Keurig Dr Pepper Inc.

(NASDAQ Global Select)
Bullish +75

How Gen Z and Gen Alpha are redefining beverage habits in the US

πŸ” The second annual Keurig Dr Pepper State Beverages Trend Report reveals that Gen Z and Gen Alpha are approaching drinks with greater intention rather than autopilot habits.

πŸ“‰ Compared to older generations, younger consumers choose beverages based on mood, occasion, activity, and identity instead of default routines.

🍻 Gen A/Z is nearly 60% more likely than Millennials to select drinks based on how they feel or the specific context they are in.

πŸ‘₯ Social dynamics are shifting as 59% of younger consumers' drinking occasions involve others, up from 50% among older generations.

🍽️ Pairing beverages with food is increasingly common for youth, with 65% having a drink with a meal compared to 57% of older groups.

πŸšΆβ€β™€οΈ Younger consumers are 40% more likely to consume beverages away from home compared to previous generations.

β˜• Variety is key as Gen A/Z consumes five drinks per occasion on average, versus four for Millennials and older adults.

🌐 Flavor exploration is driving change, with younger consumers two times more likely to choose brands that signal their identity.

πŸ‹ Sweet and fruity profiles dominate preferences, and nearly 75% of Gen Z coffee occasions include flavored coffee.

πŸ₯€ Wellness definitions are expanding as youth seek sustained energy or comfort rather than strict restriction.

πŸ’§ Hydration strategies are diversifying with younger consumers significantly more likely to use enhanced water, energy drinks, and sports drinks.

🎨 Limited-edition beverages appeal strongly to youth, with 56% interested in them versus only 40% of older generations.

🌍 Global flavors are highly sought after, as 57% of Gen A/Z look for internationally inspired options compared to 45% of others.

πŸ€” Drink habits are becoming less predictable and more personal, reflecting lifestyle and personality rather than tradition.

πŸ“Š The data aggregates national surveys from YouGov, Ipsos, and Morning Consult alongside Keurig Dr Pepper's proprietary research.

πŸ‘Ά Gen A/Z is defined in this report as individuals aged 13 to 29, while Millennials and older are aged 30 and over.

Full Analysis
Keurig Dr Pepper has released its second annual State of Beverages Trend Report, revealing a significant shift in consumption habits driven primarily by Gen Z and Gen Alpha (ages 13-29). The data indicates that beverage choices for younger generations are no longer automatic routines but are instead highly intentional decisions based on mood, occasion, activity, and personal identity. Unlike older consumers who default to specific pairings or habits, Gen A/Z consumers are nearly 60% more likely to select a drink specifically because of their current feeling or the social context in which they are consuming it. The report highlights several key behavioral metrics: 59% of beverage occasions for Gen A/Z occur with others compared to 50% for Millennials and older groups, while 65% happen alongside food versus 57% for older generations. Furthermore, younger consumers consume beverages away from home 40% more often than older cohorts and drink approximately one more unit per occasion, rotating through six different categories a week instead of five. This variability is driven by a desire to express personal identity through their brand choices, making Gen A/Z twice as likely as Millennials to pick drinks that signal something about themselves. Flavor innovation and wellness are central to this shift, with younger consumers seeking variety and global inspiration. Fifty-eight percent of Gen A/Z look for new or unexpected flavors, up from 50% in older generations, and nearly three-quarters of their coffee occasions now include a flavored cold brew or similar variant. The definition of wellness is also expanding beyond restriction to focus on functional benefits like energy, hydration, and comfort; consequently, younger consumers are significantly more likely to use enhanced water, energy drinks, and sports drinks compared to previous generations. Overall, the industry is facing a move away from predictable pairings toward a dynamic, mood-based rotation of functional and flavored beverages that reflect an evolving consumer identity.