health benefits and active ingredients to target. You can adjust the product to your market research and promote it as an exclusive product that can’t be found elsewhere.
How an RTD functional beverage manufacturer benefits businesses
Working with a functional beverage manufacturer to produce RTD drinks is an efficient and cost-effective strategy for FMCG businesses. Companies such as Hardtank partner with companies to produce canned functional drinks to their specifications and quantities. This is particularly attractive because it combines convenience, which is a growing consumer demand, with health benefits.
Globally, 21% of consumers say that convenience is their top priority when buying food and drink products. They want RTD drinks that are easy to pick up and consume on the go, without sacrificing their wellness goals. Functional beverages, especially when packaged in aluminium cans or bottles, are an ideal way of meeting both of these demands.
Similarly, businesses can save money and time by partnering with a functional beverage manufacturer instead of doing it in-house. It means you can tap into their existing expertise and take advantage of their equipment and warehouse without any start-up costs. Therefore, it’s a low-impact way of incorporating new products without entirely overhauling your production methods and sacrificing potential profit.
“Working closely with a functional beverage manufacturer gives you access to professionally formulated drinks often without the need to develop recipes, source ingredients, or manage complex compliance standards,” Brandon says. “You can benefit from their R&D expertise and ensure that drinks are effective, safe, and shelf-stable.”
Crucially, it also means that FMCG businesses can forgo the time-consuming market research and product formulation processes. “You will be able to launch faster, maintain consistency, and focus on other objectives such as branding and customer experience, rather than having your attention on production,” he adds.
Partnering with a functional beverage manufacturer makes it easy for you to integrate high-quality, scientifically supported functional drinks into your product lineup. Not only can you stay in line with consumer trends, but you can meet these demands without investing in specialised equipment and expertise.
Therefore, working with a functional beverage manufacturer is a cost-effective way of tapping into new sectors, appealing to younger consumers, and driving sales.
Ready to launch your own line of high-demand functional beverages in 2025? Partner with Hardtank to expertly formulate, produce, and can your unique RTD drinks. Discover our functional beverage services or request your free consultation today!
FAQ
What are the benefits of working with a functional beverage manufacturer?
Partnering with a functional beverage manufacturer like Hardtank for your RTD (Ready-To-Drink) products offers several key advantages:
- Access to Expertise: Leverage their specialised knowledge in formulation, ingredient sourcing, market trends, and complex compliance standards.
- Cost Savings: Avoid significant upfront investments in specialised manufacturing equipment, R&D, and dedicated production staff.
- Speed to Market: Launch new products much faster than developing them entirely in-house.
- Focus on Core Business: Concentrate your resources on branding, marketing, sales, and customer experience, rather than production complexities.
- Guaranteed Quality & Consistency: Benefit from established quality control processes ensuring your beverages are effective, safe, and shelf-stable.
What kind of drinks can a functional beverage manufacturer make?
A functional beverage manufacturer can produce a diverse array of RTD drinks tailored to specific health and wellness benefits. Common examples include:
- Adaptogen-infused drinks (e.g., with ashwagandha or reishi) for stress relief and focus.
- Antioxidant-rich beverages (e.g., with green tea extract or berry extracts) to support immune health.
- Probiotic drinks for gut health and digestion.
- Electrolyte-enhanced drinks for hydration, sports performance, and recovery.
- Nootropic beverages for cognitive enhancement.
Can I customise functional beverages for my business?
Yes, absolutely! When working with a functional beverage manufacturer such as Hardtank, you typically have significant control over customisation. This includes determining the specific formulation, active ingredients, flavour profiles, nutritional targets, and even the branding and packaging of your RTD product to align perfectly with your brand and target audience.
How long does it typically take to develop and launch a new functional beverage with a manufacturer?
The timeline can vary. As outlined in our custom formula process, the initial formulation and sampling phase typically takes 2-3 months. Factoring in packaging, final approvals, and production scheduling, partnering with an experienced manufacturer like Hardtank still significantly expedites the overall journey from concept to market-ready product compared to in-house development.
