Coffee is America’s everyday essential, carbonated soft drinks are consumers’ go-to indulgence, and Gen Z prefers intentional imbibing, according to the inaugural Keurig Dr Pepper State of Beverages Trend Report.
What is the top beverage?
The majority of participants in the survey showed strong preferences for coffee, ranking it as the top beverage they “can’t live without.”
If asked to choose food or coffee in the morning, 59% respondents said they prefer caffeinated beverages, according to the report.
“Drinking coffee in the morning is my happy place” is a statement that resonated with 69% of respondents.
The finding aligns with data from the National Coffee Association: US coffee drinkers average three cups a day.
“It’s more than a pick-me-up; it’s a ritual, a comfort, and increasingly, a platform for innovation,” says Erin Smith, senior marketing associate of Imbibe.
The survey concurs, noting consumers associate coffee with starting the day, energy, relaxation and comfort. As a functional, habitual beverage, coffee, like bottled water, is more likely than other drinks to be consumed on its own.
Despite healthier-for-you options, US consumers still want their “milkshake.” That is what Danny Stepper, CEO and co-founder of LA Libations, believes.
“Taste is still the most important thing,” he says.
The survey results reflect this in replies about health benefits.
Coffee or otherwise, 70% of survey participants would rather drink “something that tastes amazing with no benefits” than “something beneficial that tastes awful.”
Carbonated soft drinks for indulgence
Consumers tap carbonated soft drinks (CSDs) as their top beverage indulgence.
Survey participants associate CSDs with cravings, flavor and complementing food. Nonetheless, they are gravitating toward better-for-you options like reduced sugar. They also look for premiums, such as attractive packaging and what they judge as better ingredients and quality.
Of those surveyed, 46% of consumers said they would pay more for a CSD they considered premium.
“Let’s be clear: CSD is still the king when it comes to beverage categories, but we are seeing shifts within CSD as consumers are veering to healthier ‘modern soda’ options like Olipop, Poppi and Cove,”says Stepper.
Different drinks for different occasions
Consumers reported choosing drinks dependent on their mood and activity, according to the survey. While coffee and CSDs dominated, energy drinks, juices and water also had their place in consumer minds. Respondents affiliated energy drinks with prepping for exercise or playing sports, while they paired juice with studying or doing homework and water was chosen for exercise.
Smith says to watch out for functional fortification and fiber content in the beverage space, with protein showing “no signs of slowing down.”
Gen Z and millennials
Gen Z (born 1997-2012) stood out in the survey for trying new things, consuming with intention and going for premiumization, or features that elevate a brand. Because of their interest in novelty, 72% of Gen Z consumers reported trying new beverages every month.
The leading reason? Wanting to try new flavors.
They also prefer cold coffee more than any other generation.
Another aspect that distinguished Gen Z from other generations was alcohol. The majority (61%) prefer non-alcoholic beverages when hanging out with friends.
Stepper credits non-alcoholic brands like Hiyo and Parch for “making strides,” but says that “no winners have been crowned in the space.” He suggests THC beverages likely will continue to grow as an alcohol substitute.
Gen Z and millennials (born 1981-1996) desire customized beverages more than older generations. Whether choosing sweeteners, creamers/milk, fruit slices/purees, or flavor syrups/drops, 75% of Gen Z and Millennials want a drink that feels unique to them.
“Today’s consumers aren’t just choosing beverages – they’re selecting solutions for specific moments,” says Smith. “That’s why smart manufacturers are leaning into segmentation strategies that account for both benefit and occasion.”
