Health and wellness continue to be a powerful force across the global food and beverage industry. Forecasts show this segment growing at a robust 9.4% CAGR from 2024 to 2030, driven by evolving consumer preferences for products that deliver both nourishment and functional benefits. As more consumers scrutinize their food choices for nutritional value, performance support, and mental wellbeing, foodservice operators and suppliers are expected to keep pace.

For those in the B2B space, the challenge lies in meeting the needs of two distinct audiences—your direct customers (restaurants, CPG brands, manufacturers) and their end consumers. Balancing health-forward innovation with marketability and taste is key.

So, where should you focus? Let’s explore the functional health trends currently shaping this space—and how your business can turn them into tangible opportunities.

1. Functional Benefits in Focus: Mood & Immunity

Within the broader wellness market, adaptogens and functional foods are carving out significant shelf space. These categories go beyond nutrition, offering targeted benefits such as stress support, immune health, and energy enhancement.

Adaptogens: Stress Support in Every Sip

Plant-based adaptogens like ashwagandha, rhodiola, turmeric, and reishi are rising stars. Found in herbs, roots, and mushrooms, they’re increasingly featured in teas, elixirs, and coffee alternatives.

One standout brand, MUD\WTR, offers adaptogen-powered drink mixes positioned as a mindful coffee alternative. By blending chai with turmeric, ashwagandha, and functional mushrooms, the brand taps into consumer desires for calm energy and wellness rituals. Since launching in 2018, MUD\WTR has expanded its product range and grown to over 50 employees globally, with annual revenues reaching $3.8 million by the end of 2024.

Adaptogens are a compelling ingredient platform for functional beverage developers—especially those targeting morning routines, stress management, or evening wind-down rituals.

2. Functional Foods: Performance, Not Just Nutrition

Today’s functional foods are evolving from niche health aids into mainstream daily essentials. While earlier products targeted hydration, sleep, or athletic recovery, current innovations center on daily energy, mental clarity, and immune support—all with a major emphasis on flavor and convenience.

Major players have adapted to the trend:

• Nestlé has introduced joint-support beverages geared toward healthy aging.

• PepsiCo's G2 line caters to low-calorie hydration needs.

• Kellogg, in partnership with Kirin Holdings, launched All-Bran Immune Care, enhancing fiber with immune-boosting benefits.

• General Mills, partnering with Ghost, is offering high-protein cereals aimed at younger, health-conscious consumers.

These examples reflect how even legacy brands are embracing the functional food space—and illustrate a path for smaller brands and B2B suppliers to follow with specialized, benefit-driven products.

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3. Emerging Formats: Beyond Snacks and Beverages

While functional beverages and better-for-you snacks dominate most wellness conversations, there's whitespace in the entrées category. As functional ingredients become more familiar, there’s a growing opportunity to reimagine main meals with added health benefits.

The global functional beverage market is expected to hit $339.6 billion by 2030, while healthy snacks and grab-and-go products are forecast to grow to over $95.6 billion in the same period. Yet few players have fully explored how functional benefits can be integrated into frozen entrées, ready-to-eat meals, or center-of-plate offerings in foodservice.

For B2B operators, this could be a differentiating edge. Partnering with culinary developers to explore ways to integrate adaptogens, probiotics, or immune-supporting ingredients into entrées could unlock new channels of value and innovation.

The health and wellness movement is far from a fleeting trend—it’s a long-term shift in consumer mindset that rewards innovation, transparency, and versatility. For B2B companies, the key to success lies in:

• Understanding evolving consumer health priorities

• Translating functional trends into scalable, flavorful solutions

• Exploring untapped categories like functional entrées and hybrid formats

By staying agile and aligning your offerings with these wellness-driven shifts, you can remain competitive—and relevant—as the health-forward food landscape continues to grow.

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