Functional drinks boom as Gen Z swaps out coffee and alcohol for healthier alternatives

• New data from Ocado Retail reveals sales of functional drinks such as kombucha, kefir and matcha have surged by 54 percent since last year as it has launched brands such as MISSION, Dirtea, QuirkyMonkey and Living Things
• Gen Z is driving the trend, with almost two thirds (61 percent) consuming functional drinks several times a month
• Growth reflects a wider lifestyle shift, with three in five (60 percent) of Gen Z considering functional drinks a good alternative to alcohol at social occasions

Functional drinks are becoming a staple for a new generation of consumers, led by health-conscious Gen Z shoppers. New supermarket data reveals a sharp rise in demand for the drinks, which are enhanced with ingredients like vitamins, probiotics, and collagen and designed to support everything from gut health to natural energy.

Ocado Retail’s latest data shows a 54 percent year-on-year increase in health drinks sales*, spanning everything from kombucha to prebiotic sodas. Two in five (40 percent) of the general population now buy functional drinks several times a month, rising to nearly two thirds (61 percent) of Gen Z, new data from Ocado and Savanta** reveals.

As consumers increasingly recognise the link between gut health and overall wellbeing, drinks containing prebiotics, probiotics and fermented ingredients are proving popular. Sales of the fermented milk drink kefir (+30 percent year-on year) and the fermented tea kombucha (+22 percent year-on-year) have seen particularly strong growth on Ocado.

Changing social and lifestyle habits are also driving the functional drinks boom. In the past year, three in five (60 percent) of Gen Z say they’ve cut back on alcohol and over half (53 percent) now consider functional drinks a good alternative during social occasions. Meanwhile, nearly half of Gen Z (49 percent) say they’ve already replaced alcohol, soft drinks or energy drinks altogether with functional drinks.

Functional drinks are also becoming a routine as a morning brew. A fifth (22 percent) of UK adults have swapped out their morning tea or coffee for a functional drink such as matcha, herbal teas or mushroom based drinks, jumping to almost two fifths (39 percent) of Gen Z. A similar pattern repeats in the afternoon, with 24 percent of all adults and 42 percent of Gen Z making the switch. This reflects a broader shift, driven by younger consumers, towards ‘cleaner’ energy drinks, with a lower caffeine content.

One standout example is mushroom coffee – a blend of coffee and adaptogenic fungi such as lion’s mane and chaga – which has seen year-on-year searches on Ocado skyrocket by 1,552 percent. Driven by the search for lower caffeine alternatives, matcha sales are up 67 percent since last year, with Dirtea Matcha surging 6,000 percent. Newly launched Mission Natural Energy Lemon and Ginseng and Lime and Yuzu flavours has also seen increases of over 100 percent and 80 percent week-on-week respectively.

Ocado’s search data also highlights a growing interest for protein-enhanced drinks, with searches for ‘protein drink’ and ‘protein shake’ up 140 percent and 68 percent respectively year-on-year as busy shoppers look for easy ways to get a health boost on the go. This aligns with earlier research*** from Ocado showing that 43 percent of consumers have increased their protein intake in the past year.

Social media is helping drive the popularity of functional drinks, with 30 percent of consumers discovering new brands and trends through platforms such as TikTok and Instagram. The trend shows no signs of slowing down, with over a third (38 percent) saying they’re willing to pay more for drinks with added health benefits, and 31 percent planning to increase their consumption over the next 6 to 12 months.

To meet growing demand, Ocado has expanded its range of functional drinks by 11 percent in the last year alone, launching small supplier brands including MISSION, Hip Pop and Turmeric Co, which are focused on improving gut health.

Edward Horne, Buying Manager for Chilled Drinks at Ocado Retail, comments, “We’re seeing a clear shift, driven by Gen Z shoppers who are choosing functional drinks as part of their daily routine – whether that’s swapping out regular coffee for a mushroom blend or substituting alcohol with a healthier alternative. Consumers are more informed, more experimental and looking for drinks that do more than just quench their thirst. As a result, we’re continuing to expand our range to meet the growing demand as we’ve grown the category by 11 percent in the last year with exciting and innovative products.”

Tom McKelvey, Sales Director at MISSION Drinks adds, “At MISSION, we initially began by supplying elite level athletes and professional sports teams with clean, natural performance teas, and now we’re seeing more and more everyday customers making that same switch. People are choosing natural, sustained energy from ingredients like yerba maté, green tea and matcha, rather than reaching for high-caffeine or sugar-loaded coffee and energy drink options. Consumers have been sleepwalking to the coffee machine for too long, there’s now far more choice when it comes to how you fuel your day.”

* Year on year increase in searches and sales across Ocado.com website (23.03.23-23.04.24 vs 23.03.24-23.04.25)

** Research among a nationally representative survey of 2205 UK adults, conducted by Savanta in May 2025. 

*** Research among a nationally representative survey of 2170 UK adults, conducted by Savanta in March 2025.

Image courtesy of Unsplash. Photo credit: Na visky.