UK – The UK’s functional drinks market is booming, with Ocado Retail reporting a 54% year-on-year sales increase as Gen Z moves away from coffee and alcohol in favour of health-boosting alternatives.
Two in five UK adults now buy functional drinks several times a month, rising to 61% among Gen Z. Sales of kombucha and kefir are up 22% and 30% respectively, while searches on Ocado.com for mushroom coffee have soared by 1,552%.
As we explored in our Functional Feasting report, younger consumers are leading this change, with 49% of Gen Z replacing alcohol or soft drinks with functional options and 39% swapping their morning coffee for matcha or mushroom-based blends.
Ocado has responded by expanding its functional drinks range by 11%, spotlighting indie brands such as Mission and Hip Pop. Explore more shifts in this space in our Futures Forecast 2025: Food & Drink report.
Strategic opportunity
Rethink product rituals and social moments through the lens of functionality. Collaborate with wellness brands or develop low-caffeine, benefit-led drinks that meet Gen Z’s demand for health without compromise