In the mid-2000s, functional beverages were one of the industry’s fastest-growing segments, with sales sharply rising between 2004-2008. Although the sector’s recent growth has diminished, it still managed a compound annual growth rate of 5.5% between 2006-2010, according to Packaged Facts.
The New York City researcher considers functional beverages to include energy drinks; sports drinks and functional waters; ready-to-drink (RTD) tea and coffee; and yogurt drinks and smoothies. More recently, Packaged Facts says functional beverages posted sales of $23.4 billion in 2010, well ahead of its 2006 annual sales of $19 billion.