Next-gen hydration: Functional beverages tap into holistic health

Hydration has evolved from simply drinking to quench thirst to a holistic health approach. Functional beverages formulated to optimize cognitive health, sports performance, and beauty are emerging as convenient on-the-go health solutions. 

Nutrition Insight speaks with experts from dsm-firmenich and Sirio to dive deeper into what consumers expect from functional beverages, must-knows for formulators, and the most sought-after vitamins and minerals filling different health purposes.

Ingrid Damen, director of Global Business Development Beverages Taste, Texture and Health at dsm-firmenich, says electrolytes and minerals remain the cornerstone of effective hydration. 

“The shift we’re currently seeing in the market is how consumers define hydration. It’s no longer about simply drinking enough water, but consumers are now seeking solutions that deliver hydration more effectively, tailored to specific moments — whether it’s first thing in the morning, during periods of focus, or post-activity. The demand is for rapid, targeted hydration that’s efficient, convenient, and purposeful.”

She says this is driving the next evolution: functional hydration, where fluid replenishment is combined with benefits like energy, focus, relaxation, and gut health. “Hydration is no longer just about fluids, it’s about delivering the right function at the right moment.”

Janine Barlow, head of R&D at Sirio Europe, adds that consumers now link hydration to energy, cognition, physical performance, and skin vitality, rather than just thirst, as 64% of consumers now recognize hydration’s importance to overall well-being.

“With consumers increasingly viewing hydration as something that’s not just a passive physiological need, but a key to unlocking better holistic health, we’re seeing this trend converge with other markets.”

Barlow says the opportunity for brands sits squarely at this intersection — developing products that meet rising hydration demand while delivering additional targeted, science-backed benefits in formats that fit modern lifestyles, beyond the traditional bottle.

Ingredients in focus

Damen says ingredients like sodium, potassium, and magnesium are closely linked to performance, supporting fluid balance, muscle function, and energy metabolism, particularly in active or recovery settings. “Their inclusion is important for any credible sports hydration solution.”

Damen says there is a strong demand for vitamins, especially A, B, C, D, and E.However, she notes not all hydration beverages require added salt, since these minerals aren’t depleted in every situation — such as in the morning or during a commute, when little to no sweat is lost. For this reason, hydration drinks should be tailored to their specific use cases.

Damen adds that another strong demand is vitamins, especially vitamins A, B, C, D, and E. “Water-soluble B and C vitamins can be lost during exercise through sweat, so B and C vitamins in particular are increasingly used in products targeting energy and mental performance, extending hydration’s relevance to work and study occasions.”

Barlow also highlights electrolytes, stressing that with busier lives, consumers also expect added benefits from their hydration. 

“In sports nutrition, magnesium, B vitamins, biotin, and folic acid are in the mix. In beauty‑from‑within, hyaluronic acid, collagen, and vitamin C remain go-to ingredients.

Targeted functional beverages

Barlow details how Sirio’s latest hydration innovations map directly to the demand of consumers living busy lives.

“For beauty, our HydraPearls Vital is a first‑to‑market softgel combining Superba krill oil, collagen, and hyaluronic acid to help nourish the skin barrier and support elasticity. HydraPearls Glow meets demand for radiance with safflower oil, vitamin C, and Ovoderm eggshell membrane collagen, supporting skin elasticity and overall skin health,” details Barlow.

“For performance, HydraBites Energy delivers high‑dose magnesium, core electrolytes, and vitamin B6 in two great‑tasting gummies a day. And to take hydration even further beyond the bottle, our unique, water‑free, instant FizzyBits Energy and FizzyBits Recovery deliver fast‑acting electrolytes plus targeted energy or recovery support — anywhere, no mixing required.” 

There is also rising openness to adaptogen ingredients, such as ginseng, which is beneficial for resilience and mental clarity.Adding to functionality, Damen says consumers are increasingly looking for prebiotic fibers and postbiotics to support a healthy gut microbiome. 

“There is also rising openness to adaptogen ingredients, such as ginseng, which support broader well-being benefits like resilience and mental clarity.”

“Our approach to hydration integrates these elements through tailored nutritional premixes that combine electrolytes, vitamins, and functional ingredients. These solutions are designed to meet specific consumption moments while ensuring stability, taste, and overall product quality, enabling brands to deliver both effective hydration, functional benefits, and added value.”

Diving into specifics

Damen specifies the functionalities that consumers are looking for. She says energy tops the list — cited by 60% of European consumers in a dsm-firmenich study — followed by gut health and digestion (50%), and relaxation or mood support (39%). 

“This highlights a clear shift toward multifunctional beverages that support both physical and mental well-being throughout the day.”

She explains that products that combine fast, effective hydration with benefits such as sustained energy, mental clarity, or relaxation without excess sugar are gaining traction across both sports and everyday lifestyle occasions, including mornings, commuting, working, and socializing.

“As a result, enhanced waters and convenient, on-the-go formats are seeing strong growth, reflecting the move toward lifestyle-oriented hydration. At the same time, there is a clear preference for low- and no-sugar options that still deliver on taste and efficacy, raising expectations for both functionality and overall drinking experience.”

Formulating hydration

When it comes to formulating with hydration, Barlow from Sirio says the science only matters if the format can deliver it.

“In hydration, efficacy and stability are non-negotiable. It’s not enough to include trending ingredients: they need to work together, remain stable, and deliver a meaningful dose in the final format. Increasingly, brands also have to think about format integrity and how it impacts stability, absorption, and shelf life,” she says.

When it comes to formulating with hydration, Barlow from Sirio says the science only matters if the format can deliver it.Just as important is the sensory experience. If a product doesn’t taste good or fit seamlessly into daily routines, consumers won’t stick with it, no matter how strong the science is.

Damen from dsm-firmenich agrees and stresses that taste and enjoyment remain non-negotiable. 

“Many consumers experience ‘water fatigue,’ so products must offer appealing flavor profiles, particularly in low or no-sugar formats. Ultimately, successful hydration solutions are those that combine effective, purpose-driven functionality with a sensory experience that supports regular, everyday consumption,” says Damen.

She adds that formulating hydration products requires a careful balance of functionality, usability, and sensory appeal. 

Electrolyte composition is critical, as minerals such as sodium, potassium, and magnesium must be carefully calibrated to support fluid absorption and physiological function, Damen explains. 

“Formulations also need to be tailored to specific occasions and frequency of use, as products designed for post-exercise recovery, such as isotonic drinks, may not be suitable for everyday use due to higher salt levels.”

It is equally important to consider broader nutrient replenishment, particularly in active contexts where consumers lose electrolytes, sugars, and water-soluble vitamins through sweat, she stresses. Delivering these elements in the right balance is key to effective rehydration.

Additionally, as consumer expectations evolve, incorporating additional complementary functional ingredients such as prebiotics, postbiotics, or adaptogens is becoming increasingly important. 

“However, they require careful attention to ingredient compatibility, stability, and shelf life to ensure consistent product performance. In such situations, premix solutions offer a practical advantage by combining multiple components in a stable, ready-to-use format, simplifying formulation,” Damen concludes.