Innovative Formats Transforming the $438 Billion Functional Food Segment
The global market for functional foods and beverages is projected to achieve an astonishing $438 billion by 2026, with a compound annual growth rate of 10.65%. This dramatic growth is largely driven by a shift in consumer preference from traditional formats to more targeted and portable alternatives. Notably, experts highlight the escalating demand for oral pouches, particularly nicotine-free and caffeine-based options, anticipating this modern oral segment to exceed $25 billion by 2030.
Five key players are recognizing and adapting to this format-driven trend: Doseology Sciences Inc. (CSE: MOOD), Kraft Heinz (NASDAQ: KHC), Tilray Brands (NASDAQ: TLRY), Cronos Group (NASDAQ: CRON), and USANA Health Sciences (NYSE: USNA).
The expansion of the functional beverage sector alone is expected to surpass $164 billion this year, with energy drinks and wellness-oriented products leading the charge. Brands that focus on clean-label formulations paired with innovative packaging are experiencing rapid sales acceleration. As such, product format innovation has emerged as the leading driver of consumer engagement within this evolving market.
Recently, Doseology Sciences Inc. embarked on pilot production of caffeine-based energy pouches following the launch of their Feed That Brain brand into the burgeoning oral pouch market. Located in Kelowna, British Columbia, Doseology is committed to providing nicotine-free pouches containing measured doses of caffeine in a portable size, akin to the consumer shift towards tobacco-free nicotine pouches, which has burgeoned into a multibillion-dollar industry.
The new pilot pouches notably exclude sugar, carbonation, and liquid volume traditionally associated with energy drinks. Doseology is preparing for a direct-to-consumer test to gather valuable feedback before any full-scale launch. Tim Corkum, President and COO of Doseology Sciences, expressed that this pilot is a methodical step toward evaluating new product formats within their existing portfolio, emphasizing the importance of a well-structured approach.
The energy pouch initiative stems from Doseology’s acquisition of the Feed That Brain brand, which occurred in August 2025 for $400,000, entirely through stock issuance. This Toronto-based cognitive health label was founded by Rena R. Dempsey, a Forbes-recognized entrepreneur, known for its functional gummies and nootropic supplements aimed at enhancing mental performance.
Doseology Sciences has also brought Joseph Mimran on board as a Strategic Advisor under a three-year agreement valued at $400,000 in restricted shares. Mimran, an entrepreneur known for co-founding the Alfred Sung brand and launching Club Monaco and Joe Fresh, cited the company’s stringent product development process and dedication to regulatory compliance as central reasons for his position.
There are two significant market trends supporting this strategic direction. According to Grand View Research, the global energy drinks market is set to rise from $79.4 billion in 2024 to $125.1 billion by 2030. Similarly, the nicotine pouch market is projected to grow from $5.4 billion in 2024 to over $25 billion by 2030, reflecting an impressive 29.6% annual growth rate. Increased consumer awareness regarding sugar intake and beverage overconsumption is further fueling a demand for alternative caffeine delivery mechanisms.
Currently, Doseology distributes Gummies and Collagen products under the Feed That Brain brand across nearly 500 Canadian retail locations. This year's establishment of its U.S. subsidiary, Doseology USA Inc., aims to develop pouches integrating caffeine with nootropics and adaptogens. The leadership team comprises esteemed professionals including CEO Chris Jackson and Strategic Go-to-Market Advisor Patrick Sills.
In other news, Kraft Heinz has rolled out the HEINZ KegChup, a limited-edition stainless steel keg of ketchup, synchronized with Super Bowl festivities and designed as an ultimate companion for game-day gatherings. Similarly, Tilray Brands has appointed Romano Beverage to manage distribution for its Breckenridge Distillery spirits portfolio across Illinois, while Cronos Group has introduced its premium Lord Jones cannabis brand to Israel, capitalizing on the booming medical cannabis market.
Meanwhile, USANA Health Sciences shared optimistic preliminary figures, reporting net sales of approximately $925 million for the 2025 fiscal year and projecting between $925 million and $1 billion for 2026, supported by its Hiya children’s health subsidiary and Rise Wellness products.
With these developments signaling a robust industry evolution, the functional food and beverage sector is poised to shift dramatically as companies align with consumer trends favoring convenience, healthfulness, and innovative formats in product design.
Five key players are recognizing and adapting to this format-driven trend: Doseology Sciences Inc. (CSE: MOOD), Kraft Heinz (NASDAQ: KHC), Tilray Brands (NASDAQ: TLRY), Cronos Group (NASDAQ: CRON), and USANA Health Sciences (NYSE: USNA).
The expansion of the functional beverage sector alone is expected to surpass $164 billion this year, with energy drinks and wellness-oriented products leading the charge. Brands that focus on clean-label formulations paired with innovative packaging are experiencing rapid sales acceleration. As such, product format innovation has emerged as the leading driver of consumer engagement within this evolving market.
Recently, Doseology Sciences Inc. embarked on pilot production of caffeine-based energy pouches following the launch of their Feed That Brain brand into the burgeoning oral pouch market. Located in Kelowna, British Columbia, Doseology is committed to providing nicotine-free pouches containing measured doses of caffeine in a portable size, akin to the consumer shift towards tobacco-free nicotine pouches, which has burgeoned into a multibillion-dollar industry.
The new pilot pouches notably exclude sugar, carbonation, and liquid volume traditionally associated with energy drinks. Doseology is preparing for a direct-to-consumer test to gather valuable feedback before any full-scale launch. Tim Corkum, President and COO of Doseology Sciences, expressed that this pilot is a methodical step toward evaluating new product formats within their existing portfolio, emphasizing the importance of a well-structured approach.
The energy pouch initiative stems from Doseology’s acquisition of the Feed That Brain brand, which occurred in August 2025 for $400,000, entirely through stock issuance. This Toronto-based cognitive health label was founded by Rena R. Dempsey, a Forbes-recognized entrepreneur, known for its functional gummies and nootropic supplements aimed at enhancing mental performance.
Doseology Sciences has also brought Joseph Mimran on board as a Strategic Advisor under a three-year agreement valued at $400,000 in restricted shares. Mimran, an entrepreneur known for co-founding the Alfred Sung brand and launching Club Monaco and Joe Fresh, cited the company’s stringent product development process and dedication to regulatory compliance as central reasons for his position.
There are two significant market trends supporting this strategic direction. According to Grand View Research, the global energy drinks market is set to rise from $79.4 billion in 2024 to $125.1 billion by 2030. Similarly, the nicotine pouch market is projected to grow from $5.4 billion in 2024 to over $25 billion by 2030, reflecting an impressive 29.6% annual growth rate. Increased consumer awareness regarding sugar intake and beverage overconsumption is further fueling a demand for alternative caffeine delivery mechanisms.
Currently, Doseology distributes Gummies and Collagen products under the Feed That Brain brand across nearly 500 Canadian retail locations. This year's establishment of its U.S. subsidiary, Doseology USA Inc., aims to develop pouches integrating caffeine with nootropics and adaptogens. The leadership team comprises esteemed professionals including CEO Chris Jackson and Strategic Go-to-Market Advisor Patrick Sills.
In other news, Kraft Heinz has rolled out the HEINZ KegChup, a limited-edition stainless steel keg of ketchup, synchronized with Super Bowl festivities and designed as an ultimate companion for game-day gatherings. Similarly, Tilray Brands has appointed Romano Beverage to manage distribution for its Breckenridge Distillery spirits portfolio across Illinois, while Cronos Group has introduced its premium Lord Jones cannabis brand to Israel, capitalizing on the booming medical cannabis market.
Meanwhile, USANA Health Sciences shared optimistic preliminary figures, reporting net sales of approximately $925 million for the 2025 fiscal year and projecting between $925 million and $1 billion for 2026, supported by its Hiya children’s health subsidiary and Rise Wellness products.
With these developments signaling a robust industry evolution, the functional food and beverage sector is poised to shift dramatically as companies align with consumer trends favoring convenience, healthfulness, and innovative formats in product design.
Topics Consumer Products & Retail）
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