U.S. Relaxation Beverages Market Size, Share & Trends Analysis Report By Product (Relaxation Drinks, Relaxation Shots, Relaxation Mixes), By State (New York, California, Florida, Texas, Washington), And Segment Forecasts, 2019 - 2025

Industry Insights 

The U.S. relaxation beverages market size was estimated at USD 240.6 million in 2018. Increasing demand for stress relieving and sleep-promoting products and preference for healthy beverages across the country are anticipated to fuel the growth. The millennial and generation Z population experiences a significant level of stress related to work, finances, and family-related issues. Chronic stress is the most prevalent type of stress in the U.S. It is also responsible for sleeplessness or insomnia. Therefore, millennials who also hold a strong purchasing power, prefer relaxation beverages over pharmaceutical sleeping aids, as these are made from natural ingredients.

Relaxation beverages are nonalcoholic beverages that help reduce stress and anxiety, improve focus, and promote better sleep owing to the presence of more than one active calming ingredient. Valerian root, kava root, l-theanine, chamomile, GABA, and melatonin are the key ingredients of a relaxation beverage that provides the calming effect.

In 2018, the U.S. removed hemp from the controlled substance list. This initiative led to the development of CBD infused relaxation beverages. A large number of manufacturers including New Age beverages Corporation have unveiled their CBD infused product lines. This trend is expected to further contribute to the exponential growth of relaxation beverages in the U.S.

Relaxation beverages are priced higher compared to other functional beverages. However, consumers in the U.S. hold significant purchasing power to spend on the discretionary product. Hence, higher pricing is not expected to cause a large impact on demand.

Product Insights

Concerning product segmentation, the U.S. relaxation beverages market is categorized into drink, shots, and mixes. The drinks segment holds the highest market share owing to its ease of consumption and wide availability. Also, these drinks are available in multiple flavors whereas other product types offer limited flavors. This factor is anticipated to contribute to higher popularity and preference for these products.

Mixes are offered in syrup or powdered form which are further mixed with other beverages for the final consumption. The demand for mixes is anticipated to witness the fastest growth, as these products can be mixed with other consumer-preferred beverages. The fact that these products are available in small packaging sizes which is travel friendly also bodes well for the demand.

Relaxation beverages induce relaxation as well as sleep, therefore, most manufacturers position or brand their products around these functions. For instance, Som Sleep from Friends, Inc. and iChill Liquid Sleep Aid from iChill Beverages, Inc. among others have branded products around its sleep-inducing function. Furthermore, these products are offered by traditional distribution channels as well as through online mode.

State Insights

Based on the state, the market is divided into New York, California, Florida, Texas, Washington, and the Rest of the U.S. (ROUS). Texas held the largest market share in 2018 owing to the presence of a large number of millennials in the state with a considerable spending capability. It is also observed that the number of millennials is rapidly rising in a few cities of the states such as San Antonio, Austin, and Houston. This migration of millennials is anticipated to further boost the product demand in the forthcoming years.

Demand from New York state is expected to register the fastest CAGR over the forecast period. Key factors attributed to this demand are high work-related stress levels coupled with a strong purchasing power of the consumers in the state. Furthermore, the presence of a significant number of the millennial population is expected to augment market growth in the state.

U.S. Relaxation Beverages Market Share Insights

The industry is in its development phase and is highly concentrated in nature with the presence of a few small-sized companies. The market is witnessing a large number of mergers and acquisitions. Furthermore, a large number of new players are expected to enter the market owing to its growing phase and rapid development of CBD infused products.

Some of the key companies operating in the market are New Age Beverages Corporation; Neuro; iChill Beverages, Inc.; Tranquini GmbH; lifeonearthinc; Harvest One; Boisson Slow Cow, Inc.; 7.8 Som Friends, Inc.; Phi Drinks, Inc.; and SEEK PHYSIS, LLC.

Key strategies implemented by the major manufacturers include portfolio expansion, joint ventures, mergers and acquisitions, and brand promotions. The companies focus majorly on product development, sales, and distribution while outsourcing the manufacturing activates. Key companies are focused on strategic partnerships with other players to expand their geographical presence in the U.S.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the U.S. relaxation beverages market report based on product and state:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Relaxation Drinks

  • Relaxation Shots

  • Relaxation Mixes

• State Outlook (Revenue, USD Million, 2014 - 2025)

  • New York

  • California

  • Florida

  • Texas

  • Washington

  • Rest of the U.S.