What are some other innovative trends in sports drinks and protein drinks?

Increased consumer demand for functional beverages has led to new product innovations and expansion of the category.Experts at IBISWorld senior industry research analysts say that sports drinks and protein drinks (functional beverages) have outperformed non-functional beverages over the past year. According to the expert, “The popularity of functional drinks has exploded in recent years, driven by the expansion of functional foods and beverages as well as targeted marketing. While many sports drinks contain high levels of calories and sugar, manufacturers have introduced a plethora of new, healthier flavors over the past year.” The sports drink market has seen growth over the past year, as also noted by the experts at Ingenics. “Overall sales of sports drinks are up 18 percent compared to the previous year, and 32 percent of consumers say they are buying more of these products than they did the year before.
Finding room for fitness, health and functionality trends
As consumers become more focused on fitness and healthy lifestyles, experts note that consumer demand is putting more pressure on beverage companies to expand their product offerings.
Rising fitness lifestyle trends are driving demand for sports drinks and protein drinks, both of which are geared toward consumers looking to improve performance and recovery. For example, protein drinks are often consumed to promote muscle growth and recovery, while sports drinks help people replenish electrolytes, which are particularly useful during strenuous exercise.
Consumers are also looking for sports and protein drinks with high-quality ingredients, experts say. “This has encouraged more manufacturers to implement transparent labeling and third-party testing of their products. In addition, the rise in fitness lifestyle consumption trends has contributed to the expansion of fitness-related events, such as triathlons and marathons, which often require participants to consume specific products to enhance performance and recovery.”
Experts also noted that since sports and performance beverages are “highly associated with exercise” and exercise is associated with consumer identity perceptions, fitness lifestyle trends naturally impact the sports and protein drinks market.
The rise in fitness lifestyle is partly responsible for driving consumers to consume energy drinks. In fact, the Circana 2023 snack survey found that 35% of consumers consume them for mental health and 31% for immunity.
As the lines between beverage categories become blurred, this will “continue to put pressure on the industry to differentiate benefits to capitalize on the current growth trajectory.” Additional benefits include expanded health benefits and expanded brick-and-mortar and online sales channels, she said.
Experts also said the trend toward functional and blended beverages is also encouraging manufacturers to innovate and increase their product portfolios to appeal to a broader customer base. The functional and blended trends have led to new innovations in flavors that have attracted consumers to beverages.
“Functionality and blending trends blur the strictly sports connection and expand the audience. A sports-based identity-related connection will always be a core feature of this category and drive it forward, but now we’re seeing products stacked with functional statements, not just sports performance, to broaden relevance.”
Other trends
In addition to health and wellness trends, consumers are turning to more natural and organic products. While this category has seen little growth in the sports and protein drink space, experts believe there is still room for growth. “100% natural sports and protein drinks, although small, are growing their share in this segment, which suggests that there is room for their continued expansion. Organic drinks have underperformed and been small in this segment over the past few years.” While some consumers consider sports drinks and protein drinks unhealthy because they contain sugar or calories, healthier options have emerged due to the natural and organic trend. This has also led to a broader consumer base. Brands like Gatorade and Powerade have introduced low-sugar and sugar-free sports drinks.
Additionally, manufacturers have introduced beverages with no flavors, no colors, no artificial additives or no GMOs. In addition to clean ingredients, manufacturers are focusing on transparent ingredient labeling and ingredient sourcing. The natural and organic trend in the sports and protein market has also changed pricing strategies, as most of the ingredients used involve higher production costs.
While major brands are calling for standard ingredients to be changed to natural sources, chemical formulations and ratios have not changed. Ingredient names that are more familiar and accessible to consumers are more popular.
Meanwhile, consumer interest in vegan sports and protein drinks “remains a bit niche”. While more consumers have become vegan in recent years, most sports drinks are vegan-friendly. “As for protein drinks, many are produced with whey and other dairy ingredients, and the expanding vegan lifestyle among consumers has prompted manufacturers to produce plant-based protein drinks, including those derived from rice, peas and other plant-based ingredients.” Predicting the future
Looking ahead, experts say the blurring of boundaries between beverage categories will continue to impact the sports and protein drink market. Companies that offer “beverages that help consumers on the go” will be successful, especially those that utilize social and digital media to share their benefits with consumers.
In this market, both recovery and meal replacement products are performing well. Experts also point to overlap between products, primarily recovery-based protein products and meal replacements. However, “they target different use cases” and there is room for innovation to share audiences rather than compete with each other.
Meal replacement drinks have surged in popularity in recent years because they are ideal for time-strapped consumers. Recovery protein drinks are typically suited for those who work out regularly, including athletes, who want a drink to aid in recovery, reduce soreness and grow muscle. While recovery drinks and meal replacement drinks cater to different consumer needs, meal replacement drinks are stealing the show.”
As for what’s next for the segment, experts say clean labeling, marketing and functional innovations are the ones to watch. The market will continue to evolve based on consumer trends, primarily health and environmentally conscious consumers. “This has led many producers to manufacture products using simple, minimally processed, and easily recognizable ingredients. This trend, along with the desire for variety, will encourage more producers to experiment with new ingredients and formulations.