Starbucks (SBUX) Taps $160B Functional Beverage Market

The global functional drinks market, valued at $160 billion, has seen a rising demand, particularly among younger consumers. Starbucks (SBUX) has recently introduced protein coffees in the U.S., Canada, and Europe to capitalize on this trend. According to EY's survey, around 75% of millennials and 80% of Gen Z are consuming functional beverages, with over half willing to pay more for drinks that support health goals. Furthermore, Danone's $1.15 billion acquisition of Huel and Pepsi's $2 billion purchase of Poppi illustrate the broader industry's shift towards functional drink offerings, indicating significant growth potential.