Balchem unlocks functional beverage systems to elevate sensory appeal amid rising gut health focus

Functional beverages that provide benefits beyond basic hydration are becoming a staple in consumers’ daily routines by supporting immediate and long-term well-being. From improving cognitive function and gut health to offering sustained energy, the segment is ripe for innovation as NPD in these drinks evolves to meet the diverse needs of modern consumers.

Specialty ingredients company Balchem supports manufacturers in fulfilling these demands in applications like energy drinks, sports beverages, and fruit juices with beverage systems that integrate sweeteners, stabilizers, and mouthfeel modifiers. The solutions help brands create customizable products that appeal to consumer tastebuds.

Innova Market Insights data indicates that between 2020 and 2024, the functional beverage category grew by 8% (average annual growth). Generation Z and Millennials seek cognitive and muscle-building functions, positive engagement, and new experiences from these drinks, fueling NPD in the sector.

Shannon Fitzgerald, marketing manager of Balchem Human Nutrition and Health, tells Food Ingredients First that current functional beverage trends reflect what consumers want most: “support for cognitive health, better gut health, sustained energy, and hydration.”

“These priorities aren’t just for long-term health anymore — there’s a growing demand for solutions that help people feel better today. Take energy, for example — only one in five global consumers regularly feel energized, which can impact their ability to perform day-to-day tasks.”

She believes this is driving a “new wave innovation” in the beverage space. By offering an energy boost paired with hydration, functional beverages can quickly and conveniently tackle physical, emotional, and mental fatigue.

Tapping gut and brain health opportunities

Another aspect with scope for innovation is the growing focus on gut health across consumers of all ages, notes Fitzgerald. “Gut health drinks with added prebiotics or kefir, for example, are gaining traction. With the functional beverage market brimming with opportunity, there’s great potential for brands to carve out a competitive edge.”

Energy-boosting, hydrating beverages tackle physical, mental, and emotional fatigue quickly and easily, says Fitzgerald.The gut health focus co-exists with trending health areas like stress relief and cognitive support.

“We’re already seeing the rise of pre- and probiotics in gut-supporting beverages, as well as adaptogens, which are often incorporated into formulations to support stress and energy levels,” she adds.

Ingredients that enhance cognition are also becoming more popular, including herbal solutions like ashwagandha and ginseng, along with choline — a foundational nutrient that plays a “critical role in brain health and cognitive function.” It supports the production of the neurotransmitter acetylcholine, which aids mood, memory, and muscle control.

“Our industry-leading choline ingredient, VitaCholine, is a great option for manufacturers looking to tap into consumer demands for cognitive support and can be formulated in a convenient, on-the-go beverage format.”

Enhancing sensory profiles and solubility

Functional beverage formulators often struggle with managing inherent off-notes in some functional ingredients, turning to masking solutions to overcome them.

Balchem’s “Injoy Beverage Systems,” offer a selection of ingredients that can be tailored to help brands create innovative beverage products that “balance superior sensory profiles with added benefits to support hydration, energy and cognition,” says Fitzgerald.

The system provides components like sweeteners, functional nutrients, mouthfeel modifiers, and flavors to solve formulation challenges and improve the overall sensory experience. 

“We’re also exploring ways to improve solubility, particularly in cold-water solutions. Recently, we expanded our functional powder line, VitalBlend, with VitalBlend Oat 2540. This new creamer not only has excellent solubility in cold water, but also delivers a smooth texture and a creamy mouthfeel.”

Balchem’s functional powder line, VitalBlend, improves solubility in cold water solutions.She adds that owing to the added macronutrients, micronutrients, and minerals, the functional powders can also be used in beverage formulations targeting consumer well-being.

Customizing growth with sensory appeal

As consumers become more health-conscious globally, Fitzgerald expects “sustained growth” in the functional beverage market across demographics. This will allow brands to explore product innovations with various attributes, such as plant-based, clean label, and more.

“We anticipate that younger generations will continue to increase their daily consumption of functional beverages, with more frequent intake throughout the day. This will also fuel interest in more customizable formulations to meet individual consumer needs, leading brands to explore new formulations and ingredient combinations.”

Balchem plans to continue focusing on beverage solutions, such as flavor bases and mouthfeel modifiers, that boost sensory experience to “keep consumers wanting more.”

“One thing is certain: great taste is always non-negotiable to us. We know that striking the right formulation balance is essential in such a competitive market,” she concludes.