New Behaviors, New Bottles: How Shifting Beverage Trends Are Reshaping Packaging Expectations
The beverage industry is vast and constantly evolving, but a unifying force is reshaping the way drinks are consumed and packaged: the changing behaviors of Millennials and Gen Z. These generations are not just altering what they consume, but also redefining how and why they consume. For the packaging industry, this presents both challenges and opportunities.
In parallel, we’re witnessing an unprecedented speed of new product launches, as beverage brands scramble to tap into evolving consumer values—premium experience, health-first formulations, minimalist ingredients, and sustainable commitments. For packaging professionals, agility and adaptability are more essential than ever.
Redefining Consumption, Segment by Segment
1. No- and Low-Alcohol Beverages (NoLo)
This segment is experiencing a cultural shift. While social pressure once made NoLo choices less visible, brands like Lucky Saint, Botivo, and MotherRoot are changing the narrative. NoLo drinks now represent a lifestyle choice focused on balance and mindfulness.
According to IWSR, no-alcohol beer is projected to overtake ale in 2025, becoming the second-largest beer category behind lager. Gen Z is leading this movement: 21.5% don’t drink alcohol, and nearly 40% drink only occasionally.
2. Ready-to-Drink Tea and Coffee
Tea is gaining traction for its functional health benefits, while coffee remains a popular indulgence. This space is expanding through innovations such as home kits, unique flavor syrups, and portable, premium packaging formats.
3. Sports and Energy Drinks
This mature category continues to grow thanks to increased demand for clean-label, performance-driven options. Brands in this space are focused on creating strong community followings and high repeat purchase rates. Packaging plays a critical role in supporting that brand promise.
The Hybrid Channel Challenge
Consumers want beverages that work both on-the-go and at home. Online sales are growing nearly 7% annually, outpacing other channels. For packaging, this means serving two roles:
- Primary packaging must be both functional and emotionally resonant. Recyclability, form factor, and tactile quality all matter.
- Secondary packaging needs to perform logistically and delight aesthetically. Consumers equate packaging waste with poor design, and damage with brand indifference. One growing frustration is excessive or inconvenient packaging: bubble wrap, stretches of honeycomb paper, and fillers that serve no purpose but to fill bins. There are smarter ways to protect products that align with modern expectations of sustainability and simplicity.
Fulfillment Compatibility Is Critical
An often-overlooked factor is how well packaging integrates with the fulfillment process. Even the best-designed solution may be sidelined if it’s incompatible with warehouse operations or automation flows. In a fulfillment setting, packaging must balance sustainability with speed, simplicity, and reliability. The more choices or manual handling required, the more friction operators face. Scalable solutions are those that simplify decision-making and enhance operator ease without compromising the brand or unboxing experience.
Is the Packaging Industry Ready?
Packaging is no longer just a container. It’s a communication tool, a sustainability statement, and a user experience. The brands succeeding in these growth pockets are partnering with suppliers who understand the entire journey—from shelf to doorstep.
As we watch the rise of NoLo beverages, the innovation in ready-to-drink formats, and the reinvention of energy drinks, the message is clear: packaging must adapt to the new rituals of consumption. Brands that get it right will win not just shelf space, but consumer loyalty.
At BridgeInsight, we’re helping packaging companies and brands stay ahead of these changes with actionable insights and strategic foresight. Let’s build the future of packaging together.