AI, functional energy drinks influencing beverage innovation

CHICAGO — Functional benefits in energy drinks, coffee shops from China and artificial intelligence (AI) will impact the beverage industry in 2026, according to speakers in a Jan. 27 Circana webinar.

In 2025, prebiotic soft drinks like Poppi and Olipop burst into beverage category prominence. Prebiotic and/or probiotic soft drink sales in US quick-service restaurants increased 370% in the 12 months ended in November 2025 when compared to the same period two years ago, according to Circana, a Chicago-based market research firm.

Among functional benefits for the overall beverage category, those promoting mood support increased 80% in sales in 2025, according to a SPINS survey. Other increases were immune health at 43%, digestive health at 40%, energy support at 12% and performance at 5%.

“We have all seen health and wellness reshape the beverage landscape,” said Cara Loeys, vice president and industry advisor for CPG and food and beverage for Circana. “Today consumers seeking specific functional benefits are disregarding traditional beverage categories. Mood support, immune health and digestive health are among the top benefits across total beverages.”

Energy drink brands also are promoting functional benefits.

Alani Nu features drinks such as cherry bomb energy with B vitamins, 200 mg of caffeine and no sugar and cotton candy energy with 200 mg of caffeine and zero sugar. Bloom energy drinks feature caffeine, prebiotics and lychee with zero sugar to increase energy, boost metabolism and promote mental focus. Dunkin’ Refreshers contain B vitamins and energy from green tea.

“Brands in the energy drink category are challenging the traditional approach to drinking and social setting and have consumers reevaluating what they reach for in these occasions,” Loeys said.

US retail sales of energy drinks increased 15% in the 52-week period ended Nov. 29, 2025, when compared to the previous 52-week period, according to Circana. Unit sales rose 12%.

Coffee from China

US coffee sales at retail perked up as well, increasing 13% in the 52-week period ended Nov. 29, 2025, according to Circana. Consumers are investing in the in-home coffee experience, said David Portalatin, senior vice president, food industry advisor at Circana. Sales are increasing for espresso machines, frothers and grinders.

In foodservice, coffee shops are offering more than just coffee with non-coffee items accounting for 55% of sales at Biggby and 52% at Caribou Coffee, which compares to Dutch Bros at 48% and Starbuck at 26%, according to Circana.

Luckin Coffee, a chain based in China, has entered the United States.

| Photo: ©YIU CHEUNG – STOCK.ADOBE.COM

Chinese coffee chains such as Cotti Coffee and Luckin Coffee are expanding in New York City and Los Angeles.

“These chains globally are very well established,” Portalatin said, adding “While these concepts are not yet a household name in the US, I would not be surprised to see their influence increase.”

AI and the consumer experience

Globally, AI increasingly will shape beverage innovation, said Sally Lyons Wyatt, global executive vice president and chief advisor for consumer goods and foodservice insights for Circana.

“It will enable personalized products, flavors, packaging and usage experiences,” she said.

The technology is expanding from traditional AI to generative AI. Traditional AI analyzes data to make predictions, classifications or decisions based on predefined roles or models, Lyons Wyatt said. One example is Target using AI to automate inventory tracking, which reduces human error and ensures shelves are stocked.

Generative AI creates new content, including text, images, audio and code, based on patterns learned from data, Lyons Wyatt said. Walmart’s Sparky chatbot launched in June of 2025 to synthesize product reviews and provide personalized recommendations. It was integrated into Walmart’s digital shopping experience.

“In fact, AI now powers every stage of the retail journey: search, discovery, recommendations, decision-making and the actual purchasing,” Lyons Wyatt said. “It’s fundamentally changing how consumers encounter products.”