FMI Report Finds Functional Beverages Reshaping Grocery as Energy Leads Category Growth at 15 Percent

The functional beverage movement received a comprehensive data check this week. According to Food Business News on August 13, a new report from FMI, the food industry association, finds that consumers increasingly view beverages as solutions for a range of needs, including energy, hydration, protein, and broader well-being goals, rather than simply as refreshment. The report, which compiled a May 2026 survey of 2,003 United States grocery shoppers with data from market researchers Circana and Nichefire, documents a category in structural transition: nonalcoholic beverages grew 5 percent in dollar sales versus 2024 and claimed several of the top 20 retail growth categories, with the momentum led by energy drinks, up 15 percent, followed by carbonated beverages, coffee, weight control beverages, bottled water, and milk.

Function Has Become the Category’s Primary Purchase Driver

The report’s central finding is a shift in what shoppers are buying beverages to do. According to FMI, growth is not limited to emerging products, as mainstream categories, including carbonated soft drinks, milk, coffee, and tea are gaining renewed momentum by aligning with trends around low or no added sugar options, functionality, personalization, and enjoyment. FMI president and chief executive officer Leslie G. Sarasin said the beverage category represents a significant opportunity for the food industry to invest in innovative products that cater to grocery shoppers’ expanding preferences, noting that little prior research has examined how consumers actually shop for beverages and what their daily repertoire includes.

Energy’s 15 Percent Growth Leads Every Beverage Segment

The energy segment’s performance stands out even within a strong category. According to the FMI data reported by Food Business News, energy drinks posted the fastest growth of any nonalcoholic beverage segment at 15 percent, outpacing carbonated drinks, coffee, and bottled water. That expansion aligns with figures disclosed in this month’s beverage industry earnings, where major strategics described energy as structurally underpenetrated among female consumers and outside convenience channels. The growth also explains the season’s product news: quick-service chains adding energy options, powdered energy sticks entering mass retail, and caffeine-free botanical challengers attracting ingredient-industry investment are all responses to the same demand curve the FMI survey quantifies.

Better-for-You Attributes Are Steering Product Selection

The report details what shoppers scan for once function draws them in. According to FMI, consumers are emphasizing better-for-you attributes in their purchasing choices, with reduced sugar leading the list, a pattern visible in the recent wave of launches documented by Food Business News: PepsiCo’s Pure Leaf Mental Focus, a carbonated functional tea delivering 69 mg of caffeine from black tea alongside L-theanine for consumers seeking focus support, and Coca-Cola’s BodyArmor Fit, a sparkling beverage combining 290 mg of electrolytes with 60 mg of caffeine, choline, and green tea extract. Both flagship launches sit in the moderate caffeine band, pair the stimulant with complementary functional ingredients, and state their doses plainly on the label.

Personalization Splits the Day Into Distinct Caffeine Occasions

The behavioral shift underneath the numbers is occasion-based consumption. According to the FMI report, personalization ranks among the trends re-energizing mainstream categories, and beverage strategists interpret that as consumers assembling daily repertoires: a stronger morning format, a moderate midday option, and functional or caffeine-free choices later. Category analysts note this multiplies the number of products a single shopper buys while fragmenting share among formats, favoring portfolios that span dose levels and formats over single-product brands. It also rewards clear labeling across the board, since a repertoire only works when the consumer can add up its caffeine content, a calculation the industry’s precision trend is steadily making easier.

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With function now driving beverage growth across every mainstream category, the FMI data confirms what this summer’s product news has implied: the beverage aisle is reorganizing around what drinks do, and energy is writing the pace.