Keurig Dr Pepper has published its first-ever State of Beverages 2025 report, offering a rare data-driven lens into how Americans—especially Gen Z—are reshaping the drinks market with new behaviors, emotional drivers, and cultural cues. While legacy products like coffee and carbonated soft drinks remain essential, the demand for flavor variety, personalization, and wellness has grown into a mainstream expectation.
The 24-page report, based on surveys from over 4,000 U.S. adults and Keurig Dr Pepper’s proprietary data, shifts the typical conversation from sales volume to emotional function. In short: consumers don’t just want a beverage. They want a moment, a feeling, a purpose.
“Drinks Are Deeply Personal”
“Our inaugural trend report makes clear the essential role beverages continue to play in consumers’ everyday lives,” said Tim Cofer, CEO of Keurig Dr Pepper.
“Whether seeking well-being or a nostalgic favorite, beverages are deeply personal… The key for companies like ours is being in sync with people’s lives, showing up with the right beverage for the right moment.”
Outside-In: What Industry Experts Say
GlobalData analyst Maria Rojas said the findings reflect broader beverage trends seen in retail and foodservice: “The insight on flavor experimentation and ‘sober-curious’ habits mirrors what we see on shelf resets and menu innovations across the U.S. and Europe. Brands not adapting to this consumer curiosity risk becoming background noise.”
Her comments echo trends spotted at major trade fairs like SIAL and Natural Products Expo West, where functionality, wellness, and identity-driven consumption have overtaken older category segmentation. These aren’t just fads—they’re persistent demand signals, especially among younger cohorts.
Flavor is more than taste—it’s memory, identity, and self-expression. Consumers are gravitating toward beverages that combine familiar comfort with innovation. Hibiscus-citrus spritzers, spiced cold brews, and zero-proof apéritifs are no longer niche—they’re core stock-keeping units for forward-looking retailers.
Key Findings From the Report
- Coffee as a ritual: 52% of Americans say coffee is non-negotiable; 73% would give up alcohol before skipping caffeine
- Carbonated soft drinks = indulgence: 58% rate them as the most refreshing treat
- New flavors drive discovery: 59% try new beverages based on flavor vs 29% for sugar content or 28% for health claims
- Gen Z’s dominance: 72% of Gen Z try new drinks monthly; 75% customize their drinks; 50% use drinks to express identity
- Premium pays: 46% of consumers will spend more for drinks perceived as “premium” (better ingredients, packaging)
- Mental and physical health: 82% say favorite beverages support mental well-being; 66% seek physical health benefits
- Sober-curious shift: 58% prefer non-alcoholic options when socializing; Gen Z leads this trend
These findings suggest that brands no longer compete solely on shelf space or taste—they are now competing for emotional relevance. And this means product development teams must consider psychology as much as flavor science.
For example, consumers aren’t just choosing beverages based on occasion. They are selecting drinks that align with their identity—whether that’s a collagen-infused sparkling water, an oat-milk latte with functional mushrooms, or a zero-proof botanical cocktail served at a social event. These are self-expressive choices.
Beyond the product, the packaging matters. Transparent bottles with natural colors, minimalist labels, and clear functional claims are outperforming loud, legacy branding. Gen Z reads labels, shares images, and votes with their wallets.
What It Means for Supermarket Buyers
Retailers and private label teams will find this report highly relevant. Supermarket drinks aisles have already begun reflecting some of these shifts, with:
- A spike in functional waters, kombuchas, and adaptogenic drinks
- Expanded RTD coffee formats with customizable flavor profiles
- Premium packaging in sparkling drinks aimed at Gen Z and millennials
- Growing non-alcoholic cocktail sections in urban outlets
This represents a major opportunity for supermarkets to experiment with flavor-led marketing—leveraging end caps, QR-coded taste journeys, and in-store sampling to boost trial. It’s no longer enough to stock “better-for-you” SKUs. These products need storytelling and experience to cut through.
Private label beverages are also well-positioned to respond. By co-creating SKUs with influencers or emerging food creators on TikTok or Instagram, retailers can offer youth-driven formats without relying solely on national brands.
This is especially urgent for international retailers serving diverse, multicultural demographics. Gen Z’s preferences are not tied to region—they’re digital, visual, and fast-moving. Beverage assortments need to rotate quickly and reflect global flavors, not just local staples.
Some retailers have begun to treat beverage aisles like beauty aisles—zones of experimentation. Think curated drink flights, grab-and-go bundles, and themed shelving built around mood or time of day.
Comparison: PepsiCo and Coca-Cola’s Positioning
PepsiCo’s 2025 strategy has leaned into functional hydration (Gatorade Fit, Propel), while Coca-Cola has invested in AI-driven flavor launches and zero-sugar reformulations. Coca-Cola’s “Creations” line is one example of rapid experimentation. But these approaches still rely heavily on core brand ecosystems.
KDP’s advantage lies in its multi-category footprint and direct-to-consumer insight systems. It sits at the intersection of hot and cold beverages, across indulgent and functional formats, allowing it to respond faster to cross-category shifts.
And while Coca-Cola and PepsiCo dominate global volume, KDP’s attention to emotional nuance and personalization sets it apart—especially in a saturated marketplace.
What separates this report from traditional insights is its cultural framing: drinks as extensions of identity and mood. Beverage companies now must not only respond to demand but also anticipate rituals, from morning routines to social moments to post-workout recovery.
