- Health and wellness is dominating consumers’ lives like never before: and that’s shaping their beverage choices
- Functional beverages are key to US consumers
- How we find, explore and buy beverages will be transformed by AI
The beverage industry is evolving faster than ever. And consumers’ choices will be shaped by three major factors: health, digital engagement and generational shifts, according to the newly released EY Consumer Beverage Survey.
Wellness continues to dominate the conversation
A whopping 97% of US consumers have been doing at least something for their health and wellness in the last two years.
Health and wellness has been driving consumer trends for the last decade and more. And that’s as true as ever in 2026: 66% of consumers say they’re exercising more; 64% say they’re making healthier food choices; and 52% now say they’re prioritizing sleep, according to data from EY.
And that translates into beverage choices. Wellness plays a crucial role in beverage selection: with consumers increasingly viewing drinks as ‘tools’ in their overall wellbeing plans.
Crucially, that means looking at ingredients, sugar content and functional benefits. 58% of US consumers say they’re paying more attention to the ingredients in their drinks.
And 52% of US consumers say they’re willing to pay more for drinks that support health and wellness goals (that shifts up to 59% for higher income consumers).
And there’s also a generational shift. Younger generations are at the heart of a movement towards benefits beyond simply hydration: such as enhanced energy, immune system support and gut health. This trend reflects a broader health and wellness movement: which is reshaping consumer expectations across categories.
At the same time, they’re also moving away from alcohol.
Functional beverages may take the limelight, but sugar reduction remains front and centre to many consumers as well. And two thirds of US consumers say they’d choose lower sugar or lower calorie drinks.
But older generations (in particular boomers and Gen X) are more likely to choose lower sugar drinks, while this is less pronounced for Gen Z, who think more holistically than simple calorie counts.
“If you’re looking at health and wellness, there continues to be a correlation with sugar and bad things: such as diabetes,” said Sean Harapko, EY Americas Beverage Leader.
“But people have had the alternatives in sugar-free, for a long time: so now it’s about less sugar, and what other functional benefits I can get out of my beverage?”
Digital discovery
Digital ecosystems are becoming increasingly important for discovery: drinking awareness and purchase.
Consumers now rely increasingly on digital tools to explore functional beverages, including online grocer recommendations (19%), fitness and health apps (17%), and loyalty apps (16%). And Gen Z are reporting higher digital usage (26%) compared with other generations.
But what’s now crucial is that companies show the research behind their ingredients and claims: and how they’re picked up and then shared by digital models.
“AI models are taking in a lot of the clinical research around ingredients,” said Harapko.
“So if you’re a company, it’s not good enough to say ‘my drink is better’. You’re going to have to make sure that the research and the details are now front and centre.”
