Functional beverage
Encyclopedia
A functional beverage can be defined as a drink product that is non-alcoholic, ready to drink and includes in its formulation non-traditional ingredients. This includes herbs, vitamins, minerals, amino acids or additional raw fruit or vegetable ingredients, so as to provide specific health benefits that go beyond general nutrition. Sports and performance drinks, energy drinks, ready to drink (RTD) teas, enhanced fruit drinks, soy beverages and enhanced water, among others, are some of the product segments rolled out as functional beverages in the market space.
Functional beverages have become popular due to its appeal to consumers who are seeking specific health benefits in their foods and beverages with their 'healthiness-on-the-go' idea. Both convenience and health have been identified as important factors when consumers make decisions about purchasing foods and beverages. Functional drinks are promoted with benefits such as heart health, improved immunity and digestion, joint health, satiety, and energy-boosting.
and non-alcoholic beverage industry and it is the fastest growing sector. This rapid growth is partially due to the combination of maturity of the carbonated soft drink
sector and heavy investments by major food and beverage companies. In 2006, the functional beverage per capita consumption have risen to 66.4 gallons, while the carbonated soft drink sector has a decline in their per capita consumption to 50.4 gallons (192.5 gallons was the average per capita consumption in 2006). Another reason for the growth is the consumer-oriented market scheme in which innovative ideas come from consumers. In US, the market share of functional beverages accounted for 48.9% of the $118.3 billion-worth non-alcoholic industry in 2008. Industry entrance is mainly driven by the higher growth annual rate of 15% to 20%. This added value is significantly larger than the 2-4% per annum growth rates of general foods and beverages market.
Industry players in functional beverage industry are generally categorized into four types. One, is the traditional non-alcoholic beverage companies including PepsiCo Inc.
, Fuze Beverage and Coca-Cola Co.
Another type consists of major food companies such as Nestlé
, Altria Group
, Kraft Foods Inc.
, General Mills Inc.
, Campbell Soup Co. The third group is smaller scaled private companies, like the NOVA Group, Austria and some of which specialize in one subcategory or segment of the functional beverage market like Traditional Medicinals and POM Wonderful
. The last group are growers' cooperative
s such as Ocean Spray
and Sunsweet Growers
.
, for gut health and boosting natural defenses or immune system. Memory and mental sharpness is also coming into focus with Function BRAINIAC, a carambola
punch Energy Drink in the Function Drinks
line. Children’s functional drinks also receive much attention in recent years with leading brand Neslie’s Boost (beverage)
. The current trend of single serve is fueled by consumer's preference in convenience. According to Campbell's director of single-serve beverages, "People know they will be seen when they are drinking single-serving beverages, so the package is critical." Weight loss, health and beauty drinks account considerable market share, such as Nova the Essential Drink. Lastly, energy-boosting functional beverage products, such as Red Bull
and 5-Hour Energy
, are rated number one in growth in the functional beverage market.
Competition in the functional beverage industry is primarily done in four different ways. Companies firstly focus on their own products by clearly distinguishing their health claims from similar products and specify naturally healthy ingredients. Then, extensions of existing brand lines need to be considered. The addition of Kids Essentials to the Boost (beverage)
line by Nestle
is a good representation of this strategy. Thirdly, bigger companies compete for market share by acquiring
smaller companies that may own a particular market sector. An example is Coca Cola purchasing Glaceau from Energy Brands and Odwalla
and Fuze Beverage from their respective founders. Lastly, to increase the competitiveness of the company, one may explore new functional brands by identifying new markets and demands.
Market segments of the functional beverage industry are divided mainly by four parts. Those include hydration, energy/rejuvenation, health and wellness and weight management. Each segment has its own target market and consumers. Overlapping of target consumers does occur, not because of undefined market needs, but due to the consumer acceptance towards functional beverages.
launched the sale of Glowelle, exclusively in Neiman Marcus
. Antioxidant vitamins and fruit extracts are among the ingredient list that the company claims to "hydrate the inner and outer layer of the skin" and protect drinkers from free radicals.
Gatorade
’s Thirst Quencher offers a wide assortment of flavours each containing an “excellent source” (25% DV) of B vitamins (B3, B5, B6) to help meet the demands of energy metabolism; an “excellent source” (20% DV) of the antioxidant vitamin E to help protect the active body; an “excellent source” (20% DV) of vitamin C to help active people as they attack their day. In tandem with these adjustments, low-calorie G2 was also reformulated. Now it delivers significant nutrition enhancements by providing an “excellent source” (25% DV) of B vitamins (B3, B5, B6) and a “good source” (10% DV) of vitamins C and E, all of which help meet the nutrient needs of active individuals. Gatorade is well known for its hydrating qualities for athletes.
Another example of a functional beverage targeting the hydration sector is HydroOne Premium Beverage from Augusta, Georgia. It contains vitamins and minerals as well as herbal extracts that are specifically and scientifically formulated to promote healthy hydration, maintain healthy levels of blood glucose, and also provides the nutrients that are beneficial for the circulatory system. Hydro One Premium Beverages delivers a form of sugar which is the most advantageous for the body and aids in the nutritional needs of people while hydrating them in a healthy way. The company recommends two to four bottles daily.
, Adrenaline Rush, 180 and many others. These highly-caffeinated, high-energy drinks have exploded on the beverage market in the United States, as well as globally and generated a whole new generation of copycat caloric or – in many cases – sweetened beverages.
According to the different brands of energy drinks, ingredients that serve as stimulants include: taurine, glucoronolactone, caffeine
, and B vitamins
, guarana
, ginseng
, ginkgo biloba, L-carnitine, sugars, antioxidants, yerba mate
, creatine
, milk thistle
. Although these ingredients have been approved by the FDA, health experts still recommend consumers to read the label to make wiser choice of beverage since these ingredients may not be beneficial to one's health.
). On the other hand, it has the same 25% of the daily allowance of Vitamins B3, B5, B6 & B12 as the original. Vitaminwater 10 has an all natural sweetener extracted from the stevia plant, which is a benefit in lowering calorie content (although taste is another matter) as well as fitting the product in the "natural" category.
Coca Cola and Nestlé
have partnered to produce Enviga
, one of the new ‘calorie-burning beverages.’ Skinny Water (owned by Skinny Nutritional Corp.) and Nutrisoda's Slenderized (owned by PepsiCo
) have both used included a polyphenol called epigallocatechin gallate (EGCG) in their ingredient for their "metabolize boosting effect". With the increase in demand, ingredient manufacturer are now offering a 95% EGCG content product, a tea extract called "Blue California.". Some investigators report about slimming actions induced by chlorogenic acid
s from green coffee, further investigations need to be performed.
The dollar sales share on each of these sub-segments are: 28% (Hydration), 8.4% (Energy/Rejuvenation), 62.2% (Health and Wellness), 1.2%(Weight Management).
, heart disease
, and cancer
that are associated with the consumption of sweetened beverages, of which, most of these beverages are. This is because most of these drinks contain significant amounts of sugars and hence calories, which would add to discretionary and total caloric intake. As such, these ingredients pose health risks because of what they contain (sugar and caffeine) or what they replace in the diet (vitamin and mineral-rich foods).
Another set of concerns is that some functional beverages contain ingredients that have not been sufficiently studied for health benefits, safety, and dosage or have higher levels of a certain ingredient, like caffeine
, a large amount of which is associated with heart disease
and cancer
. Thus, consumption of these beverages might lead to undesired outcomes due to unforeseen interactions.
content can be high, ranging from 0 to 141.1 milligrams per serving, of which an average 8-ounce cup of coffee contains about 133 mg of caffeine. There have been reports to Health Canada of adverse reactions involving energy drinks.
Functional beverages have become popular due to its appeal to consumers who are seeking specific health benefits in their foods and beverages with their 'healthiness-on-the-go' idea. Both convenience and health have been identified as important factors when consumers make decisions about purchasing foods and beverages. Functional drinks are promoted with benefits such as heart health, improved immunity and digestion, joint health, satiety, and energy-boosting.
Industry
Functional beverage sector is a subsector of the functional foodFunctional food
Functional food is a food where a new ingredient has been added to a food and the new product has a new function ....
and non-alcoholic beverage industry and it is the fastest growing sector. This rapid growth is partially due to the combination of maturity of the carbonated soft drink
Soft drink
A soft drink is a non-alcoholic beverage that typically contains water , a sweetener, and a flavoring agent...
sector and heavy investments by major food and beverage companies. In 2006, the functional beverage per capita consumption have risen to 66.4 gallons, while the carbonated soft drink sector has a decline in their per capita consumption to 50.4 gallons (192.5 gallons was the average per capita consumption in 2006). Another reason for the growth is the consumer-oriented market scheme in which innovative ideas come from consumers. In US, the market share of functional beverages accounted for 48.9% of the $118.3 billion-worth non-alcoholic industry in 2008. Industry entrance is mainly driven by the higher growth annual rate of 15% to 20%. This added value is significantly larger than the 2-4% per annum growth rates of general foods and beverages market.
Industry players in functional beverage industry are generally categorized into four types. One, is the traditional non-alcoholic beverage companies including PepsiCo Inc.
PepsiCo
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...
, Fuze Beverage and Coca-Cola Co.
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
Another type consists of major food companies such as Nestlé
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
, Altria Group
Altria Group
Altria Group, Inc. is based in Henrico County, Virginia, and is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates. It is one of the world's largest tobacco corporations...
, Kraft Foods Inc.
Kraft Foods
Kraft Foods Inc. is an American confectionery, food and beverage conglomerate. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oscar Mayer, Philadelphia, Trident, Tang...
, General Mills Inc.
General Mills
General Mills, Inc. is an American Fortune 500 corporation, primarily concerned with food products, which is headquartered in Golden Valley, Minnesota, a suburb of Minneapolis. The company markets many well-known brands, such as Betty Crocker, Yoplait, Colombo, Totinos, Jeno's, Pillsbury, Green...
, Campbell Soup Co. The third group is smaller scaled private companies, like the NOVA Group, Austria and some of which specialize in one subcategory or segment of the functional beverage market like Traditional Medicinals and POM Wonderful
POM Wonderful
POM Wonderful, LLC is a privately owned company which markets an eponymous brand of beverages and fruit extracts. It was founded in 2002 by the billionaire industrial agriculture couple Stewart and Lynda Rae Resnick. They are also affiliated with the companies Teleflora, FIJI Water, pesticide...
. The last group are growers' cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
s such as Ocean Spray
Ocean Spray (cooperative)
Ocean Spray is an agricultural cooperative of growers of cranberries and grapefruit headquartered in Lakeville/Middleborough, Massachusetts. It currently has over 600 member growers . The cooperative employs about 2,000 people, with sales of $1.4 billion in fiscal year 2005...
and Sunsweet Growers
Sunsweet Growers
Sunsweet Growers Incorporated is an agricultural marketing cooperative founded in 1917 as the California Prune and Apricot Growers Association. Sunsweet is headquartered in Yuba City, California, USA. The company operates the largest dried fruit plant in the world. -Products:Sunsweet manufactures...
.
Current product trends
Products of functional beverage industry encompass wide range of varieties targeting different health related concerns. One trend is hybrid drinks with functional and sensory benefits such as thirst quenching ability with daily dosage of vitamins or other nutrients. Another one is probiotics, exemplified by Activia yogurtActivia
Activia is a brand of probiotic dairy products owned by Danone . Activia is marketed as a beneficial health product, with a focus on improved digestion for both men and women...
, for gut health and boosting natural defenses or immune system. Memory and mental sharpness is also coming into focus with Function BRAINIAC, a carambola
Carambola
Carambola, also known as starfruit, is the fruit of Averrhoa carambola, a species of tree native to the Philippines, Indonesia, Malaysia, India, Bangladesh and Sri Lanka. The fruit is a popular food throughout Southeast Asia, the South Pacific and parts of East Asia...
punch Energy Drink in the Function Drinks
Function Drinks
Function Drinks is a Functional Beverage company based in Los Angeles, California. The company was founded in 2004 by spine surgeon , along with Josh Simon and Dayton Miller. The team launched their first product, Urban Detox, in Southern California in 2005....
line. Children’s functional drinks also receive much attention in recent years with leading brand Neslie’s Boost (beverage)
Boost (beverage)
Boost is the brand name of a line of products first introduced in 1995 by Mead Johnson, which was purchased by Novartis along with all its other adult nutrition products by Mead Johnson in 2002, and has been sold to Nestlé along with the Gerber brand on September 1, 2007...
. The current trend of single serve is fueled by consumer's preference in convenience. According to Campbell's director of single-serve beverages, "People know they will be seen when they are drinking single-serving beverages, so the package is critical." Weight loss, health and beauty drinks account considerable market share, such as Nova the Essential Drink. Lastly, energy-boosting functional beverage products, such as Red Bull
Red Bull
Red Bull is an energy drink sold by the Austrian Red Bull GmbH, created in 1987 by the Austrian entrepreneur Dietrich Mateschitz. In terms of market share, Red Bull is the most popular energy drink in the world, with 3 billion cans sold each year. Dietrich Mateschitz was inspired by an already...
and 5-Hour Energy
5-Hour Energy
5-hour Energy is a flavored energy shot made in the United States, based in Farmington Hills, Michigan. It is sold in 2-oz containers. The makers of the drink claim that it will provide hours of energy and, unlike other energy drinks, will not cause a sugar crash later...
, are rated number one in growth in the functional beverage market.
Market
In this economic downturn, many products belonging to the specialty food category are expected to have reduced sales because paying more for those specialty items are not an option for many consumers. These consumers also tend to shop in discount grocery stores and tend to make fewer grocery trips. Despite this, the functional beverage market is predicted to have an increase in growth. This is because people generally reduce restaurant expenses first before they start cutting down grocery expenses. It has also been determined that people have become more proactive in illness prevention and control. In the past, people were very reactive in their health because health problems are treated after they arrive. Nowadays, people will take an initiative and look for a food product that will supposedly prevent an illness from occurring. Thus, all of the above features may insulate the functional beverage market from experiencing lower sales.Competition in the functional beverage industry is primarily done in four different ways. Companies firstly focus on their own products by clearly distinguishing their health claims from similar products and specify naturally healthy ingredients. Then, extensions of existing brand lines need to be considered. The addition of Kids Essentials to the Boost (beverage)
Boost (beverage)
Boost is the brand name of a line of products first introduced in 1995 by Mead Johnson, which was purchased by Novartis along with all its other adult nutrition products by Mead Johnson in 2002, and has been sold to Nestlé along with the Gerber brand on September 1, 2007...
line by Nestle
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
is a good representation of this strategy. Thirdly, bigger companies compete for market share by acquiring
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
smaller companies that may own a particular market sector. An example is Coca Cola purchasing Glaceau from Energy Brands and Odwalla
Odwalla
Odwalla Inc. is an American food product company that sells fruit juice, smoothies and food bars. It was founded in Santa Cruz, California in 1980 and is headquartered in Half Moon Bay, California....
and Fuze Beverage from their respective founders. Lastly, to increase the competitiveness of the company, one may explore new functional brands by identifying new markets and demands.
Market segments of the functional beverage industry are divided mainly by four parts. Those include hydration, energy/rejuvenation, health and wellness and weight management. Each segment has its own target market and consumers. Overlapping of target consumers does occur, not because of undefined market needs, but due to the consumer acceptance towards functional beverages.
Hydration
Currently there is an increasing amount of advertising in the promotion of hydration. In 2008, NestleNestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
launched the sale of Glowelle, exclusively in Neiman Marcus
Neiman Marcus
Neiman Marcus, formerly Neiman-Marcus, is a luxury specialty retail department store operated by the Neiman Marcus Group in the United States. The company is headquartered in the One Marcus Square building in Downtown Dallas, Texas, and competes with other department stores such as Saks Fifth...
. Antioxidant vitamins and fruit extracts are among the ingredient list that the company claims to "hydrate the inner and outer layer of the skin" and protect drinkers from free radicals.
Gatorade
Gatorade
Gatorade is a brand of sports-themed food and beverage products, built around its signature product: a line of sports drinks. Gatorade is currently manufactured by PepsiCo, distributed in over 80 countries...
’s Thirst Quencher offers a wide assortment of flavours each containing an “excellent source” (25% DV) of B vitamins (B3, B5, B6) to help meet the demands of energy metabolism; an “excellent source” (20% DV) of the antioxidant vitamin E to help protect the active body; an “excellent source” (20% DV) of vitamin C to help active people as they attack their day. In tandem with these adjustments, low-calorie G2 was also reformulated. Now it delivers significant nutrition enhancements by providing an “excellent source” (25% DV) of B vitamins (B3, B5, B6) and a “good source” (10% DV) of vitamins C and E, all of which help meet the nutrient needs of active individuals. Gatorade is well known for its hydrating qualities for athletes.
Another example of a functional beverage targeting the hydration sector is HydroOne Premium Beverage from Augusta, Georgia. It contains vitamins and minerals as well as herbal extracts that are specifically and scientifically formulated to promote healthy hydration, maintain healthy levels of blood glucose, and also provides the nutrients that are beneficial for the circulatory system. Hydro One Premium Beverages delivers a form of sugar which is the most advantageous for the body and aids in the nutritional needs of people while hydrating them in a healthy way. The company recommends two to four bottles daily.
Energy/Rejuvenation
There is an increase in the presence of energy beverages by Red BullRed Bull
Red Bull is an energy drink sold by the Austrian Red Bull GmbH, created in 1987 by the Austrian entrepreneur Dietrich Mateschitz. In terms of market share, Red Bull is the most popular energy drink in the world, with 3 billion cans sold each year. Dietrich Mateschitz was inspired by an already...
, Adrenaline Rush, 180 and many others. These highly-caffeinated, high-energy drinks have exploded on the beverage market in the United States, as well as globally and generated a whole new generation of copycat caloric or – in many cases – sweetened beverages.
According to the different brands of energy drinks, ingredients that serve as stimulants include: taurine, glucoronolactone, caffeine
Caffeine
Caffeine is a bitter, white crystalline xanthine alkaloid that acts as a stimulant drug. Caffeine is found in varying quantities in the seeds, leaves, and fruit of some plants, where it acts as a natural pesticide that paralyzes and kills certain insects feeding on the plants...
, and B vitamins
B vitamins
B vitamins are a group of water-soluble vitamins that play important roles in cell metabolism. The B vitamins were once thought to be a single vitamin, referred to as vitamin B . Later research showed that they are chemically distinct vitamins that often coexist in the same foods...
, guarana
Guarana
Guarana , Paullinia cupana, syn. P. crysan, P. sorbilis) is a climbing plant in the maple family, Sapindaceae, native to the Amazon basin and especially common in Brazil. Guarana features large leaves and clusters of flowers, and is best known for its fruit, which is about the size of a coffee bean...
, ginseng
Ginseng
Ginseng is any one of eleven species of slow-growing perennial plants with fleshy roots, belonging to the genus Panax of the family Araliaceae....
, ginkgo biloba, L-carnitine, sugars, antioxidants, yerba mate
Yerba mate
Maté, yerba maté or erva maté , Ilex paraguariensis, is a species of holly native to subtropical South America in northeastern Argentina, Bolivia, southern Brazil, Uruguay and Paraguay...
, creatine
Creatine
Creatine is a nitrogenous organic acid that occurs naturally in vertebrates and helps to supply energy to all cells in the body, primarily muscle. This is achieved by increasing the formation of Adenosine triphosphate...
, milk thistle
Milk thistle
The milk thistle is a thistle of the genus Silybum Adans., a flowering plant of the daisy family . They are native to the Mediterranean regions of Europe, North Africa and the Middle East...
. Although these ingredients have been approved by the FDA, health experts still recommend consumers to read the label to make wiser choice of beverage since these ingredients may not be beneficial to one's health.
Health and wellness
Functional beverage companies are more aware of the ‘health conscious’ individuals and have introduced functional beverages with less sugar and therefore less calories. For example, Vitaminwater 10 contains only 10 calories per serving (25 calories for a 351mL bottle, 7.5 grams of sugar and 250% of daily allowance of Vitamin CVitamin C
Vitamin C or L-ascorbic acid or L-ascorbate is an essential nutrient for humans and certain other animal species. In living organisms ascorbate acts as an antioxidant by protecting the body against oxidative stress...
). On the other hand, it has the same 25% of the daily allowance of Vitamins B3, B5, B6 & B12 as the original. Vitaminwater 10 has an all natural sweetener extracted from the stevia plant, which is a benefit in lowering calorie content (although taste is another matter) as well as fitting the product in the "natural" category.
Weight management
With increased worries about obesity and its implications on health, combined with demand for convenience goods, consumers are naturally looking towards easy weight loss methods that they can easily integrate into their lifestyles. As such, functional beverages are striving to achieve that through addition of ingredients that promote weight loss.Coca Cola and Nestlé
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
have partnered to produce Enviga
Enviga
Enviga was a Nestea carbonated canned green-tea drink. Enviga is a trademark of Nestlé licensed to Beverage Partners Worldwide, a joint-venture between Coca-Cola Company and Nestlé. It is available in three flavors: Green tea, Tropical Pomegranate and Mixed Berry...
, one of the new ‘calorie-burning beverages.’ Skinny Water (owned by Skinny Nutritional Corp.) and Nutrisoda's Slenderized (owned by PepsiCo
PepsiCo
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...
) have both used included a polyphenol called epigallocatechin gallate (EGCG) in their ingredient for their "metabolize boosting effect". With the increase in demand, ingredient manufacturer are now offering a 95% EGCG content product, a tea extract called "Blue California.". Some investigators report about slimming actions induced by chlorogenic acid
Chlorogenic acid
Chlorogenic acid is a hydroxycinnamic acid, a member of a family of naturally occurring organic compounds. These are esters of polyphenolic caffeic acid and cyclitol -quinic acid. It is an important biosynthetic intermediate. It also is one of the phenols found in coffee, bamboo Phyllostachys...
s from green coffee, further investigations need to be performed.
The dollar sales share on each of these sub-segments are: 28% (Hydration), 8.4% (Energy/Rejuvenation), 62.2% (Health and Wellness), 1.2%(Weight Management).
Consumer demographic
The consumer group is characterized as well educated, females, ages 35–55 belonging to upper middle, middle, and lower middle classes. This is due to their perceptions towards positive health beliefs, as well as a relatively high disposable income. Within the energy and stimulant drink sector, young adults aged 18 to 34 are considered to be the main target market, evidenced by high consumption rates. However, there could be potential downsides when companies rely too heavily on trends due to constant attitudinal differences of functional beverages across categories.Health concerns
Health experts are concerned about the ready consumption of the rising functional beverage. As much as these beverages essentially still serve to hydrate the individual, they may not lessen or even address major health issues today such as obesityObesity
Obesity is a medical condition in which excess body fat has accumulated to the extent that it may have an adverse effect on health, leading to reduced life expectancy and/or increased health problems...
, heart disease
Heart disease
Heart disease, cardiac disease or cardiopathy is an umbrella term for a variety of diseases affecting the heart. , it is the leading cause of death in the United States, England, Canada and Wales, accounting for 25.4% of the total deaths in the United States.-Types:-Coronary heart disease:Coronary...
, and cancer
Cancer
Cancer , known medically as a malignant neoplasm, is a large group of different diseases, all involving unregulated cell growth. In cancer, cells divide and grow uncontrollably, forming malignant tumors, and invade nearby parts of the body. The cancer may also spread to more distant parts of the...
that are associated with the consumption of sweetened beverages, of which, most of these beverages are. This is because most of these drinks contain significant amounts of sugars and hence calories, which would add to discretionary and total caloric intake. As such, these ingredients pose health risks because of what they contain (sugar and caffeine) or what they replace in the diet (vitamin and mineral-rich foods).
Another set of concerns is that some functional beverages contain ingredients that have not been sufficiently studied for health benefits, safety, and dosage or have higher levels of a certain ingredient, like caffeine
Caffeine
Caffeine is a bitter, white crystalline xanthine alkaloid that acts as a stimulant drug. Caffeine is found in varying quantities in the seeds, leaves, and fruit of some plants, where it acts as a natural pesticide that paralyzes and kills certain insects feeding on the plants...
, a large amount of which is associated with heart disease
Heart disease
Heart disease, cardiac disease or cardiopathy is an umbrella term for a variety of diseases affecting the heart. , it is the leading cause of death in the United States, England, Canada and Wales, accounting for 25.4% of the total deaths in the United States.-Types:-Coronary heart disease:Coronary...
and cancer
Cancer
Cancer , known medically as a malignant neoplasm, is a large group of different diseases, all involving unregulated cell growth. In cancer, cells divide and grow uncontrollably, forming malignant tumors, and invade nearby parts of the body. The cancer may also spread to more distant parts of the...
. Thus, consumption of these beverages might lead to undesired outcomes due to unforeseen interactions.
Sugar content
A 20 oz bottle of Glacéau’s Vitaminwater has been reported to contain approximately 33g of sugar, which is similar to the sugar content of a can of coke. As such, such products may not be as healthy an alternative as other commonly consumed beverages. In addition, the sugar content of such beverages promote dental caries amongst frequent consumers.Energy drinks
In some particular functional drinks, particularly energy drinks, the caffeineCaffeine
Caffeine is a bitter, white crystalline xanthine alkaloid that acts as a stimulant drug. Caffeine is found in varying quantities in the seeds, leaves, and fruit of some plants, where it acts as a natural pesticide that paralyzes and kills certain insects feeding on the plants...
content can be high, ranging from 0 to 141.1 milligrams per serving, of which an average 8-ounce cup of coffee contains about 133 mg of caffeine. There have been reports to Health Canada of adverse reactions involving energy drinks.