The Rise of Functional Food and Drink
- Ben Martin
- Mar 5
- 3 min read
Updated: Mar 9
Why Products That Do More Are Winning Shelf Space
Walk through any food and drink trade show today and one trend becomes immediately clear.
Products are no longer just about taste.
Increasingly, they are about function.
Coffee with Lion’s Mane mushrooms.
Drinks infused with CBD.
Protein-enhanced snacks.
Vitamin-fortified beverages.
The idea that food can deliver additional benefits beyond basic nutrition is driving one of the fastest growing segments in the industry. Functional food and drink has moved from niche wellness products to a mainstream retail category.
And retailers are paying attention.
What Is Functional Food and Drink?
Functional food and drink refers to products that offer specific health or lifestyle benefits beyond their core nutritional value.
These benefits might include:
improved focus
energy support
gut health
relaxation
immune support
high protein content
For consumers who are increasingly health conscious, these benefits can make products feel more purposeful.
Food becomes part of a wider lifestyle.
Why the Category Is Growing
Several factors are driving the rise of functional products.
First, consumers are becoming more aware of how diet influences health and wellbeing.
Second, wellness culture has moved firmly into the mainstream.
And third, many consumers are actively looking for convenient ways to support their health without major lifestyle changes.
A functional beverage that supports focus or relaxation may feel easier to adopt than a new diet or supplement routine. For many people, the idea that everyday food and drink can deliver additional benefits is highly appealing.
Innovation Is Driving Shelf Space
Retail buyers are constantly looking for products that can grow categories.
Functional products often provide exactly that opportunity.
When a product introduces a new benefit or ingredient, it can create entirely new sub-categories within existing shelves.
Recent innovation waves have included:
adaptogens and nootropics
CBD-infused beverages
high protein snacks and drinks
gut health products
low sugar functional drinks
Many of these products are attracting younger consumers who are looking for healthier alternatives to traditional snacks and soft drinks.
Packaging Plays a Key Role
Functional benefits need to be communicated clearly and quickly.
This means packaging often plays a critical role in the success of these products.
Brands in this space tend to emphasise:
clear benefit messaging
simple ingredient explanations
bold visual signals of wellness
Consumers often make decisions quickly, so the packaging needs to answer a simple question immediately.
What does this product do for me?
When the benefit is clear, shoppers are far more likely to try something new.
The Challenge for Brands
While the functional category is growing quickly, competition is also increasing.
As more brands enter the space, simply adding a functional ingredient may no longer be enough to stand out.
Successful products often combine several factors:
credible functional benefits
strong branding
clear packaging
great taste
Because no matter how compelling the health benefit might be, consumers will not buy the product again if the experience does not deliver.
Obfuscation is everywhere!
Now here's the twist in the tale – there's a serious lack of regulation on social media advertising and search marketing. People are saying pretty much whatever they want and they're making claims that go way beyond what they can actually prove.
The nootropics market is especially rife with this.
I bought some mushroom gummies that said they have Lions Mane, Cordyceps and Turkey Tail in them amongst other lovely good stuff for your gut and brain function.
The truth is – they didn't have enough of any of the igredients to have much of a benefit to me. I bought some sweet placebos. Lions Mane for example, needs at least 2500-3000mg per day to have any kind of beneficial effect. These mushroom gummies had 25mg in them.
What good is that going to do?
None.
So be careful what you claim, because at some point you're going to lose the faith of your customers and I would sincerely hope, at some point there will be better regulation.
Although to be honest, brands have been 'getting away with it' for far too long, so maybe it won't change.
Buyer beware...
I guess.
A Category Still Evolving
Functional food and drink is still developing rapidly.
New ingredients, formats and benefits continue to emerge every year.
For retailers, this creates opportunities to introduce innovative products that attract health-conscious consumers. For founders, it creates a chance to build brands that meet the changing expectations of modern shoppers. And for consumers, it reflects a broader shift in how people think about food.
Not just as fuel.
But as something that actively supports the way they want to live.
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