Functional Beverage Development: How to Create a Beverage That Works and Sells

Functional Beverage Development: How to Create a Beverage That Works and Sells

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What is a Functional Beverage?

Functional beverages are drinks formulated with added ingredients that offer health benefits beyond basic nutrition. These can include vitamins, adaptogens, nootropics, prebiotics, probiotics, botanical extracts, and more. Popular examples include energy drinks, immunity shots, CBD beverages, and gut health tonics.

With today’s health-conscious consumers seeking more from their beverages, the functional beverage category is one of the fastest-growing segments in the beverage industry.

Why Functional Beverages Are in High Demand

The global functional beverage market is projected to reach $208 billion by 2027, driven by increasing consumer interest in wellness, fitness, mental clarity, and natural ingredients. Functional drinks appeal to modern lifestyles where convenience and health go hand-in-hand.

How to Develop a Functional Beverage: Step-by-Step

1. Define the Functional Purpose
Start by identifying the specific function or benefit your beverage will deliver. Popular categories include:
- Energy & Focus
- Immunity Support
- Stress Relief & Relaxation
- Gut & Digestive Health
- Hydration & Electrolyte Support
- Skin & Beauty Benefits

A clear purpose helps shape your formulation, branding, and marketing strategy.

2. Select the Right Functional Ingredients
Choosing effective and science-backed ingredients is key. Some trending options include:
- Adaptogens (e.g., ashwagandha, rhodiola, lion’s mane)
- Nootropics (e.g., L-theanine, caffeine, panax ginseng)
- Electrolytes (e.g., magnesium, potassium, sodium)
- Prebiotics & Probiotics (e.g., cassava root fiber, chicory root inulin)
- Collagen (e.g., bovine peptides, marine peptides)

Make sure your ingredient selection aligns with your target market, complies with FDA guidelines, and delivers on the claimed benefits.

3. Formulate for Taste and Efficacy
One of the biggest challenges in functional beverage development is balancing taste with functionality. Bitter or earthy ingredients can impact flavor, so working with an experienced beverage formulation team is critical.

We help brands optimize for:
- Flavor masking
- Sweetness masking
- Mouthfeel
- pH balancing
- Carbonation
- Stability and shelf life

4. Validate and Test
Once the formula is developed, it needs to go through:
- Stability Testing: To ensure your beverage maintains taste, texture, and safety over time.
- Microbial Testing: To meet regulatory requirements.
- Sensory Testing: To gather feedback on taste and appeal from your target audience.

5. Source a Manufacturing Partner
Finding the right co-packer or beverage manufacturer is essential for scaling. Look for partners who:
- Work with functional ingredients
- Can handle your desired production volume
- Offer flexibility with packaging formats (bottles, cans, shots, etc.)
- Have licenses and certifications (FDA, Organic, Non-GMO, Kosher, etc.)
- Have quality control processes (HACCP, Allergens, Pest control, etc.)

Our beverage consulting company has relationships with top co-packers across the U.S. and can help streamline this step.

6. Create a Strong Brand and Marketing Plan
In the functional beverage space, branding is everything. Consumers want transparency, credibility, and a lifestyle connection. Your go-to-market plan should include:
- Nutritional panel and compliant label design
- Clear functional claims
- Engaging packaging design
- Strategic social media and influencer marketing- Attractive website with details that match your brand

Partner with Experts in Functional Beverage Development

At The pH Scale, we specialize in turning bold functional beverage ideas into scalable, shelf-ready products. From sourcing functional ingredients to building go-to-market strategies, we help brands create beverages that are not only good for you—but also taste great and sell.

"I had the pleasure of working with Ozzie for roughly 5 years on our operations team. During that time, Ozzie's contributions to quality and product development were a key part of our consistently successful innovation launches. Ozzie's diligence in quality management, his discerning palette, and close management of the innovation process are invaluable to the development and commercialization of new beverages. Beyond a detailed and systematic approach, Ozzie's positive, calm, and amiable personality makes the development process a pleasure. I look forward to seeing what Ozzie brings to the beverage category next."
Chris Spiegel
SVP of Operations
UPTIME Energy, Inc.
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"We enjoy working with The pH Scale for our ongoing research and development needs.  Ozzie and Abel's experience in beverage formulation is essential for our companies’ capabilities.  Their services allow us to compete with larger brands in our space and produce superior products.  Their ability to facilitate manufacturing from concept to completion sets them apart from other formulation services."
Joe O'Dea
Founder
Core Supplement Technology Inc.
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"I've known Ozzie as a food scientist going on a decade now and what he cooks up never disappoints.  From a deep understanding of manufacturing processes and chemistry, we look to Ozzie for all types of food and beverage development.  We highly recommend working with him on your next food or beverage project."
Sam Ristich
Founder
RSTICH, LLC
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”I’ve had the pleasure of working with Ozzie for over 5 years translating his formulations into packaging design. His eye for detail and dedication to innovation completely transformed how we approach our products. Whenever we launched something new, Ozzie's methodical mindset and deep understanding of compliance helped us nail every detail for smooth launches. He's the reason that our products are stellar and our packaging stands out on shelves to this day.”
Phillip Kang
Senior Packaging Designer
UPTIME Energy, Inc.
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"As Chief Science Officer for Califia Farms, I worked very closely with Ozzie and found him to be extremely capable, creative and holistic in his approach to beverage development. This is someone you want on your team!"
Joana Montenegro
Chief Science Officer
Califia Farms, LLC
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