Insights from the Evolving Beverage Aisle

FMI’s inaugural Power of Beverage report explores beverage discovery, purchasing behaviors, health and well-being trends, and evolving consumer expectations. 

By: Steve Markenson, Vice President, Research & Insights, FMI

Can I offer you a tall, cold beverage to help you make it through this hot, smoky summer? I know I could use one. But for now, what I can offer you is FMI’s inaugural edition of The Power of Beverage: Navigating the Changing Beverage Marketplace. This newest report from FMI explores the evolving world of beverages, from exploration to purchase to consumption, with a generational perspective.  

The research studies beverage discovery, influences, buying behaviors, health and well-being trends, and why and when consumers choose beverages, in their own words. The report is intended to provide a perspective, outlook and a roadmap for harnessing the power of beverages for food suppliers, retailers and wholesalers. Let me “wet your whistle” with some key takeaways. 

Beverages remain one of food retail’s most dynamic growth engines.  

• In 2025, shoppers spent nearly $295 billion on retail beverages, with many of the top-performing segments posting growth in both dollars and units. 

Consumers expect more from beverages.  

• Taste, refreshment and hydration still matter most, but shoppers increasingly want beverages to deliver energy, protein, low- or no-added sugar options, digestive support, mood benefits and other functional advantages.  
• That shift is fueling growth in both emerging functional beverages and mainstream categories like soda, coffee, tea and dairy-based drinks. 

 The path to purchase is rapidly changing, and it’s digital.  

• Grocery and convenience stores dominate retail beverage sales but are slowly ceding dollar share to ecommerce.  
• While it is still small, social commerce is growing rapidly, especially as younger shoppers discover beverages on social platforms.

 The beverage value equation is changing as well.  

• Price still matters, but shoppers are defining value by product quality, convenience, wellness benefits and brand trust.  
• Beverages that deliver on consumers’ personalized needs and specific, meaningful outcomes are less likely to experience trade-down.  

Beverage choice is increasingly driven by specific needs, product benefits and personal identity.  

• Consumers are creating beverage repertoires that satisfy their needs in the moment, and those needs shift across life stages and throughout the day. 
• This opens new opportunities for innovation, premiumization and cross-category growth. 

Social proof drives purchase, although scrutiny of influencers is increasing.  

• Skepticism persists about the authenticity and trustworthiness of products promoted online.  
• Personal beverage recommendations by friends and family are most likely to convert to trial and purchase. 

Emerging adult beverages are creating new occasions.  

• THC-infused beverages and alcohol alternatives are not replacing alcohol one for one. They are being consumed throughout the day. 
• At the same time, one-third of consumers reducing their alcohol intake are not replacing it with another beverage. 

Looking ahead, the strongest opportunities sit at the intersection of function, credibility and occasion.  

• Hydration, energy, protein, digestive support and relaxation are among the high-growth need states.  
• The future beverage aisle may need to be organized less around traditional categories and more around the benefits consumers want beverages to provide.  

In addition to these key takeaways, the report offers ideas for how the industry can satisfy shoppers' insatiable thirst for beverages. As you enjoy this latest FMI report, please partake in a tall, cold one on me. 

Download the Power of Beverage