Global Drinks Industry Forecast: Trends, Challenges & Innovations

This article distils the latest global drinks industry trends, consumer behaviours and emerging opportunities, powered by Mintel’s expert analysis and proprietary data. Packed with actionable insights, it equips you with the knowledge to identify new market growth opportunities, understand shifting consumer preferences and stay informed about the latest innovations in the fast-evolving drinks industry.  

And as always, for those seeking deeper insights or custom research, our team is ready to provide further information about our on-demand reports or bespoke Mintel Consulting services. 

The era of rigid categorisation in the global drinks industry is over. Today, the binary distinctions between alcoholic and alcohol-alternative beverages are rapidly blurring, driven by significant transformations in consumer lifestyles and purchasing decisions. As the alcohol market evolves, brands must respond swiftly to shifting preferences.  

In the UK, economic challenge shapes consumer choices in alcohol consumption, while in the US, there is a strong rising appetite for premiumisation. Across Germany and China, the surge in health-consciousness is powering trends toward moderation, whereas in Japan, moderation is motivated less by health and more by a pursuit of productivity.  

As consumers increasingly prioritise factors such as value, wellbeing and efficacy, it is essential for brands to stay responsive to regional preferences, while recognising the shared global shifts that are shaping the future of the alcoholic drinks market. 

In the UK, inflationary pressures have left consumers increasingly cautious, with 65% of alcohol buyers cutting back due to the rising cost of living. The rise of “zebra striping”, switching between alcoholic and alcohol-free drinks, is strengthening the appeal of the low- and no-alcohol category, further supported by the fact that 6 in 10 adults limited or completely abstained from alcohol in 2025.  

Brands are adapting to keep pace with evolving moderation behaviours. One key strategy is partial dealcoholisation, which enables brands to offer mid-strength options that delivers a balance between greater flexibility, mindful drinking and affordability that consumers seek in social settings.  

Influenced by health concerns and tighter budgets, the US is seeing a mainstream embrace of mindful drinking, with a quarter of consumers drinking less alcohol. However, there remains a strong appetite for premium experiences, with over half reporting that they prefer fewer, higher-quality drinks over quantity.  

This duality is creating fresh opportunities for brands to deliver immersive ‘eatertainment’ moments, where food, drink and social engagement are seamlessly combined. By elevating the experience around premium alcoholic drinks, brands can tap into consumers’ desire for both moderation and memorable, high-value occasions. The broad adoption of moderation and experiential drinking links back to trends seen across other markets, highlighting a universal shift towards intentional, quality-driven choices. 

Much like the US, China’s market is characterised by a “quality over quantity” mindset, with a notable 61% of consumers willing to pay a premium for unique production methods. This enthusiasm fuels a premiumisation wave, while also highlighting a growing appetite for alcohol products featuring distinctive local flavours. Regional ingredients like red dates and goji berries have proved to be a major driver of innovation in the ready-to-drink (RTD) cocktail categories.  

Health initiatives like Healthy China 2030 are accelerating the surge in low- and non-alcoholic alternatives. Reflecting this shift towards more mindful and health-conscious drinking, even established baijiu brands are now reducing their alcohol content to cater to evolving consumer preferences. 

Germany offers a glimpse into a future where non-alcoholic dominance is possible, with a significant two-thirds of German consumers cutting back on alcoholic drinks, and a quarter planning total abstinence. This surge in health awareness and government-backed moderation is rapidly propelling non-alcoholic options into the mainstream.  

Despite this, social expectations persist: a quarter of alcohol drinkers feel pressure to drink socially. Brands have an opportunity to position low- and no-alcohol ranges as the rewarding choice by emphasising benefits such as waking refreshed and achieving better sleep. Standout innovators in the alcohol alternative sector focus on authentic, bold fruit-forward flavours rather than replicating alcoholic profiles. These strategies attract new German consumers, refresh the category for long-term growth and transform moderation into a badge of sophistication and wellbeing. 

Japan’s alcohol landscape is evolving at pace, with at-home drinking peaking in popularity. Triggered by increased working from home, over a third of 20-30-year-olds are now preferring to enjoy drinks with friends indoors. Almost half of women in their 30s choose to drink alcohol to boost mood or find relief from daily pressures, choosing convenience and relaxation inside, over nights out.  

Meanwhile, the concerns of young men are driving a shift towards moderation, motivated by productivity and work performance rather than health concerns like other markets. This shifting landscape creates opportunities for brands to capture evolving Japanese consumer interest by raising the standard of home drinking. Concepts such as restaurant quality food pairings or offering premium low and no-alcohol options can enhance the at-home experience.  

The global carbonated soft drinks industry is experiencing a transformative shift. Mintel defines this era as one where we have moved beyond simple refreshment and entered a time where carbonated soft drinks (CSD) are evaluated for their functional benefits, sustainability credentials and emotional resonance.  

Health consciousness, environmental priorities, and the desire for personalisation are reshaping consumer expectations across all major markets.  

A powerful health-conscious movement is redefining the US CSD market, driving demand for beverages that deliver both enjoyment and functional benefits. “Healthy soda” innovations and the “dirty soda” trend (mixing soft drinks with protein enhancers) reflect a desire for customisation and added value. Nostalgia remains a potent motivator, with nearly half of American consumers reaching for CSDs to evoke positive memories.  

Sustainability is also front-of-mind, as three-fifths of Millennials and Gen Z are willing to pay more for eco-friendly packaging. Brands that blend health, personalisation, nostalgia and sustainability can thrive, even in a challenging economic climate. 

Emotional and health-related motivations drive the UK CSD market, with 43% of British consumers choosing soft drinks for self-treating and over a third to unwind. The alcohol moderation movement is a key opportunity for the CSD market, as one in five users opt for soft drinks over alcoholic beverages. Rather than simply replicating alcoholic flavours, brands can innovate with less sweet profiles and calming ingredients to appeal in moments traditionally reserved for alcohol.  

Sustainability concerns are rising, with more than half of British buyers worried about recycled materials and microplastics. To capture growth opportunities, leading brands must continue to minimise environmental impact to reinforce consumer trust and responsible innovation. 

Germany’s CSD market is primed for long-term growth, driven by demand for low- or sugar-free options and natural ingredients, given that over half of German consumers are already willing to pay more for healthier CSDs. Similarly to the US market, nostalgia is a powerful marketing and NPD tool, with over two-thirds of drinkers attracted to flavours reminiscent of childhood.  

As we face more extreme weather events and likely hotter summers, there is an opportunity for brands to focus on hydrating and cooling communications, using ingredients like aloe vera, cucumber and plant waters to resonate with consumers seeking refreshment. 

Price increases are driving value sales, despite a slight decline in volumes. This shift is prompting brands to innovate with new products and formats to stay relevant. 

Meanwhile, flavour remains the primary driver of purchase decisions among Japanese consumers (client-access only), highlighting the critical role of ongoing flavour innovation in capturing their interest and loyalty. 

As Japanese consumers become increasingly health-conscious and drinking occasions broaden, CSD brands are redefining category boundaries with creative cross-category blends, such as fusions with juices and energy drinks. With one in five Japanese 18-39-year-olds now opting for non-alcoholic options, alcohol-free CSDs are gaining momentum. To capture this demand, brands are experimenting with sophisticated carbonated mocktails, appealing to consumers seeking both taste and mindful alternatives. 

China’s sparkling drinks market is rebounding, driven by emotional consumption and high temperatures. Sparkling drinks are popular across occasions, but face growing competition from the Chinese functional drinks category. Brands can differentiate themselves by enhancing functional ingredients such as electrolytes to strengthen their hydration credentials and leveraging unique sparkling textures for sensory stimulation. 

Meanwhile, food pairing is becoming ever more significant in driving growth and differentiation within the Chinese sparkling drinks category. Innovations such as microbubbles and naturally fermented kombucha are particularly well suited to meal occasions, as their fine bubbles offer flavour enhancement and digestion aid.  

Coffee is transcending its traditional role as a morning pick-me-up. In the UK and China, it is becoming a status symbol. In the US and Germany, it is becoming a wellness tool and a culinary experience at home. 

Premiumisation, customisation and sustainability are reshaping consumer expectations, while health and lifestyle aspirations drive innovation. Brands that connect coffee to identity, wellbeing and environmental responsibility are poised to lead in a rapidly adapting global coffee market. 

The US coffee market is evolving amid supply chain challenges and tariff uncertainity, with over a third of consumers now brewing more coffee at home. The emergence of the “at-home barista” culture is inspiring innovation and premiumisation in home coffee setup, with growing interest in milk frothers, grinders and single-cup speciality machines. 

To capture steady long-term growth, customisation will be key, supported by over a third of US consumers who already enjoy personalising their coffee at home. Creamers and globally inspired flavours offer accessible ways for consumers to personalise their coffee experience. Brands that embrace premiumisation and customisation can capture growth by catering to American consumers’ desire for elevated, at-home coffee rituals. 

Inflation has boosted the value of the UK coffee market, and with no end to rising prices in sight, brands have an opportunity to appeal to cost-conscious Brits, by highlighting the price per cup and emphasising the value for money compared to out-of-home options.  

Nearly half of UK coffee buyers see coffee as a status symbol, which opens up potential for brands to intertwine coffee with broader lifestyle aspirations in health, beauty and fitness. Cold brews are the key to engaging Gen Z, but growing concern for caffeine intake presents a barrier. To address these concerns brands can tap into the trend for ‘fusion drinks’ and ‘drinkable desserts’ which appeal to over half of British coffee drinkers seeking indulgence and versatility. Brands that position coffee as both an affordable luxury and a lifestyle enhancer can energise the category and attract new audiences. 

China’s coffee market is experiencing explosive growth, driven by a consumer trade-up toward authenticity and pure flavour. Nearly seven in ten Chinese consumers value high-quality ingredients for health benefits. Brands are diversifying their offerings with adventurous flavour profiles and regional authenticity. 

Chinese coffee culture is deepening through festivals and pop-up experiences, offering brands new avenues to engage with emerging audiences. By embracing evolving tastes and infusing products with regional ingredients, brands can innovate and tap into the growth opportunities presented by China’s rapidly evolving coffee market. 

With coffee consumption nearly universal, with a staggering 92% of Germans enjoying it, the coffee market is a platform for innovation. However, the category is heavily impacted by the ongoing climate crisis, which is promoting market leaders to invest in more climate-resilient beans and sustainable farming methods.  

The “fourth wave” of coffee is characterised by the home barista and a focus on added value, enabling brands to win over value-conscious German consumers with premium at-home options. Heightened emphasis on health and wellbeing is also accelerating this trend, with two thirds of Germans prioritising physical health. Functional additions like collagen are gaining traction, empowering German coffee lovers to personalise their coffee ritual and placing brands at the forefront of the wellness movement. 

Tea is being reinvented for a modern, function-focused era. From energy-boosting matchas in the US to dessert-like indulgences in China, tea is evolving beyond its traditional role. Health, wellness, and innovation are at the heart of this transformation, as brands respond to shifting consumer preferences, climate challenges, and the demand for new experiences. 

Despite its long-term volume decline, tea remains a British staple. The permeating health and ‘foodie’ trends are fuelling growth in emerging tea segments, most notably matcha. Matcha has confirmed its mainstream status, with over half of under 35s having enjoyed it, hinting to its potential for longevity. 

Tea’s established role in self-care routines is an advantage for the tea market, as three-quarters of tea drinkers see it as part of their self-care ritual. Brands can further connect tea with the wellness movement by developing products for fitness, meditation, skincare, hydration, and innovative formats like concentrates, drinkable desserts, and fusion drinks. Those brands that act creatively now are well placed to capture the loyalty of the next generation of health-conscious consumers. 

Much like in Britain, tea remains a cherished staple in American households. However, the biggest challenge is consumers’ limited perceptions of what tea can be. 

Younger consumers are seeking innovative ways to explore tea, such as through the lens of health, as they often gravitate towards drinks that foster emotional wellbeing. Tea, therefore, is well placed to meet this demand, with two-fifths of drinkers already using it to relax.  

But the possibilities don’t end there. Tea has a potential to be stretched into new usage occasions. Tea can be used as a base or accompaniment, transforming everything from sweet treats and desserts to sophisticated alcohol alternatives to broaden its appeal.  

Tea drinking is almost ubiquitous with Germans. While Mintel forecasts that the German tea market will experience retail value growth through to 2029, it is mainly driven by inflation due to climate-related production challenges. 

While climate change remains a disruptor for the tea industry, it also opens up dynamic opportunities towards organic teas and fostering localism in lesser developed cultivation areas in the EU. This shift aligns with the German government’s goal to achieve 30% organic agriculture by 2030.  

Amid the current boom in weight-loss medication, the German tea market is seizing the moment to position itself as a compelling, natural alternative. This trend has seen a surge in teas specifically crafted with weight management in mind, often featuring ingredients like green tea, known for curbing appetite and boosting fat burning. 

The Chinese tea market is influenced by a demand for healthier and additive-free  innovation. Since nearly half of Chinese consumers are concerned about sugar in tea, brands are responding. Mintel’s GNPD recorded that 42.8% of new tea launches in China now carry sugar-free claims. This presents an opportunity for brands to champion tea’s inherent health benefits and set it apart from coffee and other alternatives.  

There is further potential to reposition tea as an everyday alternative to water, offering nourishment and hydration in one. To fully realise this, brands must address consumer perceptions around caffeine, especially as 51% of tea drinkers express concern about tea impacting their sleep.  

Health remains the core driver in the Japanese tea market, yet supply chain vulnerabilities present significant challenges.  

Driven by surging global Matcha demand, Japanese brands are diversifying their tea offerings, supported by Mintel’s GNPD reporting which reveals that 45% of launches now featuring black tea compared to just 6% for Matcha. They’re also enhancing RTD offerings by blending rooibos with vibrant fruits and aromatic herbs. Rooibos blends with vibrant fruit and aromatic herbs are gaining traction as caffeine-free alternatives, especially for the 46% of Japanese consumers limiting caffeine before sleep (client-access only). 

With a staggering nine in ten Japanese consumers reporting stress, there’s a dynamic opportunity for RTD teas that target fatigue, sleep and relaxation. Brands poised to champion teas for mental wellness and relaxation stand to thrive as demand accelerates. 

Across every drink category and market, the industry is being reshaped by a vibrant mix of health and wellness, value and premiumisation, sustainability, and customisation. Today’s consumers aren’t just looking for a beverage; they want products that boost wellbeing, spark joy and fit seamlessly into their lives.  

Brands are rising to the challenge with bold innovations, by embracing functional ingredients, promoting mindful consumption, prioritising sustainable sourcing, and continually redefining category standards.  

To successfully navigate this ever-evolving landscape and truly win the loyalty of today’s discerning consumers, brands need reliable guidance. Mintel’s predictive insights, expert recommendations and reliable data empower brands to make confident, informed decisions, supporting them to shape the future of your industry, not just react to it. 

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