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21 Aug 2025

How F&B Brands, Luxury Labels and QSR Chains Are Betting Big on Beverages to Capture Gen Z

How F&B Brands, Luxury Labels and QSR Chains Are Betting Big on Beverages to Capture Gen Z
From TikTok-driven "dirty sodas" to luxury lattes, discover why beverages are the new battleground for winning over the most influential consumer group. It's no longer about quenching thirst; it's about capturing a shareable, viral moment.

In 2025, beverages have become the sharpest tool in the food industry’s arsenal to attract Gen Z. For this generation, a drink is more than refreshment, it’s an identity marker, a wellness boost and a shareable moment that travels fast on TikTok.[1] From luxury houses opening exclusive cafés to fast-food giants launching drink-focused concepts, brands are now investing heavily in beverage strategies to get younger consumers through the door.[2][3]

Quick-Service Chains Lean on Drinks for Growth

With traditional menu items under pressure, fast-food and casual dining chains are finding new life in beverages. McDonald’s is testing CosMc’s-inspired drinks like the "Popping Tropic Refresher" and "Creamy Vanilla Cold Brew" at over 500 U.S. restaurants, directly targeting Gen Z's preference for cold, flavourful treats.[4][5] Meanwhile, Taco Bell's Live Más Café concept is expanding to over 30 new locations, set to feature specialty drinks prepared by trained "Bellristas".[6][7] This summer, the chain also launched new non-alcoholic Agua Refrescas and energy drinks, furthering its push into the beverage space.[8] Beverages are high-margin, low-risk and most importantly, designed to spark viral attention and drive repeat visits.[3]

TikTok as the Beverage Launchpad

Gen Z no longer discovers drinks via billboards; they discover them on their "For You Page". From pastel-coloured refreshers to layered bubble teas, TikTok is the incubator where new drinks become overnight sensations.[9] The “dirty soda” wave, for example, moved from a Utah-based niche to a global talking point after creators turned soda, cream and syrups into a trending hashtag.[9][10][11] This viral success has prompted chains like Sonic Drive-In to introduce their own versions.[9] For brands, a photogenic beverage that is highly customisable is now a direct path to Gen Z awareness.[12]

Better-for-You and Nostalgic Sips

Wellness continues to drive beverage innovation. Recent data reveals that nearly two-thirds (61%) of Gen Z buy functional drinks several times a month.[13] They are actively seeking beverages that support physical health, with gut health, energy and mental balance leading demand.[14][15] The global functional beverages market is projected to reach nearly $340 billion by 2030, reflecting a major cultural shift.[16]

At the same time, nostalgia is making a powerful comeback with a health twist.[17] Brands are reviving retro flavours but upgrading the formulas with less sugar and natural ingredients to appeal to modern wellness trends.[18] Zevia’s Peaches & Cream soda, launched this year as a sugar-free, vegan and gluten-free option, taps into the comforting flavours of childhood desserts.[19][20] Social media reviewers on TikTok have called it “a peach cobbler in a can,” sparking sell-outs on Amazon where it was exclusively released.[19][21][22][23]

Personality and Playfulness Sell

Younger consumers respond to beverages that carry a distinct personality.[24] Brands like Liquid Death have achieved massive success by giving health-forward products an edgy, irreverent personality typically reserved for junk food or energy drinks, a strategy that deeply resonates with Gen Z.[25] Bold packaging, playful names and inclusive branding make drinks feel like cultural statements.[24] It’s no longer just about taste it’s about having something in your hand that signals identity and sparks conversation.[1]

What It Means for Your Business?

For the global F&B industry, beverages are now:

  • A gateway product: Affordable, repeat-purchase items that create brand stickiness.
  • A wellness vehicle: Functional ingredients and transparent labelling meet health-conscious demand.[15][26]
  • A TikTok story: Visually striking formats that can go viral in 15 seconds.[9]
  • A cultural signal: Drinks that express individuality and resonate with Gen Z values.[1]

In 2025, beverages are no longer the side act; they are the headline. Whether through limited-edition sodas, TikTok-ready refreshers, or wellness-focused cold brews, the brands that master beverage innovation are the ones that will win over Gen Z.

At Gulfood 2026, expect to see the world’s leading players launch the next wave of beverage breakthroughs that will define how a generation drinks, shares and connects.

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