Functional beverages rise in popularity as Gen Z plump for healthier options
Health-conscious Gen Z customers are driving a new generation of consumers to adopt functional drinks, according to new grocery data.
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. 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 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.
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. This aligns with earlier research*** from Ocado showing that 43 per cent of consumers have increased their protein intake in the past year.
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 six to 12 months.
To meet growing demand, Ocado has expanded its range of functional drinks by 11 per cent 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, notes “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,” he explains. “As a result, we’re continuing to expand our range to meet the growing demand as we’ve grown the category by 11 per cent in the last year with exciting and innovative products.”
Tom McKelvey, sales director at MISSION Drinks adds that MISSION initially began supplying elite level athletes and professional sports teams with clean, natural performance teas, and now it is seeing 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,” McKelvey says. “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.
