The beverage industry is experiencing a dynamic transformation, driven largely by changing consumer preferences. Gen Z, along with the broader market, is increasingly gravitating towards healthier drink options and more sustainable packaging options. This shift is vividly illustrated by the growing number of non-alcoholic and functional beverages in aluminum cans and bottles on the market.

The mocktail, alcohol alternative, functional hydration beverage, tea, and low-calorie soda alternative markets have seen rapid growth over the past year. Big players such as White Claw with their White Claw 0% line of beverages have been looking to expand into this space to remain relevant with younger and health-conscious consumers. The alcohol alternatives space has boomed as well with loosening government restrictions enabling rapid growth in the THC beverage industry, which is viewed by younger consumers as an alternative, healthier way to get a buzz.

The convenience and "on-the-go" market segments have continued to see robust growth. This market of single-serving beverages from canned coffees to pre-mixed cocktails shows a growing consumer preference to be able to conveniently consume their favorite beverage even when it comes at a premium price. The growth of these premium beverages has been crucial for fillers, helping them stay busy and effectively manage rising costs.

Sustainability remains a critical concern within the beverage sector. Recent data shows that 40% of carbonated soft drink (CSD) consumers have reduced their intake due to concerns over packaging waste.1 Furthermore, 80% of consumers now consider the sustainability of both the product and the company before making a purchase.2 This environmental awareness is driving beverage companies to adopt more sustainable packaging solutions, with many turning to aluminum cans. Cans offer an infinitely recyclable package that aligns with consumer values and helps mitigate the environmental impact of convenient single-use beverage packaging.

As the industry continues to evolve, the focus on innovation and sustainability will likely remain paramount and continue to shape the future of beverage consumption.

1 “UK Carbonated Soft Drinks Market Report 2024-28: Analysis.” Mintel, 15 Apr. 2024, store.mintel.com/report/uk-carbonated-soft-drinks-market-report.

2 “Top 6 Canned Beverage Industry Trends to Watch in 2024.” Roberts, www.robertspolypro.com/blog/canned-beverage-industry-trends/. Accessed 17 Apr. 2024.