The out-of-home hot beverage market is seeing explosive growth, and a major factor driving this surge is the increasing health consciousness of Gen Z. The younger generation is reshaping the way we consume beverages, particularly hot drinks, in public settings.
More than ever, consumers are seeking beverages that not only taste great but also offer tangible health benefits. In this shifting landscape, suppliers and cafes are adapting to cater to these new preferences.
The Rise of Health-Conscious Hot Drinks in Public Spaces
Consumers in the out-of-home hot beverage market are no longer just looking for a quick caffeine fix. According to the Hot Beverage Report 2024/2025, 78% of consumers regularly drink tea, coffee, or hot chocolate in out-of-home settings, with iced tea and coffee also making a splash.
This represents a +2pp increase from 2023. While traditional favorites like coffee and tea remain staples, there is a noticeable shift in why people are choosing these drinks.
Nearly one in five consumers want more transparency about where their ingredients are sourced from. It is a clear indicator that sustainability and health go hand-in-hand. These buyers are not just looking to wake up. They are seeking options that support relaxation, concentration, and even better sleep.
Consumers Demand More From the Out-of-Home Hot Beverage Market
As the out-of-home hot beverage market grows, it is becoming clear that consumers are not just thirsty for traditional tea and coffee anymore. They are increasingly drawn to beverages that promote wellness. The Hot Beverage Report reveals that more than half of consumers are interested in drinks that help them relax and de-stress.
On top of that, nearly a third are looking for options that improve concentration and focus. These trends indicate that mental and physical well-being is becoming just as important as the flavor of the drink itself.
Brands and suppliers that can tap into these desires by offering beverages with added functional benefits are set to thrive. Drinks with adaptogens, herbal infusions, and functional mushrooms are becoming mainstream, especially among younger consumers.
Mental and Physical Health are the New Standards
Gone are the days when the out-of-home hot beverage market was dominated by the standard offerings of coffee, tea, and the occasional hot chocolate. Today, consumers – especially Gen Z – are seeking drinks that promote a sense of well-being.
A significant proportion of the population now views hot drinks as more than just a source of caffeine. They are seen as an integral part of their mental and physical health routine.
As stress levels rise and people become more aware of the impacts of poor sleep, the demand for calming, health-boosting drinks is on the rise. With Gen Z at the helm, this trend is expected to grow even further.
You bet! The writing is on the wall for suppliers and operators in the out-of-home hot beverage market: Adapt or fall behind. The surge in demand for health-conscious beverages means suppliers need to rethink their offerings.
So, a focus on sustainability, ingredient transparency, and functional benefits is no longer just a “nice-to-have.” It is essential. With more than 18% of consumers looking for beverages that support relaxation and concentration, operators need to align their menus with these desires.