Emotional well-being plays a central role in sustaining these rituals. In fact, 72% of consumers say moments of indulgence for self-care are important. These beverages act as accessible luxuries and affordable rituals that help structure the day and provide stability.

Premium signals matter more than before

Although consumers are more cautious about spending, they are also more intentional. Quality cues have become increasingly influential in purchase decisions.

FMCG Gurus’ insights show that factors such as 100% natural production and environmentally friendly production methods strongly signal premium quality. Even in a cost-conscious climate, consumers are willing to invest in products that communicate authenticity, craftsmanship and elevated taste experiences.

Premiumization in tea and coffee is no longer solely about price point, it is about perceived value and transparency.

Functional benefits drive new consumption habits

Health-conscious behaviors are increasingly shaping beverage choices. Around 40% of global consumers say they take a proactive approach to health, indicating demand for solutions that integrate seamlessly into daily routines.

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This is fueling interest in functional ingredients, particularly botanicals. Forty-one percent of global consumers say botanicals would encourage them to increase their consumption of beverages. Energy, digestion and skin health are among the strongest associations with these ingredients, positioning tea and coffee as ideal products for functional innovation.

The category is evolving from simple refreshment to purposeful consumption.

Taste remains non-negotiable

Although wellness claims are gaining traction, flavor continues to be a decisive factor. Seventy-two percent of global consumers say flavor is important when choosing food and drink. At the same time, 74% are unsure or unhappy about accepting less tasty products even if they offer health benefits. This indicates a clear challenge for brands. Functionality cannot come at the expense of enjoyment.

Opportunities also lie in flavor exploration. Fifty-eight percent of consumers say tea could improve on flavor variety, while 51% say the same for coffee. Innovation must therefore balance health positioning with bold, differentiated taste profiles to appeal to consumers.

At-home cafe rituals

Rising living costs are reshaping consumption contexts. Sixty percent of global consumers are concerned about rising living costs, prompting many to reduce cafe visits, rely more heavily on promotions, or recreate cafe-style experiences at home.

These at-home moments are increasingly associated with mood enhancement, self-care, and social connection. Notably, 19% of consumers plan to improve mood health by spending more time with friends and family, reinforcing the emotional value of shared beverage occasions. As a result, brands have opportunities to elevate in-home formats with premium blends, indulgent flavor combinations, and cafe-inspired solutions.

A category in transition

Coffee and tea remain essential to daily routines, what is changing are the expectations surrounding them. Consumers now seek comfort, credible quality, functional benefits, and value in equal importance.

Brands that successfully combine elevated taste, wellness support, authenticity, and affordability will be well positioned to capture growth in this evolving market.

This article is based on FMCG Gurus’ Trend Report titled: Tea & Coffee: Functional, Flavor, and At-Home Occasions.