Here's a first look at the five narratives transforming our drink choices.

The Beverage Boom: A Strong Pathway for Growth

Over the past year, beverages have transcended their basic role. They’ve become integral to everyday wellness routines. Consumer spending on drinks grew by 4.4%. Notably, non-alcoholic beverages surged by 6.2%, significantly surpassing the modest 2.4% growth in alcohol. This trend is primarily driven by consumers discovering new occasions to enjoy beverages. They’re also spending more per unit, often choosing premium products that enhance everyday experiences.

Brands driving this movement understand modern consumers’ desire for taste, health, and convenience. Probiotic sodas and flavored drink powders aren’t just trendy—they represent a broader cultural embrace of healthier, customized beverages that fit seamlessly into daily life. In fact, prebiotic and probiotic sodas are approaching staple status. They boast a three-year retention rate similar to traditional favorites like pepper & skipper sodas. They significantly outperform other emerging beverage categories such as CBD-infused drinks and non-alcoholic beer, wines, and spirits. Moreover, beverage categories have historically shown resilience during recessionary periods which could signal continued growth moving forward even with economic uncertainty. Advanced retail sales data highlights sustained growth within food & beverage retailers even amid economic downturns, underscoring their essential role in consumers’ everyday lives.

Three-Year Retention Rate

New to Category in the Latest 52 Weeks Ending 5/11/2022 & Post Purchase Between 5/12/2022-5/11/2025

Rm Xm D Three Year Retention Rate

Gen Z: Changing the Game in Beverage Culture

Gen Z, shaped by digital innovation and economic uncertainty, is quietly transforming trends in the beverage industry. This generation is especially drawn to drinks that offer real health benefits alongside unique and compelling flavors. Brands such as Poppi and SunSip (some of the fastest-growing beverage brands within Gen Z) aren’t merely selling beverages. They’re tapping into Gen Z’s cultural pulse, emphasizing wellness, authenticity, and personal expression within their branding. For many brand and retail leaders, the assumption that Gen Z is over alcoholic beverages would reflect this.

But here’s an interesting twist. While Gen Z’s overall alcohol consumption currently trails behind older generations, there is a pathway for growth. Gen Z’s buying patterns, such as spending per drink, closely match those of older generations. The main difference lies in fewer drinking occasions. This is largely due to limited social interactions and spending power at this stage in their lives. It hints at considerable potential growth. As this generation matures, brands will need to ensure they are part of Gen Z’s growing economic influence.

Metric Indexed to Boomers

Latest 12 Months Ending 3/31/2025

4e Jb7 Metric Indexed to Boomers

One area where Gen Z is enthusiastically exploring new alcoholic options includes ready-to-drink cocktails and mixers. These products attract with their convenience, creative flavors, and social appeal. Brands and retailers should consider innovating in convenient cocktail experiences for Gen Z. Brands that have tapped into Gen Z’s preferences have seen successful growth. Buzzballz, for example, offers a daring flavor lineup like Chili Mango and Hazelnut Latte in spherical packaging.

Quenching Channel Shifts: Navigating Value, Convenience, and Renewed Mobility

Economic uncertainty has made value a central focus for many shoppers. It has significantly reshaped where and how they buy beverages. Nearly half of all consumers gravitate toward budget-friendly channels like Dollar and Club stores. They seek to maximize their spending power. Yet simultaneously, a growing segment prioritizes convenience over absolute cost. They willingly pay premium prices for easier shopping experiences online or at Gas & Convenience stores. These two trends coexist because consumer priorities differ depending on context. Shoppers might opt for bulk value when stocking up at Club stores. But they prefer paying extra for immediacy when purchasing on the go or online.

Successful brands are navigating these shifts by customizing their products for each channel. They offer bulk discounts at Club stores, smaller economical packs at Dollar outlets, and convenience-focused premium options online. Retailers like Walmart.com also illustrate this balance perfectly. They blend affordability with the convenience consumers crave. Walmart.com has strategically captured market share. It has become the biggest online retailer, outpacing Amazon for beverages. However, national brands may not see this shift go into their favor. Numerator found that new shoppers to Walmart.com for beverages were more likely to purchase private label over a national brand.

Beverage Dollar Share Within eCommerce

Rolling 12 Months by Year Ending 3/31/2025

Z R Md J Beverage Dollar Share Within Ecommerce

Additionally, consumer traffic is notably rebounding to pre-pandemic levels. This reflects a significant shift back to traditional out-of-home activities and routines. According to Numerator’s data, overall consumer traffic has now fully rebounded past pre-pandemic levels. Notably, 85% of the top 20 beverage share gainers since that time are categories traditionally enjoyed on the go. These include energy drinks, soft drinks, bottled water, and sports drinks. In contrast, only 30% of the bottom 20 categories fall into these out-of-home segments. This indicates a clear trend towards favoring beverages that fit seamlessly into consumers’ renewed mobility and busy lifestyles.

Hydration’s New Wave: Beyond Just Water

Water might seem straightforward, but today’s consumers demand more. In fact, 34% of beverage shoppers plan to drink more tap water in the next year. Another 26% plan to drink more bottled or canned water. Even general merchandise brands have benefited from this shift. Bottle brands like Owala and Stanley have seen significant growth—188% and 99%, respectively—measured by a four-year compound annual growth rate (CAGR).

Driven by health, affordability, and convenience, consumers are enhancing their water intake through beverage enhancers and powders. These have grown significantly in household penetration (+2.2 percentage points vs. 2024) and buy rate (+10%). Brands like Sonic and Jolly Rancher cleverly tap into nostalgia by offering familiar childhood flavors—but with a modern, healthier twist. These zero-sugar alternatives allow consumers to indulge in their favorite tastes from the past. And they do so without compromising current health trends. The result is a comforting yet exciting hydration experience.

The growth in beverage powders and enhancers highlights an undercurrent of broader health trends. New consumers in this category are shifting their spending away from sugary energy drinks and traditional teas. They’re choosing healthier options such as zero-sugar soda and energy variants like Coke Zero, Monster Zero Sugar, Celsius, and probiotic sodas. This transition reflects a clear consumer preference for products that combine functional benefits with healthier ingredient profiles.

Numerator also found that hydration occasions growing in intent for the next year—such as exercise and household chores—are moments when consumers turn to water for hydration over other beverages. Beverage brands have an opportunity to strategically position enhancers and flavored waters around these growing daily activities. They can turn simple hydration into enjoyable, personalized rituals.

Thirst-Driving Occasions Planned To Do More Of

% of Respondents | Showing Top 10 Occasions

K8ctx Thirst Driving Occasions Planned to Do More of

Alcohol Reimagined: Balancing Price and Premium Appeal

Post-pandemic drinking habits have shifted notably. Alcohol’s share of total beverage spend declined from 49% in 2020 to 45% in 2025. It briefly rose to 51% in 2021. This decline is primarily driven by pricing dynamics. Price increases accounted for just a third of the growth in alcoholic beverages since 2020. In contrast, they accounted for over half the growth in non-alcoholic beverages.

Spend Per Unit Indexed to 2020 Levels

Rolling 12 Months by 12 Months Ending 3/31/2025

S Aed W Spend Per Unit Indexed to 2020 Levels

Interestingly, unit sales for alcohol have remained robust. They’ve even outpaced those of non-alcoholic beverages. This highlights a significant opportunity for alcohol brands. By creatively driving premiumization and elevating base pricing, alcohol brands can reignite growth. They can also capture the interest of younger drinkers, especially Millennials and Gen Z. These groups are increasingly attracted to novel and convenient offerings. That includes ready-to-drink cocktails and mixers.

Premiumization efforts in categories like ready-to-drink alcohol, mixers, and ready-to-serve cocktails have gained traction. These formats appeal to younger consumers through convenience, bold flavors, and innovative packaging. However, despite their popularity, they remain too small in overall market share to offset declines in traditional segments like wine, beer, and spirits. That imbalance presents a clear imperative. Growth in alcohol will require a two-pronged approach.

First, brands must continue to hyper-innovate in the RTD and cocktail space. They can experiment with flavor profiles, packaging, and use occasions to scale interest and consumption. These segments already resonate with younger drinkers. But their footprint needs to grow significantly to make an impact. Second, brands should identify which consumer groups within traditional alcohol segments are most receptive to price increases. This includes those drinking during special occasions or who already exhibit high loyalty. Brands should tailor pricing strategies and portfolio mix to reflect their preferences and behaviors. This ensures that pricing gains aren’t just possible—they’re sustainable.

Opportunities for Brands and Retailers:

As these trends take shape, a set of opportunities has emerged. Brands and retailers should consider these as they plan their next moves.

Make Wellness a Daily Ritual: Build beverages that naturally fit into people’s routines. Think easy, health-forward, and maybe even something worth subscribing to.
Adapt to Channel Preferences: Match the format to the moment. Club and Dollar stores might need bulk or budget-friendly packs. Online shoppers expect quick delivery and convenience.
Reconnect with On-the-Go Consumers: Single-serve and portable options aren’t just practical, they’re essential. Brands that show up at gyms, cafes, and drive-thrus stay top-of-mind.
Innovate in Alcohol: Don’t just ride the RTD wave—lead it. Push into bold flavors, new formats, and premium touches. At the same time, understand which traditional alcohol consumers will pay more. Adjust your pricing mix accordingly.

Ultimately, brands that understand these shifting consumer motivations—and can weave them into their product—won’t just keep pace with changing preferences. They’ll shape the future trends of the beverage industry.

If you’d like to better understand how your brand can grow with the evolving beverage landscape, connect with your Numerator account partner or reach out to our team directly.