Non-Carbonated Drinks Surge as Gen Z Shifts Away From Seltzers

After a decade of seltzer growth, flavored carbonated water sales have stalled. In the 52 weeks to 26 April, hard-seltzer volume fell 1.1% year-over-year, while volume of ready-to-drink premixed cocktails—most of them still—rose 46.4% (Circana). The slowdown is most evident among Generation Z, whose preferences now favor non-carbonated beverages across alcohol and soft-drink categories.

CNBC

Analysts link the shift to Gen Z’s wellness focus and desire for “drinkability.” Still drinks avoid carbonic acidity that can erode enamel and cause bloating, and many consumers associate bubbles with sugary sodas. The trend is prompting brands to prioritize still formats and cans, reshaping development and packaging strategies industry-wide.

CNBC

Distiller Stateside Brands launched Surfside, a vodka-based hard iced-tea; it became the fastest-growing U.S. alcohol brand (Nielsen IQ). CEO Clement Pappas cites “huge pent-up demand for non-carbonated options.” Cutwater Spirits’ canned cocktails doubled volume YoY, while BeatBox wine-punch and BuzzBallz pre-mixed cocktails surged after recent acquisitions. Boston Beer introduced Sun Cruiser in 2024 to challenge Surfside. Celsius expanded its fizz-free energy-drink line, with a peach-mango green-tea flavor ranking fourth overall and 37% of consumers drinking it with meals. Hint’s CEO Michael Pengue is repositioning still-water products to attract former sparkling-water drinkers.

CNBC

• Hard-seltzer volume: –1.1% (52 weeks)

CNBC

• Premixed cocktail volume: +46.4% (same period)

CNBC

• Surfside: fastest-growing alcohol brand, 2024

CNBC

• Cutwater canned-cocktail volume: ~2× YoY

CNBC

• Celsius non-carbonated peach-mango green tea: #4 overall; 37% consumed with meals

CNBC

Randy Burt (AlixPartners) says the market is moving toward still drinks across categories. Scott Scanlon (Circana) notes Gen Z’s “promiscuity” in trying new products, shifting from seltzers to options like Surfside and Sun Cruiser. Celsius’s Kyle Watson reports dislike of sparkling, and Ball’s Ronald Lewis says the can is now winning for non-carbonated beverages.

CNBC

• “If you think about where there's more growth, where there's more consumer interest relative to a few years ago, it's a shift more to still, across both [alcohol] and non-alc,” — Randy Burt, Americas director of consumer products, AlixPartners

CNBC

• “We're seeing a lot of promiscuity within consumption and alcohol around new products,” — Scott Scanlon, executive vice president of alcoholic beverages, Circana

CNBC

• “Among the options out there were carbonated iced tea and carbonated lemonade, which is a little less unusual, but we were just like 'What the heck, man? Who carbonates iced tea?' That seems unholy,” — Clement Pappas, co-founder and CEO, Stateside Brands

CNBC

• “I was on the other side of carbonation when carbonated soft drink consumers were looking for healthier alternatives, getting away from aspartame or high fructose corn syrup, and they moved over to Perrier, San Pellegrino, Polar, LaCroix,” — Michael Pengue, CEO, Hint

CNBC

Industry analysts expect continued growth of still functional beverages, with more brands launching ready-to-drink formats. The can, once synonymous with carbonation, now dominates the packaging of these products, suggesting a lasting redefinition of the beverage aisle.

CNBC