UK consumers embrace kombucha

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The UK publication KamCity (“News, tools and tips for Key Account Managers”) reports that Carlsberg Britvic’s Soft Drinks Review for 2025 highlights an increase in soft drink sales, with further opportunities (including for kombucha) ahead.

The report sees opportunity in driving UK sales, where that the average consumer drinks a paltry 225.3 liters (60 gallons) of soft drinks a year, half the amount consumed in the USA, and one of the lowest among developed nations (which might account for the 42% rate of obesity in the States vs. 28% in the UK).

Gen Z seek healthy alternatives

Among the “Seven Steps to Success” to drive more soft drink sales, Carlsberg Britvic recommend “Adding value to hydration”:

A new generation is reshaping the soft drinks market: Generation Z. Nearly a third (31%) of all Gen Z drink occasions feature tap water, bottled water or flavored hydration drinks like ice tea, compared to a UK average of 24%. Retailers can encourage younger consumers looking for hydration to trade up with drinks like Aqua Libra’s range of pure filtered still, sparkling and flavored waters, and Lipton Ice Tea and new Lipton Kombucha.

Furthermore:

Research shows that 69% of consumers say they’re trying to live healthier lifestyles, with products featuring added benefits playing a key role in this. Retailers can capitalize on this trend by pairing functional health drinks with healthy snacks and meals at different times of the day. Kombucha is an opportunity ripe for the taking. Sales have grown by 33% in convenience over the past year and they are poised for further growth following the March launch of the Lipton Kombucha range, which brings a mainstream, recognized brand to the category.

Switch from alcohol

The Carslberg Britivic report tracks the switch to moderation opens up new opportunities for soft drinks:

Consumers’ growing health consciousness is another big opportunity, both in grocery and the out-of-home channels. More people are moderating how much alcohol they drink, or cutting it out altogether, with 46% of people in the UK now falling into the former camp (up from 36% in 2018) and 17% into the (up from 12% in 2018). Given that switching to soft drinks is the second most popular way of cutting down on alcohol, the growth opportunities are clear. Indeed, 318 million soft drinks servings were consumed as an alternative to alcohol in UK homes in 2024, a rise of 16 million (5.3%) versus five years ago. Net switching from alcohol to soft drinks has delivered £51.2m growth (£14.7m for low and no options) in the past year. This is where premium soft drinks and low and no alcohol brands come into play.

Lipton Kombucha

Since launching Lipton Kombucha in March 2025, they note success of their ‘booch’ on social media where 50,000 people have interacted on TikTok:

Carlsberg Britvic claim this launch brings “a mainstream, recognized brand to the category.”

Energy boost

Quoting a UK Government survey, the report notes that the majority of British people are “tired half to all the time.”

Despite feeling sleepy, “69% of Brits say they’re trying to live healthier lifestyles and the food and drink they consume plays a key role in helping them achieve this.”

Let’s hope more will wake up to the benefits of kombucha, and explore the offerings of the 100+ kombucha brands on offer on the UK

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1 Response

  1. the_editor says:
    June 7, 2025 at 6:33 pm

    UK trade publication A1 retail report that Functional drinks boom as Gen Z swaps out coffee and alcohol for healthier alternatives

    • New data from Ocado Retail reveals sales of functional drinks such as kombucha, kefir and matcha have surged by 54 percent since last year as it has launched brands such as MISSION, Dirtea, QuirkyMonkey and Living Things
    • Gen Z is driving the trend, with almost two thirds (61 percent) consuming functional drinks several times a month
    • Growth reflects a wider lifestyle shift, with three in five (60 percent) of Gen Z considering functional drinks a good alternative to alcohol at social occasions

    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 percent year-on-year increase in health drinks sales*, spanning everything from kombucha to prebiotic sodas. Two in five (40 percent) of the general population now buy functional drinks several times a month, rising to nearly two thirds (61 percent) 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 percent year-on year) and the fermented tea kombucha (+22 percent 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 percent) of Gen Z say they’ve cut back on alcohol and over half (53 percent) now consider functional drinks a good alternative during social occasions. Meanwhile, nearly half of Gen Z (49 percent) 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 percent) 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 percent) of Gen Z. A similar pattern repeats in the afternoon, with 24 percent 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.

    Social media is helping drive the popularity of functional drinks, with 30 percent 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 percent) saying they’re willing to pay more for drinks with added health benefits, and 31 percent 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 percent 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 percent in the last year with exciting and innovative products.”

    Tom McKelvey, Sales 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.”

    * 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.

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