FMI’s Power of Beverage 2026 report shows that Gen Z, millennials, Gen X and boomers approach beverage purchases through different lenses, creating an opportunity for retailers to merchandise beverages around consumer needs rather than traditional categories.
By: Morgan Griffin, Manager, Communications, FMI
A 24-year-old shopper scrolls TikTok looking for the latest functional soda. A millennial grabs a protein coffee before a morning workout. A Gen Xer reaches for a trusted tea brand after work. A baby boomer heads straight to the coffee aisle, buying the same favorite blend they've enjoyed for years. They all purchase beverages, but they shop with very different mindsets.
That generational divide is becoming one of the most important forces shaping the beverage category today. FMI’s inaugural Power of Beverage 2026 report finds shoppers increasingly choose beverages based on life stage, personal needs and desired outcomes rather than traditional category definitions.
Preference vs. Goals for Beverages
The differences start with what consumers drink most often. Gen Z gravitates toward carbonated soft drinks, juice and dairy beverages, while millennials add coffee to the mix as busy lifestyles demand energy and convenience. Gen X continues its strong preference for carbonated soft drinks and coffee, while boomers overwhelmingly favor coffee, followed by soft drinks and tea. But preferences tell only part of the story.
Younger shoppers increasingly view beverages as tools for achieving specific goals. Gen Z and millennials actively seek wellness benefits, including protein, B vitamins, immunity support and digestive health. They are more interested in what a beverage adds than what it removes. Older shoppers, by contrast, place greater emphasis on low or no added sugar and avoiding artificial ingredients.
Path To Discovery for Beverages
The path to discovery of beverages also looks dramatically different across generations. For Gen Z, beverage discovery often begins online. Ninety-two percent use social media to discover new beverages, with TikTok, Instagram and YouTube playing a significant role. Nearly half say a beverage becomes more appealing after learning about it from a creator or influencer.
Boomers take a different route. They are more likely to discover beverages through in-store signage, food retailer merchandising and routine shopping trips. Family and friends remain influential across all generations, but physical retail still plays an especially important role for older consumers.
Beverage Definition of Value
When it comes to beverages, even value means different things depending on age. While price remains important for everyone, Gen Z and millennials place greater emphasis on convenience, wellness benefits and premium ingredients. Boomers continue to prioritize low prices, trusted brands and promotions.
The takeaway for retailers is clear: There is no single beverage shopper anymore.
Winning in today’s nearly $295 billion beverage market requires meeting consumers where they are in life, not simply where they are in the aisle. Retailers that organize beverages around need states have the opportunity to create more relevant shopping experiences for every generation.
Industry Topics address your specific area of expertise with resources, reports, events and more.
Our Research covers consumer behavior and retail operation benchmarks so you can make informed business decisions.
Events and Education including online and in-person help you advance your food retail career.
Food Safety training, resources and guidance that help you create a company food safety culture.
Government Affairs work — federal and state — on the latest food industry policy, regulatory and legislative issues.
Get Involved. From industry awards to newsletters and committees, these resources help you take advantage of your membership.
Best practices, guidance documents, infographics, signage and more for the food industry on the COVID-19 pandemic.
