PUBLISHER: DataM Intelligence | PRODUCT CODE: 1629845
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1629845
US Adaptogenic Beverages Market reached US$ 0.54 billion in 2023 and is expected to reach US$ 0.89 billion by 2031, growing with a CAGR of 6.44% during the forecast period 2024-2031.
US adaptogenic beverages market is growing rapidly as consumers seek natural drinks for stress relief, mental clarity, and overall wellness. With ingredients like ashwagandha and reishi, these beverages ranging from teas to energy drinks are popular among health-conscious consumers. The rising focus on mental health and plant-based products is driving demand. The market also benefits from the broader wellness trend, offering alternatives to traditional caffeinated drinks.
As innovation and sustainability gain importance, both established brands and startups are developing new, targeted formulations, making adaptogenic beverages a key player in the wellness sector. For instance, in August 2022, JOYO launched its sparkling adaptogenic teas at Erewhon in Los Angeles. Infused with ashwagandha, lion's mane, and reishi mushrooms, JOYO offers a sugar-free, vegan option designed to support mental clarity, stress relief, and overall wellness.
Dynamics
Rising Workplace Stress Boosts Demand for Adaptogenic Beverages in US
Workplace stress is a major catalyst driving the market, with 83% of American workers reporting high levels of work-related stress, according to the American Institute of Stress. Notably, 65% of workers view their jobs as a primary stressor, fueling the demand for natural solutions to manage these pressures. Adaptogenic beverages, which help balance the body's stress response through natural ingredients are gaining popularity as convenient, effective tools for stress relief during work hours.
As stress becomes an increasing concern, more employees are turning to these beverages to improve their mental clarity, focus, and overall well-being. The negative impact of stress on health and productivity is staggering, with research linking stress to 120,000 deaths annually in US. In addition to its health toll, workplace stress also undermines employee performance, costing companies billions in lost productivity.
With studies showing that every $1 invested in mental health yields a $4 return in productivity, employers are increasingly incorporating adaptogenic beverages into their wellness programs. This growing corporate interest, combined with rising consumer awareness, is fueling the expansion of the adaptogenic beverages market in US, positioning these drinks as a key component of workplace wellness solutions.
High Cost of Production
Adaptogenic beverages are typically priced higher than conventional drinks due to the expensive sourcing of premium adaptogenic ingredients like ashwagandha, holy basil, along with the complex production processes involved in making functional beverages. This premium pricing can make them less accessible to budget-conscious consumers, especially when compared to lower-priced mass-market alternatives.
Many consumers may opt for more affordable options, limiting the broader appeal and growth potential of adaptogenic drinks in the country. Additionally, scaling production while maintaining quality and consistency presents a major challenge for many small or emerging brands in this space. The high cost of sourcing raw materials, combined with the complexity of producing beverages that meet consumer expectations, makes it difficult for brands to expand efficiently.
US adaptogenic beverages market is segmented based on type, ingredient, form, distribution channel, and end-use.
Deep-rooted Popularity and Daily Consumption Habit of Tea and Coffee
US adaptogenic beverages market is segmented based on type into tea and coffee-based beverages, juices, and shots, carbonated beverages, smoothies and functional waters, energy drinks, and others. Tea and coffee-based beverages dominate US adaptogenic beverages market, capitalizing on their deep-rooted popularity and daily consumption habits. According to a survey conducted in January 2024, 73% of Americans drink coffee daily, with 36% consuming 3 to 5 cups per day.