CHICAGO — The beverage industry is undergoing a cultural shift, with wellness priorities, changing shopping patterns, and generational preferences redefining how and where consumers drink. Numerator’s new Beverage Behaviors Report spotlights five key narratives shaping growth across alcoholic and non-alcoholic categories.
Wellness-Driven Growth
Overall beverage spend rose 4.4% in the past year, led by a 6.2% surge in non-alcoholic beverages compared to just 2.4% growth in alcohol. Consumers are embracing functional, premium products, such as probiotic sodas and flavored drink powders, that fit seamlessly into their daily routines. With a three-year retention rate rivaling that of legacy soda brands, functional beverages are transitioning from a trend to a staple status.
Gen Z’s Selective Drinking Habits
Gen Z’s alcohol consumption trails older generations, but their spending per drink is comparable, signaling long-term potential. This generation gravitates toward wellness-forward brands, such as Poppi and SunSip, and shows strong interest in ready-to-drink (RTD) cocktails. Flavor-forward, convenient offerings like Buzzballz’s Chili Mango are resonating with this audience.
Shifting Retail Channels
Nearly half of shoppers now lean toward value channels like Dollar and Club stores, while others are willing to pay for convenience in e-commerce and convenience stores. Walmart.com has emerged as the top online retailer of beverages, surpassing Amazon; however, new online beverage buyers are often choosing private labels over national brands.
Hydration Gets a Makeover
Consumers are increasing their water consumption, with both tap and bottled water experiencing growth. Refillable bottle brands Owala and Stanley have posted triple-digit growth rates, while beverage enhancers and powders are reshaping the hydration category. Zero-sugar nostalgia flavors, such as those found in Sonic and Jolly Rancher powders, are drawing consumers away from sugary drinks toward healthier options.
Alcohol’s Premiumization Push
Alcohol’s share of total beverage spend has dropped from 49% in 2020 to 45% in 2025. Despite solid unit sales, premiumization is key to reigniting growth. RTD cocktails and mixers offer a path forward, but traditional alcohol segments will need targeted pricing and innovation to offset category declines.
Opportunities for Brands and Retailers according to Numerator:
- 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 appear in gyms, cafes, and drive-thrus stay top-of-mind.
- Innovate in Alcohol: Don’t just ride the RTD wave—lead it. Embrace bold flavors, innovative formats, and premium touches. At the same time, understand which traditional alcohol consumers will pay more. Adjust your pricing mix accordingly.
