Tapping into the Functional Beverage Market

Across the foodservice industry, operators are blending wellness into everyday beverages.

Three glasses of fruit smoothies—pink, purple, and green—each garnished with mint and fruit pieces, sit on a dark surface with sliced kiwi, banana, and mint leaves nearby.

Half of consumers are actively seeking functional beverages that deliver benefits beyond basic hydration.[1] Health and wellness are no longer occasional considerations; they are embedded in everyday decision-making.

As this demand grows, so does consumer scrutiny, with increased expectations for products that are credible and transparent. Canterbury supports businesses in meeting these expectations with beverage solutions that align with evolving consumer priorities. Keep reading to learn more.


[1] Datassential Creative Concepts Retail Functional Foods & Beverages 2025

Function-Forward Beverages

A glass mug filled with black coffee sits on a rectangular white stone slab next to two round cookies. A glass of water is blurred in the background on a reflective surface.

Beverages have evolved from simple refreshment to a functional tool for well-being. Nearly three in four consumers now seek at least one functional benefit when ordering beverages in foodservice, while half report unmet health needs they wish food and drinks could help address.[2]

This is placing new pressure on operators to deliver more than taste alone. Consumers expect beverages to provide clear, tangible benefits in convenient formats, positioning drinks as one of the most practical entry points into wellness-led innovation.

Among functional ingredients, collagen peptides have emerged as one of the fastest-growing add-ins across food and beverage. Associated with skin elasticity, joint support, and overall wellness, collagen aligns closely with consumer priorities around beauty, mobility, and healthy aging.[3]

While collagen may appear trend-driven in North America, it has been a mainstream beverage ingredient in Asia for more than a decade. Markets such as Japan and South Korea established consumer trust in collagen well before its Western adoption.

For operators, collagen presents an opportunity to drive revenue. A scoop can be added to virtually any beverage, whether a smoothie, refresher, coffee, or hot chocolate, allowing for premium upcharges with minimal operational complexity.

[2] Datassential, Healthy Eating at Foodservice 2025
[3] Mintel GNPD and Black Swan Data

Trend essentials: Drink Recipes, Dr. Smoothie 100% Crushed, Dr. Smoothie Classic, Fusuro Hot Chocolate Powder, Refreshers

Sustainable Solutions

Two bags of Canterbury Roastery Wild Hills Blend coffee are displayed on a gray countertop—one 340 g and one 1 kg, both white with green and red design elements.

Nearly half of Canadian coffee drinkers seek certified options, such as Fairtrade, Organic, or Rainforest Alliance.[4] These buyers want more than just a beverage, they want their purchases to have purpose and impact. Certifications signal ethical sourcing, environmental responsibility, and alignment with their lifestyle priorities.[5]

Your business can attract these customers by offering certified coffee or tea on your menu. Telling the story that the product supports climate-conscious sourcing, regenerative farming, and community development at origin, satisfies guests who value transparency and meaningful connection, while giving them a product they can enjoy with confidence and pride.

[4] Coffee Association of Canada June 2025 Report
[5] Global State of Health & Wellness 2025

Trend essentials: Fairtrade Organic Tea, Canterbury Roastery, Thai Mountain Coffee, Spirit Bear Coffee, OneCoffee

Close to Home

A man in a warehouse inspects and writes on a clipboard while standing next to large burlap sacks stacked on wooden pallets. The sacks are labeled and organized in rows.

The shift toward better-for-you choices goes beyond certifications. It increasingly starts at the source.

Canadian consumers are driving real change in the food and beverage landscape, with local sourcing emerging as a leading sustainability priority. Nearly half of Canadians say domestic sourcing is their top consideration, driven by a desire to support the local economy and a belief that locally produced goods are healthier and higher quality. Notably, three in four Canadians report they are willing to pay a premium for locally sourced products.[6] 

For operators, this represents more than a pricing opportunity. It signals a broader transformation in how cafés and food service businesses build their supply chains. Those prioritizing local, sustainable partners are better positioned to meet rising expectations while strengthening trust and relevance with their customers.

Canterbury has a wide selection of Canadian matcha, tea products, and coffee roasted in British Columbia, enabling businesses to serve beverages that align with customer values.

[6] Voice of the Consumer 2025 – Canadian insights

Trend essentials: Coffee catalogue, Four O’Clock Tea, Tea-Squared Matcha

Rethinking Milk

A person in a brown apron holds a metal milk frothing pitcher under an espresso machine’s steam wand, preparing to steam milk.

The alternative milk market is poised for strong growth in 2026, fueled by rising demand for plant-based options in everyday beverages like coffee.

This momentum is driven by several converging factors: increased awareness of the environmental impact of dairy farming, growing concern for animal welfare, the rising prevalence of lactose intolerance and dairy allergies, and a broader shift toward more sustainable diets.

Alternative milks have also come a long way in terms of taste and performance. Once viewed as a compromise, many plant-based options now perform as strong substitutes for dairy behind the bar. Today, one in 10 consumers regularly enjoys an alternative milk with their coffee, and expectations continue to rise.[7]

For baristas and operators, performance still matters. Products like Earth’s Own Barista Oat and Soy Milk demonstrate how far the category has advanced, delivering reliable texture, consistent steaming, and latte art capability, all while performing equally well in hot or cold beverages.

[7] Coffee Association of Canada June 2025 Report

Trend essentials: Earth’s Own Barista Oat Milk, Earth’s Own Barisa Soy Milk

Get in Touch Today
A close-up of roasted coffee beans being poured from a metal container. An orange banner with the text "2025 Fall Beverage Trends Part 1" and leaf icons highlights.

This Spring, coffee trends are becoming more practical and personal, with customers seeking customizable, lifestyle-friendly experiences.

A close-up of roasted coffee beans being poured from a metal container. An orange banner with the text "2025 Fall Beverage Trends Part 1" and leaf icons highlights.

Consumers want beverages with benefits beyond hydration, increasing expectations for products that are credible and transparent.

Tapping into the Functional Beverage Market
A close-up of roasted coffee beans being poured from a metal container. An orange banner with the text "2025 Fall Beverage Trends Part 1" and leaf icons highlights.

Hybrid work and busier lifestyles are changing how Canadians dine out, pushing operators to offer more intentional, value-driven menus for any occasion.

Changes in Consumption Patterns