In today’s beverage landscape, just quenching thirst no longer cuts it. We see it with legacy brands branching out with new products and startups focused entirely on functional beverages.
Women are looking for drinks that do more, whether it’s supporting wellness through energy, mood, and recovery, or providing options for health-conscious consumers, in the case of non-alcoholic and alcohol-alternative drinks.
However, many established beverage brands still lean on legacy positioning that’s masculine, performance-oriented, and “athlete first.” For marketers in the functional beverage space, understanding how to pivot strategically and authentically can put your product in front of the right audience.
In this article, we share our insights into:
- The evolving landscape and the rise of functional and non/alcohol alternatives
- Why traditional positioning is losing ground amongst women
- Strategic moves that top brands (and challenger brands) are making
- And what digital marketing agencies like Spark Growth bring to the table for beverage clients
The Functional Beverage Boom
The functional beverage sector is in full expansion. The global functional drinks market was valued at $175.5 billion in 2022 and is projected to reach $339.6 billion by 2030. One study found that North America alone accounts for nearly 40% of global functional drinks revenue in 2024.
What exactly caused functional beverages to emerge as a key segment of the health and wellness market?
Drivers fueling this growth include consumer demand for drinks that do more, the convenience of a healthy option in beverage form, and evolving wellness mindsets. Here are two statistics to keep in mind:
- Among U.S. functional beverage consumers, 69% expect their drinks to deliver multiple functional benefits rather than a single function (e.g. for instance, energy plus gut support).
- 60% of U.S. functional drink users say they’d like to see more such beverages appearing in bars, restaurants, or social settings.
All of this signals that functional drinks are migrating from health aisles into more mainstream and social territory.
The Surge in Non-alcoholic/Alcohol-Alternative Drinks
Parallel to functional drinks, non-alcoholic and low-/no-alcohol alternatives are riding a powerful wave among consumers. Consider these trends:
- In one year, non-alcoholic beverage sales jumped 32%, while alcoholic beverage sales grew only 1%.
- Within the non-alcoholic category, retail sales of non-alcoholic spirits were up 88%, non-alcoholic beer sales increased by 26%, and non-alcoholic wine sales were up by 19%.
- Separately, U.S. alcohol consumption is hitting near 90-year lows. Only 54% of adults reported drinking in 2025, down from 67% in 2022.
- Women in particular are reducing alcohol use, with reported drinking among women having dropped around 11% since 2023.
These shifts reflect a broader cultural change. Consumers are rethinking why they drink and are being more careful about what they drink. Non-alcoholic drinks and alcohol-alternative drinks are evolving from the perception of being a lesser substitute to premium, intention-driven choices.
3 Reasons Why This Matters to Beverage Marketers
First, capturing market growth is no longer related to the “sports/energy” niche, but in the broader emotional, wellness, and social categories. The performance-driven consumers are one consumer sector, but increasingly, functional beverage brands have the opportunity to speak to other engaged audiences, whether it’s older women who are looking for calcium-enhanced drinks to protect against osteoporosis or those looking for ready-to-drink teas enriched with collagen for skin health.
Second, the functional and non-alcoholic/alcoholic alternatives categories are a strategic playground. With more women using online resources such as social media to research health and wellness products, brands can tailor their digital marketing programs with different messaging that resonates with women at different stages of their purchasing journey. There’s educational and engaging content at the top of the marketing funnel that introduces women to your brand while offering valuable insights. Contrast this to later in the funnel, where retargeting ads with more urgent messaging can be an effective way to re-engage potential customers.
And last but not least, for many brands, entering or expanding into either of these categories is an opportunity to reframe brand identity, especially to new audiences that are already in the mindset of searching for products that fit their lifestyle. For example, in 2025, Pepsi released its Prebiotic Cola to tap into the growing functional beverage market. That said, marketing a “regular” drink is much different than marketing a functional beverage product, given the latter’s wellness positioning. That’s why brands often partner with specialized digital marketing agencies in the health and wellness space to craft strategic campaigns with more targeted messaging.
The Old Playbook: Performance & Athlete-Centric Branding
Historically, energy drinks were the dominant functional beverage. These typically leaned hard into masculine, high-intensity, athletic-coded language and visuals. Think hero shots with sweat and grit, and positioning around pushing limits, winning, and recovering faster. It’s marketing that appeals to high performers or serious fitness enthusiasts.
That strategy worked well for early adopters, heavy users, and a predominantly male audience, but it often excluded or resonated poorly with women who didn’t see themselves in that messaging.
Why This Approach Won’t Work for All Functional Beverage Brands
Exclusion by association
When your visual language and tone skew heavily male or hyper-competitive, many women self-filter themselves out from being potential consumers. They don’t feel invited or see the product as not being for them.
Diminishing marginal returns on performance claims
The performance/energy niche is intensely competitive. Making stronger functional claims demands heavier proof, R&D cost, and regulatory risk.
Consumer identity evolution
As more consumers turn to wellness, brands must pay attention to what audiences actually want. In some cases, results-oriented messaging won’t work. Instead, some consumers may relate more closely with brands and products that position themselves as being part of a consumer’s lifestyle. In particular, women’s functional needs shift with different life stages (e.g. hormonal support, cognition, bone health, and so on), and brands that ignore that nuance lose relevance.
Trust and authenticity scrutiny
Women, who drive 80% of household healthcare decisions, are sensitive to overpromises, “wellness washing,” or vague claims. If your brand leans too heavily on hyperbole, you risk skepticism.
Creative fatigue and shelf sameness
The “athlete hero” aesthetic has become ubiquitous. New entrants need more distinct, personality-driven messaging creatives to break through.
Digital Marketing Tips for Functional Beverage Brands
Messaging that Resonates with Different Lifestages and Needs
Messaging for beverages should differ based on the target audience’s age and life stage. For instance, women in their 20s will have different needs compared to those in their 40s. Additionally, women experiencing perimenopause, menopause, or postmenopause have unique functional requirements, such as support for energy, stress management, hormonal balance, or cognitive function. It’s essential to tailor your messaging to address these specific needs appropriately.
Here’s another tip to keep in mind. Share benefits in real, easy-to-understand terms, not clinical jargon. Don’t be afraid to be authentic and speak directly to your audience. Rather than leaning on generic phrases like a product “boosting metabolism,” be creative with a story that engages and is relatable. For example, a drink might provide women with “steady energy throughout their midday slump.” Anchor your unique selling point in outcomes and lifestyle needs, not just ingredients. Many consumers don’t care about a cocktail of 10 botanicals. They care about how a brand and its product make them feel.
Creatives That Engage, Entertain, and Educate
Women don’t just want to be sold to. They want to be understood. The strongest functional beverage brands act as guides, not preachers. Lead with memorable education-first content that simplifies the “why” and “how” behind your product. What does an adaptogen actually do? How can your drink fit into a morning routine or replace an afternoon coffee? Short-form content like Reels or carousels can make education approachable and shareable. Read more insights in our previous article, Why Brands Should Rethink Their Approach to Female Consumers.
At the same time, storytelling adds dimension. Highlight women using your beverage in real contexts, whether that’s a busy parent reaching for a wellness boost in her day or a professional needing sustained focus. Founder stories and brand missions make your audience feel closer to your purpose. That’s why influencer marketing continues to be an effective way to tell engaging stories.
Representation is also key. For more general products that appeal to a wider audience, feature women of all ages, body types, and lifestyles. Let your visuals say, “you belong here.” User-generated content, like mocktail recipes or morning rituals, fosters community and authenticity. And when it comes to tone, trade “hard performance” language for a more human one. Words like “balance,” “restore,” and “flow” often resonate better than “burn,” “grind,” or “maximize.” Wellness should feel supportive, not prescriptive.
Trust, Transparency, and Claim Integrity
In a category where marketing hype is absolutely everywhere, trust is a key differentiator. Women are discerning. They read labels, Google ingredients, compare product usage with their friends, and cross-check claims. Back up your messaging with credible sources, whether that’s third-party certifications, clinical studies, or partnerships with healthcare providers.
Ingredient storytelling should enhance, not overwhelm. Share how your botanicals were sourced, who grows them, or how they’re tested for quality. This kind of detail transforms ingredients from abstract science into tangible, human stories.
Transparency also means clarity, both in what’s included and what’s not. Claims like “no artificial sweeteners” or “non-GMO” work best when presented simply and truthfully, not as cluttered buzzwords. Authenticity builds loyalty in the wellness space.
Is Your Functional Beverage Reaching the Right Audience?
The convergence of functional beverages and non-/low-alcohol alternatives represents one of the most dynamic growth zones in the beverage world. As consumer behavior shifts, especially among women, the brands that win will be those that break from legacy performance tropes and instead build purpose-led, trust-based, personality-driven campaigns.
For beverage marketers, this is a brand repositioning opportunity. It’s a chance to go from “just another drink” to being part of women’s daily lives and health journeys.
At Spark Growth, we specialize in helping beverage and wellness brands refine brand strategy, messaging, content, and growth tactics. We combine trend insights, data, creative storytelling, and performance marketing to ensure your product resonates with the ones making the majority of wellness purchasing decisions: women.
If you’re ready to engage with your core audience, test new product messaging, create standout content, or explore entry into functional beverage categories, let’s talk! We’d love to help make your brand top of mind in the evolving beverage space.