Coco craziness, matcha mania and the homegrown spirits shaking up Australia
Australians are going coconuts for coconut water, mad for matcha and getting behind homegrown artisanal spirits as we head into 2026.
The functional drinks trend has seen a boom in coconut water down under and Tik Tok is sending matcha sales through the roof, creating new markets for small businesses including Brisbane-based Sip Coco and Origin Tea, and with positive flow on effects for local cafes and hospitality venues still struggling amid rising cost of living pressures.
Here are three beverage trends flowing into the new year.
Coco craziness
It seems Australians are going coconuts for coconut water. Move over kombucha, it is now coconut water that is being ordered as a hydrating alternative at cafes, added to smoothies at home, sipped as a non-alc alternative at summer soirees and downed at gyms, yoga studios, café raves and run clubs.
Proving how much demand there is, a new coconut water – Sip Coco – launched in Australia last year and quickly sold tens of thousands of units, racking up more than $1 million in sales in its first six months on the market.
There was such high demand for the new, natural, no-fuss coconut water that popular flavours such as pineapple and chocolate sold out as more than 500 cafes and retail outlets around Australia stocked the colourful cans.
Sip Coco comes in a rainbow of refreshing flavours including passionfruit, ginger, watermelon, lychee, pineapple, the original teal-coloured 100% pure coconut water, and a new chocolate flavour which tastes like a liquid lamington and is perfect for Australia Day sips.
Sip Coco Marketing Director Tayla Dodd said coconut water is the taste of summer.
“After a bumper launch in 2025, we have seen even bigger demand for Sip Coco in the summer months. We’re expecting to sell double the number of cans in January and February as we sold in the last six months of 2025. It’s looking like a long, hot summer and coconut water is one of the most refreshing and hydrating drinks you can consume. Sip Coco contains five natural electrolytes – sodium, potassium, magnesium, calcium and phosphorus – and has no added sugar, offering a natural, rehydrating coconut hit that also looks and tastes good.” 
Matcha mania
There’s no doubt 2025 was the year of matcha. Creamy and colourful strawberry matcha drinks went from a viral sensation on TikTok to a new café staple alongside past trend-cum-regulars such as chai latte and cold drip coffee.
Off the back of the matcha trend, Australian company Origin Tea had a massive year, with matcha spreading to more cafes throughout Australia and sales spiking in response to the growing demand.
The tea company imports high grade matcha from the Shizuoka region in Japan to make its matcha products including Matcha Chai Latte.
To cater to rising demand for matcha drinks, Origin Tea launched two new matcha products in 2025 - Organic Matcha and Matcha Latte.
Origin Tea matcha sales grew a third (33%) from 2024-25 and stockists increased by 26 per cent as Australians increasingly sought out matcha products to satisfy their green cravings at home and in cafes.
“With matcha now a common order in cafes and our taste buds craving the unique flavour of the Japanese tea, Origin Tea is launching its matcha in Woolworths from March making it more readily available to enjoy at home in between café visits,” Origin Tea CEO Chris Seaton said.
“While the Christmas coloured hues of strawberry matcha will undoubtedly continue to be sipped into the new year, expect to see matcha incorporated into other drinks as we hit peak matcha frenzy in 2026. Cafes and at-home connoisseurs are whipping up matcha cold foam, a sweet frothy green topping made with matcha powder, and adding it to desserts and drinks from coffee to coconut water to add a burst of colour, flavour and fluffy cloud-like texture.
“The matcha craze is creating a fantastic flow-on effect in local cafes, creating a new revenue stream as punters lap up matcha in all its forms. Packed with antioxidants and essential nutrients, matcha drinks are a healthy option and an appealing coffee alternative at any time of the day.”
Aussie spirit
While orange liqueur is a billion-dollar business for Cointreau, a small Australian distillery has begun crafting a distinctly Australian version made with sun-ripened Valencia oranges grown in the orchards of the Central Coast hinterland.
In response to demand from Australians who are increasingly turning their attention to homegrown products and seeking out local alternatives with a more artisanal approach, globally award-winning distillery Distillery Botanica launched its first triple sec.
With a bounty of vibrant citrus available on his doorstep, master distiller Philip Moore wanted to craft a fresh, flavourful Australian alternative to other orange liqueurs on the market.
His triple sec Valencia liqueur is bursting with zesty, aromatic flavour which perfectly balances the lime and tequila in a margarita, compliments the cranberry and lime juice in a cosmopolitan, and adds a hint of marmalade to a breakfast martini.
The small-batch homegrown triple sec tastes like sunshine in a glass and can be enjoyed neat, over ice, or for the latest refreshing summer spritz, with a dash of prosecco and soda water, topped with a slice of Valencia orange.
Priced from $59, the 500ml bottle of triple sec is now available to taste and buy at Distillery Botanica, which is located at the site formerly known as The Fragrant Garden in Erina on New South Wales’ Central Coast. 
