Since the consumption pattern of Functional Beverage (FB) drinks is not consistent asking for in-depth research to understand why consumers choose FB. Consumer’s knowledge of functional beverages and increased awareness on health and well-being is directly related to the consumption of these drinks. Major categories of functional beverages – dairy based drinks, fruit/vegetable based drinks, enhanced water, sports drinks, energy drinks and ready to drink teas are part of this study. A sample size of 305 respondents was collected from the population of Delhi and National Capital Territory. For primary data collection, a structured questionnaire was designed and stratified random sampling technique has been used to collect the information required. For data analysis and interpretation, statistical tools like multiple response analysis using crosstabs and frequencies, correlation, regression analysis to study the influence of one variable over another. Main variables of the study were perceived benefits, perceived product, perceived knowledge and perceived information of FB and moderating variable was consumer’s demographics. It can be concluded that major factor contributing consumption of FB is health and wellness and based on the findings manufacturers can design their product range.