In this article, you’ll discover:
- What private label health drinks are and how popular they are becoming
- The types of private label health drink formats you can offer
- How to save time and cost when launching health drinks
- The benefits of RTD functional beverage manufacturing partnerships
- The main considerations before launching private label health drinks
Consumers are leading healthier lifestyles than ever, and private label health drinks are increasingly important for businesses to offer. Across the foodservice and retail landscape, they align with consumer demand for functional ingredients and tangible health benefits.
However, businesses also need to decide whether working with private label manufacturers is the best choice for their health drinks. It’s a compelling opportunity to enter the market quickly, cost-effectively, and at scale. Across the foodservice and retail landscape, they align with consumer demand for functional ingredients and tangible health benefits.
For businesses, this presents a compelling opportunity to enter the market quickly, cost-effectively, and at scale. However, leveraging private label manufacturers for health drinks requires careful consideration of various factors before launching.
To learn more about the popularity and benefits of private label health drinks, I spoke to Ryan Costello. He is the co-founder of Exhale Zero Bar, a low- and no-alcohol drinks venue in Birmingham, United Kingdom. Read on for his insights.
Why private label health drinks are in high demand
Consumer interest in health drinks has never been higher. In fact, the global functional beverage market is currently valued at over $130 billion. It’s growing across consumer touchpoints as well, with the British retailer Ocado reporting a 54% increase in sales of functional drinks in 2025.
This development is driven by a seismic shift in consumer behaviour and lifestyle choices. “Health drinks have become popular due to a cultural shift in people’s choice of recreation,” Ryan says.
Modern consumers care more about their health than ever. In the USA alone, 82% of consumers consider wellness a top priority, which subsequently influences their purchasing decisions. This doesn’t just mean more active lifestyle choices – it also means choosing products that offer meaningful benefits.
Crucially, 67% of consumers around the world are now looking for healthier food and drink products. More specifically, 58% of them are more likely to buy products with added functional benefits. They’re looking at the ingredients included in their food and drink and placing higher value on natural ingredients, low sugar content, and clear health claims.
The market offers a versatile range of health drinks. But for businesses, which types are currently the most popular and valuable? According to Ryan, “functional drinks with adaptogens and nootropics” are key.
Adaptogens are plant extracts included in food, drinks, and supplements. They typically include herbs, roots, and mushrooms, and are marketed as having physiological benefits. Commonly, they promote stress relief and cognitive support. One popular choice of ingredient is ashwagandha, an evergreen shrub that may improve sleep and combat anxiety. Ginseng is often used in teas for an additional boost to energy and focus.
On the other hand, nootropics are active, plant-based ingredients that support cognitive and brain function instead of stress reduction. You’ll often see RTD nootropic drinks containing natural L-theanine, an amino acid found in tea leaves that may increase focus when paired with caffeine. These are advertised as “cleaner” sources of energy without the crash associated with coffee and sugar.
The growing market momentum and range of health drinks have led to an expansion in available SKUs. The ready-to-drink (RTD) format is especially popular, with cans, shots, and bottles all common for health drinks.
These form factors are convenient and portable, making them suitable for consumers on the go or to drink during exercise. In fact, 90% of consumers purchased at least one canned drink in 2024, proving the accessibility of this format for packaging, shipping, and selling drinks.
Benefits of launching private label health drinks
To adjust to these shifting consumer trends, more businesses than ever before are launching private label health drinks by partnering with manufacturers. There are several strategic advantages to a private label approach that make this option appealing.
First and foremost, working with private label manufacturers dramatically reduces your time to market. You can skip complex, time-consuming, and expensive R&D stages by leveraging your partner’s existing formulations and market research.
After all, the formulation of adaptogenic or nootropic drinks is highly sensitive. Often, it requires precise extraction techniques and careful dosing. A seasoned private label manufacturer can optimise these variables – and ensure the drink meets regulatory requirements for safety and shelf life.
With those setup considerations out of the way, you can focus your efforts on branding, marketing, and distributing your private label health drinks.
Equally, working with private label manufacturers lowers your costs significantly. You don’t need to set up formulation labs or production lines, as you can harness your partner’s facilities instead. For example, Hardtank’s RTD services handle every stage from formulation to canning in-house. This is especially useful for newer FMCG businesses who want to diversify their drinks range with minimal operational risk and lower investment.
Navigating the regulatory landscape for health claims can be complex. Partnering with a manufacturer experienced in Brand Reputation Compliance Global Standards (BRCGS) and other safety regulations ensures your product meets all necessary criteria.
For these reasons, private label is the most accessible way for businesses to offer RTD health drinks. You also have a choice of formulation – either using pre-determined flavours or developing your own. While the latter requires technical knowledge and more time to test the new formulation, it allows your business to offer a distinctive private label health drink.
“I would say yes,” Ryan says when asked if private label services are worth considering. “However, a good growth strategy and experience working with the ingredients needed [is important]. This could save a lot of money in R&D and save time lost.”
This strategy is particularly useful for wellness brands and drinks suppliers looking to differentiate their product range through health-oriented drinks.
Many are now creating RTD drinks that reflect these values – through organic sourcing, plant-based ingredients, or health claims. With private label, the path to market is much more streamlined.
Major retailers are taking this approach, too. For example, the German chain Lidl stocks a private label health drink range spanning aloe vera drinks and collagen shots. Therefore, it’s a solution that allows you to keep up with shifting trends and market leaders.
Should your business offer private label health drinks?
While it’s clear that private label health drinks come with a number of benefits, there are several factors to consider before committing to a production run.
The main factor to look out for is IP (intellectual property) exclusivity. If you go down the route of custom formulation, there is a risk that the manufacturer will retain the rights afterwards. It means other companies could potentially use the same formulation in the future, reducing the distinctiveness of your drinks.
Hardtank’s custom formulation process gives you full ownership over the custom formula. This means you can replicate it in the future without the possibility of other businesses using it. In an industry where standing out from the competition is crucial, this IP retention is incredibly important. “It’s always nice to come up with your own formulas,” Ryan says. “It allows for something unique.”
Another important consideration is packaging. With growing consumer concern about sustainability, packaging has a direct influence on consumer purchasing decisions. Up to 60% of consumers would switch brands to choose one with eco-friendly packaging, so it’s a worthwhile consideration for your private label manufacturer.
Hardtank packages its private label health drinks in aluminium cans in 200 mL and 250 mL sizes. Aluminium is an infinitely recyclable material, with established recycling systems in most countries. Similarly, it provides excellent shelf stability, meaning your drinks can last for at least eight months after production.
The minimum order quantity (MOQ) is another factor to consider when choosing your private label health drinks manufacturer. For smaller businesses entering the sector for the first time, low MOQs mean you don’t have to commit to an expensive initial run when you may want to make changes soon after.
Hardtank offers an MOQ of 3,000 cans for standard formulas and 6,000 for custom formulas, giving businesses of all sizes an accessible entry point.
For businesses exploring the health drink sector, private label solutions offer a clear path to market. By partnering with experienced RTD manufacturers, you can test new SKUs, expand your drinks range, and access engaged, health-conscious consumers without the associated development bottlenecks and costs.
Want to bring your private label health drinks to market? Hardtank’s RTD solutions can help you launch faster and more efficiently. Request a sample or schedule a consultation to get started.
FAQ
What are private label health drinks?
Private label health drinks are made by third-party manufacturers and sold by other brands. They often contain functional ingredients like nootropics and adaptogens to appeal to consumer trends.
How popular are private label health drinks?
Private label health drinks are rapidly growing in popularity. The overall market is currently valued at over $130 billion, and is driven by consumers looking for food and drink with tangible health benefits.
How does working with a private label manufacturer speed up production?
Working with a private label RTD company saves time on formulation and product development. Also, you don’t need to invest money and space in specialised equipment, which helps preserve your profit margins.
Do I own the formula for my private label health drinks?
It depends on who you choose as your manufacturer. Some companies will retain the IP, but Hardtank offers you full IP ownership on custom recipes.
Are private label health drinks suitable for startups?
Private label is an especially good strategy for startups. With lower MOQs, ready-made formulations, and third-party production, new FMCG businesses and wellness brands can enter the market without extensive startup costs.
How long does it take to launch private label health drinks?
It depends heavily on whether you choose custom or existing formulations, as well as your order quantity. Hardtank’s standard lead time is 4-6 weeks.
What types of functional ingredients are most popular in 2025?
Top ingredients include adaptogens (ashwagandha, reishi), nootropics (L-theanine, lion’s mane), and botanicals like turmeric, ginger, and matcha. Brands are also using natural caffeine sources and electrolytes to support energy, focus, and immunity – all while keeping flavour in mind.
