Does the nascent nootropic drinks market have legs?

For health reasons, more consumers are drinking alcohol less often and looking instead at a wider selection of beverages. Some are close replacements to alcohol (think Guinness 0.0) but other drinks attracting interest purport to offer health benefits from the use of functional ingredients – and nootropics has been one segment gaining attention. 

The term ‘nootropic’ was first used in 1972 by psychologist and chemist Corneliu E. Giurgea to describe a category of products said to benefit cognitive function.  

The term has evolved to encompass both natural and manufactured substances, which product developers claim have benefits including improving memory, stimulating creativity and boosting motivation.  

UK-based healthy snack and beverage wholesaler Epicurium includes the nootropic energy drink Xite in its range. A spokesperson says nootropics “is a huge trend right now” having “caught the imaginations of time-poor, stressed-out, millennials”. 

“It encompasses a number of botanicals and natural stimulants that promote and enhance mental and cognitive health, which is right at the top of the agenda within millennials and Gen Z. The word itself is memorable, engaging and pseudo-scientific, it’s a word that those with an interest love to use and lends a cache, offering users an air of expertise.” 

Three Spirit Drinks is a UK business set up in 2018 offering “functional elixirs” that describe how the drinks should make a person feel, from the energising Livener to the calming Nightcap. Co-founder Dash Lilley says the market for nootropic drinks “has exploded”.

“When we first started it could be an uphill battle just explaining to people what Three Spirit drinks were; non-alcoholic elixirs full of adaptogens and nootropics to enhance your mood. Now people are more clued in. You’ll see bigger, well-known brands incorporating adaptogens into their products, you’ll see online communities of biohackers documenting their health experiences, including their use of nootropics.”

The Covid-19 pandemic boosted demand for vitamins and dietary supplements. Overall, more consumers became more interested in ingredients offering support for their health and, as a consequence, sought foods and beverages that did the same. Drilling down further, that led to more interest in nootropics and drinks using the ingredients.  

Research by GlobalData – Just Drinks’ parent – notes that the increasing diagnosis of neurological and psychiatric disorders have also contributed to the rise in demand for nootropics, which have been found to alleviate some symptoms and have been sought out as potential alternative treatment options.  

Nootropics have also gained from influencer promotions and documentaries like Netflix’s Fantastic Fungi, which highlights the benefits of mushroom-based nootropics. 

“The role of digital marketing and social media influencers in educating and promoting nootropic products has been significant,” Dallas Vasquez, the CEO and co-founder of US shots and seltzers business Mitra9, tells Just Drinks. “Through these channels, we've been able to reach a broader audience and share the benefits of our unique offerings.” 

While health-related factors have led to rising interest in nootropic-based drinks, education remains key to increasing the further growth of the still fledgling market. 

While the average consumer might be familiar with functional ingredients such as ginseng and Omega-3, compounds taken from Xerocomus mushrooms like L-theanine – a non-dietary amino acid known for stress reduction – or gingko biloba, a leaf used in traditional Chinese medicine for centuries and claimed to improve cerebral circulation, boost mental alertness and overall brain function, may not be as well known. 

“The nootropics category is growing but remains somewhat fragmented,” Julian Liban, the founder of UK-based Common Functional Drinks, tells Just Drinks. “Brands are still trying to understand consumer preferences, who in turn are educating themselves about available products and their benefits.” 

Nootropics could potentially appeal to a broad set of consumers, with, proponents say, benefits for students, for young professionals to help focus, for parents lacking energy, for athletes and even people suffering from age-related memory decline. 

“The industry is growing so retailers are opening up shelf and refrigerator space,” David Sandler, the co-inventor of US nootropic beverage Safety Shot, tells Just Drinks. 

“Buyers are looking for variation over the standard energy drinks and distribution groups are adding more nootropic products to their offerings. There seems to be not only a willingness to find some space but general interest in adding it, which is due to consumer demand and the now-understanding of what nootropics are and how they can help ‘improve someone’s day’.”

At Common Functional Drinks, Liban says retail buyers “recognise the potential of the category” and want to offer “what we term as ‘drinks-plus’, tasty beverages enhanced with functional ingredients like nootropics, CBD or probiotics.”

Liban adds: “Nootropic beverages, particularly those derived from mushrooms, have gained traction first in the US and now increasingly in the UK. Spurred on by the mushroom powder trend replacing coffee, now mushroom RTDs are entering the market for consumers looking for a grab-and-go solution.”

There is a range of nootropic ingredients on offer, which will differ depending on the market being targeted. Of course, as consumer interest evolves, demand for specific ingredients will wax and wane.

“Specific ingredients will rise in popularity and prominence,” the Epicurium spokesperson says. “For example, lion’s mane and ashwagandha are very hot right now and are taking some of the attention from CBD but the key functions of natural energy, focus, and cognitive health are regular and increasingly essential buzzwords adorning front of pack on an increasing share of the category.”

At this stage, it is too early to call what kind of impact nootropic beverages will have on alcohol sales.  

“This is still such a tiny segment of the market that it’s difficult to measure in a manner that would be robust enough to report in our market data, and the share that the segment might be stealing from alcoholic drinks is likely extremely small in the overall scheme of things,” Katie Page, analytical content director at GlobalData, says. 

One challenge with measuring the impact of nootropics is their appeal is more than just an alternative to alcohol but falls into functional moments such as study or work aids.  

“Nootropics certainly have their place in this ‘universe’ of alcohol reduction but, at the moment, their overall role is small,” Page adds.  

The number of low-and-no drinks on menus has increased significantly in recent years. Formats are expanding to even include non-alcoholic beers on tap.  

Liban expects a rise in the number of beers and cocktails offering nootropic ingredients. “While nootropic-enhanced cocktails and beers are still emerging, the popularity of such innovations is expected to grow, especially by next summer,” he says.

Earlier this year, Common Functional Drinks secured a “six-figure seed investment” from executives including BrewDog founder James Watt. 

The funds will go towards the launch of two Lion’s Mane mushroom-based nootropic drinks and two CBD drinks made with cold-pressed hemp. The company is also set to introduce a nootropic gin-and-tonic next year.  

“Mushrooms are a hard flavour to work with, especially at the high dosages that we put in our beverages but our R&D [team] has managed to formulate some fantastic flavours,” Liban says. 

Kevin Baker, GlobalData’s head of global beer and cider research, says companies have to be careful as they run the risk of running into CSR issues if they start implying that alcoholic beverages can have health benefits.  

“This applies to low-and-no alcohol as well, as companies can be accused of ‘hiding behind the lo/no cloak’ and subliminally suggesting that beer has health benefits,” Baker says.  

“The strength of the health and wellness trend, combined with falling alcohol sales, has led to some companies looking at the category but these are quite niche and my guess would be that companies wanting to engage with the growth of nootropics will do so through acquisition or the creation of new ‘soft’ brands, rather than by adding to beer.” 

In all, the market for nootropics drinks remains in its very early stages. Rising consumer interest in the links between diet and health have shone a light on – and increased demand for – the drinks but the market has a long way to go to hit the mainstream. 

Nevertheless, brand owners and industry watchers believe the drinks will continue to attract interest. 

GlobalData’s Page says: “There definitely seems to be a healthy level of new product launches and product listings of nootropic products, which is arguably both fuelled by – and is fuelling consumer interest in trying these products. 

“Nootropics certainly won’t be for everyone but the products that are being launched cover a range of categories, need states, and price points, so the appeal of nootropics is likely to apply to a variety of different consumer cohorts.”