Move over, seltzer. Non-carbonated drinks are taking the spotlight
Surfside drinks are on display at the trade show during CinemaCon 2026 at Caesars Palace on April 15, 2026 in Las Vegas.
Travis P Ball | access point
About a decade ago, LaCroix’s sales began to skyrocket. Before long, flavored seltzers were everywhere, from grocery store refrigerators to liquor store shelves.
But due to seltzer fatigue, the bubble era appears to be coming to an end. Still beverages are now at the forefront, from Liquid Death to Surfside Ice Teas.
“If you think about places where there is more growth, where there is more consumer interest than a few years ago, there is more stagnant change in both areas. [alcohol] and alcohol-free,” said Randy Burt, Americas director of consumer products for consulting firm AlixPartners.
This does not mean mineral water and other carbonated drinks will disappear But their growth has slowed as Gen Z increasingly seeks bubble-free options and beverage companies’ innovation efforts focus more on still beverages.
Look no further than the alcohol category. Volume of malt-based hard seltzers, which includes White Claw, fell 1.1% in the 52 weeks ending April 26 compared with the previous year. Data from market research firm Circana. On the other hand, ready-to-drink pre-mixed cocktails, Surfside, Sun Cruiser, BuzzBallz And Anheuser-Busch InBev Cutwater Spirits, available in both sparkling and still options.
bursting bubbles
Much of the driving force behind the shift from sodas to still drinks comes from Generation Z, generally defined as people born between 1997 and 2012. Lifetime soda consumption has fallen significantly from its peak in 1998, reusable water bottles have become an essential accessory, and numerous new beverages such as refreshments and dirty soda have become mainstream.
In general, Generation Z wants to try new products. While older generations show greater brand loyalty to their favorite beer or cocktail, younger consumers have a different mindset.
“We’re seeing a lot of randomness around consumption and alcohol in new products,” said Scott Scanlon, vice president of spirits. for CircanaHe references the rise of White Claw and Truly about eight years ago. “Now we’re seeing consumers jumping on the newest product, so Surfside is the Sun Cruiser.”
He sees a generational shift between Generation Z and their predecessors, Millennials, who can’t get enough of seltzer.
As Generation Z reaches drinking age, alcohol preferences reflect this generational divide. Still spirits like Surfside and BeatBox are stealing “throat share” from slow-growth hard seltzers.
“Gen Zers are much more likely to order tea-based beverages at happy hour, leaving drinks that are somewhat carbonated or sparkling water to their default preference of ‘better for you,’” Burt said. “I think this is part of the shift towards wellness and functionality, especially from a Gen Z perspective.”
For fans some drinksGoing non-carbonated makes more sense given the beverages’ non-carbonated base, such as functional teas and coffees that target stress relief or immune support.
Additionally, some consumers do not view carbonation as a healthy option.
Carbonated water is slightly acidic and can cause weariness. external enamel when consumed in large quantities, especially if seltzer uses citric acid as a sweetener. Also, carbonated drinks can cause bloating and burping. for some people. And then there is the association All types of bubbles can be shared with sugary sodas.
What is tea?
Thanks to the rapid rise of Surfside, alcohol is leading the trend.
Indie vodka distiller Stateside Brands launched its hard iced tea brand in 2022. The ready-to-drink beverage uses vodka as a base and iced tea and lemonade as mixers.
At the time of its introduction, carbonation was ubiquitous in the alcohol industry.
“The options available included carbonated iced tea and sparkling lemonade, which is a little less unusual, but we were like, ‘What the hell, man? Who carbonates iced tea?’ we said. That doesn’t seem sacred,” said Stateside co-founder and CEO Clement Pappas.
Consumers seemed to agree. Surfside is the fastest-growing alcohol brand in the U.S. by 2024, according to Nielsen IQ data.
“I think there is a huge pent-up demand for non-carbonated options,” Pappas said. “There are very few out there, especially in ready-to-drink format.”
Surfside’s customer base skews female. Pappas said many of the brand’s fans dislike baking soda because they think it causes bloating, especially after having several drinks in one sitting.
America’s side is bending further become degassed drinks with its latest brand, Super Lyte. The brand still uses vodka as a base, but the mixer is inspired by classic sports drinks.
Although Surfside burst the seltzer bubble, other still alcoholic beverages have grown rapidly since then.
Volume growth for Cutwater’s canned cocktails has nearly doubled from last year, according to Scanlon. Wine-based drinks brand BeatBox, which is majority-owned by InBev, has also seen demand for its drinks soar since the alcohol giant increased distribution. And then there are pre-mixed cocktails from BuzzBallz, which launched in 2009 but has grown rapidly following its acquisition by Sazerac in 2024.
Proven alcohol players are also trying to take on Surfside, further boosting the profile of still drinks in the category. Twisted Tea holder Boston Beer It launched the Sun Cruiser in 2024 to compete directly with Surfside.
Although Sun Cruiser is growing faster these days, so far Surfside holds a larger share of the overall market share.
Celsius warming without bubbles
Cases of Celsius energy drink sold at a store in San Francisco on March 17, 2025.
David Paul Morris | Bloomberg | Getty Images
On the non-alcoholic side, Shifting towards bubble-free drinks Not that strong, according to Burt from AlixPartners. Some sodas are still showing strong growth; of PepsiCo Besides Poppi, energy drinks such as Celsius and Ghost are also in strong demand.
But there are signs that the soft drink landscape is changing.
Celsius, for example, expanded its line of non-carbonated energy drinks earlier this year, inspired by Gen Z’s focus on healthy living and the general trend towards still beverages. drinks in other categories. Typically carbonated options Dominating the energy drink aisle allows Celsius to stand out and attract customers’ attention. otherwise it may happen Stick to tea or coffee for a caffeine fix.
The brand’s pre-existing uncarbonated peach mango green tea flavor consistently ranks in the top 10 in Celsius and currently ranks fourth among all its flavors, according to Celsius Brand Director Kyle Watson.
The expanded lineup has helped Celsius increase sales from Gen Z and women, two key segments in the energy drink category.
“In the focus groups we meet with, even our brand ambassadors at all our universities, many of them talk about not liking fizzy drinks,” Watson said.
Consumers want a “better flavor experience” when they drink “functional beverages” such as those touting high protein content, prebiotics, caffeine or other benefits. Watson.
Watson said part of the appeal of the non-foaming line is that it goes down “really smoothly,” making it a better pairing for meals. According to Watson, approximately 37% of Celsius consumers consume energy drinks with meals.
And Celsius has made a point of putting its actual non-carbonated products front and center on the line’s packaging.
“With the expansion, we also wanted to make sure that the ability to be still and uncarbonated and have a smooth, refreshing flavor profile was more prevalent in the actual can design,” Watson said.
Some other Beverage brands are investing heavily in moving away from soda.
“Our product is extremely drinkable due to the lack of carbonation,” Indian CEO Michael Pengue said in an interview.
Founded in 2005, the flavored water company has a loyal fan base, especially in Silicon Valley. However, according to Pengue, the brand “collected dust” and stopped growing. He hopes consumers’ move away from balloons will boost sales, along with new packaging and a sexy new ad campaign. (Although Indian has some sparkling options, it’s a much smaller part of the brand’s portfolio, according to Pengue.)
Earlier in his career, Pengue managed Nestle’s water and tea brands, which included Perrier and San Pellegrino.
“I was on the other side of carbonation when soda consumers were looking for healthier alternatives, moving away from aspartame or high fructose corn syrup and switching to Perrier, San Pellegrino, Polar, LaCroix,” he said. “They’re all shiny [water] exploded. “Now we’re seeing the same thing, just the opposite.”
According to Pengue, Hint’s flavored water offers “drinkability” and “pure hydration,” giving the brand an edge over sparkling waters that can’t be drunk as quickly. he said it also has a “sensory softness” that appeals to consumers who don’t like the bite of baking soda.
can-do attitude
For decades, an aluminum can with a pull handle usually meant carbonated beverages like beer, soda, or sparkling water. was inside.
But these days most non-carbonated drinks come in cans that look like the seltzer and sodas from which they steal their share.
“Box is winning,” Ball CEO Ronald Lewis said on the company’s earnings conference call earlier this month.
Liquid Death drinks canned water at a store in Pinole, California, United States, on Monday, March 11, 2024.
David Paul Morris | Bloomberg | Getty Images
He would know. Ball is the world’s largest aluminum packaging manufacturer.
Celsius’ Watson believes Liquid Death paves the way for consumers to accept non-carbonated canned drinks.
When Liquid Death founder Mike Cessario started the company in 2017, he couldn’t find a single bottler in the U.S. that could put still water in cans. Still drinks require a quick dose of nitrogen to prevent the can from collapsing in on itself, which poses a problem for bottlers; carbonation creates high internal pressure, which allows the can to maintain its shape.
Cessario told CNBC that the key to getting consumers to buy canned water — an otherwise unthinkable proposition — was to position Liquid Death as a cool brand.
“We designed it to look more like beer than water, so it felt like something much more familiar to people than the weird bottled water in a can,” Cessario said.
Although Liquid Death returned to its non-carbonated roots with iced tea in 2023, it has since introduced sparkling and flavored sparkling products.
For beverage companies, aluminum cans are often a cheaper option than glass bottles and a more sustainable option than plastic bottles.
For consumers, however, the cans feel cooler, perhaps even colder; It’s a throwback to the trendy drink wave during the seltzer boom.
