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% year-on-year increase in health drinks sales*, spanning everything from kombucha to prebiotic sodas. Two in five (40%) of the general population now buy functional drinks several times a month, rising to nearly two thirds (61%) 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% year-on year) and the fermented tea kombucha (+22% 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%) of Gen Z say they’ve cut back on alcohol and over half (53%) now consider functional drinks a good alternative during social occasions. Meanwhile, nearly half of Gen Z (49%) 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%) 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%) of Gen Z. A similar pattern repeats in the afternoon, with 24% of all adults and 42% 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%. Driven by the search for lower caffeine alternatives, matcha sales are up 67% since last year, with Dirtea Matcha surging 6,000%. Newly launched Mission Natural Energy Lemon and Ginseng and Lime and Yuzu flavours has also seen increases of over 100% and 80% 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% and 68% 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% of consumers have increased their protein intake in the past year.
Social media is helping drive the popularity of functional drinks, with 30% 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%) saying they’re willing to pay more for drinks with added health benefits, and 31% 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% 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% in the last year with exciting and innovative products.”
Tom McKelvey, sles 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.”
