Move over, seltzer. Non-carbonated drinks are taking the spotlight

Key Points:

• The popularity of flavored seltzers like LaCroix and hard seltzers such as White Claw is declining due to "seltzer fatigue," with non-carbonated drinks like Liquid Death and Surfside Iced Teas gaining consumer interest, especially among Generation Z.
• Gen Z consumers prefer non-carbonated beverages for health and wellness reasons, avoiding carbonation due to concerns about acidity, bloating, and associations with sugary sodas, leading to growth in tea-based and functional drinks.
• In the alcoholic beverage sector, non-carbonated ready-to-drink cocktails such as Surfside, BeatBox, and Cutwater Spirits are rapidly growing, while hard seltzer volumes have slightly declined, reflecting a generational shift in drinking preferences.
• Non-alcoholic brands like Celsius are expanding their non-carbonated product lines to appeal to Gen Z and women, emphasizing smooth flavor and pairing well with meals, while companies like Hint are banking on the shift away from carbonation to revive growth.
• The aluminum can remains the preferred packaging for both carbonated and non-carbonated beverages due to cost, sustainability, and consumer perception, with brands like Liquid Death pioneering the acceptance of still water in cans by leveraging cool branding strategies.