- Soft drinks are playing an important role in foodservice’s recovery from the challenges of recent years1, reports Carlsberg Britvic, growing by 2% to £2.9bn in 2024 alone2
- Carlsberg Britvic's Soft Drinks Review 2025 highlights Gen Z3 as one of the generations fuelling this growth, with tap water and packaged hydration offers like flavoured waters and iced tea now making up 31% of everything this generation drinks - up 2.1% points since 2019, and 6% points higher than the average consumer in the UK4
- The latest report reveals huge opportunities for growth for foodservice outlets by tapping into new ways to entice Gen Z through soft drinks, particularly those that fall into the ‘treat’ category – now a key consideration for consumers, particularly younger, generally more health-conscious people who, when they do decide to treat themselves, want pure indulgence
Brits spent £100.8bn on eating and drinking out in foodservice establishments in 2024, a rise of 3.7% on 2023 and 5.1% on 20195, reports Carlsberg Britvic's Soft Drinks Review 2025. What’s more, soft drinks are helping to bring the buzz back to the sector, most notably for Generation Z, by fulfilling a widening range of consumer demands – refreshment, indulgence, functional health benefits and more.
Gen Z account for 15% of the population (more than 10 million people6) and so the foodservice industry simply can’t afford to ignore this demographic. Carlsberg Britvic's Soft Drinks Review 2025 has aptly renamed them the ‘hydration generation’, due to the significant role Gen Z is playing in the growth of the sector. Carlsberg Britvic identifies that operators can unlock substantial new growth by rising to the new challenges outlined in its latest annual report and driving additional opportunities by creating excitement through their soft drinks and low and no offering.
“Despite the marked differences we have come to associate with this younger generation - namely their attitudes to drinking alcohol and the impact that this is having on the industry - we believe that the opportunities far outweigh this,” comments Chris Pratt, VP Sales On-Trade, at Carlsberg Britvic. “Our latest Soft Drinks Review is a must-read for all foodservice operators to help them better understand the ‘hydration generation’ and what they’re looking for from a soft drinks perspective and, as a result, reap the rewards.”
Pratt continues, “Take for instance, the ‘treats’ category, which is becoming more, not less, important for consumers, despite the growing health consciousness amongst consumers. You only need to look at the rise of ice cream and dessert chains such as Creams, Little Dessert Shop and Cinnabon for proof of this. That’s why we’re helping our partners step up to growing demand for show-stopping drinks with the likes of indulgent cola floats using our Pepsi Cream Soda and Strawberries ‘N’ Cream variants, as well as a raft of limited-edition Jimmy’s Iced Coffee drinks, like last year’s hit, Cinnamon Bun, and our new Donut flavour which is taking the industry by storm.”
Carlsberg Britvic's Soft Drinks Review 2025 also shines a light on the more holistic approach to health that is being adopted by Gen Z. With a more positive view of sugar and fat, concentrating on macros and overall health and nutrition, this younger generation is less likely to be swayed by diet, sugar or fat-free claims. Only 12% of Generation Z claim to follow low sugar diets, compared to an average of 23%7, and 27% of people aged 18 to 24 claim to be teetotal, with 52% reporting drinking less than last year.7
Pratt adds, “We can help foodservice operators tap into this growing health trend with our wide range of natural and functional drinks we sell, such as Aqua Libra, Purdey’s Natural Energy and Plenish brands, at different occasions throughout the day. For example, Aqua Libra’s unsweetened sparking waters, in flavours such as Cucumber, Mint & Lime and Blood Orange & Mango, can provide pairings for light lunches and salads. Plenish health shots are also an additional sales driver at breakfast time, with many people buying them alongside their morning coffee.”
As the channel continues to experience rapid change, soft drinks’ role within it is also evolving. But one thing is clear, in order to attract this younger generation of consumer, quality is paramount. For operators who get this right, their younger customer will be more likely to share their experiences online and create a buzz for the venue. Carlsberg Britvic notes how key it is for foodservice operators to stay ahead of trends, and points to its Mix with Carlsberg Britvic online platform as a valuable resource. Curated by its team of mixologists, it helps operators upskill staff to make everyday drinks more memorable every single time. This could involve pepping up coffees with added kicks of flavours or adding more of a wow factor to milkshakes, smoothies, lassis, or house sodas. The rewards for operators are higher margins and elevated experiences for their guests.
Carlsberg Britvic’s top tips for attracting the ‘hydration generation’:
- Make it a unique and novel experience: one in two (50%) Gen Zs say they like to try food and drink with new and unusual colours (versus 30% of the wider population)[8] and 60% say they like to try new and unusual textures (versus 43% of the wider population).8 That’s why limited-edition favourites like Pepsi Electric (the UK’s first blue cola) have been a hit. Products like bubble tea9 and chewable juices10 continue to grow in popularity as well.
- Offer indulgence and quality for treating occasions: Younger people are prepared to pay more for drinks they perceive to be better quality, with 48% of people aged between 25 and 34 the most likely to pay more.11 Wow guests with elevated versions of everyday drinks, from coffees to indulgent, hand-spun shakes and smoothies. Teisseire, Robinsons Cordials and the London Essence Company range of mixers and crafted sodas are perfectly positioned to help operators add more pizzaz to their drinks ranges.
- Stock up on and promote products with functional health benefits: The Aqua Libra Flavour Tap allows partners to personalise how they serve pure filtered still and sparkling waters, infused with electrolytes, zinc and magnesium, as well as a choice of refreshing flavours - and all at the touch of a button. When it comes to broadening your drinks offer and devising enticing promotions, don’t think either/or; think and. Pairing Plenish health shots and coffee in deals can drive big gains in spend at breakfast time without cannibalising existing offerings. And promoting set price deals on Purdey’s Natural Energy Drinks and herbal and fruit teas at lunch or in the afternoon offers further opportunities for growth.
- Encourage consumers to share their drinks on social media: For one in two young people, Instagram is the preferred way to stay in touch with brands.12 And research shows that online reviews, branded social media profiles and content from social media influencers are the second, third and fourth most valued sources of recommendations.12 This means that it’s crucial to serve attractive ‘grammable’ drinks such as Pepsi cola floats and London Essence Company crafted sodas that they can share online.
Download the Carlsberg Britvic Convenience Soft Drinks Review
Notes to Editors:
For further press information or to request any infographics from the report, please contact the Britvic team at Cirkle via carlsbergbritvic@cirkle.com
All reader enquiries should be directed to: Customer Services, Carlsberg Britvic Soft Drinks on 0345 7581781
1. IGD, Grocery Retailing and Eating out Forecasts to 2029, June 24
2. CGA by NielsenIQ, Foodservice, Volume and Value Data, Soft Drinks Britvic Defined, MAT to 31.12.2024
3. Beresford Research: https://www.beresfordresearch.com/age-range-by-generation/ - Gen z comprises people born between 1997 and 2012,[3]
4. Kantar In Home Usage Panel (52 weeks), August 2024
5. IGD, Grocery Retailing and Eating out Forecasts to 2029, June 24
6. Mintel – UK lifestyles of Gen Z Consumer Report
7. Kantar Alcovision (Drinkers %) 12 we 21st Jan 2024
8. Lets Talk About Innovation Report – Givaudan 2023; Quantitative multi-country generation Z social drinking deep-dive study 2023 & Flavours and coloursstudy Gurus 2022
9. https://www.thegrocer.co.uk/news/dot-dot-bubble-tea-wins-backing-on-bbcs-dragons-den/700350.article
10. https://www.thegrocer.co.uk/news/viral-chewable-soft-drink-mogu-mogu-bolsters-retail-presence-as-sales-soar/699447.article
11. Lumina EDOP 52 wks to 13.04.25
12. KAM – Generation Z: All Grown Up Oct 2023