The question, "What are Americans drinking?" no longer has a simple answer. The beverage landscape has become a complex mosaic shaped by health trends, innovation, and shifting consumer demographics. From specialty coffees to a record decline in alcohol consumption, Americans are opting for diverse and functional drinks that align with a wellness-focused lifestyle. This comprehensive overview explores the key trends defining American drinking habits today.
The Rise of Non-Alcoholic and Functional Beverages
The market for non-alcoholic beverages is experiencing rapid expansion, with forecasts predicting significant growth through 2028. This boom is fueled by a generational push towards moderation, with Gen Z consumers leading the charge.
- No-Alcohol RTDs and Spirits: Ready-to-drink (RTD) non-alcoholic options, alongside spirits alternatives, are seeing substantial growth, with IWSR projecting over 20% volume CAGR between 2024-2028 for the RTD category. Brands like Seedlip and Tanqueray 0.0% are at the forefront of this trend.
- Functional Formulas: Consumers are increasingly seeking drinks that offer more than just hydration. Functional beverages infused with probiotics, vitamins, adaptogens, and nootropics are gaining traction, appealing to those who want enhanced health benefits from their drinks.
- Specialty Sodas and Juices: Carbonated drink brands are innovating with natural sweeteners like stevia and new flavor profiles to capture health-conscious segments. Prebiotic and probiotic sodas, in particular, are nearing staple status due to strong consumer retention.
The Specialty Coffee and Tea Revolution
Coffee and tea remain mainstays, but consumption habits are evolving towards premium and specialized products.
- Specialty Coffee Outpaces Traditional: A June 2025 report from the National Coffee Association revealed that daily specialty coffee consumption, including espresso and cold brew, has surpassed traditional coffee for the first time. This marks a shift towards more artisanal experiences.
- Cold Brew's Year-Round Appeal: Cold coffee beverages, once seasonal, are now popular year-round. Cold brew and frozen blended coffee drinks each account for a significant portion of daily consumption.
- Tea's Growing Popularity: Tea is giving coffee a run for its money, with one study showing that restaurant tea orders surpassed coffee orders in 30 states. The rise of matcha green tea and bubble tea reflects a growing appreciation for diverse tea varieties.
The Evolving Landscape of Alcoholic Beverages
Despite a drop in overall consumption, the alcoholic beverage market is undergoing a significant transformation, driven by premiumization and shifts within categories.
- Spirits Gain Share: The spirits category has steadily grown its market share, driven by a focus on premium and super-premium options. Ready-to-drink (RTD) cocktails, including those featuring tequila and vodka, have seen rapid growth, capturing a significant segment of the market.
- Beer and Wine Trends: The beer market is seeing growth in imports, like Modelo, and craft beer sales, even as overall volume declines. The wine market has remained relatively stable, with growth primarily in canned wine and sparkling varieties like prosecco.
- Mixology at Home: A sustained trend of at-home entertaining, a carryover from the pandemic, continues to boost retail sales of spirits as consumers perfect their own cocktail-making skills. Bourbon and tequila have become particularly hot categories, with new celebrity-backed brands entering the market.
Comparison: Top American Beverage Trends
| Trend | Consumer Driver | Key Market Growth | Representative Products |
|---|---|---|---|
| Non-alcoholic Boom | Health and wellness, moderation (especially Gen Z) | Strong CAGR for non-alcoholic spirits and RTDs | Seedlip, Tanqueray 0.0%, non-alcoholic beers |
| Specialty Coffee | Premiumization, diverse experiences, flavor variety | Daily specialty consumption surpasses traditional | Cold brew, espresso-based lattes, single-origin coffee |
| Functional Drinks | Health benefits beyond hydration, wellness focus | Significant growth in prebiotic and probiotic sodas | Probiotic sodas, adaptogen-infused waters, collagen drinks |
| Premium Spirits | Trading up for quality, at-home mixology, novelty | Strong growth in super-premium tiers; spirits gain share over wine | Tequila (premium), bourbon, high-end vodka, craft distillers |
| RTD Cocktails | Convenience, variety, on-the-go consumption | Rapid growth driven by flavor innovation | High Noon, Cutwater Spirits, Two Chicks Cocktails |
Conclusion: A New Era of Drinking
The American beverage market is undergoing a fundamental transformation. A growing focus on health and wellness, particularly among younger generations, is driving a historic decline in alcohol consumption and a surge in non-alcoholic and functional alternatives. Simultaneously, consumers are seeking more premium and diversified experiences, whether in their specialty coffee, artisanal spirits, or convenient, high-quality RTD cocktails. The industry's rapid innovation and adaptation to these changing tastes ensure a dynamic and exciting future for what Americans choose to drink. For the latest insights on consumer trends, the global beverage data provided by IWSR can be a valuable resource.
References
- Gallup, CBS News. (August 2025). Only 54% of U.S. adults say they drink alcohol, a record low.
- IWSR Drinks Market Analysis. (January 2025). Key Statistics and Trends for the US No-Alcohol Market.
- National Coffee Association, Daily Coffee News. (June 2025). U.S. Specialty Coffee Consumption Reaches New High.
- Park Street Imports. (2024). Alcoholic Beverage Industry - United States Market Overview.
- Innova Market Insights. (August 2024). Carbonated Drinks Market: Consumer Insights and Preferences in the US.
