The beverage industry is undergoing a seismic shift, and leading the charge is Generation Z. With a strong preference for wellness, personalization, and functional benefits, Gen Z consumers are transforming how and why we drink. According to Keurig Dr Pepper’s inaugural State of Beverages 2025 Trend Report, younger consumers are pushing beverage companies to evolve beyond traditional hydration and flavor.
The report highlights a major shift in consumer behavior, drinks are no longer just about quenching thirst. Gen Z is seeking beverages that support both physical and mental well-being. A staggering 82% of respondents say their favorite drinks help restore their mental health, while two-thirds prioritize beverages that improve their physical condition. Additionally, 59% are actively looking for drinks that fulfill daily nutritional needs.
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This growing demand has led to a rise in functional beverages fortified with protein, fiber, prebiotics, probiotics, and reduced sugar content. Keurig Dr Pepper noted that 60% of their product portfolio now includes options with positive hydration benefits, such as fruit-based ingredients with no added sugar and nutrient-rich low-calorie drinks.
Coffee remains the daily essential for many Americans. In fact, 62% say their day doesn’t begin without it. But Gen Z is shifting how this ritual is enjoyed. More than half of Gen Z consumers (53%) prefer their coffee cold—a higher rate than any previous generation.
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This change in preference is sparking innovation. Brands are developing ready-to-drink (RTD) cold brews and protein-infused lattes to meet demand. From Throne Sport Coffee to Califia Farms’ protein latte, the market is seeing a flood of functional, on-the-go coffee options tailored for health-focused, younger audiences.
Alongside health consciousness, the trend of “sober curiosity” is growing. With nearly half of Americans aiming to reduce alcohol consumption, only 39% now choose alcohol as their go-to social drink. Instead, they’re leaning into flavorful, premium beverages that offer the same social satisfaction without the downsides of booze.
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Moreover, consumers especially Gen Z are willing to pay more for beverages that feel premium. Nearly 46% value drinks with high-quality ingredients, and 42% associate premium products with aesthetic, well-designed packaging.
Beverage consumption is closely tied to emotional and situational needs. Whether it’s to unwind, feel energized, or indulge in a personal moment, drinks serve as emotional anchors. Functional beverages are popular during solo moments, while more indulgent or flavorful drinks are favored in social settings.
Younger generations aren't just drinking, they’re exploring. On average, 44% of consumers try a new beverage every month. Among Gen Z, that number jumps to 72%. Flavor variety is a key motivator, with 59% saying they’re drawn to drinks with unique or bold flavor profiles.
Customization is another hallmark of this shift. About 75% of Gen Z and millennials add syrups, sweeteners, purees, or creamers to personalize their drinks—using beverages as an extension of their identity and mood.
Gen Z isn’t just influencing beverage trends, they’re transforming them. With a focus on health, personalization, and emotional connection, they’re driving innovation and setting new expectations for what a drink should do. For beverage brands, the message is clear: evolve or get left behind.
