Starbucks now sells an Iced Vanilla Protein Matcha Latte in the U.S., Canada, and Europe. The drink is part of a broader push by beverage brands to cash in on the functional drinks market, which promises health benefits alongside taste.
The global functional drinks market is worth $160 billion. These products—ranging from protein coffees to CBD sodas—are designed to do more than just quench thirst. “Functional beverages are beverages that are going to provide an outcome,” said Sally Lyons Wyatt, global executive vice president at consumer insights firm Circana.
Convenience plays a role, but so does the desire to “live longer, healthier,” she added. For consumers, the choice is simple: do you want a drink that just sits there, or one that “works harder for you?”
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Millennials and Gen Z are the biggest buyers. About 75% of millennials and 80% of Gen Z consume functional drinks, according to EY’s latest consumer beverage survey. Over half of respondents said they’d pay more for drinks that support their health goals.
Circana’s 2026 report found that 64% of consumers sometimes replace a snack with a drink. For 25-to-34-year-olds, that number jumps to 70%. Starbucks has noticed. Its protein cold foam is selling nearly as well as flat whites, a staple drink for the chain.
“Protein is probably the frontrunner” in functional beverages, said Sam Henderson, Starbucks’ EMEA Group Manager of Beverage Development. The company introduced protein coffees in stores last year, expanding on its ready-to-drink protein coffee line launched in supermarkets in 2024.
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Other brands are making similar moves. Danone recently acquired protein drink maker Huel in a $1.15 billion deal. Coca-Cola and PepsiCo have also entered the space, with Coca-Cola launching its prebiotic soda brand Simply Pop and Pepsi acquiring the prebiotic soda startup Poppi for $2 billion.
Functional drinks don’t come cheap. Starbucks’ protein coffees cost between $5.75 and $6.75. Adding protein-boosted milk or cold foam tacks on another $1 or $2. Henderson called them “absolutely a premium offering.”
U.K.-based wellness startup TRIP sells drinks with adaptogens, CBD, and magnesium for over £2 ($2.60) each. The company positions itself as a daily wellness solution, not a traditional soda. “TRIP is a premium product; it is not merchandised alongside traditional soda,” TRIP co-
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