From protein coffee to CBD soda: How brands are cashing in on the functional beverage boom

Starbucks Iced Vanilla Protein Matcha Latte. Starbucks Beverage brands are cashing in on the growing demand for functional drinks among younger, health-conscious consumers by introducing increasingly innovative offerings, including protein-boosted coffees and CBD-infused sodas. The $160 billion global functional drinks market has become an increasingly lucrative category, encompassing multipurpose drinks that claim to promise taste and enjoyment alongside wellness benefits, as consumers look for convenient ways to meet their health targets. "Functional beverages are beverages that are going to provide an outcome," Sally Lyons Wyatt, global executive vice president and chief advisor of consumer goods and food services at consumer insights firm Circana, told CNBC. "Convenience is definitely one factor, but it is also this quest to live longer, healthier...do you want to drink a beverage that's just there, or do you want the beverage to work harder for you?" Around 75% of millennials and 80% of Gen Zers consume functional beverages ranging from energy drinks, probiotic drinks, and vitamin-enhanced drinks, according to EY's most recent consumer beverage survey of over 2,500 adults in the U.S. and Brazil. Over half of respondents said they're willing to pay more for drinks that support their health and wellness goals, EY found. …