Functional Beverages Surge as Millennials and Gen Z Rethink What Refreshment Means

Cision Canada

09-05-2025

Issued on behalf of Safety Shot, Inc.
VANCOUVER, BC, May 9, 2025 /CNW/ -- Among the consumer trends in the food and beverage sector in 2025 the rapid growth in functional and wellbeing products is capturing plenty of market attention. According to Fortune Business Insights, the ready-to-drink (RTD) market is well on its way towards reaching $1.227 trillion by 2032, growing at a 6.2% CAGR. Growing even faster with a 7.3% CAGR is the Functional Beverages markets, according to analysts at Market.us. The trend is drawing attention to innovators and brand developers of products that are appealing to this new generation of consumers, with investor attention being drawn to Safety Shot, Inc. (NASDAQ: SHOT), BellRing Brands, Inc. (NYSE: BRBR), National Beverage Corp. (NASDAQ: FIZZ), PepsiCo, Inc. (NASDAQ: PEP), and Nestlé S.A. (OTCPK: NSRGY).
Much of this shift is being attributed to Millennials and Gen Z, which are reaching for products that improve gut health, brain clarity, and recovery benefits over simple refreshment. Grand View Research offers a projection of the functional beverage sector that sees it hitting US$353.4 billion by the end of the decade.
Safety Shot, Inc. (NASDAQ: SHOT) is emerging as an early standout in the functional beverage space, generating strong retail buzz thanks to a unique formulation, expanding distribution, and a growing patent portfolio. As wellness trends reshape consumer preferences, the company is carving out a distinct position with a product that sits at the intersection of innovation and recovery.
At the core of its offering is Sure Shot® —the first patented beverage clinically shown in human trials to help reduce blood alcohol content (BAC) more rapidly. Beyond its primary claim, the product is also designed to support clearer energy, faster recovery, and relief from next-day sluggishness after drinking—making it a differentiated tool in the growing category of smarter, wellness-aligned recovery aids.
Safety Shot's launch quickly gained traction following its rebrand and direct-to-consumer debut on Amazon in late 2023, where the product sold out multiple times. A renewed push in early 2024 sustained that momentum, reinforcing the company's belief that consumers are actively seeking smarter, wellness-oriented recovery solutions.
Credibility is bolstered by clinical evidence. In a peer-reviewed human study published in the Journal of Nutrition and Dietary Supplements, Sure Shot was shown to significantly reduce both blood and breath alcohol levels versus placebo. Participants also reported clearer mental function and improved overall recovery, adding weight to the product's broader health claims.
Distribution has expanded rapidly, with Sure Shot now available online through Amazon and Walmart.com, and entering brick-and-mortar retail through chains like 7-Eleven, Albertsons, Vons, and GoPuff. The launch of a new stick-pack format enhances portability and shelf appeal, while also improving margins and encouraging trial through impulse buys.
On the intellectual property front, the company recently added another patent protecting its formula and functional claims. This reinforces Safety Shot's defensibility as it scales, helping secure long-term value in a crowded and fast-moving wellness category.
Safety Shot is laying the groundwork for broader category expansion with a definitive agreement to acquire Yerbaé Brands Corp., announced in Q1 2025. Yerbaé, a plant-based energy drink company with approximately $12 million in trailing revenue, brings established retail distribution and athlete endorsements—offering a potential springboard into adjacent wellness and performance markets.
Looking ahead, the company plans to pivot from early influencer-heavy marketing toward more scalable, cost-efficient strategies. These include grassroots retail partnerships and collaborations within the alcohol industry, aimed at driving organic trial and long-term brand loyalty through real-world product engagement.
Safety Shot has also initiated the spinout of its Caring Brands unit, allocating 2 million shares of the new entity to existing SHOT shareholders. The offer, initially time-limited, has been extended into later this year —giving eligible investors additional time to participate in the potential upside of this parallel wellness venture.
With clinical validation, growing retail presence, expanding IP, and a strategic acquisition in progress, the company appears focused on long-term positioning in the functional beverage market. Rather than a short-term novelty, Safety Shot is working to establish itself as a scalable brand aligned with some of today's most durable consumer trends.
BellRing Brands, Inc. (NYSE: BRBR) continues to dominate the convenient nutrition category through sustained momentum in its Premier Protein and Dymatize lines. In Q2 2025, Premier Protein posted a 22% net sales jump on the back of new products, broader distribution, and record household penetration. Dymatize volume also surged internationally, driven by expansion and innovation in the performance nutrition space.
"Our momentum continued this quarter as Premier Protein consumption accelerated," said Darcy H. Davenport, President and CEO of BellRing. "Our powder products benefited from distribution gains and brand building investments. The convenient nutrition category and our leading mainstream brands continue to resonate with consumers, demonstrating a long runway of growth for ready-to-drink shakes and powders."
National Beverage Corp. (NASDAQ: FIZZ) reported $267 million in Q3 sales and a 5% bump in operating profit, overcoming external challenges like severe winter storms and California wildfires. LaCroix remains central to brand momentum, backed by creative in-store displays, grassroots sports sponsorships, and increasing media focus on health-conscious consumption.
"Our marketing strategy and execution continues to reinforce brand awareness in many ways," said a company spokesperson. "Additionally, the media's increasing focus on improving the health of America supports our quest to hydrate and invigorate consumers with delicious and innocent refreshment."
The company also previewed a new packaging concept at Expo West that could reshape the sparkling water category. With $149 million in cash and earnings per share up nearly 10% year-over-year, FIZZ is staying lean, profitable, and innovation-focused.
PepsiCo, Inc. (NASDAQ: PEP) recently expanded its functional beverage footprint with the $1.95 billion acquisition of prebiotic soda brand poppi. The deal brings a rapidly growing, culturally relevant wellness soda into Pepsi's better-for-you portfolio, aligning with consumer shifts toward gut health and clean labels.
"We've been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers," said Ramon Laguarta, Chairman and CEO, PepsiCo. "More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. poppi is a great complement to our portfolio transformation efforts to meet these needs."
With poppi's strong brand identity and loyal following, PepsiCo is signaling deeper commitment to next-generation refreshment. poppi's blend of prebiotics, low sugar, and bold branding has earned it a loyal fan base and major retail shelf space.
Nestlé S.A. (OTCPK: NSRGY) is targeting the rapidly growing GLP-1 user market with a new line of high-protein, satiety-focused drinks under its Boost and Vital Pursuit brands. The products feature proprietary whey protein microgel technology, designed to improve blood sugar control and appetite regulation without compromising taste or texture.
"Whey protein is known for its high nutritional quality but can clump together when heated as a concentrated liquid, an essential step for making shelf-stable ready-to-drink beverages," said Christophe Schmitt, senior expert, Protein Science & Technology at Nestle Research. "This can result in increased thickness of the liquid and off flavors. Our novel technology enables us to develop beverages with high concentrations of whey protein, while ensuring great taste and texture for the consumer. This can lead to breakthrough innovations that support weight management."
Early clinical results and U.S. test launches signal Nestlé's strategic push into functional nutrition tied to metabolic health trends. With over 100 whey-related patents filed in the past decade, Nestlé is staking a clear leadership claim in the next wave of medical-grade functional foods.
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. This article is being distributed by Equity Insider on behalf of Baystreet.ca Media Corp. ("BAY"). Equity Insider is a wholy owned entity of Market IQ Media Group Inc. ("MIQ"). MIQ has not been paid a fee for the distribution of this article, but the owner of MIQ also co-owns BAY. BAY has been paid a fee for Safety Shot Inc. advertising and digital media from Creative Digital Media Group ("CDMG") (fifty five thousand dollars USD for a three month contract subject to the terms and conditions of the agreement from the company direct). There may be 3rd parties who may have shares of Safety Shot Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ/BAY does not own any shares of Safety Shot Inc. but reserve the right to buy and sell, and will buy and sell shares of Safety Shot Inc. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, which is disseminated by MIQ has been approved on behalf of Safety Shot Inc. by CDMG; this is a paid advertisement, we currently own shares of Safety Shot Inc. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.