News

Gen Z consumers are thirsty for variety in beverages

31 May 2022

As Gen Z consumers gain disposable income, they are looking to quench their thirst with beverage brands that are clean, sustainable and socially responsible, according to a report from the global consumer trend forecaster WGSN.

Additionally, the report found that these consumers favour discovering functional drink brands in the digital space as well as drinking less alcohol or abstaining entirely.

The priorities that are driving the choices made by Gen Z consumers when selecting beverage brands are similar to those driving their purchases of food products across the spectrum

 

Gen Z consumers are thirsty for variety in beverages

Alcohol-free stress reduction

One of the major trends is Gen Z consumers' interest in consuming less alcohol. A Berenberg study cited by Insider found that people in their teens and early 20s drank over 20% less per capita than Millennials did at the same age. Another study by YPulse found that in Western Europe, 23% of this cohort never drink and 33% are making a conscious effort to limit the quantity of alcohol they drink. Asia has seen a similar trend with over 80% of younger consumers in China prefer ‘light drinking’, according to NetEase.

This trend away from alcohol begs the question, “What are Gen Z consumers drinking at social gatherings?” According to WGSN, the answer is beverages with ‘psychedelic’ mood-boosting ingredients such as kava, cognitive-enhancing nootropics and CBD infusions.

This trend toward low- and no-alcohol has gained such steam that WGSN is predicting “a boom of alcohol-free shops around the globe.”

Health and wellness are the watchwords

Conventional beverages like soda and sugary drinks are perceived negatively by Gen Z consumers — a 2018 report from Mintel found 50% of Gen Z believed drinking soda specifically is unhealthy. Similarly, the word ‘diet’ has fallen out of favour as its connotation is tied to unhealthy diets and warped body images. Brands have responded by rebranding ‘diet’ options as ‘zero sugar’ such as PepsiCo, Keurig Dr Pepper and Coca-Cola. 

However, hydration remains important to young consumers. Instead of sports drinks and soda, tea has begun to increase in popularity. Similarly, functional beverages that are fortified with electrolytes, vitamins and other functional ingredients are in demand.  

As Gen Z consumers continue to age and become a larger proportion of the consumer base with disposable income, their preferences will continue to influence the evolution of brands, says WGSN.

Related tags

Beverage

Related news

UK High Court allows Oatly to use 'milk' on packaging

UK High Court allows Oatly to use 'milk' on packaging

17 Jan 2024

Oatly has scored a landmark victory in the use of the word milk after the UK High Court ruled against the country’s dairy industry and permitted the term to be used on packaging.

Read more 
Chobani expands drink presence with La Colombe acquisition

Chobani expands drink presence with La Colombe acquisition

16 Jan 2024

Greek yoghurt giant Chobani has purchased US coffee brand La Colombe Coffee Roasters for $900 million, furthering its expansion into beverage categories like coffee, oat milk, creamer and ready-to-drink offerings.

Read more 
PepsiCo to reshape convenient foods portfolio with less sodium and more plant proteins

PepsiCo to reshape convenient foods portfolio with less sodium and more plant proteins

10 Jan 2024

PepsiCo has revealed details of two nutrition goals that look to reduce sodium and boost consumption of legumes, whole grains, and plant-based proteins as part of the multinational’s expanded convenient foods portfolio.

Read more 
Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

Meet the innovative ingredients showcased at Fi Europe’s New Product Zone

3 Jan 2024

The Food Ingredients category at Fi Europe’s New Product Zone featured 19 distinct and innovative products. From fermented delights to sustainable proteins, these ingredients are ready to make their mark in the market.

Read more 
Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

Fi Europe’s New Product Zone elevates the nutrition of everyday indulgences

22 Dec 2023

At Fi Europe 2023's New Product Zone, eight health ingredients, each offering an enhanced nutritional profile of various products, were on display. These ingredients address the evolving needs of the food and beverage industry and cater to consumers se...

Read more 
MyAir plans to expand personalised adaptogen products to UK

MyAir plans to expand personalised adaptogen products to UK

15 Dec 2023

After launches in Japan and the US, B2B personalised nutrition company MyAir is eyeing the UK market with its white-label functional food and drink products. “Taste is a must – but it's not enough,” says its CEO. “Food has become functional and persona...

Read more 
Augmented technology is the gateway to new food experiences

Augmented technology is the gateway to new food experiences

13 Dec 2023

Harnessing augmented reality as a digital tool could offer consumers increasingly personalised food and beverage experiences, opening up new ways to see and taste products, according to a report by Canvas8 and Givaudan.

Read more 
Colombia introduces tax on ultra-processed foods

Colombia introduces tax on ultra-processed foods

7 Dec 2023

In a bid to curb rates of obesity and other non-communicable disease, the Colombian government has introduced a tax on various ultra-processed food (UPF) and drink products.

Read more 
Snack trends, ingredient claims, and plant-based perceptions: Highlights from Fi Europe 2023, part 1

Snack trends, ingredient claims, and plant-based perceptions: Highlights from Fi Europe 2023, part 1

7 Dec 2023

Value-led snacking, sustainability storytelling, and the importance of having a ‘star ingredient’: we asked consumer analysts and market experts at Fi Europe about the trends and innovations that are shaping the food industry.

Read more 
Consumers want more plant-based meat without GM ingredients

Consumers want more plant-based meat without GM ingredients

28 Nov 2023

Plant-based meat has been a hot and popular category for several years, but not all North American shoppers are embracing vegetarian alternatives that contain genetically modified (GM) ingredients, according to the Non-GMO Project.

Read more