Functional drinks are becoming a staple for a new generation of consumers, led by health-conscious Gen Z shoppers, shows a new set of data, revealing a sharp rise in demand for the drinks like kombucha, prebiotic sodas, kefir, matcha, herbal teas and mushroom based drinks.
Ocado Retail’s latest data shows a 54 per cent year-on-year increase in health drinks sales, spanning everything from kombucha to prebiotic sodas. Two in five (40 per cent) of the general population now buy functional drinks several times a month, rising to nearly two thirds (61 per cent) 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 per cent year-on year) and the fermented tea kombucha (+22 per cent 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 per cent) of Gen Z say they’ve cut back on alcohol and over half (53 per cent) now consider functional drinks a good alternative during social occasions.
Meanwhile, nearly half of Gen Z (49 per cent) 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 per cent) 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 per cent) of Gen Z.
A similar pattern repeats in the afternoon, with 24 per cent of all adults and 42 per cent of Gen Z making the switch.
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 per cent, shows the data.
Driven by the search for lower caffeine alternatives, matcha sales are up 67 per cent since last year, with Dirtea Matcha surging 6,000 per cent.
Newly launched Mission Natural Energy Lemon and Ginseng and Lime and Yuzu flavours has also seen increases of over 100 per cent and 80 per cent 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 per cent and 68 per cent respectively year-on-year as busy shoppers look for easy ways to get a health boost on the go.
Social media is helping drive the popularity of functional drinks, with 30 per cent 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 per cent) saying they’re willing to pay more for drinks with added health benefits, and 31 per cent planning to increase their consumption over the next 6 to 12 months.
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."
