Consumers are demanding more out of their favorite pick-me-ups, as younger consumers turn to cold coffees infused with medicinal mushrooms for a functional lift and tea refreshers for caffeine moderation and immune support.
A third of consumers (34%) are demanding functional beverages, according to a survey of 1,000 consumers as part of Westrock Coffee’s Q1 2025 The Blend report.
Gen Z consumers are leading the charge for functional benefits, with 38% and 35% wanting coffee with cognitive/mood-boosting and relaxation/stress relief benefits, respectively, Westrock stated.
Also, 20% of Gen Z consumers were interested in hydration and immune support coffees each, while 17% wanted digestive and gut-health drinks, Westrock added.
Cold coffees embrace functionality
Gen Z consumers grew up with cold coffee - whether that be Starbucks Frappuccinos or cold brew - Melissa Mackay, SVP of marketing and insight at Westrock Coffee, explained.
The US refrigerated ready-to-drink (RTD) tea and coffee category reached $1.3 billion in sales for the year ending Nov. 3, growing 6.5% in dollars and 4.6% in units, according to Spins MULO data.
Medicinal mushrooms lion’s mane and chaga are disproportionately showing up in cold coffees and teas over hot coffee, Mackay explained.
For instance, US coffee startup Pop & Bottle offers ready-to-drink canned coffees with reishi and lion’s mane for mood-boosting benefits and collagen for skin and gut health, she added.
However, functional mushrooms are still finding their way into hot coffees. Medicinal mushroom coffee pioneer Four Sigmatic released a half-caffeine coffee with a 50-50 blend of lion’s mane and Arabica coffee and various other mushroom-infused cocoas and coffees at Natural Products Expo West.
Teas for caffeine moderation and immunity support
Teas are embracing functionality beyond energy and alertness, including 45% of shoppers who want immune support teas, according to Westrock data.
Consumers are demanding specific tea ingredients, like 6%, 43% and 32% of consumers who want B vitamins, antioxidants and probiotics from their tea refreshers, respectively, per Datassential insight cited in the Westrock report.
Younger consumers are drinking tea instead of coffee to lower their caffeine consumption later in the day, turning to flavorful and functional refreshers, Mackay explained.
“There might be boba or additives in it that are still fun, but it is not the jolt of caffeine that you would get if you had your traditional coffee or your latte-based coffee drink,” she elaborated.
Do Gen Z and Boomers want the same thing from coffee?
Gen Z and Boomer consumers are aligned closely with the functional properties that they want to see in coffee. More than a third (37%) of Boomers are interested in cognitive and mental focus coffees, and 34% want coffees with relaxation and stress relief benefits – just a percentage lower than Gen Z consumers.
Despite wanting the same benefits from coffee, Gen Z and Boomer shoppers differ on how they achieve that benefit.
For instance, a Boomer might enjoy a traditional coffee beverage in the morning as part of their morning ritual, which provides stress relief, Mackay explained. However, younger consumers might turn to a functional mushroom-infused coffee to achieve the same stress relief, she noted.
“We did learn that the stress relief comes in a couple of different ways, not just the function of the beverage, but how the habit makes you feel,” Mackay elaborated.
