Why Functional Drinks are Taking the RTD Beverage Industry by Storm

Why Functional Drinks are Taking the RTD Beverage Industry by Storm

Let’s face it, a great-tasting beverage isn’t enough anymore. In the ultra-competitive ready-to-drink (RTD) space, consumers are scanning shelves for more than flavor - they want benefits they can feel. From sparkling teas to sodas, energy drinks, and even alcohol, functionality is no longer a trend - it’s the new baseline.

🧠 Essential Takeaways

  • Consumers are actively seeking out RTD beverages with functional ingredients like electrolytes, antioxidants, CBD, and adaptogens.
  • Taste is still important, but health benefits and clean labels drive purchasing decisions.
  • Even major alcohol brands are pivoting to meet demand for low-cal, wellness-focused options.
  • Buoy’s flavorless electrolytes allow brands to upgrade functionality without sacrificing taste.

    • Welcome to the “functionality era” - where the RTD beverage industry is being redefined by health-conscious, ingredient-savvy consumers who expect every sip to serve a purpose.

    Your Competitors Are Already Going Functional

    Whether it’s electrolytes, vitamins, or plant-based adaptogens, RTD brands are racing to load their drinks with health-forward ingredients - and it’s working.

    Take BevCanna’s Grüv Beverages, for example: iced teas infused with cannabis in refreshing flavors like ginger mint and matcha green. Or Vital Proteins, who made waves with their sugar-free collagen water in flavors like strawberry-lemon and blackberry hibiscus.

    And then there’s Coca-Cola - no stranger to shifting tides - launching its first energy drink made with naturally derived caffeine, guarana, and B vitamins. If the industry giants are shifting toward cleaner, functional products, it’s time for everyone else to take notice.

    The bottom line is that old packaging gets attention. Great taste earns loyalty. But functional benefits are what turn casual drinkers into brand evangelists.

    Where Health Meets Convenience

    Today's consumer doesn’t want to choose between fast and functional. They want both. Enter the functional RTD beverage - the perfect solution for busy, health-conscious millennials and Gen Zers who want energy, hydration, and mental clarity on the go.

    Brands that prioritize:

    • Ingredient transparency
    • Natural, no-sugar formulations
    • On-the-go usability

    are winning over this wellness-driven audience in a big way.

    This is your moment to meet demand for drinks that do more than taste good - they help you feel good, too.

    Yep, Even Alcohol Brands Are Going Functional

    It might sound wild, but even the alcohol space isn’t immune. With global alcohol consumption slipping and more people exploring mindful drinking or going alcohol-free altogether, forward-thinking companies are reinventing the category.

    They’re creating:

    • Lower-alcohol, lower-calorie formats
    • Slimmer, eco-friendly packaging
    • Booze with benefits (think: vitamins, botanicals, and yes - electrolytes)

    One of the best examples? 👇

    🍺 The World's Healthiest Beer: Powered by Buoy

    In May 2019, WellBeing Brewing Co. teamed up with Buoy Hydration to launch something the industry had never seen before: a nonalcoholic beer with electrolytes, vitamins, and antioxidants.

    The result?

    WellBeing Victory Citrus Wheat + Electrolytes - a bold, refreshing NA beer that hydrates better than Gatorade and delivers real functional value.

    When it launched, Total Wine bought out the entire inventory. It sold out multiple times, and the added functionality gave them an extra $0.91 in profit per can - a powerful proof point for what’s possible when wellness meets innovation.

    Best of all? Buoy’s electrolytes are flavorless, sugar-free, and easily added to any beverage without compromising taste.

    Is Your RTD Beverage Functional Enough?

    With Buoy’s collaboration program, brands can seamlessly integrate electrolytes, trace minerals, and bioavailable hydration into any product format - without needing to overhaul recipes or flavor profiles.

    Ready to give your next drink a functional edge?

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