Decaf Coffee Sales Surge as Consumers Rethink Caffeine

By Nathan Brooks

Ready-to-drink decaf coffee sales rose 25.7% over the past year, according to Spins data, nearly five times the 5.3% gain for decaf beans and grounds. Spins also found decaf growing faster than coffee in most categories. Unit sales fell, which Scott Dicker attributed to pricing; regular coffee showed a similar slowdown.

Dicker sees caffeine as the next likely target as consumers moderate alcohol and prioritize health. “People have been cutting back on alcohol for years now. I always figured caffeine would be next,” said Dicker, senior director and head of market research for data company Spins. “Alcohol is the nighttime vice, and caffeine [is] the daytime one.”

Dicker linked decaf and functional beverages to “conscious consumption”: shoppers read labels, understand ingredients and consider what they do. Functional products add options such as paraxanthine and L-theanine. The rise of wearable technology such as smart watches and rings has also made consumers more aware of sleep patterns and how intake affects them, Dicker said.

More people, Dicker said, are shifting their caffeine intake without abandoning it. Substitution, not abstinence.

“If you ask someone how much caffeine they consume, you’ll often get a somewhat sheepish response,” Daniel Solomons, co-founder of better-for-you energy drink Update, wrote in an email. “People know they may be consuming more than they want, or they’re actively trying to cut back, but they still need the utility that energy provides.”

Update uses paraxanthine, a caffeine derivative without the crash associated with caffeine, as its point of difference from other energy drinks, according to the brand.

Decaf Moves Beyond the Afterthought

Dicker described decaf as a small coffee segment becoming more mainstream. Adriana Gindelsberger, co-founder of Lowkey Coffee, noticed the shift and created Lowkey earlier this year to meet it. The company wants to stand apart from coffee makers that offer decaf only as a secondary option.

Lowkey offers decaffeinated ready-to-drink cold brews in black and vanilla flavors, both unsweetened. Gindelsberger said the brand fills a gap in premium decaf by offering a modern ready-to-drink format.

Decaf is often an “afterthought” in bigger coffee companies’ SKU lineup, with a lack of modern formats available for these brews, Gindelsberger said.

“Decaf’s been, no pun intended, a sleepy corner of the category,” Gindelsberger said. “Now it’s really starting to stand up as its own growth category and opportunity. It’s a lot less niche than it’s historically been viewed.”

Lowkey also uses the Swiss water process, described as a chemical-free method of decaffeinating coffee beans. That method gives the brand another point of separation in a category where Gindelsberger sees established players trailing smaller formats.

Dicker said decaf can appeal to drinkers who want more coffee but not another cup of caffeine. The challenge is the routine: “Within the energy market, both coffee and energy drinks, their beverage is so tied to people’s routines,” he said.

“Your day probably feels a little weird if you don’t have your morning cup of coffee, and so [in order] for decaf to fit in, or a lower caffeinated product to fit in, you have to find the day part.”

Alternative Energy Moves Beyond the Quick Hit

Despite trying to cut back, consumers still want beverages that support productivity, focus and energy, Solomons said. He sees Update as a cleaner version of a traditional caffeine product and a science-backed drink that selects ingredients for how they react with the body.

Update launched in 2022 and relaunched in 2026. The company recently brought on Kim Kardashian as a cofounder.

Longer-established brands Pure Leaf and Folgers Coffee have added L-theanine to promote a different kind of energy boost. Within the functional-ingredient framework Solomons described, L-theanine is an amino acid found in tea leaves that promotes serotonin and dopamine and affects the brain’s neurotransmitters to regulate mood, stress and focus.

Paraxanthine, Update’s alternative to conventional caffeine, is caffeine’s natural metabolite. It is reported to cause fewer jitters and leave the consumer’s system faster than caffeine, Solomons said.

“The majority of energy drinks are fundamentally caffeine plus sweetener, with varying functional ingredients layered in,” Solomons said. “We make sure our functional ingredients are included at research-backed doses and work with leading ingredient and formulation experts.”

Solomons thinks this gives the industry room to broaden the definition of energy. “The consumer we think about is the intentional do-er: someone who makes considered choices, optimizes for sustained performance rather than a quick hit, and expects the tools they use to match those standards,” he said.

What Does This Change for Beverage Makers?

Dicker said decaf and other alternatives are unlikely to overtake the mainstream. Their rapid growth could still open opportunities for beverage makers in a mature energy-drink market dominated by Celsius and Monster.

• Coffee makers: Gindelsberger says larger-company decaf offerings lack modern formats. Lowkey is betting on an all-decaf range, unsweetened black and vanilla cold brews, and Swiss water-processed beans.
• Energy brands: Pure Leaf and Folgers Coffee have added L-theanine; Update relaunched in 2026, uses paraxanthine and recently added Kim Kardashian as a cofounder.

What changes is the route to growth, not the likely end state: decaf and functional formulations must earn a place in established routines. Dicker sees opportunity, not takeover. The 25.7% ready-to-drink gain gives beverage makers a reason to test that proposition.