These 3 Stocks Offer Investors Exposure to the Functional Beverage Boom

Key Points

• Functional beverages are moving from a niche wellness trend into a large global market with strong growth forecasts.
• BellRing Brands offers the most direct exposure to protein drinks, but recent earnings showed higher cost and margin risk.
• Starbucks and Celsius Holdings give investors broader ways to participate in functional beverages through coffee, refreshers and energy drinks.

Gen-Z consumers frequently hear the well-meaning, but perhaps oversimplified advice to quit paying $8 dollars for their morning coffee. But human nature has a way of adapting. It is such that these consumers now have a comeback. They’re not just drinking coffee. They’re having a functional drink to promote wellness.

The functional drink market includes protein coffee, CBD-infused sodas, and, of course, prebiotic drinks. But this market is doing more than creating more beverage choices for consumers. According to Mordor Intelligence, the functional beverage market is already a $160 billion market. But between 2026 and 2031, that market is expected to balloon to over $235 billion at a compound annual growth rate (CAGR) of 7.93% in that time.

Movements like functional beverages frequently start out in private companies. But it hasn’t taken long for large, publicly traded companies to get in on the action. That gives investors a way to boost their portfolio even if the idea of a functional beverage is a strong, black coffee.

An Inverse GLP-1 Trade

Investors have poured money into technology stocks, particularly those focused on artificial intelligence (AI) and space. But it’s been impossible to ignore the outperformance of stocks in the rapidly growing GLP-1 space. This provides a tangible way to address the obesity epidemic in America.

Functional drinks aren’t about addressing obesity. Rather, it’s about strengthening a strength. Many consumers in this space already prioritize fitness. Their daily beverage choice is a way of making their beverages work harder so they can achieve their fitness goals.

For investors, this provides a catalyst for several stocks outside of the biopharma sector, which gives investors exposure to risks outside of the GLP-1 space. At their core, the companies listed here are well-known with strong balance sheets. That means investors get the benefits of investing in functional drinks with less risk.

BellRing Brands Turns Protein Shakes Into Market Share

BellRing Brands NYSE: BRBR is the purest protein beverage play on this list. The company owns Premier Protein and Dymatize, two brands that dominate the ready-to-drink (RTD) protein shake aisle. That positioning matters because protein has become the entry point for consumers who want functional benefits without giving up convenience.

BellRing spun off from Post Holdings, and that independence has let management focus entirely on capacity expansion and shelf-space growth. Premier Protein has consistently taken market share from legacy players, helped by distribution wins at retailers like Costco and Walmart, the parent company of Sam’s Club. That hasn’t shown up in BRBR, which is down nearly 50% in 2026. That shows the stock isn't immune to volatility tied to protein input costs like whey. As the company noted in its Q1 2026 earnings report, that may be a headwind for the remainder of the year.

For investors seeking direct exposure to the functional beverage boom, BellRing offers a business built entirely around the trend rather than adjacent to it. That focus is a strength, but it also means BellRing's fortunes rise and fall with a single category.

Starbucks Leans Into Protein Coffee and Wellness Drinks

Starbucks NASDAQ: SBUX isn't a pure-play functional beverage stock, but its scale gives it an outsized influence over how mainstream consumers discover the category. The company has rolled out protein-fortified cold foam, energy-boosting refreshers, and menu items aimed squarely at fitness-minded customers who might otherwise skip a coffee shop altogether.

That strategy fits into Starbucks' broader turnaround story. Functional add-ons are cheap for Starbucks to test and roll out, but they carry real upside if they drive incremental visits or larger basket sizes. SBUX is up more than 20% in 2026, which at least suggests consumers are being exposed to the new offerings.

The risk for investors is that Starbucks' functional drink push is still a small piece of a much larger, more complicated turnaround. Starbucks offers functional beverage exposure, but it comes bundled with a broader operational bet.

Celsius Holdings Rides the Fitness-First Energy Wave

Celsius Holdings NASDAQ: CELH built its brand entirely around the idea that energy drinks can double as fitness supplements. The company markets its products as thermogenic and free of the sugar and empty calories associated with legacy energy drink brands, a pitch that has resonated strongly with younger, health-conscious consumers.

PepsiCo has made an investment and distribution partnership that gives Celsius a major growth lever. Specifically, it puts the brand into retail shelf space that would have taken years to win independently. That relationship has been central to the bull case, though it also means Celsius's growth trajectory is tied to how aggressively Pepsi continues to push the brand.

Celsius trades with more volatility than BellRing or Starbucks, reflecting both its smaller size and its history of sharp swings tied to retail sell-through data and competitive pressure from rivals like Red Bull's own functional lineup. CELH is down nearly 28% in 2026, but trades close to 90% below the consensus price target of $60.90. For investors comfortable with that volatility, Celsius offers the most direct bet on functional energy drinks specifically, rather than the broader functional beverage category.