Most of us can still remember a time when drinks served no purpose other than to hydrate and refresh. But these days, the market for functional drinks — touting health benefits like improved digestion, immunity, cognitive boosts, and better mental health — is booming.
Driving the news: Poppi, a U.S.-based low-calorie alternative to soda (or pop, depending on who you ask), is pushing into the Canadian market. The company was founded in 2020, snagged a Shark Tank investment, and has seen triple-digit revenue growth in recent years.
- As for the “function,” ingredients include inulin, a prebiotic “that may support gut health by diversifying the gut microbiome,” according to the company’s website.
Why it matters: From new zero-sugar energy drinks like Celsius to calming drinks like Daydream, the demand for health-conscious drinks is growing. According to the IMARC Group, global sales for the functional drink market are expected to hit US$205 billion by 2028.
- If anything, brands like Poppi offer a fun alternative to alcohol or sugary pop. As the company grows, it’s also trying to control rumours of a potential looming acquisition.
Yes, but: The company is also facing a lawsuit over advertising its drinks as “gut healthy,” a claim it has since stopped making. While there’s a lot of hype around the new wave of functional drinks, there’s not much evidence they can deliver on all their promises.—SB