- The value of the global functional coffee market is expected to reach US$4.45bn by 2029.
- Covid-19 accelerated the search for immune-boosting food and beverages, and the trend shows no signs of slowing down.
- Nutritious add-ins are “the new sugar and cream” for coffee, as consumers now seek to stack energy and health benefits and more value for their money.
- Ingredients like adaptogenic mushrooms, L-theanine, MCT oil, minerals, and B vitamins are proving the most popular.
- Roasters need to understand which functional suites consumers want in their coffee, rather than attempting to use every trending ingredient.
When the US Food and Drug Administration approved coffee as a “healthy” beverage (fewer than five calories per 12oz serving) in December 2024, the debate was settled once and for all. The coffee industry then embarked on a full-blown wellness rebrand.
Coffee is now a key segment in the US$4.5 trillion global wellness economy, which is growing twice as fast as the global economy. According to Ogilvy, 73% of global consumers considered wellness an essential element of a brand’s strategy in 2020.
Since then, sales of products with “clean” labels have outperformed other products by 8% in the last year, and coffee is no exception.
According to Euromonitor, the global health and wellness coffee market is expected to grow by 6.8% annually over the next five years, driven by rising demand for organic and functional products.
Functional coffee is dominant among Gen Z consumers, who demand coffee that serves a dual purpose with added health benefits.
Rather than falling out of fashion, coffee is sharing the stage with functional ingredients – and there are key ones to look out for.
I spoke to Rafał Wyrzykiewicz at Hardtank, Hadrien Pluymers at Future Club Coffee, and Timur El Ait at NOOZ to find out more.
You may also likeour article on why roasters need to stand out in the RTD coffee market.
Why functional coffee is so popular in 2025
The use of functional beverage ingredients is a modern resurgence of long-revered traditional medicines from cultures around the world. Some examples include Echinacea in Native American and indigenous communities, and ginseng in traditional Chinese medicine.
So what exactly is “functional coffee”? By definition, black filter coffee is already a “functional” beverage because it provides a number of scientifically-backed health benefits. These include a lower risk of diabetes, heart disease, and Parkinson’s disease, to name a few.
But today’s modern definition is any form of coffee with added ingredients derived from plants, animals, and fungi that target specific health goals. These typically include improved digestion, energy, mental clarity, immune function, and stress adaptation.
Adaptogens, a broad array of plants and fungi (like schisandra, ashwagandha and reishi mushrooms), have become popular for their ability to non-specifically combat the physiological effects of stress caused by fatigue and the metabolism of caffeine.
Functional ingredients have been used for generations outside of the mainstream, but the pandemic spurred more people to take a greater interest in their health.
“Covid-19 sparked a heightened public awareness of the immune system and the importance of maintaining it through supplements and natural remedies,” says Timur, the founder and managing director of NOOZ, a functional coffee brand in the United Arab Emirates.
Essentially, functional coffee is evolving to meet the needs of more discerning consumers.
“Today, people require significantly more mental energy than previous generations. The pace of life, constant information flow, and cognitive demands of modern work are higher than ever,” Timur adds. “This creates a growing need for clean, sustained energy. We know the problem with traditional coffee: crashes, jitters, and heart palpitations due to caffeine overload.”
Social media has created viral health and wellness trends that turned traditional coffee on its head. One of the first in Western markets was Bulletproof coffee in the late 2010s; a favourite among fitness enthusiasts and those on low-carbohydrate, high-fat and keto diets.
The expanding list of functional ingredients used in coffee has become so popular that one-third of US coffee drinkers want beverages that deliver targeted health benefits. Moreover, most consumers surveyed would swap their regular coffee for them.
“Consumers today are looking for beverages that not only give them energy but also provide added benefits like vitamins, minerals, or other functional ingredients,” says Rafał, the production manager at Hardtank, a commercial cold brew equipment manufacturer and private label RTD coffee supplier, including products with functional ingredients.
“We’ve seen how popular energy drinks and functional waters have become. Functional RTD coffee sits right in the middle – it gives you caffeine, can be low in calories, and at the same time delivers extra nutrients,” he adds.
Add-ons & supplements: The ingredients to look out for in RTD functional coffee
RTD coffee is the vessel of choice for functional ingredients because of its convenient, visually appealing, and approachable format.
“Cold brew gained popularity not as a passing trend, but as a lasting evolution in coffee culture,” Timur says. “Its bold, rich flavour and natural benefits stand on their own.”
Perhaps most importantly, RTD beverages meet consumers where they’re at in their busy lifestyles.
“Workloads have increased, self-care has become a priority, and people are looking for beverages that help them move forward, not slow them down,” Hadrien says, the co-founder of Future Club in Belgium.
RTD cans that act as canvases for expressive visual branding appeal to younger consumers in particular. For example, Future Club collaborates with artists and Hardtank to design their canned beverages to connect with customers.
Consumers are looking for beverages packed with ingredients like ginseng, spirulina, maca, ashwagandha, collagen, prebiotics, probiotics, electrolytes, adaptogenic mushrooms, herbs, teas, cascara, and superfruits.
“L-theanine, MCT oil, minerals, and B vitamins are especially popular because they combine wellness with coffee and are easy for consumers to understand,” Rafał says.
L-theanine is a natural extract derived from green tea leaves that has been used for centuries. “It helps slow the absorption of caffeine in the body, resulting in a smoother, calmer, and longer-lasting energy effect without the spike-and-crash cycle,” Timur explains.
Another popular ingredient, MCT (medium-chain triglyceride) oil, is a healthy coconut-derived fat that “quickly converts to ketones, fuelling the brain and body with clean energy, improving mental clarity and physical endurance,” Timur says. “This is all without the side effects of sugar or stimulants.
“You can seamlessly blend these ingredients into cold brew coffee, creating a beverage that is not only delicious and refreshing but also functional and performance-enhancing.”
Why roasters can’t ignore RTD functional coffee
Given its rapid growth and diversification, roasters who haven’t already capitalised on the thriving RTD market are ultimately missing out.
However, the complexities of production mean working with a trusted manufacturer and supplier is essential for developing, manufacturing, and selling RTD functional beverages.
A team behind successful launches has a finger on the pulse of what flavours and benefits consumers want – especially Gen Z, who have the highest spending power in the industry.
Roasters need to understand which functional suites consumers want in their coffee, rather than cramming in every trending ingredient. Young consumers in particular are persuaded by RTD coffee with trendy flavours and aesthetics that serve as a form of personal expression. Furthermore, functional ingredients can’t compromise taste or texture.
Brands can also stay on top of emerging ingredients not yet in the mainstream RTD market. For example, adding mushrooms to lattes and ground coffee has been popular for some years now, and experts say the next mushroom coffee iteration will be canned.
“I believe there’s growing interest in adaptogens, especially mushrooms like lion’s mane, reishi, and others,” Rafał explains. “They are becoming more mainstream and will likely shape the future of functional beverages.”
Private label suppliers like Hardtank provide a full service – from developing samples and recipes to final production – with a low minimum order quantity (MOQ) so that brands can test the market without large upfront risk. The company’s patented technology allows it to brew not only coffee but also tea or cascara hygienically and consistently in a BRC-certified facility.
“Shelf life, food safety, and regulatory compliance are also crucial,” Rafał says. “This is where a partner like Hardtank makes a difference; we help brands at every stage, from R&D and sensory testing to scaling up production, ensuring the final product not only meets expectations but is also compliant, safe, and ready for the market.”
Hardtank recently hosted a webinar, Matcha, Tea, Coffee, Cocktails & More – Offering Cold Brew In Your Business, which explored the latest trends in the cold beverage industry. A panel of speakers discussed a number of topics, including major recent changes in the cold beverage industry and the market’s current trajectory, as well as emerging product formats and functional ingredients.
“We want to keep things as simple and transparent as possible,” Hadrien says. “Our goal is to offer a clean, nitro cold brew experience – no additives, no noise, nothing that distorts the natural perception and flavour of coffee.
“Working with Hardtank allows us to focus on building our brand while knowing that production is in expert hands,” he adds. “It also gives us the ability to scale when the time is right, and we truly value having a team that listens and understands our vision.”
One of the most exciting parts of the creation process is developing truly original products from the ground up.
“We started with our proprietary formula, carefully balancing functional ingredients, which became the foundation for selecting the perfect coffee to complement it,” Timur says. “We’re an RTD coffee brand at heart, which means our manufacturing partners must be true coffee experts.
“Producing premium cold brew coffee requires far more than industrial filling; it demands the right sourcing partners, specialty roasting expertise, and most importantly, innovation in brewing,” he adds.
“What gives us even more confidence in our partnership with Hardtank is their patented cold brew technology, a proprietary invention that reflects a commitment to advancing the brewing process while maintaining the integrity and quality of specialty coffee.”
From adaptogenic mushrooms to L-theanine, functional ingredients are proliferating in the RTD coffee market. These ingredients will form part of coffee’s future, but not all are made equal. To find success, roasters need to choose wisely and ensure they stay on brand while meeting the ever-evolving needs of consumers.
“The key is really understanding your target audience – who they are, what benefits they’re looking for, and how they consume functional drinks,” Rafał concludes. “Once that’s clear, everything else follows: choosing the right ingredients, creating a balanced formulation, and making sure the product is both stable and tasty.”
Enjoyed this? Then readour article on how the RTD coffee market is changing.
Perfect Daily Grind
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