The UK’s cold drinks market is evolving, with a focus on functional ingredients and health benefits. According to NielsenIQ data, the functional drinks market is valued at £100 million in the UK.
Japanese Tea Takes Center Stage
A new Japanese import, hojicha, is gaining popularity in the UK. This tea, originating from the same plant as matcha, offers a mellow, nutty flavor and less caffeine than its counterpart. Hojicha is being featured on matcha bar menus, providing an alternative for those who find matcha’s grassy taste unappealing.
The rise of hojicha coincides with a growing interest in iced coffee and cold brew among younger consumers. Lincoln & York research reveals that 40% of coffee drinkers are not influenced by seasonal changes when it comes to cold coffee consumption.
Health-Focused Drinks on the Rise
Drinks with functional benefits are in high demand. Products promoting energy without caffeine, gut health, and essential vitamins and minerals like zinc and magnesium are gaining traction. This trend is reflected in the success of innovative beverages such as That Green Life UK’s Fermented Scotch Bonnet Ginger Beer, TRASH® superfruit water, and Zingers Turmeric Revive.
As consumers seek healthier options, the market is responding with a range of refreshing choices. Iced lattes made from premium Japanese matcha and hojicha are becoming popular, with products like Nuditea Matcha Powder and Haru Matcha Hokkori Hojicha catering to high-volume service environments.
Catering to Younger Coffee Drinkers
Younger customers show a preference for cold coffee options like iced coffee and cold brew. They are also more likely to purchase coffee throughout the day, not just in the morning.
To appeal to this demographic, businesses can introduce more iced latte options, including those made with Japanese matcha and hojicha. Premium matcha powders, such as Nuditea Matcha Powder and Emma Basic Matcha Premium, are suitable for high-volume service environments and specialty baked goods.
Additionally, educating customers about functional ingredients and traditional manufacturing methods can encourage upgrades and increase margins.
Refreshing Options Abound
The cold drinks market is also seeing an influx of fruity and refreshing options. Nootz Organic Coconut Milk Smoothie, Bush Barn Farm Elderberry and Lemon Cordial, and Folkington’s Cloudy Apple Juice are just a few examples of the diverse range of products available. These offerings provide a unique twist on traditional beverages, appealing to consumers seeking new and exciting flavors.
