Download the full 2026 Beverage Industry Trends Report here.

This free industry report outlines industry perspectives and expert advice from our team of consumer products consultants. You can view an excerpt of the report below, and if you’d like to discuss any of the above trends or other challenges in the beverage industry, connect with our team today.

Key Beverage Industry Trends

Beverage companies that enter 2026 with a commitment to simpler formulations and cohesive packaging will be positioned for stronger performance. Building flexible supply systems and accelerating development cycles will help teams respond to changing conditions and maintain relevance across varied consumer segments. 

As expectations for clarity and function continue to grow, brands that can connect product integrity with operational agility will have an edge in a market shaped by shifting wellness behaviors and uneven spending patterns. 

Clarkston’s CPG consultants have highlighted the top beverage industry trends that businesses should consider and keep top-of-mind throughout the year:

1. Simplified Beverages Redefine Wellness
2. Restructuring for Agility and Growth
3. Protein Beverages Go Mainstream
4. Packaging as a Sustainability Statement

Trend 1:

Simplified Beverages Redefine Wellness

Simplified beverages are becoming essential in the wellness landscape as consumers adopt low-sugar formulations with short ingredient lists that integrate easily into daily habits. Spending on non-alcoholic drinks grew 6.2% in 2025 compared with 2.4% growth for alcohol, revealing how growth in hydration and gut-health are outpacing those of traditional refreshment options.  

The simplified-ingredient segment has shifted from niche to mass market as shoppers rely on beverages to support energy, digestion, focus, and general well-being. Global demand reflects the same trajectory, with the functional beverage market projected to rise from $164.8 billion in 2024 to more than $218 billion by 2029. 

Growth in the U.S. functional beverage segment is also tied to preventative health behaviors and heightened awareness of lifestyle-related illness. Brands are focusing on recognizable ingredient panels and cues like no artificial colors or natural sweeteners.  

As competition grows, transparency is increasingly separating leaders from the broader field. Olipop has invested in clinical work showing improved blood-sugar responses compared with traditional cola and continues publishing research related to digestion and metabolic performance to reinforce credibility. PepsiCo’s $1.95 billion acquisition of Poppi signals how prebiotic, low-sugar soda formats have reached mainstream relevance and created a new standard for nutrient-forward refreshment. It also signals the interest of the largest CPG companies to leverage their distribution capabilities to turbo-charge value capture from sustainable consumer trends. 

Regulatory changes are further strengthening clean-label momentum. The FDA introduced a natural blue color from gardenia fruit and encouraged faster removal of Red No. 3, accelerating industry-wide reformulation ahead of the 2027 transition. Kraft Heinz reported that about 90% of its U.S. portfolio is already free from synthetic dyes and intends to complete its remaining reformulations by 2027, reinforcing the shift toward natural alternatives.  

As cleanliness and function continue to shape consumer expectations, companies will need clear validation for their claims and packaging that accurately conveys benefits. 

Trend 2:

Restructuring for Agility and Growth

Restructuring is strategic response to economic shifts, volatility of ingredient cost, and the need for faster decision-making in crowded categories. Nestlé plans to reduce its workforce by 16,000 roles, which represents about 6% of global employees, and aims to reach $3.8 billion in cost reductions by 2027 as part of a larger plan to improve speed. Leadership has emphasized automation and leaner structures to support quicker evaluation, tighter performance management, and simpler operating layers. 

Heineken is taking a related approach as it removes 400 head-office roles under its Evergreen 2030 strategy and consolidates business services to expand digital capability across more than 70 markets. Transitions are taking place at the CEO level at big beverage companies such as Coca-Cola and Kraft Heinz, as boards prioritize structural refinement for the next phase of the market.  

These changes align with a broader push across beverage companies to direct investment toward higher-value categories and reduce exposure to slower brands. Data-driven forecasting is becoming central to this shift, with digital planning systems helping organizations narrow uncertainty in demand and supply. 

Consumers are also adjusting behaviors as economic pressure shapes household budgets. Higher-income shoppers continue to spend but are choosing beverages more carefully, while lower-income shoppers are cutting back as prices climb. This widening split is increasing the importance of portfolios that balance premium options with affordable alternatives.  

To keep pace, companies are shortening development cycles and focusing on launches with greater potential in addition to refining supply networks to control costs. Entering 2026, firms that can reconfigure portfolios and operations with precision will be better positioned to sustain performance across varying demand patterns. 

Continue reading by downloading the full report below.

Download the Full 2026 Beverage Industry Trends Report Here

Read last year’s Beverage Industry Trends Report here.

Contributions from Hannah Yang