The global food and beverage market is projected to reach around half a trillion by 2028. As functionality becomes a basic customer expectation rather than a market differentiator, beverage makers are now shifting their focus to cognitive anxiety relief, mood support, stress resilience, and mental clarity, imparting ingredients. Statistically, 57.3% of sales of non-alcoholic beverages are driven by health-related requirements.
With cognitive health as the top priority for next-generation customers, brands must focus on clean-label and science-backed innovations amidst increasing pressures related to regulatory compliance, sustainability expectations, and rapid innovation. This is where a Stellarix comes in, providing comprehensive business strategy and sustainability consulting to F&B brands, enabling them to effectively distinguish themselves and innovate intelligently.
Mood-Enhancing Functional Beverages: Trends and Market Landscape
Mood-enhancing beverages are becoming the fastest-growing sub-category in the functional beverage market, driven by growing consumer demand for tangible wellness benefits and clean labels from their drinks. Adaptogens like Mushroom extracts, Rhodiola, and Ashwagandha are key to clean-label formulations, while Nootropics such as Ginkgo Biloba and L-theanine are enhancing focus without stimulants. Concurrently, the popularity of gut-brain axis ingredients, including prebiotics and probiotics, continues to rise, supported by scientific evidence of their role in mental wellness and emotional regulation.
Regarding sensory experience, the trend of botanicals like orange blossom, lemon zest, dandelion root, and sage remains prominent. These functional drinks are replacing alcohol and soft drinks among sober-curious consumers who seek healthy alternatives that promote relaxation.
Regarding the market landscape, the APEC region is experiencing rapid growth, holding over 41% of the market share, driven by herb familiarity, quick urbanization, and rising income. North America leads in niche innovation within non-alcoholic functional drinks, fueled by high consumer demand for clean-label products that boost mood and mental health. Meanwhile, the European market is expected to reach $234.9 billion in 2025, influenced by strict regulations, sustainability efforts, and evidence-based claims.
The Growing Focus on Clean‑Label Innovation
Clean-label innovation is a prerequisite in the functional beverage category as consumers scrutinize ingredient lists for recognizable components and reject artificial additives. Customers are also taking note of third-party certifications, such as non-GMO, organic, and clinical validation. It is becoming a key to building customer trust. However, this expectation creates significant pressure on brands to replace artificial stabilizers and ensure the effectiveness of the beverage without sacrificing product stability and quality.
It is claimed that probiotic strains like Bifidobacterium longum and Lactobacillus rhamnosus, usually used in fermented beverages, enhance attention span and memory. Additionally, Ashwagandha and Rhodiola Rosea lower cortisol levels and reduce general anxiety, two key indicators of mood improvement. Moreover, ingredient innovations like Reishi and Lion’s Mane, which are mostly used in RTD beverages, are recognized for their stress-relieving properties and are being considered as functional ingredients. Still, their earthy and bitter flavor necessitates more palatable options.
Navigating the Regulatory Shifts in Mood-Enhancing Functional Beverages Innovation
As the European Food Safety Authority (EFSA) and the Food and Drug Administration (FDA) tighten their review policies for functional beverage claims, ethical accountability in innovation becomes essential for all brands. Therefore, functional brands are shedding unauthorized claims like “reduce depression or anxiety” to save themselves from import bans, penalties, and relabeling requirements. Regulatory authorities are only permitting structure-function claims, such as “helps manage stress or supports focus,” only when supported by published clinical data.
Additionally, the FDA currently does not recognize and validate “functional beverages” as a separate legal category; therefore, products must meet the requirements for conventional foods, where ingredients need to be Generally Recognized as Safe (GRAS) to stay compliant. Furthermore, EFSA requires randomized, controlled human studies in healthy populations to validate any adaptogen or botanical claim. Specifically, regulatory success can be achieved by integrating compliance into the product development process, rather than addressing it after the product’s launch.
The Sustainability Push behind Mood-Enhancing Drinks
More than 55% of the Gen Z and millennial population value and trust beverage brands that exhibit environmental responsibility. The Packaging and Packaging Waste Regulation (PPWR) in Europe mandates minimum recycled content and recyclable design by 2030, driving functional beverage brands toward compostable formats and mono-materials. For instance, companies Amcor and Tetra Laval supply barrier-protective, lightweight packaging for adaptogen and probiotic drinks.
Meanwhile, in the U.S., brands are shifting to paper-based and post-consumer recycled plastics to preserve botanical integrity while reducing the use of virgin plastics. Innovators like Oatly and Just Water use sugarcane-based, highly recyclable cartons. However, supply chain complexity, costs, and ingredient sensitivity still challenge its upscaling prospects.
Final Words
The future of functional beverages relies on adopting a holistic approach that includes clean labeling, supply chain transparency, ingredient transparency, wellness, regulatory integrity, and sustainability. To effectively capitalize on the trend of mood-enhancing drinks, it is essential to align customer expectations with product innovation and sustainability. These challenges need market expertise and experience that could ensure smooth navigation without compromising business resilience and long-term objectives. As a strategic and innovation partner, Stellarix has helped several beverage companies capitalize on market opportunities and reinforce their market position.
