US survey flags sleep and stress as underserved functional food needs over hydration

Brands may have greater market opportunity in underserved needs such as sleep and stress rather than the highly saturated category of hydration, according to findings from a new survey by AI-native research company Knit. The company suggests that brands relying solely on the popularity of a wellness need may be overlooking areas where consumers remain dissatisfied or open to trying new products. 

The survey involved 509 US-based consumers who had recently purchased supplements or foods and beverages with added health benefits.

The research team flags that the wellness goals consumers consider most important have mostly been met by various products available on the market — meaning that these categories are not necessarily where brands have the greatest opportunity to innovate.

“Functional foods are everywhere, but that does not mean every consumer’s need is being met,” says Dana Bishop, research director at Knit.

“Hydration matters to nearly everyone, but consumers already have products they rely on. Sleep and stress are different. People are actively looking for better solutions, and no product or brand has fully earned their confidence.”

Trialing product concepts

In the survey, Knit researchers tested whether consumers’ unmet needs would translate into demand for actual products by evaluating three hypothetical concepts priced at US$29.99 for a 30-day supply.

The product concepts included Drift Away, a melatonin-free sleep gummy; Spark Focus, a chewable tablet positioned for clarity without jitters or a crash; and Serene Stir, a daily powder mix for stress management.

Brands have less room to innovate in the already well-served, top-priority wellness categories such as hydration.Drift Away was ranked the strongest concept, garnering 80% appeal, 65% purchase intent, and 72% credibility among survey respondents. According to the report, it was the first purchase choice for 44% of participants, compared to 29% for Spark Focus and 27% for Serene Stir.

Reflecting on what makes products less appealing, 286 out of 509 participants responded that various products cost too much for what they get, with 226 indicating they stopped using a product because they didn’t feel a clear effect.

The survey also showed gender disparities among purchasing decisions. Women were more likely than men to prioritize functional foods for dealing with everyday stress, at 42.7% versus 34%.

Ranking top priorities

Hydration topped the list of consumer priorities, with 91% of survey participants calling it important. However, only 14.5% struggled to address that need, which Knit says is an indicator of a market already filled with effective options. The company highlights sleep and stress support as clear market gaps.

Sleep was the most difficult health need to address, according to 33.5% of survey respondents. It was also the top personal health area for improvement among 45% of participants.

Every day stress followed, as 32% of respondents said they struggled to manage it effectively and 38% demanded better solutions. “Jitter-free” energy was also earmarked as an elusive wellness target, with 27.3% finding it difficult to meet and 30% seeking more effective solutions.

“The concept testing confirmed what we saw in the white space analysis,” Bishop stresses. “Sleep is not simply something consumers say they care about.”

“When given a specific option, they showed greater interest in the sleep concept than the stress or focus alternatives. That makes sleep a particularly strong territory for brands able to offer a credible benefit without adding new compromises.”

Consumers prioritize benefits over format

Additionally, the findings indicate that innovation goes beyond formats. New and fun delivery formats such as fizzing chewables and hard jellies took center stage as a standout trend in recent industry tradefairs, such as at Vitafoods Asia 2026 in Bangkok, Thailand.

Jitter-free energy was highlighted as an underserved wellness category.While bars, snacks, ready-to-drink beverages, and ingestibles (capsules, tablets, and pills) can make a product easier or more appealing to use, Knit underscores that consumers’ biggest frustrations are “more fundamental.”

“They want to feel a clear benefit, trust the ingredients and claims, and believe the product is worth its price,” highlights the report.

Knit details that these expectations split into three consumer groups that are identified in the study. Instead of segmenting consumers by age or gender, the company grouped consumers by their relationship to functional foods, which it says is a better prediction of how they will respond to new product launches.

Biohacker Optimizers demand “strong scientific support, personalization, and products that fit established routines.” Meanwhile, Reactive Relievers look for “practical help during a specific moment of need.” Lastly, Skeptical Casuals need “straightforward products that feel credible and low risk.”

“For brands, the research points to a clear priority: solve the proof-of-value problem before introducing another flavor, format, or broad wellness promise,” concludes Knit.