How Terpenes Enhance Functional Beverages

Learn how terpenes can enhance functional beverages and help them stand out from the growing competition.

The market for functional beverages has seen exponential growth over the past few years. In 2023, the market was valued at over $160, and Future Market Insights predicts it will “surpass a valuation of US$ 277,744 million by 2033.”¹ Clearly, consumer demand for these beverages is considerable.

This is due, in part, to increased consumer interest in healthier lifestyles. Shoppers are looking for beverages that provide more than just hydration. That’s why many of these stylish beverages claim to promote mood-related effects like relaxation and wellness effects like better digestion. 

If it were just a matter of flavor, the obvious solution would simply be to formulate the best-tasting beverage. Unfortunately, some of the functional ingredients in these beverages can taste… not great. Plus, when it comes to products intended to promote specific effects, simply tasting great isn’t enough. 

So, what exactly are functional beverages, and, more importantly, how can these products stand out from the growing competition? Read on and learn how terpenes can enhance the flavor, aroma, and MORE in functional beverages.

Skyfarm is built with terpenes, so you can brew with recognizable fruit flavors without adding sugar, calories, or mouthfeel. There are no “off flavors,” potpourri, or floral junk. Just high-amplitude fruit flavor top notes that are perfect for a variety of functional beverages.

What Are Functional Beverages?

In the simplest sense, functional beverages are non-alcoholic drinks (with the exception of some kombuchas that may contain trace amounts of alcohol) that promote benefits outside of hydration. Some say they boost immunity, promote clear skin, enhance cognition, etc. 

Technically, energy drinks that claim to increase stamina and energy qualify as functional beverages. Other types of functional beverages include:

• Functional waters
• Sports drinks
• Functional teas
• Prebiotic/Probiotic Drinks
• Functional sodas
• CBD Drinks
• THC Drinks

While their effects vary wildly depending on the ingredients, consumers reach for these products because they desire the effects these beverages promise. Much of this demand is driven by Millennials and Gen Z, who place great value on self-care and well-being. 

This has also contributed to the popularity of clean-label products, which Nielson IG says have seen an 8% increase in the last year. “As a result, the functional beverage market is experiencing a surge in popularity, with consumers actively seeking drinks that align with their health goals and fit seamlessly into their busy lifestyles. This growing demand encourages brands to innovate and expand their offerings, further fueling the category’s rapid growth.”²

However, if “healthy” beverages are what consumers want, other features like being low-calorie and/or sugar-free are desirable as well. Functional waters or sparkling waters, for example, hit all of the significant selling points that these consumers value today. They generally have low or zero calories, low or zero sugars, they provide hydration, and they provide additional benefits.

While it’s certainly feasible to formulate a beverage that meets all of these criteria, making it taste good is another matter entirely.

Functional Beverages Still Have to Taste Good

It’s not rocket science. Humans like stuff to taste good. We’ll hesitate before taking medicine that we genuinely need and that our doctors have prescribed if we know it tastes unpleasant. Regarding functional beverages, delivering on functional claims is obviously the goal. However, if it doesn’t taste good, consumers are not likely to purchase it again, regardless of its efficacy. 

This becomes particularly tricky, considering many ingredients used to infuse beverages with additional vitamins and minerals don’t taste great. Cargill technical services specialist Benjamin Addington says, “Many of the trendy functional ingredients that are being added to today’s beverages bring their own flavors to the party. Things like vitamins, minerals and botanicals may label cleanly, but they may not taste very clean.”³

Simply masking undesirable flavors with sugars (natural or artificial) can make products less appealing to consumers who prefer reduced calories, sugars, etc. Infusing beverages with fruit flavors can be a solution. Still, both whole fruit and fruit purees will add calories, sugars, and haze, and they quickly become labor-intensive and costly. 

Fortunately, terpene brewing solutions like the Skyfarm Series provide all the desired fruit flavors and aromas without the drawbacks of whole fruit, purees, or traditional fruit extracts. They’ve been built from the ground up using isolated terpenes that have been purified and rebuilt into the brightest flavor expression possible. Additionally, each blend is:

• TTB-approved and shelf-stable
• Has strong, recognizable fruit flavors and aromas
• More potent than other fruit flavors and/or extracts
• No added sugars
• No added calories
• No additional haze or texture
• 100% utilization rate and ZERO yield loss
• Water-based emulsion
• No workflow modifications
• No risk of refermentation
• Use “Natural Flavors” on your ingredient list

So, when functional ingredients create less-than-desirable flavors in your beverages, there’s a terpene brewing solution for that.

Our AI Terp Effect formulas are crafted using machine learning in partnership with Dr. Avery Gilbert and The Effects Lab by budboard. These flavorless and odorless blends are optimized to deliver specific effects based on over one million data points. Use water-soluble AI Terp Effects for formulations that more effectively deliver the experiences your customers want.

How Do Terpenes Enhance Functional Beverages?

Aside from helping to formulate desirable flavors and aromas, mood-enhancing terpene blends can provide another level of functionality to these beverages.

Functional beverages use some of the most diverse ingredients in the CPG industry. From raw fruits and amino acids to mushrooms and herbs, the ingredients are often a mix of traditional botanicals, along with compounds only available through modern technology. 

Some of these ingredients are more well-studied than others, so every manufacturer must carefully consider what ingredients they use and what sorts of claims they make about them. 

But what if an ingredient was explicitly designed to promote certain mood states? That’s the whole purpose of our AI Terp Effects. 

These mood-enhancing terpene blends are crafted using machine learning and optimized to deliver specific effects based on over one million data points. Each AI Terp Effect blend is optimized for one specific mood effect. It’s a laser-focused approach to functional products that allows you to create predictable, repeatable, and scalable effects.

For functional beverages, this is a game changer. Have a functional tea that’s supposed to help consumers wind down at the end of the day? Infuse it with Peaceful. Want to give your sports drink an edge over the competition? Use Energized for a beverage formulation that more effectively delivers the experience your customers want.

Abstrax | Make the Best-Tasting Functional Beverages with Terpenes

At Abstrax Hops, we provide novel solutions for beverage manufacturers looking to streamline, innovate, and gain a competitive edge. With our knowledge, technology, and extensive resources, we’ve crafted our Skyfarm Series to make it easier than ever to add the most aromatic fruit flavor top notes to beverages. 

Want to use mood-enhancing terpene blends in your formulations for enhanced experiences? Take a more focused approach to functional products with AI Terp Effects blends.

We also recognize that creating successful, consumer-friendly products sometimes means formulating custom flavors that have never been seen before. Want something high-intensity that fuses several flavors? Have flavor issues with your functional ingredients? We’ve got you covered.

Contact us today, and let’s create the best-tasting functional beverages with customized flavors your customers will crave.

1. Functional Beverages market size, share & trends 2033: FMI. Future Market Insights. (2023, October 16). https://www.futuremarketinsights.com/reports/global-functional-beverages-market 

2. Hydrate and heal: The rise of functional beverages. NIQ. (2024, September 6). https://nielseniq.com/global/en/insights/education/2024/rise-of-functional-beverages/

3. Alverson, C. (2024, June 13). Consumer trends continue to prioritize clean label, non-GMO Beverages. Beverage Industry RSS. https://www.bevindustry.com/articles/96687-consumer-trends-continue-to-prioritize-clean-label-non-gmo-beverages