Functional non-alcoholic beverage industry is a dynamic segment and it is continuously evolving bringing new products and packaging styles in the market. Consumer’s demand for convenient drinks and their implications on health is the catalyst of growth in this industry. A wide array of non-alcoholic beverages claiming functionality in the human body is already occupying the space of stores. It is interesting to know why health benefiting functional beverages is gaining popularity in the consumers. There are facts which compel the younger generation to go for “good for you” functional beverages. Typical mindset that beverages are meant to quench the thirst is changing and now they have been considered as a complete meal in breakfast and other meal periods. This segment of industry offers a wide range of products for different requirements. The main popularity of these beverages is coming because of their contribution towards health and wellness. Major players of this industry are spending a lot on the Research and Development in order to develop unique processes and techniques to explore the valuable health benefiting ingredients. New techniques may be hybrid drinks or use of by-products to enhance the nutritional and enriching them with vitamins, minerals, antioxidants, and other desirable enzymes in the body to improve the functioning of our body. Marketing techniques focus on resolving the day to day lifestyle related issues. Convenience in handling, new packaging styles are also attracting the consumers to go for these beverages. Major categories of the functional beverages include diary based drinks, energy drinks, enhanced water-based drinks, vegetable and fruit based drinks among the leading ones. The prime focus of this study is to analyze the present scenario of drinks and how functional drinks and premium juices are getting popular in the consumers. The study attempts to showcase the shift in buying patterns of the consumers and the advancements in the category of functional beverages.