Functional drinks are designed to provide the consumer with something more than a standard beverage; they often contain specific ingredients to provide additional health benefits. Functional beverages include energy drinks, as most
. Sports drinks, milk drinks, ready-to-drink teas, smart drinks, fortified fruit drinks, plant-based milks, and fortified water also fall into this category.
Most of these
beverages are consumed at home in the United States. A 2025 study found this to be particularly true for milk drinks, milk-alternative drinks, and pre- and probiotic drinks (which have the purpose of improving digestive health and potentially impacting overall well-being). By comparison, energy drinks were the beverages most consumed outside the home—surprisingly, significantly more than coffee.
How big is the energy drinks market?
Energy drinks typically contain caffeine, vitamins, and other ingredients designed to provide a quick boost of energy and alertness. Compared to other countries, the
energy and sports drinks market is the largest in the United States. Recently, revenue of approximately 40 billion U.S. dollars was generated. Ranked second with a considerably lower revenue of almost nine billion U.S. dollars was China, followed by Japan and India. The same picture is also reflected in the
latest sales figures in the U.S.: energy drinks have increased in popularity and lately achieved around 23 billion dollars.
Purely functional drinks: Celsius Holdings
Celsius Holdings, headquartered in Florida, United States, offers a wide range of functional drinks such as calorie-burning beverages, diet and light beverages, functional energy drinks, liquid nutritional supplements, sports drinks, and water products. It advertises its beverages as "healthy" drinks, targeting active younger consumers. Celsius beverages contain ingredients like ginger and green tea and no artificial preservatives or sugar. The company seems to be successful with this concept. This is shown in the
development of its revenue: Celsius Holdings most recently generated over 1.4 billion U.S. dollars, which was roughly twice as high as in 2022. For the company,
North America makes up the largest market by far. In comparison, sales in Europe and Asia were significantly lower, as all markets except North America together generated only about 75 million U.S. dollars in sales.
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