Today, drinks are more than just something to accompany a meal or snack or quench a craving. Circana’s research confirms growth across several retail and foodservice beverage categories, including non-alcoholic and alcoholic segments. The market for total “sips” rose to $490 billion in sales in 2025, with an average compounded growth rate of 3%. The boom continues, too: beverages currently comprise 6 of the top 20 growth categories in the retail sector.

During a recent webinar, “Share of Sip: Mapping the Beverage Evolution,” we shared a broad range of trends impacting brands, retailers, and foodservice operators in the short- and long-term future. Takeaways include the following: 

Where Beverage Trends are Flowing: Energy drinks Show Big Muscle

Sports/energy drinks are highly popular at home and away from home. In fact, Circana’s data shows that energy drinks are driving the highest unit growth at retail, well ahead of the next-closest categories of fresh fruit, yogurt, and beef. Plant-based energy drinks are fueling some of that lift, with a 4.3% compounded growth rate from the first quarter of 2023 through the fourth quarter of 2025. At foodservice, cool refreshers are a red-hot segment that has taken over the energy category.

Consumer Divergence: Aged Varieties

In the adult beverage sector, trends vary by generation. Circana’s data shows that younger consumers are gravitating to alcoholic drinks with bold flavors and ready-to-drink (RTD) formats, while older consumers are filling their glasses with classic drinks. For example, over-21 Gen Z drinkers express preferences for ciders, pre-mixed cocktails, and sparkling wine, and Gen Xers have a penchant for premium and super-premium beer, rum, bourbon, and whiskey.

Occasion Fusion

DIY drinks

People have always prepared beverages at home, of course, but home beverage rituals that include a variety of ingredients, kits, and appliances are changing dynamics at foodservice and retail. Sales of citrus juicers, for example, rose 2% in dollars and 1% in units from January 2025 to January 2026. In addition, the surge of interest in powders and concentrates is a testament to the DIY approach that mirrors the broader consumer clamor for customization. Interestingly, as people do more at home, the use of tap water is rising.

A meal unto itself

Once largely an accompaniment, beverages are increasingly replacing meals, especially for breakfast and lunch. Top protein shake brands have grown by double digits over the last three years. Drinks also make satisfying snacks: more than two-thirds (64%) of consumers report that they sometimes have a beverage as a snack. 

Beverage Blending: Drinks are Having a Moment, and So Are Consumers

Drinks are increasingly experiential, evident in beverages that offer a unique sensory experience, like still-trending dirty sodas and fizzy seltzers. Brands are also winning with products that serve specific moments, whether it’s morning energy, afternoon hydration, or evening relaxation.

Beverage Pathways: Sipping and Scrolling

In addition to performing well at physical stores and restaurants, beverages resonate across digital channels. E-commerce, social commerce, and social media platforms are accelerating beverage innovation, reflected in new formats and flavors that quickly go viral. Drink-related categories generated $91 million on the TikTok Shop in the Q4-to-date period.

Crafting What’s Next: Here Comes AI

Artificial intelligence (AI) is touching many aspects of life, including what and how people imbibe. Now and going forward, AI tools will speed personalization and change consumer experiences via innovations such as QR-powered builds, adaptive bundles online and in apps, and AI-guided roadmaps that lead to new flavors and benefits. Circana projects that the next 10-year evolution in beverages will be defined by both human ingenuity and AI capabilities.

To dive deeper into beverage insights and unlock next wave of growth in these categories, watch the full "Share of Sip" webinar. Cheers!