Beauty as an Emerging Area of Functional Beverages

Strategy Briefing

About This Report

Aug 2019

Beverages are increasingly looking for new functional occasions to target at the same time as beauty products move in a more wellness-focused direction. This presents opportunity in the area where the two intersect, creating possibilities for teas, waters, and more that can promote consumers’ health in a way that also enhances their outer appearance and complements their existing beauty routines.

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Beauty as an Emerging Area of Functional Beverages

Key Findings

As beverages move into new functional spaces, one area they will increasingly explore is beauty. This occurs not only because of wider beverage trends pushing them in new functional directions but also because the beauty industry is increasingly interested in the idea of beauty as a reflection of inner health. This presents an opening for naturally healthy beverages that can also add in some sort of beauty positioning.

The best strategy for beverages comes in combining hydration benefits with beauty-specific functionalities such as skin health as well as potentially adjacent functionalities such as digestive or sleep support. These combined products can address multiple aspects of beauty at once and provide a unique opportunity for beverages that topical products will struggle to reach.

Functional waters and herbal teas are taking the lead in the beauty beverages space because of their ability to blend hydration with additional functional benefits, but they are not the only formats with potential. Other beverage categories can potentially target these occasions as well, and some such as coffee have already done so. This can complement existing beauty products but it can also trade off, especially against products currently taken in ingestible supplement form.

Beauty as Beverage functionality

Key findings
Functional beverages are expanding their focus areas
Beverages can be the next phase of ingestible beauty
How to build a beauty-positioned beverage
Hydration should be at the core of beauty beverage strategies
Skin care is the most promising area for beverages to target
Additional functionalities can be added on top of hydration
Related functional benefits can also boost the appeal
Functional waters will likely dominate the beauty beverage space
Traditional slimming teas give way to “detoxing”
Herbal beauty teas take advantage of wider growth in herbal segment
Merging two morning routines with beauty coffee
Supplements blur the lines even further
Beverage products cross over into traditional beauty products
Trade-offs will be most direct with the ingestible supplement space
Conclusions: beauty potential by category