With consumer demand for healthier, more affordable food and drink, and a surge in low and no-alcohol beverage options, food and beverage companies need to keep up with changing consumer preferences. Here, we take a look the key trends shaping this evolving market in 2025.
No compromise on taste
Consumers in the UK and European functional beverage market now seek functional drinks with health benefits. Whilst function is important, taste remains the highest priority. Millennials and Gen Z are key target consumers, favouring authentic, premium products that offer a rich sensory experience without compromising on flavour. This has led to the rise of "permissible yet functional indulgence" where consumers seek to balance pleasurable experiences and specific functional health and wellness benefits. Functional drinks like probiotic bubbly tea and protein-rich coffee, alongside nutrient-rich green tea smoothies, are gaining in popularity.
Social media platforms such as TikTok and Instagram are keeping innovation and taste at the forefront of the flavour trend. Viral videos showing elaborate drink recipes, unusual flavour combinations and visually appealing presentations inspire consumers to experiment. They are driving demand for ingredients and tools such as coffee concentrates, frothers or syrups to replicate coffeeshop-style beverages at home.
With advancements in AI technology that recommends personalised beverage blends based on individual preferences, we can expect to see a continuing focus on personalised nutrition and tailored subscriptions in the functional beverage market.
Healthy living vs affordability
The private label sector in Europe is expanding into functional food and drink, to balance wellness credentials with affordability. In Europe, 5% of food and drink launches feature a functional claim on a particular function of the body as a healthy lifestyle is top of consumers' minds. However, affordability still remains a challenge in the market. In Germany, 61% of consumers who describe their physical fitness as unhealthy claim that the rising cost of living has made it less affordable to lead a healthy lifestyle. Amid soaring orange juice prices in the UK, Sainsbury’s Stamford Street Co. 50% orange juice concentrate drink boasts high vitamin C, which supports bone, teeth and skin health.
Science-based, functional health beverages
Protein has been a buzzing topic in the health and wellness space for some time, helping to satisfy hunger cravings, build muscle and bone tissue, and boost energy. With more research stating how much protein we should actually be consuming each day to reap the benefits, protein water has gained popularity, claiming to contain between 10 and 20g of protein. However, despite the added protein boost, they can also contain a lot of sugar or artificial sweeteners. Some manufacturers are expanding protein products into alternative categories, including yogurt.
Cocktails featuring protein are also gaining traction, for example, Protein Espresso Martinis or Margaritas which contain clear protein isolates. Savoury cocktails with broth-based ingredients blend stocks with spirits like vodka or bourbon, aligning with the popularity of bone broth as a health product in a bold and comforting drink option.
Gut health is increasingly on consumers' radars - globally, there is a growing interest in a holistic approach to wellbeing, often with a focus on the connection between gut and overall health. It’s well-known that eating the recommended daily intake of 30g of fibre helps support gut health, yet most people eat or drink less than 20g daily. To help meet this shortfall, water brands are launching fibre-infused sparkling water.
There are significant functional trend adjacencies between the beverage and beauty/personal care market. The "beauty from within" trend emphasises the importance of internal health for external beauty as consumers increasingly seek products that prioritise efficacy and functionality. Functional beverages with skin-boosting ingredients (like collagen, vitamin C, and antioxidants) align perfectly with this trend.
Tea takes centre stage
According to Holland & Barrett's Wellness Trends Report 2025, functional tea is predicted to be worth $12.2 billion by 2032, creating significant opportunities for growth and innovation. We have relied on the benefits of tea-drinking to enhance wellbeing for centuries and today, Brits enjoy around 100 million cups of tea per day. Fuelled by health-conscious millennials and Gen Z, functional teas now come in ready-to-drink (RTD) bottles, promising exciting flavours and health-promoting benefits, backed by science. Another resurgence is the popularity of loose-leaf tea, satisfying the demand for premium tea and embracing traditional tea-making rituals.
Focus on mental wellbeing
In addition to physical health benefits, consumers are increasingly seeking calming functional drinks as they look to manage stress and maintain emotional and mental wellbeing. 53% of global consumers have taken steps to improve their emotional health in the last year. Stress-reducing beverages include everything from canned CBD-infused drinks, to adaptogen-infused drinks containing ingredients like ashwagandha, ginseng, and reishi mushroom.
No- and low-alcohol innovation
Continuing the trend around physical and mental wellbeing, according to statistics from Mintel, the UK's no- and low-alcohol drinks market was predicted to be worth £380 million by the end of 2024, before growing to as much as £800 million by 2028. In December, UK wine retailer Majestic partnered with no and low-alcohol drinks specialist Club Soda to stock nine products in all 212 Majestic stores, as well as online, following a 600% sales spike in no- and low-alcohol products since 2022. Waitrose’s sales of no- and low-alcohol shot up by nearly 20% in 2024, noting the growing trend for ‘zebra-striping’, where consumers alternate between alcoholic and non-alcoholic drinks to maintain a healthier lifestyle. Some brands continue to push innovative alternatives, such as Botivo, a botanical aperitivo that blends botanicals with aged apple cider vinegar and honey, or Collider, a no-alcohol beer infused with functional mushrooms and botanicals.
Sustainable sourcing
Consumers continue to be mindful of the environmental and social impact of their food and beverage choices, reflected in a growing demand for sustainably sourced ingredients, eco-friendly packaging and ethical business practices.
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