From Brewery to Cannery: 5 Beverages Your Menu Needs to Stay Competitive
Breweries can meet shifting functional and flavor trends by adding these 5 beverage formats to their menu. From clean label...
Gen Z is the most diverse, tech savvy generation of Americans yet, and their purchasing power and behaviors are having a profound impact on the beverage industry.
Their decreased interest in alcohol recently contributed to the lowest percentage of Americans who consume alcohol (54%) in the almost 90-years of Gallup polling.¹ However, with a large portion of Gen Z consumers still under the legal drinking age, this is hardly their only influence.
From viral hop waters and negroni-inspired mocktails with maximum aesthetic appeal to convenient RTDs that put the “fun” in functional, Gen Z consumers are blurring beverage formats and shaking things up in a great way.
Mintel explains “This shift presents a valuable opportunity for brands to rethink their product positioning, marketing strategies, and new product development to better align with evolving consumer behaviors.”²
So, what formats will find a home with Gen Z? Which flavors are “cringe” and which ones inspire obsession? Read on and learn more about this increasingly influential demographic, what motivates them, and what beverage flavors inspire their purchases.
In addition to drinking significantly less alcohol, Gen Z also tends to shy away from traditional hot beverages, unflavored staple drinks, and formats with minimal innovation.
Younger generations don’t seem to have developed the same beverage habits that older generations have regarding formats like coffee, carbonated soft drinks, milk, or tea. According to Mintel, “Younger consumers reach for their morning coffee less often than older generations. This shift may stem from their preference for colder beverages, or their willingness to break routines.”
Unsurprisingly, they’re also less likely to opt for drinks in basic forms when they can get flavored options or additional functional benefits. That includes things like plain coffee or even carbonated soft drinks (CSDs). For example, while 65% of Gen X and Baby Boomers reported purchasing CSDs, only 46% of Gen Z reported buying soda.
They’re also less likely to purchase plain dairy milk and unflavored versions of staple beverages like plain bottled water. Does that mean these beverage categories are on the way out? Not necessarily.
It’s important to understand that Gen Z isn’t completely ditching traditional beverages like coffee or milk. They’re interacting with traditional categories in new ways.
Instead of a hot coffee, they want cold RTD drinks with exciting flavors they can enjoy outside of “morning cup of joe” rituals. They may not reach for full dairy milk products, but they may still opt for a dairy cold foam on their iced coffee.
Even their relationship with caffeine is different. They’re not drinking less caffeine, they’re exploring a wider variety of formats. Compared to older generations, Gen Z is more mindful of caffeine consumption and often selects lighter drinks for their morning energy boost like tea or sports drinks.
However, they also enjoy a variety of caffeine levels, which has many interested in energy drinks with both low and high levels of caffeine.³ This willingness to experiment combined with their reduced alcohol consumption has many Gen Z consumers swapping alcohol for energy drinks during social and nightlight settings.
One of the biggest influences brands can’t afford to ignore is social media. According to the Rubix Foods NEXT Flavor Report: Feeding Gen Z’s Cravings:⁴
Social media isn’t just presenting them with products, though. It’s also encouraging experimentation and customization.
For example, viral TikTok trends like the sleepy girl mocktail⁵ had thousands of consumers mixing together tart cherry juice, magnesium powder, and a splash of seltzer in the hopes of achieving a better night’s sleep. In response, wellness brands like Blume⁶ and Moon Juice⁷ quickly published their own recipes showing how their products fit into this trend.
Clearly, Gen Z is willing to experiment. For brands, this shift away from traditional beverages and behaviors might feel challenging, but it’s also an opportunity to innovate, adapt, and rethink beverages so they appeal to Gen Z across occasions.
Mintel categorizes Gen Z as “innovative explorers” with a strong curiosity for new formats and benefits. As such, they purchase a variety of formats, often leaning toward convenient, functional beverages with innovative flavors.
When asked what types of non alcoholic beverages Gen Z consumers had purchased in the last three months, 70% reported purchasing functional beverages. Additionally, 54% purchased juice or juice drinks, 48% purchased energy drinks, 45% sports drinks, and 29% purchased plant-based drinks.
Also, compared to older generations, Gen Z consumers are significantly more likely to explore drinks with functional ingredients like vitamins, minerals, protein, and fruits or vegetables.⁸ While all of this might point to hyper-healthy RTD drinks as the winner for this generation, don’t discount their willingness to try new products.
The State of Beverages 2025 Trend Report from Keurig Dr Pepper found 72% of Gen Z respondents reported trying a new drink each month with 59% of those purchases being driven by new flavors. “Younger consumers are driving a wave of beverage curiosity, fueled by a desire for variety, bold flavors and cultural relevance. For Gen Z in particular, drinks aren’t just about taste – they’re a form of self-expression.”⁹
This is reflected in the growing popularity of beverage customization trends like “dirty sodas” or premium at-home coffee products. Things like sweeteners, creamers, fruit add-ins, boba pearls, and syrups let consumers express their personal style, culture, interests, etc.
So, what does this mean for beverage manufacturers? At the end of the day, it’s less about the format and more about making sure your beverages fit their need for convenience, function, and bold flavors.
When it comes to flavor trends, Gen Z consumers can move at lightspeed. Social media has a massive impact on these shoppers, and what was popular one day might not hold their interest in a few months. That being said, there are several broad flavor categories that seem to be sticking.
COMPLEX HEAT
Simply making something spicy isn’t enough, and Gen Z consumers want a spice level that complements well-rounded flavor profiles. The NEXT Flavor Report found that “Gen Z loves to watch (and participate in) social media-inspired hot sauce challenges but, for the most part, they care more about fire flavor… not literal fire” with 74% of respondents preferring a mild or medium spice flavor.
Flavors and ingredients that resonate with Gen Z consumers include Nashville hot, carolina reaper, chili lime, gochujang, sriracha, tajin, and more. The swicy trend (sweet + spicy) is also in full swing, with flavors like peach habanero, jalapeno watermelon, and chili mango.
FRUIT FUSIONS
When it comes to sweets, it’s all about fruit fusions that combine familiar and exotic fruits driven by their interest in novelty and experimentation. Rubix Foods found that 65% of Gen Z respondents loved or liked dragonfruit, 62% loved/liked guava, and 64% loved/liked passionfruit.
These can be wellness-focused, but that’s not always the main motivation. You will, however, get serious bonus points if you can give these fusions a globally-inspired twist.
GLOBALLY-INSPIRED FLAVORS
As digital natives, Gen Z consumers have been exposed to a variety of international flavors and cuisines from a very young age. As a result, they’re more interested in experimenting with flavors from around the world.
This is an excellent opportunity to combine several flavor trends. For example, pairing Korean gochujang with sweet fruits could create a novel fruit fusion that’s “swicy,” while combining Japanese yuzu with matcha and lychee creates a dynamic tart, tropical blend with mild herbal notes and a light level of caffeine.
BOTANICALS & FLORALS
Speaking of herbal notes, Gen Z shoppers are also interested in beverages infused with floral and botanical flavors. Think florals like lavender, hibiscus, and rose as well as herbs and spices like basil, thyme, turmeric, and ginger. This trend is driven by a growing interest for functional ingredients in BFY (better for you) beverages.
Shannon O’Shields, vice president of marketing at Rubix Foods, Jacksonville, Fla told Beverage Industry, “Our research shows that Gen Z is the driving force behind this growth, with 67% reporting that they want to see more botanical flavors infused into food and beverages….”¹⁰
CLASSIC FLAVORS WITH A TWIST
While much of Gen Z flavor preferences seem to favor novel flavor experiences, some younger consumers appreciate classic or retro flavors… with a twist.
Just look at the surprising collaboration between HEINZ and Smoothie King. “The HEINZ Tomato Ketchup Smoothie blends sweet acai sorbet, apple juice, strawberries and tart raspberries with the taste of HEINZ Simply Ketchup, which is all-natural and made with red ripe tomatoes full of vitamins and antioxidants.”¹¹
Brand collaborations with unconventional flavor mashups are provocative and capture the interest of Gen Z consumers who appreciate familiarity with a surprise. The same goes for retro or dessert-inspired flavors in unexpected formats. Think RTD coffees with flavors like Tiramisu or Red Velvet Cake, CSDs in flavors like cotton candy, RTD teas infused with pickles and lemonade, or “swalty” (sweet and salty) energy drinks that taste like salted caramel.
At Abstrax, we provide novel solutions for beverage manufacturers of all sizes looking to streamline, innovate, and gain a competitive edge. With our knowledge, technology, and extensive resources, we’ve crafted our collections to provide recognizable flavors and aromas that consumers love.
Saad, L. (2025, August 13). U.S. Drinking Rate at New Low as Alcohol Concerns Surge. Gallup.com. https://news.gallup.com/poll/693362/drinking-rate-new-low-alcohol-concerns-surge.aspx
Mills, Julia. (2025, June 30). Non-Alcoholic Beverages Occasions – US – 2025. [Market Report]. Mintel. https://www.mintel.com/
A Mintel Analyst, Global Analyst. (2025, April 01). Energy Drinks – US – 2025. [Market Report]. Mintel. https://www.mintel.com/
Flipsnack. (2024, November). The NEXT Flavor Report: Feeding Gen Z’s Cravings. https://www.flipsnack.com/A5898977C6F/the-next-flavor-report/full-view.html
Steinhilber, B. (2025, July 31). Can the ‘Sleepy Girl Mocktail’ Really Help You Fall Asleep Faster? Here’s How to Try It. TODAY.com. https://www.today.com/health/diet-fitness/sleepy-girl-mocktail-rcna81975
Blume. (2024, September 26). Sleepy Girl Mocktail. Blume. https://itsblume.com/en-us/blogs/recipes/sleepy-girl-mocktail?srsltid=AfmBOooBFjYPBqUJ7b3RRxjO0HHVKWyr7XvrdLg8Bf2Sz_GN2LvnrnpQ
Sleepy GirlTM Mocktail. Moon Juice. (n.d.). https://moonjuice.com/blogs/recipes/sleepy-girl?srsltid=AfmBOoqfhy_yobZ5W24N5YeTlLl_qusrHmxzGuMEEjTW1TNl6kyQHsUO
Mintel Global Analyst. (2024, June 30). Functional Drinks - US - 2024. [Market Report]. Mintel. https://www.mintel.com/
State of Beverages 2025 Trend Report. Keurig Dr Pepper. (n.d.). https://www.keurigdrpepper.com/state-of-beverages/
Sabetta, L. (Sept). Wholesomeness at Its Core: Botanical, Adaptogens Help Beverage-Makers Meet Health and Wellness Goals. Ingredient spotlight. https://digitaledition.bevindustry.com/september-2025/ingredient-spotlight/?utm_medium=emailsend&utm_source=DG-BI-Beverage%2BIndustry%2BComplimentary&utm_content=BNPCD250904076_01&oly_enc_id=3202I4313167F5B
Sabetta, L. (Sept). The Ultimate Union. Between Drinks. https://digitaledition.bevindustry.com/september-2025/between-drinks/?utm_medium=emailsend&utm_source=DG-BI-Beverage%2BIndustry%2BComplimentary&utm_content=BNPCD250904076_01&oly_enc_id=3202I4313167F5B