Beverages: Gen Z replace alcohol and coffee with mushroom shots and kombucha
- InsightTrendsWorld
- Jun 13
- 10 min read
Why it is the topic trending:
The article discusses a shift in beverage preferences among Gen Z (18-24 year olds).
Data shows they are reducing or eliminating alcohol and caffeine consumption.
They are increasingly opting for "functional" health drinks like kefir, kombucha, matcha tea, and mushroom coffee.
Supermarkets like Ocado have reported soaring sales of these health-focused beverages.
Wellness influencers are promoting the mood-boosting effects of mushrooms.
A significant portion of Gen Z are teetotal and consider kombucha a good alternative to alcohol.
Many are also swapping their morning coffee or tea for matcha or mushroom coffee for health benefits.
Overview: Generation Z (18-24) in the UK is displaying a notable shift in their beverage choices, moving away from traditional alcohol and coffee towards "functional" health drinks. This trend is highlighted by significant increases in sales of beverages like kefir, kombucha, matcha tea, and mushroom coffee. Driven by a focus on health and wellness, many young adults are seeking alternatives to alcohol and caffeine, opting for drinks with vitamins, fermented ingredients, and claimed benefits for stress, fatigue, and anxiety.
Detailed Findings:
Gen Z Behavior: One in four Gen Z aged 18-24 are teetotal. Many are giving up alcohol and caffeine.
Preferred Drinks: Functional health drinks with vitamins, fermented ingredients, healthy gut bacteria. Examples: kefir, kombucha, matcha tea, mushroom coffee.
Sales Data (Ocado Retail): 54% year-on-year increase in sales of health drinks. Kefir up 30%, matcha tea up 67%. Searches for mushroom coffee up 1,552%.
Wellness Influencers: Promote mood-boosting effects of mushrooms for stress, fatigue, and anxiety.
Survey (Savanta and Ocado): Two in five of the population buy functional drinks several times a month, rising to two thirds of Gen Z consumers.
Alcohol Alternatives: Half of Gen Z have stopped having alcohol, soft drinks, or energy drinks for these drinks. Half of teetotal Gen Z consider kombucha a good alternative to alcohol.
Coffee Alternatives: Two fifths of Gen Z have swapped morning tea or coffee for matcha or mushroom coffee for greater health benefits.
Marks & Spencer: Launched a range of "mushroom shot" drinks (lion’s mane or reishi with fruit juice) in response to demand.
Quotes:
Edward Horne (Ocado Retail): Clear shift driven by Gen Z choosing functional drinks daily, swapping coffee for mushroom blends or alcohol for healthier alternatives. Consumers are more informed, experimental, and looking for drinks that do more than quench thirst.
Tom McKelvey (Mission): More adults turning away from coffee towards "clean, natural" drinks for sustained energy from ingredients like yerba maté, green tea, and matcha.
Key success factors of product (trend):
Health and Wellness Focus: Appeals to a generation highly concerned with their physical and mental well-being.
Functional Benefits: Drinks are marketed for specific benefits like gut health, stress reduction, and sustained energy.
Alternatives to Alcohol and Caffeine: Caters to a growing segment reducing or eliminating these substances.
Social Media Influence: Wellness influencers play a significant role in promoting these beverages.
Novelty and Experimentation: Gen Z is described as more experimental with their drink choices.
Key Takeaway: Gen Z in the UK is leading a shift in beverage consumption, actively replacing alcohol and coffee with functional health drinks like mushroom coffee and kombucha, driven by a focus on wellness, perceived health benefits, and a desire to experiment with alternatives.
Main Trend: The main trend is a significant shift in beverage consumption among young adults, particularly Gen Z, towards functional health drinks that offer perceived benefits for physical and mental well-being, marking a move away from traditional choices like alcohol and caffeinated beverages.
Description of the trend: The Rise of Functional Refreshment: Gen Z Opts for Wellness in a Bottle
What is consumer motivation:
Seeking Health Benefits: Desire for drinks that offer more than just hydration, such as improved gut health, reduced stress, or sustained energy.
Reducing Alcohol Consumption: Growing trend of teetotalism or reduced alcohol intake among young adults.
Finding Alternatives to Caffeine: Seeking lower-caffeine or caffeine-free options for energy and focus.
Experimentation and Novelty: Willingness to try new and different types of beverages.
Influence of Wellness Culture: Impact of social media and wellness trends on food and drink choices.
What is driving trend:
Increased Health Awareness: Gen Z is often reported to be more health-conscious than previous generations.
Focus on Mental Well-being: Interest in drinks that can help manage stress and anxiety.
Social Media Trends: Wellness influencers heavily promote functional beverages.
Availability of Diverse Options: Growing market offering a wide range of functional health drinks.
Negative Perceptions of Alcohol and Excessive Caffeine: Potential awareness of the drawbacks of these traditional beverages.
What is motivation beyond the trend:
Taste and Enjoyment: While health benefits are a driver, the drinks must also be palatable and enjoyable.
Description of consumers article is referring to:
Best Description: The article refers to members of Generation Z aged 18 to 24 in the UK who are making conscious choices to reduce or eliminate alcohol and caffeine intake in favor of functional health drinks marketed for their wellness benefits.
Gen Z (18-24 years old): The specific demographic driving this beverage trend in the UK.
Health-Conscious Young Adults: Individuals prioritizing health and well-being in their food and drink choices.
Teetotal or Low-Alcohol Consumers: Those actively reducing or abstaining from alcohol.
Lower-Caffeine Seekers: Individuals looking for alternatives to coffee and high-caffeine energy drinks.
Experimenters with Functional Foods: Open to trying novel beverages with perceived health benefits.
Who are the consumers implied by article:
Who are them: Young adults in the UK (Gen Z, 18-24).
What kind of products they like: Kefir, kombucha, matcha tea, mushroom coffee, mushroom shots, yerba maté, green tea, herbal/botanical teas.
What is their age?: Primarily 18 to 24 year olds (Gen Z).
What is their gender?: Not specified in the article, likely a mix of genders are participating in this trend.
What is their income?: Not specified, but their purchasing power is influencing market trends in supermarkets like Ocado and Marks & Spencer.
What is their lifestyle: Health-conscious, potentially influenced by social media trends, possibly interested in natural and alternative wellness solutions, seeking sustained energy and stress management.
What are their category article is referring shopping preferences: Shop at supermarkets like Ocado and Marks & Spencer, interested in health-focused and "clean" beverage options.
Are they low, occasional or frequent category shoppers: The survey indicates many buy functional drinks several times a month, suggesting frequent or regular consumption.
What are their general shopping preferences-how they shop products, shopping motivations): Likely influenced by health claims, natural ingredients, social media trends, and a desire for products that align with their wellness goals.
Conclusions: Gen Z in the UK is actively reshaping the beverage market, demonstrating a clear preference for functional health drinks over traditional alcohol and coffee. This trend highlights a strong focus on well-being and a willingness to experiment with alternatives that offer perceived health benefits.
Implications for brands:
Focus on Functional Benefits: Market beverages highlighting specific health advantages like gut health, stress relief, and sustained energy.
Target Gen Z Consumers: Develop products and marketing strategies that appeal to the health-conscious values of this demographic.
Explore Natural and Fermented Ingredients: Utilize ingredients like mushrooms, kefir, kombucha, and matcha in new beverage formulations.
Leverage Social Media Marketing: Engage with wellness influencers to reach Gen Z consumers.
Offer Alternatives to Alcohol and Caffeine: Cater to the growing segment seeking non-traditional beverage options.
Implication for society:
Potential Shift in Social Drinking Culture: Reduced alcohol consumption among younger generations could impact social norms.
Increased Focus on Holistic Well-being: Highlights a greater emphasis on health and mental well-being among young adults.
Implications for consumers:
Wider Variety of Health-Focused Beverage Options: More choices available beyond traditional drinks.
Potential for Improved Health and Well-being: Access to beverages with perceived functional benefits.
Implication for Future:
Continued Growth of the Functional Beverage Market: Expect further innovation and expansion in this category.
Potential for Similar Trends in Other Regions: Gen Z's preferences in the UK may foreshadow global shifts in beverage consumption.
Consumer Trend (name, detailed description): Functional Beverage Focus for Gen Z: Generation Z is increasingly prioritizing beverages that offer functional health benefits, such as improved gut health, sustained energy, and stress reduction, leading to a decline in the consumption of traditional drinks like alcohol and coffee.
Consumer Sub Trend (name, detailed description): The Rise of Fermented and Mushroom-Based Beverages: Within the functional beverage trend, there is a significant increase in the popularity of drinks containing fermented ingredients like kombucha and kefir, as well as those incorporating mushrooms like mushroom coffee and shots, driven by perceived wellness advantages.
Big Social Trend (name, detailed description): Growing Emphasis on Health and Wellness Among Young Adults: Younger generations are demonstrating a greater focus on their physical and mental well-being, influencing their choices in food, beverages, and lifestyle habits.
Worldwide Social Trend (name, detailed description): Global Shift Towards Healthier Beverage Options: Across the globe, consumers are increasingly seeking out beverage choices that are perceived as healthier alternatives to sugary drinks, alcohol, and excessive caffeine.
Social Drive (name, detailed description): Desire for Health, Well-being, Sustained Energy, and Stress Management: Gen Z's beverage choices are driven by a desire to improve their physical and mental health, find natural sources of energy, and manage stress and anxiety effectively.
Learnings for brands to use in 2025:
Health is a Key Selling Point for Gen Z: Focus on the functional benefits of beverage products.
Consider Alternatives to Alcohol and Caffeine: Explore opportunities in the low- and no-alcohol and lower-caffeine sectors.
Natural and Fermented Ingredients are Popular: Highlight the use of these ingredients in product development and marketing.
Strategy Recommendations for brands to follow in 2025:
Invest in Research and Development of Functional Beverages: Explore new ingredients and formulations with proven health benefits.
Market to the Specific Needs and Values of Gen Z: Use language and channels that resonate with this demographic's focus on wellness.
Consider Launching Mushroom or Fermented Beverage Lines: Capitalize on the growing popularity of these categories.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it: The trend of Functional Beverage Focus for Gen Z highlights a significant shift towards health-conscious choices among young adults, urging brands and companies in 2025 to innovate and market beverages that offer tangible wellness benefits, particularly alternatives to alcohol and caffeine, to capture this growing and health-aware demographic.
Final Note:
Core Trend: Functional Beverage Focus for Gen Z: Young adults are choosing health-focused drinks.
Core Strategy: Emphasize Health Benefits and Natural Ingredients: Market to Gen Z's wellness values.
Core Industry Trend: Growing Health and Wellness Emphasis: Consumers are increasingly prioritizing their well-being.
Core Consumer Motivation: Desire for Health, Well-being, Sustained Energy, and Stress Management: Driving forces behind beverage choices.
Final Conclusion: Gen Z's evolving beverage preferences signal a significant change in the market, with health and wellness becoming key drivers. Brands that recognize and cater to this trend by offering innovative and functional drinks are poised for success with this influential demographic.
Core Trend Detailed: The core trend of Functional Beverage Focus for Gen Z describes a pronounced and growing preference among young adults within Generation Z for beverages that offer specific health and wellness benefits beyond basic hydration or enjoyment. This shift signifies a conscious move away from traditional choices like alcohol, sugary soft drinks, and high-caffeine options such as coffee and energy drinks. Instead, Gen Z consumers are actively seeking out drinks enriched with vitamins, minerals, fermented ingredients, and natural extracts, driven by a desire to improve their physical health, enhance mental well-being, and find healthier alternatives to conventional beverages. This trend reflects a broader cultural emphasis on holistic wellness and a more informed and experimental approach to consumption among younger generations.
Key Characteristics of the Core trend:
Prioritization of Health Benefits: Gen Z actively seeks out beverages that offer tangible advantages for their physical and mental health.
Rejection of Traditional Choices: There is a noticeable decline in the consumption of alcohol and highly caffeinated drinks within this demographic.
Embrace of Natural and Functional Ingredients: Beverages containing ingredients like mushrooms, fermented cultures, and plant-based extracts are gaining popularity.
Influence of Wellness Culture: Social media trends and the promotion of health and well-being play a significant role in shaping these preferences.
Experimental Consumption: Gen Z shows a greater willingness to try new and unconventional beverage options that align with their wellness goals.
Market and Cultural Signals Supporting the Trend:
Soaring Sales of Functional Beverages: Retail data indicates a significant increase in the purchase of drinks like kombucha, kefir, matcha, and mushroom coffee.
Increased Product Availability: Supermarkets and specialty stores are expanding their offerings of functional health drinks to meet growing demand.
Active Promotion by Wellness Influencers: Social media personalities and wellness experts frequently highlight the benefits of these beverages.
Positive Media Coverage: Articles and reports are documenting this shift in consumer behavior among young adults.
Innovation by Food and Beverage Companies: Brands are actively developing and launching new functional beverage products.
How the Trend Is Changing Consumer Behavior:
Swapping Traditional Drinks for Healthier Alternatives: Gen Z is consciously choosing functional beverages over alcohol and coffee in various social and daily routines.
Becoming More Informed About Beverage Ingredients: There is a greater interest in understanding the health benefits and sourcing of ingredients in their drinks.
Incorporating Functional Drinks into Daily Routines: These beverages are becoming a regular part of Gen Z's health and wellness practices.
Implications Across the Ecosystem:
For Brands and CPGs: Focus on formulating and marketing beverages that offer clear health benefits and appeal to Gen Z's values.
For Retailers: Dedicate more shelf space to functional health drinks and educate consumers about their benefits.
For Consumers: Access to a wider range of healthier and more innovative beverage options that cater to their specific wellness needs.
Strategic Forecast:
The focus on functional beverages by Gen Z is expected to continue and likely expand as this generation's purchasing power grows and their health consciousness remains a priority.
Expect to see further innovation in this category with new ingredients and formulations targeting specific wellness outcomes.
Areas of innovation :
Personalized Functional Beverages: Drinks tailored to individual health needs based on data from wearables or at-home tests.
Mood-Enhancing and Cognitive Boosting Beverages: Drinks with nootropics and adaptogens targeting specific mental performance or emotional well-being goals.
Sustainable and Ethically Sourced Ingredients: Focus on transparency and responsible sourcing for functional beverage ingredients.
Functional Beverage Mixes and Powders: Convenient and customizable options for creating functional drinks at home.
Functional Beverages for Specific Lifestyles: Products tailored to athletes, students, or those with specific dietary restrictions.
Final Thought (summary): Gen Z's deliberate shift towards functional beverages signals a fundamental change in how young adults approach refreshment. Driven by a strong focus on health and well-being, they are actively seeking out drinks that not only quench their thirst but also offer tangible benefits for their physical and mental state. This trend presents a significant opportunity for the beverage industry to innovate and cater to the evolving needs and values of this influential demographic.
Description of consumers article is referring to:
Age: Likely a broad range, with a notable emphasis on young adults aged 18-24 (Gen Z) who are specifically mentioned as driving this trend.
Gender: Not specified in the article, but it is reasonable to infer that this trend is likely present across genders within the Gen Z demographic.
Income: Not specified in the article, but their purchasing power is significant enough to influence sales trends in major supermarkets like Ocado and Marks & Spencer in the UK.
Lifestyle: Characterized by a focus on health and wellness, potential influence from social media trends, openness to experimenting with new and natural health solutions, and a desire for beverages that offer sustained energy and stress management.
Conclusion: The consumers driving the functional beverage trend are predominantly health-conscious young adults in Gen Z in the UK who are actively seeking alternatives to traditional alcoholic and caffeinated drinks for perceived wellness benefits.
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