Ernst & Young (EY)’s latest Consumer Beverage Survey shows that health, digital habits, and age are now the three main forces reshaping what people drink and how they discover it. For beverage brands, that means product, pricing, and marketing decisions are increasingly being made around wellness benefits and online journeys rather than just flavor or brand heritage.
Wellness Becomes the Default
The survey finds that 58% of U.S. consumers now pay close attention to the ingredients in their drinks, and 52% are willing to pay more for beverages that support health and wellness goals. Sugar is a major flashpoint: 66% say they choose lower sugar or lower calorie options, while in Brazil, about three in four shoppers cite immune support as a top reason for buying functional beverages.
Digital Discovery and AI
Discovery is moving online, with consumers leaning on recommendations and apps to find new functional drinks. Across the sample, people use online grocery suggestions, fitness and health apps, and loyalty apps to decide what to try, and in Brazil, 45% have already used AI based beverage recommendations in the past year, versus 27% in the U.S., with 70% of Brazilians saying they are very likely to do so next year.
Generational Divides in Drinking
The research highlights clear gaps between younger and older drinkers. In the U.S., around 80% of Gen Z and 75% of millennials drink functional beverages at least every two weeks (compared with 65% overall), while 53% of Gen Z and 47% of millennials consume energy drinks that often versus 34% overall, and younger Brazilians report drinking less alcohol than older cohorts even as total alcohol usage remains high.
Looking Ahead
For beverage brands, this research points to health and wellness as a baseline expectation, not a niche. Portfolios will need more clearly functional, low or no sugar options, with benefits and ingredients explained in simple, transparent language on pack and online. Digital discovery also means brands should treat retailer apps, fitness platforms, and loyalty ecosystems as core shelves, optimising for search, recommendations, and data driven personalization rather than only in store visibility. Generational gaps suggest that younger consumers may reward innovation in functional and alcohol light or alcohol free formats, while older cohorts may respond better to gradual reformulation and clearer health cues on familiar products.
“Our research shows a clear rise in intentional beverage consumption, with consumers paying closer attention to ingredients, prioritizing functional benefits tied to health and wellbeing, and modifying behaviors, such as reducing sugar and alcohol intake… These shifts signal a more informed and selective consumer, particularly among younger generations, who are reshaping demand and accelerating change across the beverage product landscape,” said Sean Harapko, EY Americas Beverage Leader.
“Consumers are rewriting the rules of the beverage aisle. Wellness isn’t a niche segment but a baseline expectation shaping formulation, claims and pricing strategy. For beverage companies, the winners will be those that deliver clear benefits, build trust through transparency and meet consumers where decisions are increasingly made across apps, social channels and personalized, data-led experiences… Brands must design for multiple definitions of wellness,” said Rob Holston, EY Global and Americas Consumer Products Sector Leader.
