October 24, 2025 – In Japan and South Korea, there is a strong foundation for functional beverages. In these cultures, herbal and botanical ingredients have long been hailed for their health benefits. Additionally, since traditional medicine has been widely used in these countries to address health and continues to grow, functional brands have an advantage in these markets, as consumers are more open to products with benefits as solutions to health-consciousness, self-care, and mental health concerns. Innova’s report “Functional Beverages in Japan & South Korea” delves into the key trends fueling the functional beverage market in these countries and what’s next.
Consumers Seek Proactive Approaches to Health
Innova’s consumer trends research indicates that Asian consumers are increasingly proactive about their health. 63% of consumers actively manage their health to prevent future concerns, which is higher than the global average. Asian consumers also demonstrate growing interest in self-care for both physical and mental health. Choosing functional products now ranks alongside limiting or reducing sugar and other ingredients that are considered unhealthy. As more consumers are taking ownership of their health journeys and look for methods to support their goals, there is the opportunity for brands to create functional beverage products that mirror consumers’ preventative and lifestyle-based approaches to well-being.
Merge Tradition with Function
The prevalence of traditional medicine practices in Asian countries influences consumers for seeing the value of functional beverages for health support. In fact, 68% of Asian consumers believe that functional food and beverages support mental health. Moreover, compared to Europe and North America, twice as many Asian consumers seek functional foods and beverages for concentration, focus, clarity, and clear thinking. Thus, brands have the opportunity to leverage wellness traditions and the language of these traditions to help drive consumer purchasing behavior.
Gen Z and Millennials Prioritize Mental Health Benefits
Currently, Millennials in Japan and Korea are battling the strain of long working hours, limited opportunities for advancement, and balancing family life, with 46% citing stress as a main issue related to their mental well-being. Gen Z is also faced with mental health worries, as nearly the same percentage have reported concerns about stress. Nevertheless, the gap between worry and action remains widest for these two groups, among all generations, so there is an opportunity for brands to close the gap by offering targeted functional beverages as mental health support.
Although energy levels and fatigue are important to all generations, stress, anxiety and worry, feelings of depression, and sleep are among the top mental health benefits appealing most to younger consumers. Therefore, tailoring benefits and language to each generation’s stressors can help boost the perceived relevance of functional beverages and help drive personalized messaging.
Does Function Alone Fuel Purchasing?
Compared to their Japanese counterparts, South Korean consumers purchase products with function in mind, except for non-dairy drinks where Japan leads. This is especially relevant in performance-driven categories, such as sports drinks, as 1 in 3 South Korean consumers chooses sports nutrition drinks based on function. Its influence also remains prominent across energy drinks, milk, and yogurts, emphasizing opportunity for brands to target this consumer preference. In Japan, brands can increase the value of functional beverages by expanding beyond benefits alone. The inclusion of Japanese culture and traditional ingredients can help create emotional connections, while grounding wellness drinks in science builds consumer confidence for products.
Boost and Promote Dairy Product Claims
In Japan and South Korea, there is also a longstanding history of dairy as the go-to category for functional beverages. Yogurt drinks, popularized by Yakult, deliver gut health benefits and immune support that consumers trust. However, the launches of dairy drinks have slowed with the emergence of other functional beverage options like soft drinks and sports drinks, whose launches have grown.
Although dairy’s protein, calcium, and vitamin and mineral content give these products an edge in the category, most dairy drink launches do not include these claims. Fermented and yogurt beverages also support the gut, yet only half of drinking yogurts promote functional health benefits on their labels. The growth of functional beverages overall highlights new urgency to promote protein and gut health benefits, and brands should also consider introducing new health benefits to remain competitive in the category.
From Sugar to Function: The GLP-1 Effect
Globally, functional beverages are evolving to addressing health-forward consumers, and in the Japanese and South Korean markets, functionality is taking the lead. Functional beverages are swapping sugar for healthier ingredients, with protein and fiber claims leading functional beverage launches. GLP-1 medications are also accelerating the shift from sugar to functional beverages. 96% of Asian consumers take action to address their weight concerns, and of these, 8% are using GLP-1s. Thus, brands can capitalize on this trend by offering high-protein, nutrient-dense options that cater to consumers’ changing lifestyles and diets. Emerging functions, from bone health to immunity, also indicate a shift towards less traditional and more active health benefits.
Energy Drink Growth
In Asia, energy and sports drinks are mainstream, and Asian consumers prefer energy drinks more than other global consumers for physical activities. However Japanese and South Korean consumers have lower adoption rates than other markets. This lower penetration emphasizes untapped potential, and energy brands can strengthen their positioning by promoting health benefits and layering additional functional ingredients to boost the benefits of products.
Innova’s consumer trends research indicates that between the two countries, Japanese consumers are more engaged with energy drinks than South Koreans. Japan exceeds the global average for per capita volume consumption of energy drinks, but over the last 12 months, consumption has remained consistent. South Korea showed stronger momentum but still ranks low globally. This indicates that brands may find more opportunities in recruiting new buyers for energy drinks in the region than encouraging existing ones.
Vitamins and Minerals Dominate the Category
Vitamins and minerals lead as the top ingredients in functional beverages with health claims. Vitamin C, B6, E, and B3 rank in the top 5 ingredient launches of functional beverages with energy and alertness claims. Milk protein and fiber are also long-standing components. Nevertheless, outside the top 20 ingredients, there has been notable growth including proteins like soy protein isolate and probiotics, such as Streptococcus thermophilus and Lactobacillus rhamnosus GG. Nootropic ingredients remain a small segment of the functional beverage category, but ingredients with cognitive benefits are emerging. As a result, brands can tap into these to differentiate their product offerings and stand out by expanding their ingredient sets.
What’s Next for Functional Beverage Innovation in Japan and South Korea?
Looking forward, brands can expect growth in products with targeted functionality, such as drinks for weight management that align with the needs of GLP-1 users. Further innovations will include maximizing functional value by stacking health benefits. This will also help brands differentiate from one another. Finally, there will also be a rise in products with benefits for mental well-being, such as gut-health, mental clarity, and mood adjustment.
This article is based on Innova’s Functional Beverages in Japan & South Korea report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more.