Beverages: Refreshing revolution: the rise of soft drinks in Great Britain

Why it is the topic trending:

• Growing Moderation Trend: The article highlights a significant shift towards moderation in alcohol consumption, making soft drinks a prominent and stable category in the On Premise market.

• Consumer Behavior Change: The increasing preference for soft drinks over alcoholic beverages, especially among Gen Z, signals a notable change in consumer behavior when going out.

• Market Growth: The substantial sales figures (£4.6 billion) and year-on-year growth (0.6%) of the soft drinks market in Britain's On Premise make it a financially significant and trending topic.

• Health and Wellness Focus: The article points to consumers' growing interest in health as a key driver for choosing soft drinks (14%), aligning with broader societal trends.

• Untapped Potential: The finding that a majority of consumers want a better range of adult soft drinks (66%) suggests significant untapped potential and opportunities for innovation in this category.

Overview:

The soft drinks market in Great Britain is experiencing a robust surge, driven by a notable trend of alcohol moderation, particularly among Gen Z. Almost half (46%) of British consumers now regularly choose soft drinks when out, with a third doing so more often than the previous year, contributing to a £4.6 billion market with a 0.6% growth. Health consciousness is a key driver, especially for younger consumers, impacting category performance with gains for flavored carbs and juices, and a slight dip for traditional mixers. Frozen drinks are also popular among Gen Z. Casual dining leads consumption, but soft drinks are increasingly part of special occasions. Consumers are generally younger, predominantly female (59%), with strong growth in the North. Crucially, 66% of consumers seek a better variety of adult soft drink options, highlighting a significant opportunity for innovation.

Detailed Findings:

• Significant Uptick in Regular Soft Drink Consumption: Nearly half (46%) of British consumers now report that they regularly choose soft drinks when they go out to pubs, restaurants, and other On Premise venues. This highlights a substantial portion of the population making soft drinks a habitual choice in these settings.

• Growing Frequency of Soft Drink Choice: A third of British consumers indicate that they are choosing soft drinks more often than they were a year prior. This increase is notable, as it is double the proportion of consumers who are choosing them less frequently, clearly indicating a strong upward trend in soft drink preference.

• Robust Market Size with Steady Growth: The soft drinks market in Britain’s On Premise sector has reached a significant value, topping £4.6 billion in sales in the 12 months leading up to February 22, 2025. Furthermore, the market experienced a year-on-year growth of +0.6%, demonstrating the stability and continued expansion of this category.

• Health Consciousness as a Key Motivator: One in seven consumers (14%) explicitly state that they choose soft drinks because they want to make healthier choices. This motivation is even more pronounced among Gen Z consumers, with a higher percentage than the average citing health as a reason, indicating the growing influence of wellness trends on younger demographics' beverage selections.

• Shifts in Soft Drink Category Performance: While it has lost a slight amount of market share, the article doesn't specify which category. However, it notes that flavored carbs (such as colas and other carbonated drinks beyond lemonade and mixers) have seen an increase in their market share by 0.4 percentage points. Juice drinks have also experienced growth, increasing their share by 0.2 percentage points, suggesting a consumer move towards these specific types of soft drinks.

• Decline in Traditional Mixers and Related Options: Categories like sports drinks, lemonade, and traditional mixers have all experienced a slight decrease in their overall market share. This suggests that a segment of consumers are consciously moving away from soft drinks that are typically paired with alcohol, aligning with the broader trend of moderation.

• Frozen Drinks Gain Traction with Gen Z: Within the younger Gen Z demographic, frozen drinks are identified as a specific growth area. This preference among younger consumers may be attributed to factors such as novelty, social media appeal, and a desire for visually interesting and often sweeter beverage options.

• Casual Dining Dominates Soft Drink Consumption Occasions: Casual dining restaurants stand out as the primary venues where consumers choose soft drinks. A substantial two-thirds (65%) of soft drink consumers report having visited casual dining establishments in the past three months, emphasizing the critical role of this channel for soft drink sales and consumption.

• Soft Drinks Increasingly Feature in Special Occasions: Traditionally, celebrations and special occasions have been dominated by alcoholic beverages. However, the research indicates a growing trend of consumers opting for soft drinks even during these typically alcohol-centric events, suggesting a significant shift in social norms and beverage choices for celebratory moments.

• Demographic Profile of Soft Drink Consumers: The data reveals that soft drink consumers in the On Premise market tend to be slightly younger than the average consumer in these venues, and a clear majority (59%) are female, offering valuable insights for targeted marketing strategies by suppliers and operators.

• Regional Variations in Growth: While London maintains its position as the largest single region for soft drink sales, accounting for a significant 21.6% of the total sales volume, the North of Britain has demonstrated particularly strong growth over the past year, with sales over-indexing in this region. This highlights regional differences in the adoption of the soft drink trend.

• Strong Consumer Demand for Enhanced Adult Soft Drink Options: A significant majority of consumers (66%) express a desire for a better and more diverse range of soft drink options specifically designed for adults when they are out. This widespread sentiment underscores a considerable unmet need within the market and presents a clear opportunity for innovation and product development in the adult soft drinks category across all consumer demographics and geographical regions.

Key Takeaway:

The British On Premise soft drinks market is booming, fueled by a significant moderation trend, especially within Gen Z, resulting in substantial opportunities for suppliers and operators to innovate and cater to the rising demand for appealing, high-quality, and health-conscious adult non-alcoholic beverages, particularly given the strong consumer desire for more diverse and sophisticated options.

Main Trend:

• Trend Name: The Sober-Curious Beverage Boom

Description of the trend (please name it):

The Sober-Curious Beverage Boom describes the significant and growing trend where consumers, particularly younger generations like Gen Z, are actively choosing to reduce or abstain from alcohol consumption and are increasingly turning to soft drinks and other non-alcoholic beverages as appealing and sophisticated alternatives, driving substantial growth in this sector of the On Premise market.

What is consumer motivation (detailed description):

• Health and Wellness Focus: A primary motivation is the growing emphasis on health and well-being, with consumers seeking healthier lifestyle choices that often include reducing or eliminating alcohol intake.

• Moderation and Mindful Consumption: Consumers are increasingly practicing mindful consumption and choosing moderation over excessive drinking for various personal and lifestyle reasons.

• Seeking Appealing Alternatives: Consumers desire non-alcoholic options that are more exciting and flavorful than traditional sodas or basic mixers, especially in social settings.

• Inclusivity in Social Occasions: The desire for non-alcoholic choices that feel celebratory and inclusive in social gatherings where alcohol is often present.

• Exploring New Flavors and Experiences: The soft drinks market offers a wide range of innovative flavors and formats that can appeal to adventurous palates.

What is driving trend (detailed description):

• Shifting Generational Attitudes: Younger generations, especially Gen Z, exhibit a different relationship with alcohol compared to previous generations, often prioritizing health and well-being over heavy drinking.

• Increased Awareness of Health Risks of Alcohol: Growing public awareness about the negative health impacts of alcohol consumption is influencing consumer choices.

• Social Media Influence: Online communities and influencers promoting sober or sober-curious lifestyles are contributing to the trend.

• Innovation in Soft Drinks Market: The beverage industry is responding with a wider variety of sophisticated and flavorful soft drinks, including low-sugar, natural ingredient, and functional options.

• Normalization of Non-Alcoholic Choices: Choosing not to drink alcohol is becoming more socially acceptable and even trendy.

What is motivation beyond the trend (detailed description):

• Improved Mental Health: Reducing alcohol consumption can lead to better mental clarity and emotional well-being.

• Enhanced Physical Performance: Choosing non-alcoholic options supports fitness goals and overall physical health.

• Cost Considerations: Soft drinks can sometimes be a more affordable option than alcoholic beverages.

Description of consumers article is referring to (what is their age?, what is their gender? What is their income? What is their lifestyle):

The article primarily refers to British consumers in the On Premise market.

• Age: Highlights Gen Z as a key demographic driving the moderation trend, but also indicates that soft drink consumers tend to be slightly younger than average, suggesting a broader appeal across younger and middle-aged adults.

• Gender: Notes that 59% of soft drink consumers are female, indicating a slight skew towards women.

• Income: Not explicitly mentioned, but the trend is likely influenced by various income levels seeking healthier and appealing non-alcoholic options when going out.

• Lifestyle: Includes individuals who are health-conscious, practicing moderation in their alcohol consumption, socially active in On Premise venues, and potentially interested in new and exciting beverage options beyond traditional alcoholic drinks.

Conclusions:

The British On Premise market is experiencing a significant "Sober-Curious Beverage Boom," with soft drinks emerging as a leading category driven by health-conscious consumers, particularly Gen Z, who are increasingly choosing non-alcoholic options over alcohol. This trend presents substantial opportunities for the beverage industry to innovate and cater to evolving consumer preferences.

Implications for brands:

• Soft Drink Suppliers: Should focus on innovating and offering a wider range of high-quality, appealing soft drinks, including healthier options with natural ingredients and exciting flavors for adults.

• Alcoholic Beverage Companies: May need to diversify their portfolios to include more non-alcoholic offerings to cater to the moderation trend.

• Venue Operators: Should ensure they have a well-stocked and diverse selection of interesting soft drinks to meet the growing demand from sober-curious consumers.

Implication for society:

• Potential for Healthier Consumption Habits: Increased preference for soft drinks over alcohol could lead to improved public health outcomes.

• Shifting Social Norms Around Alcohol: Moderation and non-drinking may become more normalized in social settings.

Implications for consumers:

• Wider Variety of Beverage Choices: Consumers will have more options beyond traditional alcoholic drinks when going out.

• More Inclusivity in Social Settings: Non-drinkers may feel more catered to and included in social occasions.

Implication for Future:

• Continued Growth of the Soft Drinks Market: The trend of moderation is likely to persist and drive further growth in the non-alcoholic beverage sector.

• Increased Innovation in the Category: Expect to see more sophisticated and exciting soft drink options emerge.

Consumer Trend (name, detailed description): The Mindful Mixer Movement - Consumers are increasingly mindful about their alcohol consumption and actively seeking out and choosing non-alcoholic beverages, including innovative soft drinks, as their mixers and stand-alone drinks.

Consumer Sub Trend (name, detailed description): Generation Sober-Curious - Younger generations, particularly Gen Z, are leading the way in reducing or abstaining from alcohol and driving the demand for appealing non-alcoholic alternatives.

Big Social Trend (name, detailed description): The Global Wellness Wave - A worldwide movement focused on health, well-being, and making conscious choices about food and drink consumption.

Worldwide Social Trend (name, detailed description): Shifting Beverage Landscapes - Globally, there's a noticeable shift in beverage consumption patterns, with non-alcoholic options gaining prominence.

Social Drive (name, detailed description): Seeking Healthier Lifestyles and Socially Inclusive Options - Consumers are driven by a desire to lead healthier lives and to have appealing and inclusive beverage choices in social settings that don't always revolve around alcohol.

Learnings for brands to use in 2025 (bullets, detailed description):

• The moderation trend is significant and growing, especially among younger consumers.

• There is a high demand for a better range of adult soft drinks (66% of consumers).

• Highlighting natural and wellness-boosting ingredients (14% cite health) can increase appeal.

• Focus on innovation in flavors and formats beyond traditional mixers.

• Consider the importance of soft drinks in special occasions and casual dining (65% consume in casual dining).

Strategy Recommendations for brands to follow in 2025 (bullets, detail description):

• Invest in research and development to create more sophisticated and appealing soft drink options for adults, catering to the 66% demand.

• Emphasize natural and health-focused ingredients in marketing and product development, aligning with the 14% (and growing) health motivation.

• Collaborate with venue operators to ensure a diverse and attractive range of soft drinks is available, especially in casual dining locations.

• Explore opportunities to position soft drinks as suitable for celebrations and special occasions, tapping into the broader usage occasions.

• Tailor marketing efforts to reach the growing sober-curious demographic, especially Gen Z, who are leading this trend.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified): The rise of soft drinks in Great Britain signifies The Sober-Curious Beverage Boom, driven by a growing moderation trend and a consumer desire for appealing and health-conscious non-alcoholic alternatives.

What brands & companies should do in 2025 to benefit from trend and how to do it:

In 2025, soft drink suppliers and venue operators in Great Britain should strategically capitalize on The Sober-Curious Beverage Boom trend by:

• Investing in innovation and product development to create a wider range of sophisticated and appealing soft drink options that cater to adult palates beyond traditional sugary sodas and mixers. This includes exploring unique flavor combinations, incorporating natural and wellness-boosting ingredients, and considering different formats like premium bottled options or crafted non-alcoholic cocktails, directly addressing the 66% consumer demand for better adult options.

• Collaborating closely with On Premise venues such as bars, restaurants, and pubs to ensure these innovative soft drink options are prominently featured on menus and actively promoted as exciting alternatives to alcoholic beverages. This may involve providing training to staff, offering attractive point-of-sale materials, and even co-creating signature non-alcoholic drinks that appeal to the 46% of consumers regularly choosing soft drinks.

• Tailoring marketing efforts to directly reach the growing sober-curious demographic, particularly younger generations like Gen Z, by emphasizing the health benefits, exciting flavors, and social inclusivity of their soft drink offerings. This could involve utilizing social media platforms, partnering with relevant influencers who promote mindful consumption, and sponsoring events that align with a health-conscious lifestyle, directly resonating with the 14% (and growing) of consumers motivated by health.

Final Note:

• Core Trend: The Sober-Curious Beverage Boom * Detailed Description: A significant increase in consumers, particularly younger generations, choosing soft drinks and other non-alcoholic beverages due to a moderation trend in alcohol consumption.

• Core Strategy: Innovate and Diversify Non-Alcoholic Offerings * Detailed Description: Soft drink suppliers and venue operators should focus on creating and promoting a broader range of appealing, high-quality non-alcoholic options.

• Core Industry Trend: The Mainstreaming of Mindful Consumption * Detailed Description: Across the beverage industry, there is a growing trend towards consumers making more conscious and moderate choices about their alcohol consumption.

• Core Consumer Motivation: Seeking Healthier, Appealing, and Socially Inclusive Non-Alcoholic Alternatives * Detailed Description: Consumers are motivated by a desire for healthier lifestyles and want non-alcoholic options that are flavorful, exciting, and allow them to fully participate in social occasions.

• Final Conclusion: The "Refreshing Revolution" in Great Britain's soft drink market presents a substantial and sustained opportunity for the beverage industry in 2025 and beyond. By understanding and catering to the evolving preferences of sober-curious consumers with innovative and appealing non-alcoholic choices, suppliers and operators can achieve significant growth and success in this dynamic landscape.

Core Trend Detailed (The Sober-Curious Beverage Boom)

• Description: The Sober-Curious Beverage Boom describes the significant and growing trend where consumers, particularly younger generations like Gen Z, are actively choosing to reduce or abstain from alcohol consumption and are increasingly turning to soft drinks and other non-alcoholic beverages as appealing and sophisticated alternatives, driving substantial growth in this sector of the On Premise market.

• Key Characteristics of the Trend (summary):

  • Reduced Alcohol Consumption: Consumers actively choosing to drink less or no alcohol.

  • Increased Soft Drink Preference: A notable shift towards selecting soft drinks in social settings.

  • Demand for Sophistication: Consumers seeking non-alcoholic options beyond basic sodas.

  • Health and Wellness Focus: Driven by a growing awareness of health and well-being.

  • Social Inclusivity: Desire for appealing non-alcoholic choices for all occasions.

• Market and Cultural Signals Supporting the Trend (summary):

  • CGA by NIQ research indicating that 46% of British consumers regularly choose soft drinks when going out.

  • A third of consumers choosing soft drinks more often than the previous year.

  • Growth in the soft drinks market topping £4.6 billion in Britain’s On Premise.

  • 14% of consumers choosing soft drinks for health reasons, with higher rates among Gen Z.

  • Consumer desire for a better range of adult soft drinks (66%).

• How the Trend Is Changing Consumer Behavior (summary):

  • Consumers are proactively seeking out non-alcoholic options when socializing.

  • There is an increased willingness to try new and innovative soft drink flavors and formats.

  • Social occasions are becoming less centered around alcohol, with soft drinks gaining prominence.

  • Younger generations are establishing new social norms around alcohol consumption.

  • Consumers are more vocal about their desire for high-quality and diverse non-alcoholic choices.

• Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary)):

  • For Brands and CPGs: Significant opportunity for soft drink suppliers to innovate and cater to adult tastes with healthier, more flavorful options. Alcoholic beverage companies may need to diversify into non-alcoholic alternatives.

  • For Retailers: On Premise venues (bars, restaurants, pubs) should stock a wider and more appealing range of soft drinks to meet demand and enhance customer experience.

  • For Consumers: Greater availability of diverse and sophisticated non-alcoholic choices in social settings. Potential for healthier lifestyles and more inclusive social experiences.

• Strategic Forecast: The Sober-Curious Beverage Boom is expected to continue its strong growth trajectory. Health and wellness trends are likely to persist, and younger generations will continue to influence social norms around alcohol. Innovation in the soft drinks market will further fuel consumer interest and provide more attractive alternatives to alcohol.

• Final Thought: The growing preference for soft drinks reflects a fundamental shift in consumer attitudes towards alcohol, presenting a significant and evolving opportunity for the beverage industry to innovate and cater to a more health-conscious and inclusive consumer base.

Source: https://cgastrategy.com/refreshing-revolution-soft-drinks-in-gb/