Performance Beverages

A performance beverage is a functional drink designed to enhance physical or mental performance. These beverages are often formulated with ingredients that support energy, hydration, endurance, recovery or cognitive function. Once dominated by sports drinks and stimulant-heavy energy beverages, the performance beverage market has entered a new era — one shaped by consumer demand for holistic wellness and clean, functional ingredients.

Today's high-performance beverages have expanded beyond fitness. They are no longer reserved for post-workout hydration or pregame fuel. They're everyday tools for focus, energy and resilience, whether you're running a marathon or a Monday morning meeting. This shift has opened the door for innovation in natural caffeine alternatives, nootropics, adaptogens and hydration technologies that appeal to a much wider audience.

Understanding Current Trends in Performance Beverages

In the not-so-distant past, performance beverages were primarily developed to boost athlete performance. As the market has evolved, today's consumers want beverages that help them lead active, healthy lifestyles beyond just sports. This has broad implications for the performance beverage market. 

Here are some of the key trends affecting today's performance beverage market.

Shift Toward Non-Stimulant and Plant-Based Options

The active ingredient in many legacy performance beverages was caffeine. Many consumers now prefer non-stimulant energy and plant-based ingredients. These individuals are turning to herbal infusions and caffeine-free plant-based performance beverages for their natural energy and potential health benefits. Plant-based proteins are also gaining traction in the performance beverage market as consumers look for alternatives that reduce their consumption of animal products. 

Demand for Personalized Formulas

Today's consumer expects more from their beverages, which is driving a trend toward personalization. Many seek out customizable beverages tailored to their individual health and wellness priorities. Another interesting development is the rise of artificial intelligence-powered platforms that analyze consumer data and health goals to recommend blends and subscription services. 

Focus on Hydration and Electrolyte Replacement

More than 80% of millennials say hydration is one of the most important functional benefits they want in beverages. The same is true for 78% of Gen Zers and 74% of Gen Xers. Hydration beverages support endurance during and after training and are beneficial for everyday consumers who want to maintain their overall health. This explains why drinks containing electrolytes for rapid rehydration are growing in popularity and why many brands are adding them to their performance beverage formulations.

Growth of Protein-Packed Beverages

Around 56% of adults nationwide are actively trying to increase their protein intake, and it's easy to see why. Protein is linked to healthy aging, well-being and improved overall performance. The presence of protein in a beverage creates a "health halo," meaning consumers overestimate a beverage's healthiness based on a single claim. A "good source of protein" claim has a significant impact on purchasing decisions. 

The rise of GLP-1 drugs is also influencing trends in performance beverages. Many beverage brands are releasing high-protein products tailored to the needs of GLP-1 users. They help these individuals maintain muscle mass during weight loss. 

Desire for Mental and Physical Well-Being

Today's performance beverages do more than support fitness and athletic activities. They help everyday consumers, from working parents to e-gamers, enhance their daily lives and cognitive health.

These individuals want to optimize their brain health, performance and support in addition to their physical performance, leading performance beverage brands to develop multifunctional drinks. These beverages often incorporate nootropics and adaptogens to support a sense of calm focus and aid in stress management. 

Key Ingredients Driving the Performance Beverage Market

As consumers expand their expectations, beverage brands experiment with a wide range of ingredients, including clean-label ingredients, to meet their evolving needs. Beverage brands can meet consumer demands by incorporating the following popular ingredients: 

• Proteins and amino acids: Whey protein isolate and other forms of animal-based protein are prominent. In addition, amino acids like taurine, glutamine and branch-chain amino acids (BCAAs) are becoming increasingly popular for reducing muscle soreness and promoting protein synthesis. Drinks with these ingredients can support active lifestyle goals, including recovery, building muscle mass and supporting athletic performance.
• Plant-based proteins: Many consumers are moving away from animal-based products, leading to a rise in the popularity of pea protein and other plant-based alternatives. Consumers strongly associate plant-based products with health, leading beverage brands to explore more plant-based protein delivery options. Many are also incorporating collagen to support youthful skin and healthy connective tissues. While conventionally derived from animal products, vegan and plant-based collagen is on the rise.
• Electrolytes: With consumers looking beyond basic hydration, many beverage formulations are incorporating electrolytes for endurance and more targeted rehydration. Consumers leading active lifestyles want to replenish the water they lose during exercise and turn to electrolytes to maintain fluid balance.
• Caffeine and caffeine alternatives: Consumers still want the energy boost synonymous with performance beverages. However, many are seeking out more sustainable energy sources. Caffeine remains popular as an energy source. Natural caffeine sources, such as guarana, green tea and yerba mate, are gaining traction in performance beverage formulation.
• Cognitive enhancers: Many consumers want mental wellness in addition to physical benefits, and nootropic drinks are in demand. These drinks are formulated with ingredients believed to enhance cognitive function. For example, beverage brands are adding L-theanine for mood support, as it can potentially reduce anxiety. Other popular nootropic ingredients include ginkgo biloba for its purported ability to improve memory and cognitive function, and choline for its cognitive performance potential.
• Adaptogens: Alongside clarity and focus, consumers also want stress relief from their performance beverages. The result is a surge in demand for adaptogens and stress-relieving botanicals like ashwagandha, Rhodiola rosea and lion's mane.
• Functional botanicals: Consumers perceive botanicals as a healthy, natural way to focus on their well-being. Ingredients like turmeric are common in performance beverages for their anti-inflammatory properties. 

Which Consumer Demographics Want Performance Beverages, and Why?

One of the most exciting opportunities for performance beverage companies in the current landscape is appealing to consumers across different market segments. Gone are the days when performance beverages only appealed to high-level athletes and gym enthusiasts. Today, consumers from all backgrounds are looking for multifunctional beverages that cater to their unique goals. 

Although more consumer demographics want performance beverages, they want them for different reasons. The key to entering these markets is understanding the differences in their priorities so that brands can appeal to each segment with personalized formulations. The following are some of the primary consumer demographics to target.

High-Performance Athletes vs. Everyday Wellness Seekers

Beverage brands once developed performance beverages to target professional athletes who consumed them before, during and after sports. These formulations focused on instant energy, electrolyte replacement and hydration. While the athlete market is still thriving, today, their needs are more holistic, and their expectations are higher. They want the same performance boost and hydration but also look for other functional ingredients that may enhance mental acuity and focus, improve recovery and keep anxiety at bay. 

Performance beverages today also appeal to everyday consumers who prioritize their health and wellness. However, these consumer groups seek beverages that fit effortlessly into their daily lives. Many want less sugar, less caffeine and more natural ingredients that target their holistic wellness goals. 

Beverage brands must shift their focus to accommodate these needs. Entering this growing market means developing performance formulations that meet personalized goals and make consumers feel good throughout the day. 

Millennial vs. Gen Z Beverage Consumption

Gen Z and millennial consumers are embracing health and wellness in their purchasing habits. These consumer groups share many traits, including a focus on hydration and functional formulations. Both prioritize health and wellness — together, they drive much of the growth in the performance beverage market. 

Gen Zers and millennials also drink less alcohol than previous generations, and both groups are at the forefront of a movement toward natural, healthy ingredients and holistic wellness. Brands marketing to millennials can include ingredients that support healthy aging. On the other hand, Gen Z prioritizes ingredient sustainability and minimal synthetic ingredients. 

Performance Beverage Formulation Challenges and Solutions

While consumers across demographics want multifaceted beverages that cater to their health and wellness needs, beverage brands must also deliver on flavor. However, some functional ingredients present formulation challenges. When developing new products, high-performance beverage companies must strike a delicate balance between flavor and functionality. 

One of the challenges of performance beverage formulation involves combining nutrient-rich ingredients while simultaneously reducing or removing sugar. Additionally, fiber and protein can produce off-notes and a gritty texture. While high-performance athletes may sacrifice taste and flavor for performance, everyday consumers may not be so willing.

With performance beverages increasingly appealing to a broad consumer base, the solution lies in combining flavor and function. Some solutions to performance beverage formulation challenges include: 

• Natural sweeteners: Many beverage brands are using natural sweetener blends which not only help balance flavors and mask bitterness but also also helping keep a beverage within caloric and cost constraints.
• Complementary flavors: Brands can overcome some formulation challenges with ingredient pairings that complement each other while meeting consumer desires for novelty. For example, ginger's natural flavors complement pea protein's earthy notes.
• Viscosity and mouthfeel: Increasing the protein content in beverages increases their viscosity, which impacts mouthfeel. Advancements in protein technology have led to clear protein drinks, from protein waters to protein shots. These beverages offer lighter alternatives to traditional protein shakes and appeal to convenience-seeking, health-conscious consumers.

Innovations in the Performance Beverage Space

Many performance and nootropic beverage companies have already forged successful paths. PLT offers a number of ingredients that brands can use in their formulations. For example, they provide a water-soluble version of the adaptogen Rhodiola rosea in a branded version called Rhodiolife. It's easy to include this ingredient in beverages meant for stress reduction and those designed to combat mental fatigue. PLT also launched a water-soluble version of Zynamite to the market — Zynamite S. It potentially enhances mental energy, may improve workouts and could benefit recovery, meeting consumer needs for physical and mental wellness. 

Marketing and Positioning Strategies for Performance Beverage Brands

The surging consumer interest in performance drinks has resulted in stiff competition for beverage brands entering the market. The following tips can help these brands stand out in a crowded space: 

• Focus on health claims: Today's consumers are well-educated about their health. Focus on clinically backed ingredients and scientifically proven benefits to gain maximum traction.
• Segment your audience: Every audience segment has unique needs. For example, people interested in strength training may seek protein, while runners will look for additional carbohydrates and ingredients that promote sustained focus. Brands can tailor their packaging to reflect their audience segments, drawing consumer attention in-store and online.
• Engage in daypart diversification: Consumers want products tailored to their needs at any time of day. Market products based on these needs, like morning energy, afternoon focus and evening relaxation. This strategy provides the personalization that consumers expect from their beverages and meets their changing needs throughout each day.
• Leverage the health halo: The protein health halo is a powerful driver for today's consumer. Consider changing the size and font on beverage packaging to push the protein and engage consumers.
• Have a unique selling proposition (USP): Because the performance beverage market is large and varied, beverage brands benefit from zeroing in on the factors that make them unique. LMNT markets its electrolyte mix as the cleanest electrolyte drink with zero sugar and provides a science-backed formula to differentiate itself in a crowded space. Another example of leveraging a USP is TruBrain, which offers drinks supercharged with superfoods and nootropics.
• Tell an authentic story: Consumers want to feel a connection with the brands they shop. Brands can leverage influencers and social media to develop that connection, crafting a compelling narrative that drives meaningful consumer engagement. 

Successful beverage brands are finding new ways to segment their products based on biological rhythms, lifestyle needs and consumption habits. Brands entering the performance beverage market must focus on understanding their target consumers' preferences, behaviors and pain points for effective marketing and positioning. 

Bring Your Performance Beverage Vision to Life With BevSource

As performance beverages transform into multifaceted drinks for a range of health-conscious consumers, beverage brands have an opportunity to claim shares in a rapidly expanding market. To distinguish your brand from competitors, you must develop performance beverages that provide personalized solutions to consumer needs, offer functional benefits and back them up with cohesive and original flavors. 

BevSource can help you overcome beverage formulation challenges and transform your concept into a tangible product. Our vast experience and connections in the beverage industry allow us to develop innovative strategies that improve your current and future market position. We will collaborate with you through every element of beverage development, formulation and commercialization. Let's chat. Reach out to a beverage expert today!