“This is a big change”: Welcome to the era of wellness drinks

The packaging for these products tends to tout a variety of health benefits, including improved sleep, lower stress levels, and increased cognition. In most cases, these claims are followed by a disclaimer stating that such claims have not been verified by the U.S. Food and Drug Administration (FDA).

The rise of health drinks came in direct response to an overall change in public attitudes towards physical and mental health. Alcohol consumption has skyrocketed across America during the pandemic, but more recent data shows younger Americans are starting to rein in their drinking habits. For example, a Gallup report released last August found that 62% of adults under 35 say they drink alcohol, a 10% decrease over the past 20 years. (The same Gallup poll, however, also found that drinking rates among adults 55 and older are on the rise.)

Data shows that Gen Z in particular is drinking less alcohol compared to previous generations. And the rise of the broader wellness drink category coincides with a national movement to legalize cannabis, offering Americans disillusioned with booze an alternative means of relaxation. As of 2024, 24 states have legalized cannabis.

“This isn’t a fad. This is a big change,” says Mark Seiden, co-founder and CEO of CBD-infused beverage brand Cloud Water. “It’s not just meeting demand, it’s also the thirst of entrepreneurs to find the next big gold rush.”

Some of these brands were launched in direct response to the personal journeys of their founders. For example, Sidon was diagnosed with colon cancer early in her life and was successfully treated. Although he is in remission, this experience has given him a mission to rethink everything he puts into his body.

He eventually discovered CBD (a cannabinoid extracted from the cannabis plant) and was “completely blown away” by the growing body of research pointing to the compound’s myriad health benefits. He co-founded his Cloud Water in 2018 with the goal of bringing the benefits of CBD to the masses.

And then there’s Megan Klein, who founded mocktail brand Little Saints in 2021 after not being satisfied with the non-alcoholic options on offer. “When there are fewer variables in your environment, fewer distractions, and you’re less social, that’s when you really start to see the negative effects alcohol has on your own health,” she says.

In the summer of 2021, Klein drove around the Midwest selling Little Saints mocktails from a small trailer attached to the back of his Jeep. She was encouraged by the number of people she met who were looking for an alternative to alcohol, just like her. Although she had been working as a product designer for years by that point, she said, “It was the first time I had created something that people were very actively asking for.” [that] They were solving real problems. ”

Klein’s decision to get sober and start Little Saints was inspired by his experiences with psychedelic plant medicines. Maria Sabina, the Mazatec woman who is credited with introducing magic mushrooms to Westerners, called them “little saints.” In 2014, Klein traveled to the Peruvian Amazon village of Iquitos to drink ayahuasca for the first time. She still makes the pilgrimage every year. “I wanted something inspired by the magic of plants, but not psychedelic per se,” she says of her decision to found Little Girl Saints.

Klein’s psychedelic forays shine through her brand’s marketing. The Little Her Saints website is filled with colorful illustrations of jungle flora, psychoactive amanita mushrooms, jaguar shamans, and more. Despite the explicit imagery used in its marketing, Little Saints products do not contain addictive substances.

Recess founder and CEO Benjamin Witte told Klein a similar story. He says his brand, which has since become one of the most successful alcohol alternative beverage companies on the market, can be traced back to the anxiety he experienced after the 2016 election. “I just hypothesized that his next 30 years were going to be crazy,” he says. Sensing rising stress across the nation, he set out to build a brand dedicated to promoting peace and happiness, an “antidote to modernity.”

In addition to a variety of canned mocktails, Recess also offers seltzers and powdered supplements infused with magnesium and adaptogens. Witte says Recess’s “business has doubled year over year” and the ready-to-drink mocktail space is starting to “explode.”

The “Sober Curiosity” movement occurred in parallel with the non-alcoholic beverage market, a term Witte dislikes. “What we’re seeing is that the bigger trend is not to eliminate alcohol, but to moderate it,” he says. Witte says more people today are simply trying to drink less alcohol, rather than eliminating it from their diets completely. “For some brands, not drinking can make you feel ‘holier than thou’ and I think that’s a mistake,” he says.

At Recess’ recently launched Safeway, Witte says his brand’s products are right next to hard seltzers like White Claw and High Noon. “That’s where we’re going. When we have a party, we just grab a hard seltzer and a Recess. In the future, I think it would be rude not to have an alk alternative at a party.”

From fast food to sloe gin, the food and beverage space is highly attractive to marketers. Join us for The Drum’s Food & Drink Focus as we dig into the industry’s biggest trends.