Beverage Innovation, Sales Continue Upward Trend
The beverage category has seen strong momentum in recent years, and innovation is leading the charge. Today’s consumers are looking to beverage manufacturers to offer much more than something to accompany a meal or snack or satisfy a craving, according to recent research by Chicago-based market research firm Circana.
Growth has been reported across several retail and foodservice beverage categories, including non-alcoholic and alcoholic segments. The market for total “sips” rose to $490 billion in sales in 2025, according to the firm’s research, with an average compounded growth rate of 3%. What’s more, beverages currently comprise six of the top 20 growth categories in the retail sector.
Executives at Circana presented sharings during a webinar titled, “Share of Sip: Mapping the Beverage Evolution.” In it, a broad range of trends were highlighted that will impact brands, retailers and foodservice operators now and in the future.
The study revealed that sports/energy drinks continue to gain momentum at home and away from home. Data showed that energy drinks are driving the highest unit growth at retail, well ahead of the next-closest categories of fresh fruit, yogurt and beef. Plant-based energy drinks are fueling some of that lift, with a 4.3% compounded growth rate from the first quarter of 2023 through the fourth quarter of 2025. At foodservice, cool refreshers have taken over the energy category.
Age Dictates Choices
Findings also indicated that consumer preferences vary by age group. Younger consumers are opting for alcoholic drinks with bold flavors and ready-to-drink (RTD) formats, while older consumers still choose the classic drinks. Over-21 Gen Z drinkers express preferences for ciders, pre-mixed cocktails and sparkling wine, the study showed, while Gen Xers often choose premium and super-premium beer, rum, bourbon and whiskey.
Interestingly, home beverage rituals that include a variety of ingredients, kits and appliances are changing the dynamics at foodservice and retail. Sales of citrus juicers, for example, rose 2% in dollars and 1% in units from January 2025 to January 2026.
Powders and concentrates continue to drive the DIY trend for customization in everything consumers do at home, most especially when it comes to beverages. And consumers are experimenting often. Beverages that offer a unique sensory experience, such as dirty sodas and fizzy seltzers, are still trending upward, while brands are winning with products that serve specific moments, whether it’s morning energy, afternoon hydration or evening relaxation.
A Different Option for Mealtime
Today’s time-starved consumers are using beverages as meal replacements, especially for breakfast and lunch. While these findings may not surprise marketers, the growth is still notable. Top protein shake brands have grown by double digits over the last three years. Drinks have also replaced snacking occasions, in large part. More than two-thirds (64%) of consumers report that they sometimes have a beverage as a snack, according to Circana’s research.
Consumers are finding inspiration for their beverages in all forms via e-commerce, social commerce and social media platforms. Drink-related categories generated $91 million on the TikTok Shop in the Q4-to-date period, the study said.
AI on the Rise
AI tools will be an important factor going forward for beverage companies, the firm suggests. Executives predict it will speed personalization and change consumer experiences via innovations such as QR-powered builds, adaptive bundles online and in apps, and AI-guided roadmaps that lead to new flavors and benefits.
